TTC
T3The Toro Company
OverviewThe Toro Company designs, manufactures, and sells professional and residential outdoor equipment globally. Its Professional segment, about 80% of sales, provide
The Toro Company designs, manufactures, and sells professional and residential outdoor equipment globally. Its Professional segment, about 80% of sales, provides turf, construction, snow, and irrigation solutions for golf courses, contractors, and municipalities. The Residential segment offers mowers and snow throwers to homeowners. They innovate with autonomous and hydrovac solutions, selling through dealers, retailers, and direct channels.
- What They Do (Plain English & Analogies)
- The Toro Company is like a comprehensive toolkit for maintaining and building outdoor spaces, from your backyard to vast golf courses and hidden underground infrastructure. For homeowners, they make familiar tools like lawnmowers, snow blowers, and trimmers. For professionals, they provide heavy-duty machinery for big jobs, such as specialized mowers for golf courses, equipment for landscaping contractors, and powerful machines for digging trenches and installing underground utilities. They also offer irrigation systems and snow removal equipment. Essentially, Toro helps people and businesses manage and care for land, whether it's above ground or below.
- Very Brief History
- Founded in 1914 in Minneapolis, Minnesota, as the 'Toro Motor Company' to build tractor engines. Toro shifted its focus to the golf industry in 1919, manufacturing the first mechanical golf course maintenance equipment. The company expanded into power mowers for homeowners in 1935 and grew through strategic acquisitions over the years, including Lawn-Boy (1989), Exmark Manufacturing (1997), Boss Snowplow (2014), and Charles Machine Works (Ditch Witch) in 2019. More recently, they acquired Tornado Infrastructure Equipment.
- "Street Stereotype"
- The Toro Company is generally perceived by investors and analysts as a reliable and established leader in the outdoor power equipment industry. It is particularly recognized for its strong presence in professional turf care (golf courses, landscaping) and its growing footprint in underground construction. The company is often seen as a stable, dividend-paying entity that prioritizes innovation, operational excellence, and strategic growth through both organic development and targeted acquisitions, leading to consistent profitability and shareholder returns.
- Subsidiaries On Linked In*
- Exmark Manufacturing — Manufacturer of commercial turf care equipment.; LinkedIn: exmark-manufacturing-company
- BOSS Snowplow — Leader in snow and ice management industry.; LinkedIn: boss-snowplow
- Ditch Witch — Underground construction equipment.; LinkedIn: ditch-witch
- Tornado Infrastructure Equipment — Recently acquired hydrovac excavation solutions provider.
- Hayter — British manufacturer of lawn care products.
- Irritrol Systems — Professional irrigation products.
- Lawn-Boy, Inc. — Residential lawn mowers.
- Perrot — German manufacturer of irrigation products.
- Spartan Mowers — Designs and manufactures zero-turn and stand-on mowers.
- American Augers — Underground construction equipment.
- HammerHead — Underground construction equipment.
- Radius — Underground construction equipment.
- Subsite Electronics — Underground construction equipment.
- Trencor — Underground construction equipment.
- Unique Lighting Systems — Professionally installed landscape lighting products.
- Ventrac — Articulated tractors and attachments.
- Customer Sectors & Example Clients
- TTC's customers operate in diverse sectors including: golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, equipment rental, government, and individual homeowners. In the professional sphere, this includes major golf course management companies, large landscaping firms, municipal parks departments, utility companies (for underground telecom and energy infrastructure), and construction companies. For residential products, their clients are individual homeowners, as well as big-box retailers and hardware retailers that sell their products. Specific client companies are not named in the transcript, but based on their business model, likely clients include: major golf course operators (e.g., Troon Golf, ClubCorp), large commercial landscaping companies (e.g., BrightView), large utility providers (e.g., AT&T, Verizon, local power companies) and construction firms specializing in infrastructure development, and retailers like Home Depot and Lowe's.
- New Customers / Segments They'Re Targeting
- The Toro Company is actively targeting new customer sets and expanding into specific segments, particularly within the professional sphere. They are seeing sustained demand from projects related to installing fiber to the home, building infrastructure for data centers (power, fiber, water), and broader cross-country power utility and broadband projects. The acquisition of Tornado Infrastructure Equipment further expands their reach in soft excavation, driven by increasing safety requirements around uncovering underground utilities. In the golf and grounds sector, they are targeting customers looking to increase productivity and address labor shortages by integrating autonomous turf maintenance solutions into their existing fleets. Through offerings like Orange Intel, they are targeting Ditch Witch customers who want to optimize productivity, manage maintenance and uptime, enhance security, and integrate job site data across the full job life cycle.
- Supply Chain And Sourcing Geographies
- The Toro Company manages a global supply chain and is actively working to optimize it to mitigate the impact of higher material and manufacturing costs and tariffs. The vast majority of their manufacturing occurs within the United States, with factories in Windom and Shakopee, Minnesota, Tomah, Wisconsin, and other locations across North America. The company also has manufacturing operations in Mexico, with "Mexican manufacturing products" being part of their normal distribution flow. While the transcript highlights efforts in managing costs and improving productivity, specific component sourcing geographies beyond the US and Mexico for manufacturing are not explicitly detailed in the available information.
- Sales Geographies And Expansion Plans
- The Toro Company sells its products worldwide, with a global presence extending to more than 125 countries. The United States is their largest market, accounting for approximately 80% of sales. International sales are also conducted in regions such as Canada, Europe, Asia-Pacific, Mexico, and Australia. While international sales, particularly in Europe and on the residential side, have shown some softness, the company continues to see strong demand in Canada, partly due to the Tornado acquisition. TTC is actively pursuing opportunities to expand its reach in the growing global market for underground construction equipment. They also have plans to expand in Europe and Asia-Pacific through high-end irrigation and autonomous mowing solutions.
