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Considering the Company's strong financial position and long-term outlook, the Board of Directors today increased the quarterly dividend by four cents per share (8.3%) to 52 cents per share. Toromont has paid dividends every year since 1968 and this is the 36th consecutive year of dividend increases. The next dividend is payable on April 4, 2025 to shareholders on record on March 7, 2025.

HIGHLIGHTS:

Consolidated Results

• Revenue increased $80.0 million or 7% in the fourth quarter compared to the similar period last year, with higher revenue in both groups, with Equipment Group up 5% and CIMCO up 23%. Higher revenue in the Equipment Group resulted from solid new equipment deliveries against order backlog. Product support revenue was healthy and rental revenue increased in the quarter. CIMCO's growth reflects good package revenue and higher product support activity levels in Canada.

• Revenue increased $398.9 million (up 9%) to $5.0 billion for the year. Revenue increased in both groups, with the Equipment Group up 8% and CIMCO up 16% compared to 2023. Growth reflects higher new equipment sales and solid execution against order backlog. Product support increased in both groups, reflecting continued activity in end markets. Our growth in technician labour workforce reflects our long‑term strategic objectives.

• Gross profit margins⁽¹⁾ increased 40 bps to 27.2% in the fourth quarter with higher gross margins in the Equipment Group offset by lower CIMCO margins.

• Gross profit margins decreased 180 bps to 25.1% for the year. The Equipment Group reported lower margins in all areas, except for product support margins which remained relatively unchanged, while CIMCO margins increased on good execution in all areas. Sales mix was unfavourable, with a higher proportion of equipment revenue to total, accounting for 70 bps of the reduction.

• Operating income⁽¹⁾ increased 3% in the quarter, reflecting the higher revenue and gross margins offset by higher expense levels. Operating income as a percentage of sales decreased to 16.2% from 16.7% in the prior year, reflecting the higher expenses in the current period.

• Operating income decreased 5% in the year, and was 13.3% of revenue compared to 15.2% in the similar period last year. Although revenue was higher, lower income resulted due to lower gross margins and higher expenses.

• Net earnings from continuing operations increased $2.2 million or 1% in the quarter versus a year ago to $156.3 million. EPS was $1.91 (basic) and $1.90 (fully diluted), 2% higher compared to the same period last year.

• For the year, net earnings from continuing operations decreased $22.6 million or 4% to $506.5 million compared to the similar period last year. EPS was $6.18 (basic) and $6.13 (fully diluted), 4% lower compared to last year.

• Bookings⁽¹⁾ for the fourth quarter increased 3% compared to last year with higher bookings at CIMCO offset by lower bookings in the Equipment Group. On a year-to-date basis, bookings increased 9% with both groups reporting higher bookings: Equipment Group up 6% and CIMCO up 30%.

• Backlog⁽¹⁾ of $1.1 billion as at December 31, 2024, was down slightly from $1.2 billion as at December 31, 2023. Backlog remains healthy, reflecting continued good order intake, offsetting deliveries and progress on construction and delivery schedules.

Equipment Group

• Revenue was up $57.0 million or 5% to $1.2 billion for the quarter. New equipment sales increased 7%, with good activity and deliveries in the mining, construction and material handling markets. Rental revenue increased 6%, largely due to higher RPO (rental with a purchase option) fleet revenue. Product support activity was also up 4% in Q4.

• Revenue was up $335.4 million or 8% to $4.6 billion for the year. New equipment sales, product support and rental activity were higher across most markets and product groups, partially offset by lower used equipment.

• Operating income increased $0.8 million (unchanged as a percentage) in the fourth quarter, as the higher revenue and gross margins were largely offset by higher expenses.

• Operating income decreased $48.0 million or 7% to $616.7 million in the year. Higher revenue was more than offset by lower gross margins and higher expenses. Operating income margin decreased to 13.5% versus 15.7% in the comparable period last year, primarily reflecting lower gross margins.

