Yahoo Finance

• Total Company Net Sales: $995 million, slightly down from Q1 last year.

• Adjusted Diluted EPS: $0.65, up from $0.64 last year.

• Professional Segment Net Sales: $768.8 million, up 1.6% year over year.

• Professional Segment Earnings: $127.2 million, up 13% from last year.

• Professional Segment Earnings Margin: 16.5%, up from 14.9% last year.

• Residential Segment Net Sales: $221 million, down from $240 million last year.

• Residential Segment Earnings: $17.2 million, down from $23.5 million last year.

• Residential Segment Earnings Margin: 7.8%, down from 9.8% last year.

• Reported Gross Margin: 33.7%, down from 34.4% last year.

• Adjusted Gross Margin: 34.1%, down from 34.4% last year.

• SG&A Expense as a Percentage of Net Sales: 25.9%, up from 25.6% last year.

• Operating Earnings Margin: 7.8%, down from 8.8% last year.

• Adjusted Operating Earnings Margin: 9.4%, up from 9.2% last year.

• Interest Expense: $15 million, down from $16.2 million last year.

• Reported Effective Tax Rate: 20.1%, up from 19% last year.

• Adjusted Effective Tax Rate: 20.2%, down from 20.8% last year.

• Inventory: $1.14 billion, down about 3% compared to last year.

• Free Cash Flow: $67.7 million use of cash, an improvement over last year.

• Share Repurchases: $100 million during the quarter.

• Warning! GuruFocus has detected 2 Warning Sign with TTC.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Toro Co (NYSE:TTC) reported first-quarter bottom line results that exceeded expectations despite below-average snowfall in key markets.

• Professional segment net sales increased by 1.6% year over year, driven by higher shipments of golf and grounds products and zero turn mowers.

• The company achieved $64 million in run rate savings to date from its AMP initiative, with $50 million realized in the first quarter.

• The Toro Co (NYSE:TTC) introduced several innovative products, including the Toro Turf Pro autonomous mower and the Exmark Turf Tracer with XiQ, enhancing its market leadership.

• The company maintained its full-year fiscal 2025 net sales and adjusted diluted earnings per share guidance, reflecting confidence in its strategic initiatives and market position.

Negative Points

• Consolidated net sales for the quarter were slightly down from the previous year, impacted by the divestiture of Pope Products and lower shipments in the residential segment.

• Residential segment net sales decreased due to elevated field inventories of snow products and lower shipments of portable power products.

• Reported EPS was $0.52 per diluted share, down from $0.62 last year, indicating a decline in profitability.

• Higher material, manufacturing, and freight costs negatively impacted gross margins, which were slightly lower than the previous year.

• The uncertain and rapidly changing tariff environment poses a risk to future financial performance, with potential impacts not fully included in the current guidance.