- How Key Themes May Help/Hurt
- The "High Tax Refund '26: Deferred Durables & Home" theme presents a mixed impact for The Toro Company. **Potential Help (Bullish):** The expectation of significantly larger tax refunds in 2026 could provide a boost to consumer spending on deferred durable goods and home-related purchases. This could positively impact TTC's Residential segment, particularly for higher-end homeowners who might choose to invest in professional landscape contractor-grade products. Increased consumer confidence, if it materializes, could also lead to more discretionary spending on outdoor power equipment. Furthermore, the resilience in non-discretionary and professional segments, such as home maintenance and professional services, provides a stable demand floor, which aligns with TTC's strong Professional segment. **Potential Hurt (Bearish):** Persistent macroeconomic headwinds, including elevated inflation and a cautious, bifurcated consumer, could continue to suppress discretionary spending on big-ticket durables, especially for traditional residential customers who might be "buying down" to lower-end products. The housing market challenges due to "higher for longer" mortgage rates and a "lock-in effect" could limit housing turnover and new construction, indirectly impacting demand for new home-related durables. While the Professional segment is more resilient, a broader economic slowdown could eventually impact even professional spending.
3 Main Long-Term Bull Details
- Diversified Professional Portfolio with Structural Growth Drivers: Approximately 80% of TTC's business comes from its Professional segment, which is less susceptible to consumer volatility and benefits from stable demand in golf, grounds, and robust, multi-year growth drivers in underground construction (driven by aging infrastructure, data centers, and telecom/energy projects). The integration of Tornado Infrastructure Equipment further strengthens its position in the growing soft excavation market. 2. Leadership in Innovation and Autonomous Solutions: The company's continuous investment in R&D and strategic acquisitions drives market-leading innovation, particularly in autonomous turf care, smart connected products, and AI-enabled solutions. These technologies address critical customer needs like labor shortages and resource conservation, positioning TTC for significant future growth and competitive advantage. 3. Strong Financial Health and Disciplined Capital Allocation: With a healthy balance sheet (leverage ratio of 1.4x), robust free cash flow generation (125% conversion in Q2 2026), and a disciplined approach to capital allocation (prioritizing R&D, productivity, strategic M&A, and shareholder returns), TTC possesses the financial flexibility to pursue growth opportunities and navigate economic challenges effectively. The AMP program is consistently delivering significant productivity improvements and margin expansion.
3 Main Long-Term Bear Details
- Exposure to Cyclical and Seasonal Demand: Despite diversification, parts of TTC's business remain vulnerable to economic cycles (impacting professional and residential spending) and unpredictable weather patterns (affecting sales of snow and ice products or irrigation systems), which can lead to revenue volatility. The Residential segment, while showing an improved outlook, is still projected to be about flat for the full fiscal year 2026, indicating susceptibility to consumer confidence and inflation. 2. Persistent Cost Pressures and Tariff Volatility: The company continues to face challenges from higher material and manufacturing costs, as well as a dynamic tariff landscape. While the AMP program and pricing actions aim to mitigate these, persistent cost pressures could limit margin expansion and require careful management to remain price competitive. 3. International Market Softness: The company has noted unexpected softness in its international business, particularly within the Professional segment and European residential markets. This broad-based international weakness, alongside ongoing external factors such as the global economy and geopolitical environment, introduces uncertainty and could temper overall sales growth and profitability.
- Competitors And Differentiation
- Toro operates in highly competitive markets with rivals such as John Deere, Husqvarna, AGCO, and Blount International, Inc. Toro differentiates itself through: **Innovation and Technology:** They are leaders in developing advanced technology solutions, including electrification, smart connected products, autonomous solutions, and AI. Examples include the JT 21 horizontal directional drill with advanced capabilities, Orange Intel fleet management system, and autonomous turf maintenance solutions for golf courses. They leverage AI for enhancing autonomous vehicle navigation, R&D prototyping, simulation, and back-office efficiencies. **Broad Portfolio and Leading Brands:** They leverage a diverse portfolio of leading brands (Toro, Exmark, Ditch Witch, Ventrac, BOSS Snowplow, Tornado) to address a wide range of professional and residential needs. **Operational Excellence and Productivity:** The AMP program is a key differentiator, driving significant cost savings and margin improvement through lean principles, Kaizen events, and continuous improvement projects. This focus on productivity helps them offset inflationary pressures and maintain price competitiveness. **Customer-Driven Innovation:** They emphasize understanding customer needs and developing solutions that enhance operator efficiency, job site safety, and overall productivity and profitability for their customers.
- Recent Performance & What The Market'S Focused On
- The Toro Company delivered a strong second quarter in fiscal 2026, exceeding expectations with top-line growth of 8.1% to $1.42 billion and adjusted EPS of $1.60, representing 12.7% growth. This marks the second consecutive quarter of double-digit earnings growth, driven by strong demand across the portfolio and improving margins. Residential net sales grew 4.1% organically, and professional net sales grew 9.1% (6% organically), with particularly strong low double-digit organic growth in underground and specialty construction. Operating margins significantly improved, with residential margins reaching nearly 10% and pro margins over 20%, largely due to the successful AMP productivity program. Free cash flow was robust at $266 million, with a conversion rate of 125%. As a result of this strong performance, the company raised its full-year guidance, now expecting sales growth in the range of 4% to 6.5% and adjusted EPS in the range of $4.50 to $4.62. The market is focused on: **Sustained Professional Segment Growth:** Particularly in underground and specialty construction, and the continued strength in golf and grounds. **Effectiveness of the AMP Program:** Its ability to continue driving productivity and operational excellence to offset inflationary pressures and expand margins. **Residential Segment Recovery:** The outlook for residential sales to be about flat for the full year, and the sustainability of improved residential margins. **Impact of Tariffs and Macroeconomic Headwinds:** How the company navigates ongoing material and fuel inflation, and the dynamic tariff landscape, as well as broader macroeconomic and geopolitical uncertainties. **Adoption of New Technologies:** The progress and adoption rates of autonomous solutions, smart connected products, and AI across their platforms.
- Revenue Segments And Estimated Mix
- Professional — Mix: ~78%; Source: Q2 2026 earnings transcript; Trend: Net sales up 9.1% (6% organically) to $1.1 billion in Q2 2026. Full-year sales growth expected in the range of 5% to 7%. Driven by strong demand in golf and grounds, landscape contractor, and low double-digit organic sales growth in underground and specialty construction, including Tornado integration. Operating margin improved to over 20% in Q2.
- Residential — Mix: ~22%; Source: Q2 2026 earnings transcript; Trend: Net sales up 4.1% organically to $310 million in Q2 2026. Full-year sales growth expected to be about flat. Margins significantly improved to nearly 10% in Q2, driven by net price realization, productivity, and volume, partially offset by material, manufacturing, and freight costs.
