The Toro Company Q3 Earnings: Professional Segment Offsets Residential Weakness

The Toro Company reported fiscal Q3 net sales of $1.13 billion, a 2% year-over-year decline, as strong performance in underground construction and golf segments mitigated residential sector struggles. Adjusted diluted EPS ROSE 5% to $1.24, fueled by margin expansion in the Professional division and $75 million in annualized cost savings from the AMP productivity program.

A non-cash impairment charge of $81 million related to the Spartan business dragged reported EPS down to $0.54. Management maintained full-year guidance, projecting adjusted EPS NEAR the lower end of the $4.15 range, while targeting $100 million in AMP savings by 2027.

The Professional segment demonstrated particular resilience, with underground construction projects and golf course maintenance equipment driving growth. This contrasts sharply with the residential segment's 28% sales slump, reflecting ongoing challenges in consumer-facing markets.