• Bookings in the fourth quarter were $487.4 million, a decrease of 9% from the comparable period last year, as improved bookings in construction, power systems and material handling were more than offset by lower mining orders, which tend to be lumpy. Year-to-date bookings were $2.0 billion, an increase of 6% from the similar period last year. Construction and material handling bookings increased 17% and 18% respectively, reflecting good market activity. Mining and power systems orders were lower against a strong comparable last year. Both mining and power systems orders have more variability over time due to the nature of orders.

• Backlog of $708.4 million at the end of December 2024 was lower by $248.9 million or 26% from the end of December 2023, reflecting deliveries against opening backlog partially offset by good new bookings.

CIMCO

• Revenue increased $23.0 million or 23% compared to the fourth quarter last year. Package revenue was higher, up 47%, with good execution on package project construction and improvements in equipment delivery schedules. Product support revenue was up 4%, reflecting good market activity in Canada supported by the increased technician workforce, offset by slightly lower US activity.

• Revenue increased $63.4 million or 16% to $460.6 million for the year as package revenue was up 28% on good execution on package project construction, in both the recreational and industrial markets. Product support activity was up 6%, with higher activity in Canada, partially dampened by lower activity in the US.

• Operating income increased $5.8 million or 47% for the quarter, as higher revenue was partially offset by lower gross margins and lower relative expenses.

• Operating income was up $13.9 million or 35% to $53.5 million for the year, reflecting improved gross margins and higher revenue. Operating income margin increased to 11.6% (2023 – 10.0%) reflecting higher gross margins on good execution.

• Bookings increased 124% in the fourth quarter to $126.0 million, and increased 30% for the year to $318.5 million. For the year, higher bookings in the US, up 167%, were partially offset by lower bookings in Canada, down 7%. Recreational bookings were 146% higher while industrial bookings were 12% lower. Booking activity can be variable over time based on customer decision making and construction schedules.

• Backlog of $342.3 million as at December 31, 2024 was up $87.1 million or 34% from last year, with an increase in both Canada and the US. Industrial backlog increased 10%, with a strong increase in the US, partially offset by a decrease in Canada. Recreational backlog was up 78%, reflecting strong increases in both Canada (+82%) and the US (+74%).

Financial Position

• Toromont's share price of $113.64 at the end of December 2024, translated to a market capitalization⁽¹⁾ of $9.2 billion and a total enterprise value⁽¹⁾ of $9.0 billion.

• The Company maintained a strong financial position. Leverage, as represented by the net debt to total capitalization⁽¹⁾ increased to -9% at the end of December 31, 2024 compared to -17% at the end of December 2023. The change in the ratio reflects cash used for investment in working capital and capital expenditures, including the acquisition of Tri-City, supported by continuing cash inflow from operations.

• The Company purchased and cancelled 1,321,500 common shares for $160.4 million under the Normal Course Issuer Bid program in the year ended December 31, 2024 (353,000 common shares for $37.5 million in 2023).

• The Company's return on equity⁽¹⁾ was 19.2% for 2024, compared to 23.1% for 2023, while return on capital employed⁽¹⁾ was 25.7% for 2024, compared to 30.4% for 2023. Both metrics decreased year over year reflecting higher investments in working capital and the lower net earnings levels.

"We are pleased with our team's performance in 2024, given the changing market dynamics," stated John M. Doolittle, Executive Vice President and Chief Financial Officer of Toromont Industries Ltd. "We are mindful of the uncertain economic and political environment and continue to monitor and focus on controllables. The recent announcements on the tariffs between the US and Canada has created additional economic turbulence for every company engaged in cross border trade. Our team is engaged, monitoring and developing an appropriate action plan to navigate the potential impacts over the short and longer term when details become available. We will maintain our focus on operating and financial disciplines to manage our cost structure, while we invest in capacity and capabilities to provide exceptional service to our customers today and in the future. The strong order backlog and improved operating disciplines, along with our strong financial position, position us well for the future."