- Product Brands
- Toro
- BOSS Snowplow
- Exmark
- Ditch Witch
- Lawn-Boy
- Hayter
- Irritrol
- Unique Lighting Systems
- Trencor
- Hammerhead
- Subsite Electronics
- Ventrac
- American Augers
- Spartan Mowers
- Radius
- TimeMaster
- TurfMaster
- Recycler
- TimeCutter
- Titan
- Power Clear
- Power Max HD
- GrandStand Revolution
- GeoLink Solutions
- Tornado Infrastructure Equipment
- Orange Intel
- Perrot
Bull / Bear DetailsThe Toro Company's investment thesis remains bullish as of June 6, 2026, driven by exceptional Q2 2026 performance, further raised full-year guidance, and robus
Thesis
The Toro Company's investment thesis remains bullish as of June 6, 2026, driven by exceptional Q2 2026 performance, further raised full-year guidance, and robust demand across its Professional segment, particularly in underground construction and landscape contractor. The successful AMP program is significantly expanding margins and generating strong free cash flow. While international softness and persistent inflation remain headwinds, the improved residential outlook and strategic focus on innovation and technology underpin sustainable long-term growth.
Bull case
TTC delivered outstanding Q2 2026 results, with 8% top-line growth and 13% adjusted EPS growth, exceeding expectations for the second consecutive quarter. This strong performance led to a further increase in full-year guidance, now projecting sales growth of 4%-6.5% and adjusted EPS of $4.50-$4.62, signaling robust confidence in future operational execution and market demand.
The Professional segment continues to drive growth, with 9.1% net sales increase, fueled by strong demand in underground construction (low double-digit organic growth, successful JT 21/JT 120 drills, Tornado integration exceeding expectations) and landscape contractor (high single-digit growth). Innovation in autonomous solutions for golf and smart connected products like Orange Intel further strengthens its market leadership.
The multi-year AMP program is significantly boosting profitability, driving Professional margins to over 20% and Residential margins to nearly 10% in Q2. The program remains on track to deliver $125 million in run-rate savings by year-end, contributing to exceptional free cash flow generation of $266 million in Q2 and a 125% conversion rate, demonstrating strong financial health.
Bear case
Despite strong overall performance, TTC continues to face macroeconomic and geopolitical headwinds, including persistent international softness, particularly in Europe and the residential segment. This broad-based international weakness could temper overall sales growth and profitability, limiting the company's global expansion efforts.
The company is navigating ongoing inflationary pressures, with an estimated $0.16 per share impact from material and fuel inflation for the year. While productivity and pricing actions are largely offsetting this, pressures are expected to be more acute in Q3, potentially challenging margin expansion and requiring careful management to remain competitive.
The Residential segment, while showing an improved outlook to "about flat" for the full year, still faces challenges from cautious consumer confidence and inflation. Additionally, potential drought conditions in key markets and inventory levels for zero-turn mowers being below desired levels could impact sales and growth in this segment.
Bull / Bear Case
- Bear Case
- Despite strong Q2 performance, The Toro Company faces significant macroeconomic and geopolitical headwinds, including persistent international softness, particularly in Europe and the residential segment, which could temper overall sales growth and profitability. The company is navigating ongoing inflationary pressures, with an estimated $0.16 per share impact from material and fuel inflation for the year, and these pressures are expected to be more acute in Q3, potentially challenging margin expansion. The Residential segment, while showing an improved outlook to "about flat" for the full year, remains vulnerable to cautious consumer confidence and inflation. Additionally, potential drought conditions in key markets and inventory levels for zero-turn mowers being below desired levels could impact sales and growth in this segment, indicating a challenging environment for discretionary consumer spending and global expansion efforts.
- Bull Case
- The Toro Company demonstrates strong momentum with outstanding Q2 2026 results, featuring 8% top-line growth and 13% adjusted EPS growth, leading to a raised full-year guidance of 4%-6.5% sales growth and $4.50-$4.62 adjusted EPS. The Professional segment, comprising 80% of sales, is a key driver, exhibiting 9.1% net sales growth, fueled by robust demand in underground construction (low double-digit organic growth, successful JT 21/JT 120 drills, Tornado integration exceeding expectations) and landscape contractor (high single-digit growth). The multi-year AMP program is significantly boosting profitability, achieving Professional margins over 20% and Residential margins near 10%, and is on track to deliver $125 million in run-rate savings. This operational excellence translates into exceptional free cash flow generation (125% conversion in Q2) and disciplined capital allocation, including investments in innovation like autonomous solutions and AI, positioning TTC for sustainable long-term growth.
- More Compelling & Why
- Bear. The Toro Company's current valuation, with a P/E ratio of approximately 25x (TTM) and EV/EBITDA of 15x, appears stretched compared to industry averages. The strongest bear argument is that these elevated multiples are not fully justified by the company's outlook, which includes "more acute" Q3 inflationary pressures, persistent international softness, and a residential segment only expected to be "about flat" for the year. My view would flip to bullish if TTC's valuation multiples contracted to align with peers, or if management demonstrated a clear path to accelerating, broad-based international and residential growth that unequivocally justifies a premium.
