Toro Lowers Full-Year Outlook Amid Residential Sales Slump and Increased Costs

Toro reported Q2 FY25 sales decreased 2% YoY to $1.32 bln, missing consensus. Residential sales fell 11.4% YoY to $297.4 mln, while professional sales increased 0.8% YoY to $1.014 bln. Adjusted EPS of $1.42 (+1% YoY) beat consensus. The company lowered its FY25 outlook for adjusted EPS to $4.15-$4.30 from $4.25-$4.40 and sees FY25 net sales growth of flat to -3%, compared to 0%-1% earlier.

The Toro Company (NYSE: TTC) reported its fiscal second quarter (Q2 FY25) results, showing a 2% year-over-year (YoY) decline in net sales to $1.32 billion, missing consensus estimates. Residential sales fell 11.4% YoY to $297.4 million, while professional sales increased 0.8% YoY to $1.014 billion. Adjusted earnings per share (EPS) of $1.42 (+1% YoY) beat consensus estimates. The company has revised its FY25 outlook for adjusted EPS to $4.15-$4.30 from $4.25-$4.40 and expects FY25 net sales growth to be flat to -3%, compared to the earlier 0%-1% projection.

Key highlights include:
- Net Sales: Decreased 2% YoY to $1.32 billion.
- Residential Segment: Sales fell 11.4% YoY to $297.4 million.
- Professional Segment: Sales increased 0.8% YoY to $1.014 billion.
- Adjusted EPS: Increased 1% YoY to $1.42, beating consensus.
- FY25 Outlook: Adjusted EPS revised to $4.15-$4.30, net sales growth expected to be flat to -3%.

Richard M. Olson, chairman and CEO, stated, "Our second-quarter results demonstrate the resilience and agility of The Toro Company. While top-line growth was pressured in our Residential segment, we drove continued Professional segment momentum, which helped us exceed our expectations for earnings in the quarter."

The company attributes the decline in residential sales to lower shipments of walk power mowers, zero-turn mowers, and portable power products, partially offset by higher shipments of snow products. The professional segment's growth was driven by higher shipments of golf and grounds products, partially offset by lower shipments of underground and specialty construction products.

The Toro Company will conduct its earnings call and webcast for investors on June 5, 2025, at 10:00 a.m. CT. For more information, visit [The Toro Company's website](https://www.thetorocompany.com/invest).

References:
[1] https://www.stocktitan.net/news/TTC/the-toro-company-reports-results-for-the-second-quarter-of-fiscal-joqner8fw9q4.html