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• Revenue: Increased 7% in Q4 and 9% year-to-date.

• Operating Income: Up 3% in Q4; decreased 5% year-to-date.

• Net Earnings: Increased 1% in Q4; decreased 4% year-to-date.

• Basic Earnings Per Share: $1.91 in Q4; $6.18 year-to-date.

• Gross Profit Margins: Increased 60 basis points in Q4; decreased 200 basis points year-to-date.

• Return on Equity: 19.2% compared to 23.1% in 2023.

• Return on Capital Employed: 25.7%, down from 30.4% last year.

• Dividend Increase: Quarterly dividend increased by $0.04 per share to $0.52 per share.

• Backlog: $1.1 billion as of December 31, down from $1.2 billion last year.

• Cash Position: $891 million in cash with an additional $459 million available on credit facilities.

• Net Debt to Total Capitalization Ratio: Negative 9%.

• Equipment Sales: Up 6% in Q4; 15% year-to-date.

• Rental Revenue: Increased 6% in Q4; up 1% year-to-date.

• Product Support Revenue: Grew 4% in Q4; 3% year-to-date.

• CIMCO Revenue: Up 23% in Q4; 16% year-to-date.

• Bookings: Increased 3% in Q4; 9% year-to-date.

• Inventory Levels: Increased 32% versus a year ago.

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Release Date: February 12, 2025

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

Positive Points

• Toromont Industries Ltd (TMTNF) reported solid new equipment deliveries in both the construction and mining segments, reflecting strong execution against a solid order backlog.

• CIMCO demonstrated strong revenue and bottom-line improvements, with a 23% increase in revenue for the quarter and 16% year-to-date, showcasing effective execution and backlog management.

• The company maintained a solid financial position with ample liquidity, including $891 million in cash and an additional $459 million available on existing credit facilities.

• The Board of Directors increased the quarterly dividend by $0.04 per share, marking the thirty-sixth consecutive year of dividend increases, highlighting a disciplined approach to capital allocation.

• Toromont Industries Ltd (TMTNF) acquired a 60% ownership of AVL Manufacturing Inc., expanding its capabilities in power generation enclosures and enhancing its growth potential in the data center market.

Negative Points

• Bottom line results for 2024 were below the previous year, partly due to reduced activity in the residential sector.

• Return on equity decreased to 19.2% from 23.1% in 2023, reflecting higher equity levels alongside lower annual earnings.

• Operating income decreased 5% year-to-date, with higher revenue and gross margins offset by increased expense levels and lower property gains.

• The equipment group's backlog decreased by 26% compared to the previous year, reflecting deliveries against customer orders and new bookings.

• The recent announcement on tariffs between the US and Canada has created additional economic turbulence, posing potential challenges for cross-border trade.