Key Factors
| Key Factor | Why It Matters | What To Watch | What It Signals | Where/How To Track | Free Alt Data | Paid Alt Data |
|---|---|---|---|---|---|---|
| Professional Segment Organic Sales Growth in Underground and Specialty Construction | This segment is a key growth driver, benefiting from infrastructure spending and new technologies like the JT 21 and Orange Intel. Strong performance here validates the growth thesis and contributes significantly to overall company revenue and profitability. | Organic sales growth rate in underground and specialty construction. Commentary on the order pipeline for products like the JT 21 horizontal directional drill and JT 120. Look for sustained 'low double digit' growth or higher. | Bullish if organic growth remains low double-digits or higher, or if the order pipeline continues to be robust and growing, indicating strong market demand and successful product innovation. | Toro Company's Q3 2026 earnings call (expected September 2026), company press releases, and investor presentations. | Government infrastructure spending reports (e.g., U.S. Department of Transportation on broadband/utility projects), industry reports on fiber optic deployment and data center construction trends. | Industrial Info Resources: Construction project tracking for utility and infrastructure; Dodge Data & Analytics: Non-residential construction starts data. |
| Progress towards $125 million AMP Program Cost Savings Target and Adjusted Operating Earnings Margin Expansion | The AMP program is a key driver of margin expansion and operational efficiency, directly impacting profitability and free cash flow. Achieving these savings is crucial for offsetting inflationary pressures and enhancing shareholder value. | Updates on the $125 million run rate savings target (on track for end of fiscal year 2026). Professional segment adjusted operating margin (over 20% in Q2 2026). Residential segment adjusted operating margin (nearly 10% in Q2 2026). | Bullish if AMP remains on track or exceeds savings, and if operating margins continue to expand or stabilize at higher levels (Professional >20%, Residential >10%), demonstrating effective cost management. | Toro Company's Q3 2026 earnings call (expected September 2026), company press releases, and SEC filings (10-Q). | S&P Global Market Intelligence: Company financial statements and analyst estimates; FactSet: Margin analysis and cost structure data for peer companies. | |
| Customer Adoption and Sales Growth of Autonomous Turf Maintenance Solutions | Autonomous solutions address critical customer needs like labor shortages and offer new efficiencies, representing a significant long-term growth opportunity and competitive advantage for Toro in the professional turf care market. | Management commentary on customer adoption rates, specific sales milestones, and the pipeline for autonomous turf solutions. Look for increased retail flow-through and qualitative feedback on enthusiasm. | Bullish if management reports accelerating adoption, strong order intake, or specific sales milestones for autonomous products, indicating market acceptance and future revenue streams. | Toro Company's Q3 2026 earnings call (expected September 2026), product announcements, and industry trade shows (e.g., GCSAA Conference and Show). | Google Trends: Search volume for 'Toro autonomous mower' or 'golf course robotics'; industry forums and publications on golf course technology and labor solutions. | Similarweb: Web traffic to Toro's autonomous product pages; Gartner/IDC: Market share reports and adoption trends for autonomous turf equipment. |
| Residential Segment Sales Growth and Inventory Levels | The residential segment, while smaller, is susceptible to consumer trends. Improved performance and healthy inventory management signal resilience and potential for future growth as replacement cycles approach. | Residential segment organic sales growth (expected to be about flat for FY26, low single digits for Q3 2026). Commentary on inventory levels, especially for zero-turn mowers, and efforts to meet elevated demand. | Bullish if residential sales growth remains flat or turns positive, and if inventory levels normalize to desired targets, indicating sustained consumer demand. Bearish if demand softens or inventory builds excessively. | Toro Company's Q3 2026 earnings call (expected September 2026), company press releases. | U.S. Census Bureau: Monthly Retail Trade Survey (Building Material & Garden Equipment and Supplies Dealers); The Conference Board: Consumer Confidence Index (Monthly). | Consumer card data (e.g., Earnest Research) for lawn and garden equipment purchases; Placer.ai: Foot traffic data for home improvement retailers selling Toro products. |
| Recovery and Growth in International Sales, particularly within the Professional segment | International markets offer diversification and growth potential. Persistent weakness can temper overall sales growth and profitability, while recovery would provide an additional tailwind to the company's performance. | Management commentary on international sales performance, especially for the Professional segment, and any signs of sequential improvement or return to positive year-over-year growth, particularly outside of Tornado's contribution. | Bullish if international sales show sequential improvement or return to positive year-over-year growth, indicating overcoming macroeconomic headwinds. Bearish if softness persists or worsens, especially in Europe. | Toro Company's Q3 2026 earnings call (expected September 2026), company press releases. | Eurostat: Retail trade volume for Europe; OECD: Leading Economic Indicators for key international markets where Toro operates. | Global trade data (e.g., Panjiva) for equipment exports; regional economic sentiment indices (e.g., IHS Markit PMIs for Europe and other key regions). |
Key Reported Metrics
| Metric | Why It Matters | Last Period |
|---|---|---|
| Adjusted Earnings Per Share Growth | A crucial measure of profitability and operational efficiency, this metric directly impacts shareholder value and reflects the success of cost-saving initiatives and overall financial management. | 13% |
| Consolidated Net Sales Growth | This metric reflects the overall top-line performance and market demand across both the Professional and Residential segments, indicating the company's ability to execute its strategy and capitalize on market opportunities. | 8.1% |
| Professional Segment Net Sales Growth | Representing approximately 80% of the portfolio, the Professional segment's performance is a primary driver of overall company results and a key indicator of strength in core markets like construction and golf. | 9.1% |
Key QuestionsWill The Toro Company's Professional segment sustain its strong organic sales growth, particularly in underground and specialty construction, and maintain opera
Will The Toro Company's Professional segment sustain its strong organic sales growth, particularly in underground and specialty construction, and maintain operating margins above 20% in the face of Q3 inflationary and tariff pressures, to meet or exceed its raised full-year guidance?
- Question 2
How quickly will customer adoption of advanced technology solutions, such as autonomous turf maintenance and AI-enabled water management, accelerate beyond "early stages" and begin to contribute materially to revenue growth and recurring service revenue, validating the long-term innovation thesis?
- Question 3
Can The Toro Company effectively mitigate the "more acute" inflationary and tariff pressures expected in Q3, alongside persistent international market softness, through its AMP program and pricing strategies, to achieve its raised full-year adjusted EPS guidance and maintain free cash flow conversion of at least 120%?
