The Toro Company reported its financial results for the third quarter of fiscal 2025, revealing a decline in both revenue and profitability compared to the same period last year. Consolidated net sales for the quarter were $1,131.3 million, a decrease of 2.2% from $1,156.9 million in the third quarter of fiscal 2024. For the first nine months of fiscal 2025, net sales totaled $3,444.2 million, down 1.8% from $3,507.8 million in the prior year. The decline was primarily attributed to lower shipments in the Residential segment, which saw a significant drop of 27.9% in the third quarter, while the Professional segment experienced a 5.7% increase in sales.
Net earnings for the third quarter were $53.5 million, or $0.54 per diluted share, compared to $119.3 million, or $1.14 per diluted share, in the same quarter last year. The year-to-date net earnings also fell to $243.1 million, or $2.42 per diluted share, from $329.0 million, or $3.14 per diluted share, in the prior year. The decrease in earnings was significantly impacted by an $81.1 million non-cash impairment charge related to the Spartan trade name, which was fully impaired during the quarter.
Operationally, Toro's Professional segment reported net sales of $930.8 million for the third quarter, driven by increased shipments of underground construction and golf products. In contrast, the Residential segment's sales fell to $192.8 million, reflecting broader declines across its product lines. The company noted that field inventory levels were higher at the end of the quarter, primarily due to increased balances of underground construction products, although dealer destocking efforts for turf products partially offset this increase.
In terms of strategic developments, Toro has been actively pursuing its Amplifying Maximum Productivity (AMP) initiative, which aims to achieve annualized cost savings exceeding $100 million by fiscal 2027. As of the third quarter, the initiative has already delivered cumulative cost savings of $50.6 million. The company also maintained its commitment to returning value to shareholders, increasing its quarterly cash dividend by 5.6% to $0.38 per share and repurchasing shares under its stock repurchase program, returning a total of $403.8 million to shareholders in the first nine months of fiscal 2025.
Looking ahead, Toro anticipates continued challenges due to market conditions, including elevated field inventory levels and ongoing supply chain disruptions. The company remains focused on mitigating inflationary pressures through strategic pricing and operational efficiencies while navigating the complexities of the current economic environment.
About TORO CO
The Toro Company designs, manufactures, and markets professional and residential outdoor equipment, including turf maintenance, landscaping, irrigation, snow removal, and construction products. Serving global markets, it offers innovative, high-quality solutions through a broad brand portfolio and extensive distribution channels. Focused on sustainability, safety, and customer service, the company leverages technology, strategic acquisitions, and manufacturing efficiency to maintain industry leadership.
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