The Toro Company reported a strong financial performance for the second quarter of fiscal 2026, with consolidated net sales reaching $1,424.7 million, an increase of 8.1% from $1,317.9 million in the same period last year. For the first six months of the fiscal year, net sales totaled $2,461.0 million, up 6.4% from $2,312.9 million. The growth was primarily driven by net price realization, contributions from the recent acquisition of Tornado Infrastructure Equipment, and higher shipments across both the Professional and Residential segments.
In terms of profitability, net earnings for the second quarter were $145.4 million, or $1.50 per diluted share, compared to $136.8 million, or $1.37 per diluted share, in the prior year. For the first half of fiscal 2026, net earnings were $213.3 million, or $2.18 per diluted share, up from $189.6 million, or $1.88 per diluted share, in the same period of fiscal 2025. The company also reported adjusted net earnings of $155.4 million for the second quarter, reflecting a 12.7% increase in earnings per diluted share compared to the previous year.
The acquisition of Tornado Infrastructure Equipment, completed on December 8, 2025, for $210.3 million, has expanded Toro's capabilities in the hydrovac excavation solutions market. This acquisition is expected to enhance the company's Professional segment and broaden its dealer network. The integration of Tornado's operations contributed $29.7 million to net sales in the second quarter and $48.7 million in the first half of fiscal 2026. The company incurred approximately $5.7 million in acquisition-related costs during the first six months of the fiscal year.
Operationally, Toro's Professional segment saw net sales increase by 9.1% to $1,106.6 million in the second quarter, while the Residential segment reported a 4.4% increase to $310.4 million. However, Residential segment sales for the first half of the fiscal year decreased slightly by 0.4%. The company maintained a focus on managing inventory levels, which decreased by 17.5% year-over-year, reflecting strong demand for landscape equipment. Toro's order backlog remained stable, indicating normalized demand levels.
Looking ahead, Toro anticipates continued growth driven by its productivity initiatives, including the AMP initiative, which aims to achieve at least $125 million in run-rate savings by fiscal 2027. The company also plans to navigate ongoing challenges related to tariffs and inflation through strategic pricing and operational efficiencies. With available liquidity of $983.3 million, Toro is well-positioned to meet its working capital needs and pursue further growth opportunities.
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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