Rerating Thresholds
| Metric | What'S Needed For Rerating | Why It Matters | Earnings Date |
|---|---|---|---|
| Consolidated Net Sales Growth | Consolidated Net Sales Growth needs to hit at least 6.5% for Q2 2026. This would exceed the current analyst consensus of approximately 5.7-5.8% and align with the high end of the company's raised full-year guidance of 3% to 6.5%. | Achieving consolidated net sales growth of 6.5% or higher would signal robust demand and strong execution, particularly in the Professional segment. This performance would validate the company's raised full-year outlook and demonstrate effective mitigation of international market softness and ongoing cost pressures, thereby increasing investor confidence and potentially driving a higher valuation. | 2026-06-04 |
| Professional Segment Net Sales Growth | For The Toro Company (TTC) stock to rerate higher, the Professional Segment Net Sales Growth metric needs to hit at least 8% year-over-year. This would represent an acceleration from the 7.2% reported in Q1 2026 and exceed the company's own 'mid-single-digit' guidance for the segment, as well as the overall Q2 2026 revenue growth analyst consensus of approximately 5.7%. A strong organic growth component within this figure, coupled with positive commentary on international market recovery and continued strength in underground construction, would further bolster investor confidence. | Achieving Professional Segment Net Sales Growth of 8% or higher is crucial because this segment drives approximately 80% of TTC's revenue and is central to the bullish investment thesis. Exceeding expectations would signal robust demand in key markets, validate strategic initiatives like the AMP program and acquisitions, and demonstrate the company's ability to overcome international headwinds and cost pressures. This performance would likely lead to upward revisions in full-year guidance, improved valuation multiples, and a stronger competitive position. | 2026-06-04 |
| Adjusted Earnings Per Share Growth | For The Toro Company (TTC) to rerate higher, the Adjusted Earnings Per Share Growth for Q2 2026 needs to significantly exceed the current analyst consensus of 5.6% year-over-year, ideally hitting at least 8-10% or more. This would translate to an Adjusted EPS of approximately $1.55 to $1.58 or higher, compared to the consensus estimate of $1.50. Additionally, a further upward revision to the fiscal year 2026 Adjusted EPS guidance beyond the current range of $4.40-$4.60 would provide a strong bullish catalyst. | Achieving a higher Adjusted EPS Growth rate demonstrates robust operational execution and profitability, which are core to TTC's investment thesis of sustainable, profitable growth. Exceeding expectations signals effective cost management, strong demand in key segments, and successful integration of strategic initiatives, justifying a higher valuation and boosting investor confidence in the company's long-term financial performance and competitive position. | 2026-06-04 |
Earnings Transcript Summary
· 2026Q2 Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. **Accelerating profitable growth and operational excellence**: Management emphasized exceeding expectations with top-line growth and adjusted EPS, driven by strong demand and improving margins. The AMP program was highlighted as central to productivity and operational excellence, leading to significant margin improvements in both residential (nearly 10%) and professional (over 20%) segments. 2. **Investing in technology and innovation**: Management reiterated their focus on leveraging technology across platforms, including electrification, smart connected products, autonomous solutions, and AI. They cited examples like the JT 21 horizontal directional drill, Orange Intel fleet management system, and advancements in manufacturing efficiency. 3. **Disciplined capital allocation and financial strength**: The company demonstrated strong free cash flow generation of $266 million, an increase of $181 million year-over-year, and returned $361 million to shareholders through share repurchases and dividends in the first half. They also raised full-year guidance, reflecting confidence in their financial performance and ability to navigate external challenges. | The overall takeaway of the call was highly positive and confident. The Toro Company delivered a strong second quarter, exceeding expectations with robust top-line growth and double-digit earnings growth, driven by broad-based demand and significant margin improvements from their AMP productivity program. Management raised their full-year guidance for both sales and adjusted EPS, reflecting strong execution and confidence in their strategic priorities, including innovation in electrification, autonomous solutions, and AI. While acknowledging dynamic macroeconomic and geopolitical headwinds, the tone remained optimistic about sustained profitable growth and continued shareholder returns. | For the first quarter of fiscal 2026, consolidated net sales increased by more than 4%. Professional segment net sales were up approximately 7%, including a 1% to 2% contribution from the Tornado Infrastructure Equipment acquisition. Residential segment net sales exceeded guidance. | 1. **Tariff assumptions and their financial impact/refunds**: Analysts inquired about the updated tariff assumptions, the annualized impact, and how refunds would be accounted for. Management clarified that while the gross estimate for tariffs increased to $120 million, anticipated refunds of approximately $20 million for the fiscal year would largely offset this, resulting in a negligible net impact for the current fiscal year. They noted the $120 million is expected to be the run rate going forward, and the refund would be split between the Pro (70%) and Residential segments. 2. **Channel inventory levels and demand across segments**: Analysts questioned the contribution of seasonal sell-in to Q2 growth, lead times, and current inventory levels for residential, Ditch Witch, and snow products. Management stated they were back to a "more normal situation" with good flow and strong demand. They noted field inventories were in great shape, though residential zero-turn mowers were "somewhat below desired levels." For Ditch Witch, demand was "incredible sustained demand," leading to increased production. Snow inventory was at a "normal level." 3. **Future growth drivers, including autonomous products and acquisition strategy**: Analysts asked about the long-term outlook for residential, the adoption of autonomous products in golf, and the company's acquisition strategy. Management expressed optimism for residential returning to a "normal longer-term growth rate" and seeing opportunities for growth. For autonomous golf products, they noted increasing enthusiasm and starting to see retail flow-through, while tempering immediate revenue expectations. Regarding acquisitions, they emphasized a "disciplined approach" focusing on areas where they "already play and win" and that expand markets with strong runways and profit pictures, citing Tornado as a perfect example. | Consolidated net sales grew 8.1%, or 5.7% organically. Professional segment net sales increased 9.1%, or 6% organically, with mid-single digit sales growth in golf and grounds, high single-digit sales growth in landscape contractor, and low double-digit organic sales growth in underground and specialty construction. Residential segment net sales grew 4.1% organically. |
