Industrial Equipment Manufacturing - Turf Maintenance, Landscape & Construction Equipment
Strategic Profile
The Professional segment represents about 80% of the company's portfolio and achieved full-year earnings margin of 19.4%, demonstrating the resilience and quality of core businesses. The company is investing in technology leadership with strategic acquisitions like Tornado, with a robust innovation and business development pipeline focused on operational excellence and structural improvements.
Cyborg Score Rationale
The company generated record free cash flow in fiscal 2025, largely due to working capital improvements. The company's AMP cost-saving strategy resulted in 220 basis-point improvement in adjusted gross margin. The Toro Company's balance sheet is in a strong, fortress-like position, allowing ongoing operations and growth initiatives while returning capital.
Top Insights
The company's AMP productivity program is on track to deliver run-rate savings of at least $100 million by 2027, with current annualized savings of $75 million.
The company completed its acquisition of Tornado Infrastructure Equipment Ltd. for $279 million CAD, which manufactures hydrovac excavation equipment serving underground construction and energy markets.
The dividend yields about 2% as of end 2025 and is safe at 35% of earnings forecast, with a 22-year history of annual distribution increases.
Share buybacks reduced the count by an aggressive 4.4% in FY2025 and are expected to continue in FY2026.
Named Competitors
Deere & Company — Heavy equipment and machinery manufacturer