The Toro Company reported a solid financial performance for the first quarter of fiscal 2026, with consolidated net sales reaching $1,036.3 million, a 4.2% increase from $995.0 million in the same period last year. The Professional segment led this growth, generating $824.0 million in sales, up 7.2% from $768.8 million, while the Residential segment saw a decline of 6.8%, with sales of $206.0 million compared to $221.0 million in the prior year. Net earnings for the quarter were $67.9 million, or $0.69 per diluted share, a significant rise from $52.8 million, or $0.52 per diluted share, in the previous year.
The company's gross profit for the quarter was $336.5 million, slightly up from $335.6 million, but the gross margin decreased to 32.5% from 33.7% due to rising material and manufacturing costs. Selling, general, and administrative expenses decreased by 3.3% to $249.4 million, reflecting improved operational efficiency. The company also reported a notable increase in other income, which rose to $14.0 million from $3.3 million, primarily due to gains from a facility sale and favorable foreign currency impacts.
A significant strategic development during this quarter was the acquisition of Tornado Infrastructure Equipment Ltd. for $210.3 million, which is expected to enhance Toro's Professional segment offerings. This acquisition contributed $19.0 million in net sales during the quarter. The company incurred approximately $2.2 million in acquisition-related costs, which were recorded within SG&A expenses. The acquisition is anticipated to provide synergies, including cost reductions and expanded market reach.
Operationally, Toro's order backlog increased compared to the previous quarter, driven by seasonal trends in lawn care products. However, field inventory levels were lower, primarily due to decreased balances in snow and ice management and lawn care products. The company reported a decrease in accounts receivable and inventory levels, indicating improved working capital management. As of January 30, 2026, Toro maintained liquidity of $936.9 million, consisting of cash and cash equivalents and available credit under its revolving credit facility.
Looking ahead, Toro's management expressed optimism about continued growth, supported by the AMP initiative aimed at achieving at least $125 million in run-rate savings by fiscal 2027. The company plans to reinvest a portion of these savings into innovation and growth initiatives. Despite challenges such as inflation and tariffs, Toro remains focused on enhancing its product offerings and operational efficiencies to drive future performance.
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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