· 2026Q1 Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. **Executing Strategic Priorities and Driving Profitable Growth**: Management emphasized capitalizing on market opportunities, driving operational excellence, and leveraging their portfolio of leading brands for profitable growth and competitive advantage. This was evident in their strong execution in snow and ice products and continued growth in underground and specialty construction. 2. **Investing in Technology and Innovation**: The company is focused on investing in value-creating technology and innovation, including new products like BOSS plows with Cold Front Technology, the Ditch Witch SK 1000, AI-enabled Spatial Adjust software, and expanding their range of autonomous turf maintenance solutions. 3. **Productivity Improvements and Cost Savings (AMP Program)**: Management highlighted the ongoing implementation of their multiyear AMP program, which is fueling sustainable productivity improvements and contributing to significant cost savings, aiming to offset higher material and manufacturing costs. | The overall takeaway of the call was highly positive and confident. The Toro Company delivered a strong first quarter, exceeding expectations in both its Professional and Residential segments, primarily driven by robust execution in snow and ice products and continued strength in underground and specialty construction. Management expressed confidence in their strategic priorities, including ongoing innovation, the AMP productivity program, and disciplined capital allocation, leading to an upward revision of their full-year sales and adjusted EPS guidance. While acknowledging some softness in international markets, the tone remained optimistic about future growth opportunities and financial performance. | For the fourth quarter of fiscal 2025, consolidated net sales decreased by 0.9%. Professional segment net sales were down 0.4%. Residential segment net sales declined by 5.1%. | 1. **Professional Segment Organic Growth**: Analysts inquired about the organic growth rate of the Professional segment, excluding the Tornado acquisition. Management responded that Professional sales were up about 7% in Q1, with Tornado contributing 1% to 2%, implying organic growth around 5% to 6%. They also noted some offset from softness in international markets. 2. **Contribution of Snow and Ice Products**: Analysts asked for context on how much snow and ice sales contributed to the quarter's growth. Management stated that snow was the largest portion of the increase in both the Professional and Residential segments, leading to a very positive field inventory position for the second half of the year. 3. **Annual Guidance Breakdown and Professional Segment Outlook**: Analysts questioned how the high end of the annual sales guidance would be achieved and why the Professional segment guidance wasn't raised despite strong Q1. Management explained that the high end would be driven by more than the average 1% to 2% net realized price and largely by organic growth in the Professional segment (underground, Professional contractor, Golf and Grounds, and strong second-half snow sell-in). They noted that the Professional segment's guidance was not raised due to more softness in international markets than expected, while Residential guidance was increased due to strong Q1 snow results. | Consolidated net sales increased by more than 4% to $1.04 billion. Professional segment net sales were up approximately 7% in the quarter, including a 1% to 2% contribution from the Tornado Infrastructure Equipment acquisition. Residential segment net sales exceeded guidance, benefiting from higher shipments of snow and ice products and net price realization. |
Transcript Tidbits
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| The Toro Company is seeing a long runway of growth for its Tornado business, as the need for soft excavation is significant and growing due to increasing requirements around safely uncovering underground utilities. The JT 21 horizontal directional drill, designed for maximum uptime and enhanced operator efficiency, continues to be a key highlight in underground construction with a robust and growing order pipeline. The company is also leveraging Orange Intel, a customizable fleet management and job site intelligence system, to help Ditch Witch customers optimize productivity and manage job site data. In golf, while still in early stages, customers are recognizing how Toro's autonomous portfolio complements existing fleets, increases productivity, and unlocks new efficiencies in their labor force. The JT21 is particularly popular for installing fiber to the home, and the JT 120, the largest drill in its category, is used for broader projects like cross-country power utility and broadband, with strong demand driven by data center infrastructure needs. The company focuses on acquisitions in areas where they already play and win, like Tornado, which was a logical extension and opened up new business opportunities. They also leverage technology across disparate markets, as seen with robotics acquisitions, and are open to new strategic areas, primarily on the professional side. | The JT21 horizontal directional drill is replacing the de facto standard in the marketplace, but Toro has made it better with smart features and connectivity through Orange Intel. The company aims to maintain or increase its market share in autonomous products compared to its existing ICE mowers as autonomous solutions become a bigger part of sales. | The Toro Company achieved its second-quarter performance despite macroeconomic and geopolitical headwinds and increased inflationary pressures. The increasing number of states and countries with requirements around safely uncovering underground utilities is driving demand for soft excavation, a trend expected to continue. Spring conditions were more typical this year, providing a favorable year-over-year comparison to the late spring last year, which had shifted some second-quarter sales into the third quarter. Consumer confidence and inflation continue to be challenging. Weather conditions are being monitored, as a strong start to spring has given way to potential drought conditions in some key markets. However, a lack of rain, while potentially dragging on residential and contractor business, means better weather for golf, with rounds played tracking 5% above last year's record. Demand for landscape contractors has been healthy throughout the pandemic and post-pandemic cycle, with many contractors doing both snow and landscaping. The need for power, fiber, and water for data centers is driving significant demand in underground construction. | The Toro Company is raising its full-year guidance, now expecting sales growth in the range of 4% to 6.5% and adjusted EPS in the range of $4.50 to $4.62. The professional segment is expected to grow in the range of 5% to 7% for the year, and the outlook for full-year residential sales growth has improved to be about flat. For the third quarter, total company sales are expected to be up mid-single digits, with professional up mid-single digits and residential up low single digits. Normal seasonality is anticipated, with Q3 total company margins lower than Q2, and pressures from inflation and tariffs expected to be more acute in Q3. Full-year adjusted EPS growth is now expected to be high single digits, with free cash flow conversion of at least 120%. The AMP program remains on track to deliver $125 million in run rate savings by the end of this fiscal year. The company continues to make progress in electric, smart connected, and autonomous solutions, with AI accelerating capabilities across all platforms, including autonomous vehicle navigation, R&D prototyping, and back-office efficiencies. Residential products purchased in 2020 are reaching replacement age, which should at least not be a headwind, and the residential market is expected to return to a more normal, longer-term growth rate. Field inventory for snow is viewed as being at a normal level, with expectations for a normal stocking in the latter half of the year. | Residential | Electrification, Smart Connected Products, Autonomous Solutions, AI, Manufacturing Efficiency, Data Center Infrastructure Development. | The Toro Company continued its strong start to the year, exceeding expectations with second quarter top line growth of 8% and adjusted EPS of $1.60. This is the second consecutive quarter of double digit earnings growth driven by strong demand and improving margins. Demand was broad based across our portfolio. We are raising our full year guidance. Our AMP program remains on track to deliver $125 million in run rate savings by the end of this fiscal year. We delivered our highest level of operating margin in 3 years. We see a long runway of growth for this business as the need for soft excavation is significant and growing. We are actually