The Toro Company completed its acquisition of Calgary‑based Tornado Infrastructure Equipment Ltd. on December 8 2025. The transaction, valued at 279 million Canadian dollars, was financed through debt drawn from existing credit facilities and additional arrangements, allowing Toro to preserve cash while expanding its product portfolio.
Tornado’s hydrovac excavation solutions complement Toro’s existing Ditch Witch brand, strengthening the company’s underground construction offering and reinforcing its leadership in vacuum excavation technology. The acquisition expands Toro’s reach in the growing infrastructure market and supports its broader strategy of focusing on higher‑margin, less cyclical segments.
Tornado’s financial performance prior to the deal was challenging. The company reported a negative EBITDA of 3.08 million Canadian dollars and a 24.42% decline in revenue for the trailing 12 months ended September 30 2025, with a fair financial health score of 1.76. These figures suggest that Toro’s purchase was driven more by Tornado’s market position and technology than by its recent profitability.
Toro’s own Q3 2025 results showed a 2% year‑over‑year decline in net sales to 1.13 billion U.S. dollars, while adjusted diluted earnings per share rose 5% to 1.24. The decline was largely driven by a weaker residential segment, whereas the professional segment—particularly underground construction—continued to perform strongly, offsetting the downturn.
Toro expects the acquisition to be marginally accretive to adjusted earnings per share in the first year and increasingly accretive thereafter. The company also projects annual run‑rate cost synergies of about 3 million U.S. dollars over three years, driven by purchasing and manufacturing efficiencies that will be realized as the two companies integrate.
CEO Richard Olson said, “Adding Tornado significantly strengthens our leadership in underground construction and enables The Toro Company, along with its extensive portfolio of leading construction brands, to capture a greater share of the rapidly growing infrastructure space and deliver sustained value to our shareholders.”
The hydrovac market, valued at roughly U.S. $2 billion in 2023, is expected to grow at more than 8% annually through 2030, reaching an estimated U.S. $3.5 billion. Toro’s acquisition of Tornado, combined with its prior supply agreement with Ditch Witch to co‑develop hydrovac trucks, positions the company to capitalize on this tailwind and deepen its footprint in the infrastructure sector.
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