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1. Imagine a version of John Deere focused primarily on lawns, golf courses, and professional landscaping equipment.

2. Think of it as Husqvarna, but also a major player in irrigation systems and professional turf maintenance for golf courses.

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The major products of The Toro Company (TTC) are:

• Professional Turf & Landscape Equipment: Equipment designed for maintaining golf courses, sports fields, municipal properties, and professional landscaping.
• Rental, Specialty & Construction Equipment: Specialized machinery for rental companies, underground construction, and various specialty applications.
• Snow & Ice Management Equipment: A range of products including snowplows, brushes, and snow throwers for managing snow and ice on various surfaces.
• Professional Irrigation & Lighting Products: Systems for watering landscapes and agricultural fields, along with professionally installed landscape lighting solutions.
• Residential Mowers & Snow Throwers: Power equipment for homeowners, including walk power mowers, zero-turn riding mowers, and snow throwers.
• Residential Home Solution Products: Handheld and general outdoor equipment for homeowners such as trimmers, leaf blowers, chainsaws, and hoses.

The Toro Company (TTC) primarily sells its products to other companies and organizations, which then distribute or resell to professional users and individuals, or use the equipment themselves. Based on the provided description, its major customers fall into the following categories:

• Distributors and Dealers: These independent businesses form a global network through which Toro sells both its professional and residential equipment. They act as intermediaries, purchasing from Toro and then reselling to professional end-users (e.g., golf courses, landscapers) and homeowners.
• Retailers: This category includes various types of retail establishments such as home centers, hardware retailers, and mass retailers (both online and brick-and-mortar). They primarily purchase and sell Toro's residential segment products to homeowners. Some professional products may also be sold through retailers.
• Professional Organizations and Government Entities: This broad category includes professional end-users who purchase equipment for their operations, as well as direct government customers and rental companies. Specific examples mentioned are golf courses, sports fields, municipal properties, agricultural businesses, landscape contractors, and rental companies.

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Richard M. Olson, Chairman of the Board and Chief Executive Officer

Richard M. Olson joined The Toro Company in 1986. He became President in September 2015, Chief Executive Officer in November 2016, and Chairman in November 2017. Throughout his tenure, he has held various senior leadership roles including vice president of International, and vice president of Exmark. Mr. Olson holds a Bachelor of Science in Industrial Technology from Iowa State University and an MBA from the University of Minnesota's Carlson School of Management. He also serves on the board of Donaldson Company, Inc.

Angela C. Drake, Vice President and Chief Financial Officer

Angela C. Drake was appointed Vice President and Chief Financial Officer of The Toro Company in March 2023. She joined Toro in April 2019 following the acquisition of Charles Machine Works, Inc., where she had served as Chief Financial Officer, Secretary, and Treasurer from 2011 until 2019. At Charles Machine Works, a privately held manufacturing company, she held various staff and management accounting roles since joining in September 1997. Ms. Drake earned a Bachelor of Science in accounting from the University of Central Oklahoma and is a Certified Public Accountant. She serves on the board of First Bank & Trust Company and Simpson Manufacturing Co., Inc.

Edric C. Funk, President and Chief Operating Officer

Edric C. Funk was appointed President and Chief Operating Officer, effective September 1, 2025. A 29-year veteran of The Toro Company, he previously served as group vice president of Golf, Grounds and Irrigation since 2022. Mr. Funk joined Toro in 1996 as a design engineer and has held roles of increasing responsibility across the company's Residential, Landscape Contractor, International, and Commercial businesses. He was instrumental in the acquisitions of Left Hand Robotics and TURFLYNX.

Kevin N. Carpenter, Vice President, Global Operations and Integrated Supply Chain

Kevin N. Carpenter joined The Toro Company in December 2021. In his role, he is responsible for procurement, manufacturing, order services, transportation, and logistics across the enterprise. Prior to joining Toro, Mr. Carpenter served as vice president of operations for Residential and Light Commercial Systems at Carrier Global Corporation, where he also held leadership positions in quality and continuous improvement and advanced manufacturing. His earlier career included roles at Rockwell Automation, Inc., General Electric, Magna International, Nexxus Lighting, and General Motors/Delphi. He holds a Bachelor of Science in electrical engineering from Georgia Institute of Technology, a Bachelor of Science in general engineering from Morehouse College, an MBA from Weatherhead School of Management at Case Western Reserve University, and a Master of Science in industrial engineering and engineering management from Youngstown State University.

