TORO CO Annual Report - How They Did This Year

Hey there, fellow investor! Let's dive into how TORO CO performed this past year, ending October 31, 2025.

Overall, the company saw a modest increase in its total sales, hitting $5.43 billion. That's up about 1.5% from last year's $5.35 billion. While it's growth, it's a bit slower than the 2.9% jump we saw between 2023 ($5.20 billion) and 2024.

When we look closer, we see a tale of two different businesses within TORO CO:

• Professional Segment (The Growth Engine): This part of the business, which sells equipment and services to professionals like landscapers and golf courses, had a really strong year. Sales here climbed to $4.28 billion, a solid 3.1% increase from $4.15 billion last year. This segment has been consistently growing, showing a healthy 6.4% increase the year before that too. It's clearly a key driver for the company's overall performance.

• Residential Segment (Facing Headwinds): On the other hand, the Residential segment, which focuses on products for homeowners, saw sales shrink. It brought in $1.25 billion, which is about a 3.8% drop from $1.30 billion in 2024. This isn't a new trend, as this segment also saw a 7.1% decrease from 2023 to 2024. It seems like homeowners might be tightening their belts or perhaps the market for residential products is just a bit tougher right now.

Breaking it down further, most of TORO CO's sales, about $4.10 billion, came from the U.S. market, which grew by 2.5% this year. International sales, however, saw a slight dip of 1.5%, totaling $1.33 billion.

In terms of what they're selling:

• Their main "Equipment Products and Services" category grew by 2.3% to $4.50 billion.
• But their "Irrigation" products saw a 2.1% decrease in sales, landing at $0.93 billion. This decline in irrigation sales likely contributes to the struggles in the Residential segment.

So, in a nutshell, TORO CO is seeing growth primarily from its professional customers, while its residential and irrigation businesses are facing some challenges.

Beyond the sales figures, it's also worth highlighting a recent update in TORO CO's corporate governance. The company updated its "Clawback Policy," which became effective on January 22, 2025. In simple terms, this policy allows the company to recover incentive compensation (like bonuses or stock awards) from its executive officers and other key employees under specific circumstances. This could happen if financial results that led to those awards are later found to be incorrect (for example, due to an accounting error that requires a restatement), or if an executive engages in serious misconduct that harms the company. This update shows TORO CO's commitment to strong financial integrity and executive accountability, which is generally a positive signal for investors as it helps protect shareholder interests.