The Toro Company reported its fiscal third-quarter results for the period ended August 1, 2025. Net sales for the quarter were $1,131.3 million, a decrease of 2% compared to the prior year. Reported net earnings saw a significant decline of 55% to $53.5 million, or $0.54 per diluted share, primarily due to an $81.1 million non-cash impairment charge.
Adjusted diluted EPS for the third quarter increased 5% to $1.24, exceeding expectations, driven by the Professional segment's strong performance, which achieved 6% growth and 250 basis points of margin expansion. This growth was fueled by momentum in underground construction and golf and grounds, coupled with savings from the AMP productivity program.
However, the Residential segment continued to face headwinds. For fiscal 2025, management narrowed its guidance, now expecting total company net sales to be at the lower end of the prior flat to down 3% range, and adjusted diluted EPS to be about $4.15. This revised outlook reflects ongoing challenges in the Residential segment and anticipated tariff impacts.
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