TTCNYSELawn & Garden Tractors & Home Lawn & Gardens EquipUS GAAP · USD

The Toro Company

Toro Co. designs, manufactures, and markets equipment and systems for turf maintenance, irrigation, landscaping, snow and ice management, and rental, specialty, and underground construction. Its business is organized around Professional and Residential offerings sold through distributors, dealers, retailers, rental centers, home centers, and direct channels in the United States and more than 125 countries.

Ask about the company
Revenue4,510m USD
−1.6 %y/y
Operating profit (EBIT)410m USD
−23.1 %y/y
EBIT margin9.1%
−2.5 ppy/y
Net income316m USD
−24.5 %y/y
Free cash flow578m USD
+24.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

01,0002,0003,0004,0005,000m USD2020: 3,379 m USD2020: EBIT 426 m USD20202021: 3,960 m USD2021: EBIT 518 m USD20212022: 4,515 m USD2022: EBIT 576 m USD20222023: 4,553 m USD2023: EBIT 431 m USD20232024: 4,584 m USD2024: EBIT 533 m USD20242025: 4,510 m USD2025: EBIT 410 m USD20254,510410
RevenueOperating profit (EBIT)
Ask Clarifo about The Toro Company

Business

Share of revenue
Professional turf and grounds equipment30 %

Commercial mowers, turf maintenance machines, and related products for golf, sports fields, and grounds care.

Irrigation and landscape systems15 %

Irrigation systems, landscape lighting, and related professional water-management products.

Underground construction equipment20 %

Horizontal directional drills, trenchers, vacuum excavators, locators, and pipe rehabilitation tools.

Rental and specialty construction equipment10 %

Stand-on skid steers, stump grinders, turf renovation, and rental-focused construction equipment.

Residential lawn and snow products20 %

Zero-turn mowers, walk mowers, snow throwers, and yard tools for homeowners.

Agricultural and other products5 %

Agricultural irrigation and smaller adjacent product lines and services.

Products

Reported · share of revenue
90.2%9.8%FY2025100 %
  • Equipment Products and Services90.2 %
  • Irrigation9.8 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Toro sells to a broad mix of professional and consumer buyers. Professional customers include golf courses, sports fields, landscape contractors, municipalities, utilities, rental companies, and specialty contractors, while Residential customers include homeowners purchasing through retailers, dealers, and online channels. The company also serves distributors and large retailers that resell equipment to end users, which makes channel relationships central to demand and market access.

Golf and grounds care

Golf courses, sports fields, and grounds teams buy professional turf equipment for precision maintenance and uptime.

Landscape contractors

Contractors buy mowers, trenchers, and turf renovation tools to support commercial landscaping work.

Underground construction contractors

Specialty contractors buy drills, trenchers, locators, and vacuum excavators for utility installation.

Residential homeowners

Homeowners buy mowers, snow throwers, and yard tools for lawn care and seasonal maintenance.

Rental centers and large retailers

These channels buy specialty and rental equipment for downstream rental or resale to end users.

Strategy

Toro’s strategy centers on product innovation, channel breadth, and service support across professional and residential end markets. The company is also focused on expanding its technology mix, including alternative power, smart connected, and autonomous solutions, while using acquisitions and productivity initiatives to strengthen its product portfolio and operating model.

New product developmentMedium term

A significant portion of sales comes from new and enhanced products, so innovation supports demand and channel relevance.

Professional segment expansionMedium term

Professional markets offer broader commercial applications and can be expanded through product breadth and acquisitions.

Productivity and supply-chain optimizationShort term

Manufacturing efficiency and sourcing discipline help protect competitiveness in a tariff- and inflation-sensitive business.

Channel and service strengthLong term

Dealer, distributor, retailer, and rental relationships are central to market access and after-purchase support.

Geography

Toro sells products worldwide through a network that spans more than 125 countries, with the United States as its core market and Europe as an important competitive region. It also operates internationally through distributors and dealers, and it has manufacturing and distribution activity outside the U.S., including Canada through the Tornado Infrastructure Equipment acquisition. Foreign currency, local channel structure, and regional weather patterns all affect demand and competitiveness across markets.

Risks

Toro is exposed to cyclical demand in professional and residential outdoor equipment, weather-driven seasonality, and intense competition across both commercial and consumer channels. It also faces supply-chain disruption, tariff pressure, foreign exchange volatility, and integration risk from acquisitions, while accounting judgments around promotions, impairment, and hedging can materially affect reported results.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Weather and seasonality1Tariffs and supply-chain disruption2Competitive pressure3Acquisition integration4Foreign exchange volatility5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Weather and seasonalityImpact: HighLikelihood: High

    Snowfall, rainfall, and temperature patterns directly affect demand for mowers, snow products, and irrigation equipment.

    ExposureResidential snow throwersIrrigationTurf products
  2. Tariffs and supply-chain disruptionImpact: HighLikelihood: High

    The company sources components globally, so tariffs or shortages can increase costs and constrain availability.

    Exposure: Imported components and finished goods

  3. Competitive pressureImpact: MediumLikelihood: Medium

    Residential products have low barriers to entry and face many direct competitors, especially internationally.

    ExposureResidential mowersSnow throwersYard tools
  4. Acquisition integrationImpact: MediumLikelihood: Medium

    Integrating acquired businesses can create execution risk around systems, governance, and expected synergies.

    Exposure: Tornado Infrastructure Equipment

  5. Foreign exchange volatilityImpact: MediumLikelihood: Medium

    A stronger U.S. dollar can make products less competitive in foreign markets and pressure margins.

    Exposure: Europe and other international markets

Ask Clarifo about The Toro Company

Accounting

Judgemental items
Sales promotions and incentives

These programs may be recorded as variable consideration or as SG&A, affecting gross margin and operating expense presentation.

Impact: Revenue and gross sales

Goodwill and indefinite-lived intangible impairment

Management must test reporting units and trade names for impairment when cash flow expectations change.

Impact: Non-cash charges and asset values

Foreign currency derivatives

Hedging instruments are used to manage local-currency sales exposure and can create mark-to-market effects.

Impact: Earnings volatility and OCI

Seasonality and weather-driven demand

Quarterly results can vary materially with snowfall, rainfall, and buying patterns across channels.

Impact: Revenue timing and inventory levels

Similar listed companies

Publicly listed companies with a comparable business focus.

eToro Group Ltd.

ETOR · Security Brokers, Dealers & Flotation Companies

Thor Industries, Inc

THO · Motor Homes

Deere & Company

DE · Farm Machinery & Equipment

Toro Corp

TORO · Deep Sea Foreign Transportation of Freight

Solo Brands, Inc.

SBDS · Sporting & Athletic Goods, NEC

Monro, Inc

MNRO · Services-Automotive Repair, Services & Parking

Last updated: 24/09/2026