The Toro Company (NYSE: TTC) Q2 2025 Earnings Call | 6/5/2025

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The Toro Company (NYSE: TTC) reported Q2 2025 results on June 5, 2025, delivering adjusted diluted earnings per share of $1.42—up 1.4% year-over-year and ahead of analyst expectations—despite a challenging macroeconomic environment, tariff headwinds, and a delayed start to the spring season. Net sales declined 2.3% year-over-year to $1.32 billion, with continued strength in the Professional segment (up 1% to $1.01 billion) offset by an 11% decline in the Residential segment, which faced weak consumer confidence and lower shipments of mowers and portable power products. Adjusted operating margin contracted by 50 basis points to 13.7%, and adjusted gross margin dipped 20 basis points to 33.4%, reflecting higher material and manufacturing costs. Free cash flow for the quarter was $84.7 million. The company repurchased $100 million of its common stock, underscoring confidence in its cash generation and balance sheet flexibility. Despite the EPS beat, shares fell 3.16% in pre-market trading as Toro lowered its full-year 2025 outlook: net sales are now expected to be flat to down 3% (previously 0% to 1% growth), and adjusted diluted EPS guidance was reduced to $4.15–$4.30 (from $4.25–$4.40). The company cited ongoing macro headwinds, particularly for products sold to homeowners, but expects the Professional segment to remain a primary growth and profit driver. For Q3, Toro anticipates flat to slightly up total sales, with Professional up mid-single digits and Residential down high-teens. CEO Rick Olson emphasized the company’s resilience, ongoing cost-saving initiatives, and robust innovation pipeline, stating, “We delivered EPS ahead of our expectations in the second quarter despite tariff headwinds, macroeconomic conditions, and a delayed start to spring.” CFO Angie Drake highlighted operational excellence and financial flexibility as key strengths supporting long-term value creation. About Inside Ticker: For more expert analysis and real-time updates on The Toro Company (NYSE: TTC) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Toro #TTC #EarningsCall #Q22025 #ProfessionalSegment #Guidance #StockMarket #Investing #InsideTicker