CORPORATE DEVELOPMENT

As previously announced, on January 31, 2025, the Company acquired 60% of the shares of AVL Manufacturing Inc. ("AVL") for consideration of $67.5 million cash plus the issuance of 110.4 thousand Toromont shares (nominally $13.5 million based on 5 day average share price as at signing) for a total consideration of $81.0 million (subject to post-closing adjustments). In addition, the Company has committed to purchase the remaining 40% at various dates through to 2031. The initial purchase price was funded with cash on hand. AVL is a leader in the design and fabrication of power generation and storage enclosures. AVL has operations in Hamilton, Ontario and currently serves the data center market across eastern North America. The Company has not yet finalized its determination of fair value of the assets acquired and liabilities assumed. The acquisition, while accretive, is not expected to have an overall material impact on Toromont's combined revenue, earnings or balance sheet in the near-term.

FINANCIAL AND OPERATING RESULTS

All financial information presented in this press release has been prepared in accordance with International Financial Reporting Standards ("IFRS"), except as noted below, and are reported in Canadian dollars. This press release contains only selected financial and operational highlights and should be read in conjunction with Toromont's audited consolidated financial statements and related notes and Management's Discussion and Analysis ("MD&A"), as at and for the year ended December 31, 2024, which are available on SEDAR at www.sedar.com and on the Company's website at www.toromont.com.

The Company's audited consolidated financial statements and MD&A contain detailed information about Toromont's financial position, results, liquidity and capital resources, strategy, plans and outlook, which investors are encouraged to read carefully.

QUARTERLY CONFERENCE CALL AND WEBCAST

Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Wednesday, February 12, 2025 at 8:00 a.m. (EDT). The call may be accessed by telephone at 1‑888‑669‑1199 (North American toll free) or 416-945-7677 (Toronto area). A replay of the conference call will be available until Wednesday, February 19, 2025 by calling 1‑888‑660‑6345 (North American toll free) or 289‑819-1450 (Toronto area) and quoting passcode 69004. The live webcast can also be accessed at www.toromont.com.

Presentation materials to accompany the call will be available on our investor page on our website.

NON-GAAP AND OTHER FINANCIAL MEASURES

Management believes that providing certain non-GAAP measures provides users of the Company's audited consolidated financial statements and MD&A with important information regarding the operational performance and related trends of the Company's business. By considering these measures in combination with the comparable IFRS measures set out below, management believes that users are provided a better overall understanding of the Company's business and its financial performance during the relevant period than if they simply considered the IFRS measures alone.

The non-GAAP measures used by management do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Accordingly, these measures should not be considered as a substitute or alternative for net income or cash flow, in each case as determined in accordance with IFRS.

Management also uses key performance indicators to enable consistent measurement of performance across the organization. These KPIs are non-GAAP financial measures, do not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers.

Gross Profit / Gross Profit Margin

Gross Profit is defined as total revenue less cost of goods sold.

Gross Profit Margin is defined as gross profit (defined above) divided by total revenue.

Operating Income / Operating Income Margin

Operating income is defined as net income from continuing operations before interest expense, interest and investment income and income taxes and is used by management to assess and evaluate the financial performance of its operating segments. Financing and related interest charges cannot be attributed to business segments on a meaningful basis that is comparable to other companies. Business segments do not correspond to income tax jurisdictions and it is believed that the allocation of income taxes distorts the historical comparability of the performance of the business segments.

Operating income margin is defined as operating income (defined above) divided by total revenue.

Net Debt to Total Capitalization/Equity

Net debt to total capitalization/equity are calculated as net debt divided by total capitalization and shareholders' equity, respectively, as defined below, and are used by management as measures of the Company's financial leverage.

Net debt is calculated as long-term debt plus current portion of long-term debt less cash and cash equivalents. Total capitalization is calculated as shareholders' equity plus net debt.

The calculations are as follows:

Market Capitalization & Total Enterprise Value

Market capitalization represents the total market value of the Company's equity. It is calculated by multiplying the closing share price of the Company's common shares by the total number of common shares outstanding.

Total enterprise value represents the total value of the Company and is often used as a more comprehensive alternative to market capitalization. It is calculated by adding debt/net debt (defined above) to market capitalization.

The calculations are as follows:

Order Bookings and Backlog

Order bookings represent the retail value of firm equipment or project orders received during a period. Backlog is defined as the retail value of equipment units ordered by customers with future delivery, and the remaining retail value of package/project orders remaining to be recognized in revenue under the percentage of completion method. Management uses order backlog as a measure of projecting future equipment and project deliveries. There are no directly comparable IFRS measures for order bookings or backlog.