a little bit lower than we would like to be in some of the categories Residential Zs, I think, are a little bit off our target a little bit. Demand is hung in really nice on the equipment side. | despite macroeconomic and geopolitical headwinds and increased inflationary pressures. Even as consumer confidence and inflation continue to be challenging. We estimate the impact from inflation will be approximately $0.16 per share. tax is trending higher for the year due to our geographic mix of earnings, for an approximate $0.04 impact to EPS. Pressures from inflation and tariffs will be more acute in Q3 as the mitigation actions we are taking will not be fully in place until Q4. And we are monitoring weather conditions across the country. Where a strong start to spring has given way to potential drought conditions in some key markets. The main driver for this adjusted EPS growth rate is a higher year over year tax rate. Still see softness particularly in Europe and particularly on the residential side. Maybe at sort of the lower end where people are sort of reaching into that range that they still are a little bit more cautious at this point. | The company's strategic facility closures, reductions in salaried workforce, and divestitures of non-core businesses and product lines have contributed to strong margin improvement. |
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| The company expanded its hydrovac excavation solutions through the acquisition of Tornado Infrastructure Equipment, which is a natural adjacency to existing businesses, enabling expansion in this market. They are actively pursuing opportunities in the growing global demand for underground construction equipment, fueled by aging infrastructure, new data centers, and energy/telecommunications projects. In Golf, Grounds, and Irrigation, they are building a pipeline of innovations to maximize workforce productivity and reduce costs, including the AI-enabled Spatial Adjust software and the new RXC irrigation controller. The Toro Company now offers the market's broadest range of autonomous turf maintenance solutions. | The Toro Company leveraged its portfolio of leading brands for profitable growth and competitive advantage. They pursue deliberate strategies through their AMP program to preserve profit margins and remain price competitive. The first quarter results demonstrate their competitive positioning and market-leading innovation. The company is co-developing technology across brands like Orange Intel, Horizon 360, and Intelli360, suggesting a focus on integrated digital offerings as a competitive edge. | External factors like the economy, geopolitical environment, and weather are ongoing considerations. There is a growing global demand for underground construction equipment, driven by aging infrastructure, new data centers, and a rise in energy and telecommunications projects. Labor represents a significant portion of golf course budgets, and finding and attracting labor is a challenge for many golf courses, driving interest in autonomous solutions. International participation in Golf has been good, similar to the U.S., but investment internationally has seen some softness due to the macroeconomic environment. | The company is well-positioned for robust performance in snow and ice categories in the back half of the year. Customer demand for underground and specialty construction is expected to remain strong. The sales and earnings outlook for fiscal 2026 has been raised, with total company net sales growth expected to be 3% to 6.5% and adjusted EPS guidance raised to $4.40 to $4.60. An improved free cash flow conversion rate of at least 120% is now expected. For Q2 2026, total company net sales are expected to increase mid-single digits. They are very optimistic about the future potential of autonomous turf maintenance solutions and expect additional interest and growth in this area. Incoming orders for Golf and Grounds have been brisker than anticipated. | Residential | Automation and AI (AI-enabled Spatial Adjust software, autonomous turf maintenance solutions), Sustainability/Resource Management (water management system), Infrastructure Development / Digital Infrastructure (underground construction equipment demand fueled by aging infrastructure, new data centers, telecommunications projects), Labor Shortages / Workforce Productivity (difficulty finding labor for golf courses driving autonomous solutions). | As a result, we beat expectations in both segments and increased consolidated net sales by more than 4% to $1.04 billion. Our outperformance was driven by strong execution in both our Professional and Residential segments. We reported better-than-expected adjusted earnings per share of $0.74, up from $0.65 a year ago. This operational agility and strong execution not only contributed to excellent Q1 top-line growth but also positions us well for robust performance in these categories in the back half of this year. We are raising our sales and earnings outlook for fiscal 2026 based on our strong execution and the strength of our first quarter performance. I am confident in our ability to deliver sustainable, profitable growth for the long term. We are very optimistic about their future potential. Incoming orders have been a bit more brisk than we probably anticipated. | This was partially offset by higher material and manufacturing costs. While external factors like the economy, geopolitical environment, and weather are ongoing considerations. We did see some of that offset by some softness that we saw in international. Residential segment net sales that are expected to be flat to down 3%. I would say that for Pro, we probably saw a little more softness in international than we expected. Valuations have been high, but there are some signs of moderating a little bit. Less snow in the West would be less positive going into the spring. Macroeconomic environment not being quite as strong and maybe a bit less investment internationally than we are seeing in the U.S. |
Earnings ResultsThe Toro Company exceeded expectations with 8% top-line growth, driven by strong demand and improving margins. The reported 8.1% consolidated net sales growth s
| Metric | Prior Quarter | Rerating Trigger | Actual Reported | Hit Target? | Notes |
|---|---|---|---|---|---|
| Consolidated Net Sales Growth | 8.1% | Consolidated Net Sales Growth needs to hit at least 6.5% for Q2 2026. This would exceed the current analyst consensus of approximately 5.7-5.8% and align with the high end of the company's raised full-year guidance of 3% to 6.5%. | $1.42 billion (8.1% y/y growth) | Yes | The Toro Company exceeded expectations with 8% top-line growth, driven by strong demand and improving margins. The reported 8.1% consolidated net sales growth surpassed the rerating trigger of at least 6.5%. |
| Professional Segment Net Sales Growth | 9.1% | For The Toro Company (TTC) stock to rerate higher, the Professional Segment Net Sales Growth metric needs to hit at least 8% year-over-year. This would represent an acceleration from the 7.2% reported in Q1 2026 and exceed the company's own 'mid-single-digit' guidance for the segment, as well as the overall Q2 2026 revenue growth analyst consensus of approximately 5.7%. A strong organic growth component within this figure, coupled with positive commentary on international market recovery and continued strength in underground construction, would further bolster investor confidence. | $1.1 billion (9.1% y/y growth) | Yes | The Professional segment demonstrated strong performance with 9.1% net sales growth, exceeding the 8% rerating trigger. This was supported by broad-based demand, including low double-digit organic sales growth in underground and specialty construction. |
| Adjusted Earnings Per Share Growth | 13% | For The Toro Company (TTC) to rerate higher, the Adjusted Earnings Per Share Growth for Q2 2026 needs to significantly exceed the current analyst consensus of 5.6% year-over-year, ideally hitting at least 8-10% or more. This would translate to an Adjusted EPS of approximately $1.55 to $1.58 or higher, compared to the consensus estimate of $1.50. Additionally, a further upward revision to the fiscal year 2026 Adjusted EPS guidance beyond the current range of $4.40-$4.60 would provide a strong bullish catalyst. | $1.60 (13% y/y growth) | Yes | The company reported adjusted EPS of $1.60, a 13% increase year-over-year, significantly exceeding the rerating trigger of 8-10% growth and the target EPS range of $1.55 to $1.58. This strong result was primarily driven by professional segment volume and profitability. The full-year adjusted EPS guidance was also raised to $4.50-$4.62, up from the prior range of $4.40-$4.60. |
Upcoming Events
| Catalyst ID | Estimated Timing | Estimated Date Start | Estimated Date End | Catalyst | Why It Matters | Ticker Or Theme Specific | Transcript Date | Source Type |
|---|---|---|---|---|---|---|---|---|
| TTC_64ce19f7 | by 2026 | 2026-03-05 | 2026-10-31 | Completion of the multiyear AMP program, achieving the aggregate goal of $125 million in cost savings. | Reaching the full cost savings target will drive sustainable productivity improvements, support profit margins, and offset higher material and manufacturing costs and tariffs, which is bullish for profitability. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_90bc2d12 | back half of this year | 2026-05-01 | 2026-10-31 | Strong sales and performance of snow and ice products in the second half of fiscal 2026, driven by channel health and new product lines. | Robust performance in these categories, which have attractive margins, will contribute significantly to top-line growth and overall profitability, positively impacting investor sentiment. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_dbc3e4cb | multiyear growth | 2026-03-05 | 2028-12-31 | Continued realization of multiyear growth in the underground and specialty construction businesses, supported by infrastructure spending and new projects. | Sustained growth in these strategic segments will drive consistent revenue expansion and market share for The Toro Company, reinforcing its long-term growth trajectory. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_67a341fa | full-year 2026 | 2026-03-05 | 2026-10-31 | The Toro Company's achievement of its raised fiscal 2026 guidance for total company net sales growth (3% to 6.5%) and adjusted earnings per share ($4.40 to $4.60). | Meeting or exceeding this updated guidance would validate strong operational execution and market demand, positively impacting investor sentiment, valuation, and demonstrating financial discipline. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_83394a61 | second quarter of 2026 | 2026-02-01 | 2026-04-30 | The Toro Company's achievement of its Q2 2026 guidance for mid-single-digit net sales growth and mid-single-digit adjusted earnings per share growth. | As the largest quarter, meeting or exceeding Q2 guidance would confirm the company's strong momentum and execution, providing a positive signal for the remainder of the fiscal year and investor confidence. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_bec8e417 | This spring | 2026-03-01 | 2026-05-31 | Commercial launch and market reception of The Toro Company's new RXC irrigation controller, expanding its water management suite. | A successful launch and adoption of this innovative product could drive new sales, enhance customer value through cost savings and water conservation, and potentially bolster recurring revenue streams. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_ecc619b3 | early in their growth life cycle | 2026-03-05 | 2028-12-31 | Increasing market adoption and commercial growth of The Toro Company's broad range of autonomous turf maintenance solutions across various product platforms. | Successful commercialization of autonomous solutions addresses critical labor challenges for customers and represents a significant long-term revenue opportunity, strengthening TTC's competitive advantage and market leadership. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_7841ca67 | on track for the year | 2026-03-05 | 2026-10-31 | The recovery or continued softness in The Toro Company's international business performance, particularly in Europe and Asia, which showed some weakness in Q1. | A rebound in international sales would contribute positively to overall revenue growth and profitability, while persistent softness could offset domestic strength and impact full-year guidance. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_b18c76d6 | ongoing basis | 2026-03-05 | 2027-03-05 | The Toro Company pursuing strategic mergers and acquisitions, particularly in professional segments like underground and specialty construction or technology investments, given moderating valuations. | Successful and disciplined M&A could expand TTC's market reach, technology portfolio, or product offerings, driving future growth, competitive advantage, and shareholder value. | Ticker | 2026-03-05 | earnings_transcript |
| TTC_76e0033f | by the end of this fiscal year | 2026-08-01 | 2026-10-31 | Achievement of the $125 million run-rate savings target from The Toro Company's AMP productivity program. | This target is crucial for margin expansion and offsetting inflationary pressures. Achieving or exceeding it would be bullish for profitability and investor sentiment, while a shortfall would be bearish. | Ticker | 2026-06-04 | earnings_transcript |
| TTC_97f3fad3 | to support the strong demand in the underground construction market | 2026-05-01 | 2026-10-31 | Successful ramp-up and utilization of the new paint system at the Perry, Oklahoma facility, leading to increased efficiency and capacity for underground construction products. | This investment aims to support strong demand in the high-growth underground construction segment. Successful realization of its benefits would be bullish for sales growth and operational efficiency. | Ticker | 2026-06-04 | earnings_transcript |
| TTC_057eca63 | our expectation is to accrue about $8 million of that anticipated refund in our Q3 and the remainder would come in Q4 | 2026-05-01 | 2026-10-31 | Receipt and accrual of the remaining anticipated tariff refund, with $8 million expected in fiscal Q3 and the remainder (approximately $12 million) in fiscal Q4. | The refund will provide a financial benefit, offsetting some of the tariff costs. Receipt as expected would be neutral to slightly bullish, while delays or a lower amount would be bearish for financial results. | Ticker | 2026-06-04 | earnings_transcript |
| TTC_0e46a455 | not be fully in place until Q4 | 2026-08-01 | 2026-10-31 | Full implementation and effectiveness of mitigation actions to offset acute inflation and tariff pressures, which are expected to be more acute in fiscal Q3. | Successful implementation of these actions is critical for protecting margins in Q4 and beyond. Failure to fully mitigate these pressures could negatively impact profitability and guidance. | Ticker | 2026-06-04 | earnings_transcript |
| TTC_aef3fa41 | monitoring weather conditions across the country. Where a strong start to spring has given way to potential drought conditions in some key markets. | 2026-06-01 | 2026-09-30 | Worsening or prolonged drought conditions in key markets impacting demand for residential and landscape contractor products. | Severe drought could negatively impact demand for residential and landscape contractor products, potentially affecting sales and guidance for these segments. | Ticker | 2026-06-04 | earnings_transcript |
| TTC_305fde3e | early stages of growth | 2026-06-01 | 2027-06-01 | Acceleration or deceleration in customer adoption rates for autonomous turf maintenance solutions in the golf and grounds segment. | Faster adoption would be bullish for long-term revenue growth and market share in the golf and grounds segment, while slower adoption could temper future expectations. | Ticker | 2026-06-04 | earnings_transcript |
| TTC_9544b56c | 2027 | 2026-11-01 | 2027-10-31 | Commencement and strength of the residential product replacement cycle for products purchased during the pandemic (around 2020). | A robust replacement cycle would provide a significant tailwind for residential sales, potentially driving growth beyond the current 'flat' outlook. A weaker-than-expected cycle would be bearish. | Ticker | 2026-06-04 | earnings_transcript |