Return on Capital Employed ("ROCE")

ROCE is utilized to assess both current operating performance and prospective investments. The adjusted earnings numerator used for the calculation is income before income taxes, interest expense and interest income (excluding interest on rental conversions). The denominator in the calculation is the monthly average capital employed, which is defined as net debt plus shareholders' equity, also referred to as total capitalization, adjusted for discontinued operations.

Return on Equity ("ROE")

ROE is monitored to assess profitability and is calculated by dividing net earnings by opening shareholders' equity (adjusted for shares issued and shares repurchased and cancelled during the year).

ADVISORY

Information in this press release that is not a historical fact is "forward-looking information". Words such as "plans", "intends", "outlook", "expects", "anticipates", "estimates", "believes", "likely", "should", "could", "would", "will", "may" and similar expressions are intended to identify statements containing forward-looking information. Forward-looking information in this press release reflects current estimates, beliefs, and assumptions, which are based on Toromont's perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Toromont's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Toromont can give no assurance that such estimates, beliefs and assumptions will prove to be correct.

Numerous risks and uncertainties could cause the actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: business cycles, including general economic conditions in the countries in which Toromont operates; new tariffs and counter-tariffs imposed on cross-border trade, commodity price changes, including changes in the price of precious and base metals; inflationary pressures; potential risks and uncertainties relating to a potential new world health issue; increased regulation of or restrictions placed on our businesses; changes in foreign exchange rates, including the Cdn$/US$ exchange rate; the termination of distribution or original equipment manufacturer agreements; equipment product acceptance and availability of supply, including reduction or disruption in supply or demand for our products stemming from external factors; increased competition; credit of third parties; additional costs associated with warranties and maintenance contracts; changes in interest rates; the availability and cost of financing; level and volatility of price and liquidity of Toromont's common shares; potential environmental liabilities and changes to environmental regulation; information technology failures, including data or cybersecurity breaches; failure to attract and retain key employees as well as the general workforce; damage to the reputation of Caterpillar, product quality and product safety risks which could expose Toromont to product liability claims and negative publicity; new, or changes to current, federal and provincial laws, rules and regulations including changes in infrastructure spending; any requirement to make contributions or other payments in respect of registered defined benefit pension plans or postemployment benefit plans in excess of those currently contemplated; increased insurance premiums; and risk related to integration of acquired operations including cost of integration and ability to achieve the expected benefits. Readers are cautioned that the foregoing list of factors is not exhaustive.

Any of the above mentioned risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied in the forward-looking information and statements included herein. For a further description of certain risks and uncertainties and other factors that could cause or contribute to actual results that are materially different, see the risks and uncertainties set out under the heading "Risks and Risk Management" and "Outlook" sections of Toromont's most recent annual Management Discussion and Analysis, as filed with Canadian securities regulators at www.sedarplus.ca or at our website www.toromont.com. Other factors, risks and uncertainties not presently known to Toromont or that Toromont currently believes are not material could also cause actual results or events to differ materially from those expressed or implied by statements containing forward‑looking information.

Readers are cautioned not to place undue reliance on statements containing forward-looking information, which reflect Toromont's expectations only as of the date of this press release, and not to use such information for anything other than their intended purpose. Toromont disclaims any obligation to update or revise any forward‑looking information, whether as a result of new information, future events or otherwise, except as required by law.

ABOUT TOROMONT

Toromont Industries Ltd. operates through two business segments: the Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory, spanning the Canadian provinces of Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The Equipment Group includes industry-leading rental operations and a complementary material handling business. CIMCO is one of North America's leading suppliers of thermal management solutions that enable customers to reduce energy consumption and emissions, use natural refrigerants and monitor and control their operating environments autonomously. Both segments offer comprehensive product support capabilities. This press release and more information about Toromont Industries Ltd. can be found at www.toromont.com.

For more information contact:

John M. Doolittle
Executive Vice President and 
Chief Financial Officer
Toromont Industries Ltd.
Tel: 416-514-4790

FOOTNOTE

SOURCE Toromont Industries Ltd.

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