Peter D. Moeller, Group Vice President, Underground, Specialty Construction and International

Peter D. Moeller joined The Toro Company in 1998 in international marketing. He is responsible for underground and construction group strategies across the Ditch Witch, Tornado, Hammerhead Trenchless, American Augers, Subsite, Radius HDD, and Toro Sitework Systems businesses. Additionally, he leads the international division, which spans over 125 countries, and refines enterprise-wide global strategies for The Toro Company.

The Toro Company (TTC) faces several key risks to its business operations and financial performance: *

Weakness in the Residential Segment and Macroeconomic Headwinds

The company's Residential segment is experiencing significant weakness, characterized by a deep decline in sales and lower homeowner demand, as consumers defer big-ticket purchases due to caution and macroeconomic pressures like high interest rates and inflation. This segment's underperformance is a major near-term risk, and its continued struggles could prevent the strong Professional segment from fully offsetting the overall impact on the company's financials. *

Supply Chain Risks and Cost Pressures

Toro is exposed to supply chain challenges, including disruptions and increased costs for commodities, components, and tariffs. These factors lead to elevated material and manufacturing costs, which can offset productivity improvements and result in stagnant earnings growth and eroded profit margins. *

Dependence on Seasonality and Weather Volatility

TTC's business is inherently subject to seasonal fluctuations in demand for its outdoor equipment, with specific periods seeing higher sales for certain products. Unpredictable weather conditions and climate change can significantly influence product demand, introducing an element of unpredictability to the company's performance and necessitating careful inventory management.

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The Toro Company (TTC) participates in several significant addressable markets globally and in the U.S.

Addressable Markets for Toro's Main Products and Services:

* Outdoor Power Equipment (including professional turf and landscape equipment, and residential lawn and garden products): The global Outdoor Power Equipment market size was valued at USD 37.36 billion in 2025 and is projected to grow to USD 60.71 billion by 2034, exhibiting a compound annual growth rate (CAGR) of 5.58% during the forecast period. North America dominated the global market with a share of 49.16%, accounting for USD 18.37 billion in 2025. The outdoor power equipment market in the U.S. is projected to reach an estimated value of USD 24.94 billion by 2032. * Golf Course Equipment: The global Golf Course Equipment market size was USD 9.82 billion in 2023. The North American Golf Course Equipment market size was USD 2,151.36 million in 2023. * Construction Equipment Rental (including specialty and underground construction equipment rental): The global construction equipment rental market size was valued at USD 213.68 billion in 2025 and is projected to reach USD 339.04 billion by 2033, growing at a CAGR of 6.1% from 2026 to 2033. The U.S. construction equipment rental market size reached USD 64.76 billion in 2024 and is predicted to reach USD 98.29 billion by 2034, exhibiting a CAGR of 4.26% from 2025 to 2034. * Underground Construction Equipment (product sales): The global underground construction equipment market size was valued at USD 19.4 billion in 2021 and is projected to reach USD 31.3 billion by 2031, growing at a CAGR of 4.7% from 2022 to 2031. * Snow and Ice Management Equipment: The global snow removal equipment market size was estimated at USD 10.3 billion in 2025. * Micro Irrigation Systems: The global micro irrigation systems market size was valued at USD 12.5 billion in 2023 and is projected to grow at a CAGR of 8.3% from 2024 to 2030. * Smart Irrigation Systems: The global smart irrigation market size was valued at around USD 2.5 billion in 2023. The U.S. smart irrigation system market was valued at USD 539.7 million in 2024 and is expected to increase to USD 1,300.1 million by 2032, advancing at a CAGR of 11.8% during 2025–2032. * Landscape Lighting: The global landscape lighting market size was estimated at USD 13.20 billion in 2024 and is projected to reach USD 22.01 billion by 2030, growing at a CAGR of 8.9% from 2025 to 2030. The U.S. landscape lighting market generated a revenue of USD 3,550.4 million in 2024 and is expected to reach USD 5,422.0 million by 2030, growing at a CAGR of 7.3% from 2025 to 2030.

The Toro Company (TTC) is anticipated to drive future revenue growth over the next two to three years through a combination of strategic initiatives, including robust performance in its professional segment, continuous product innovation, and targeted market expansion.

Here are the key expected drivers of future revenue growth for Toro:

1. Sustained Growth in the Professional Segment and Strategic Acquisitions: Toro expects continued strong demand within its Professional segment, encompassing golf, grounds, and professional landscape contractor businesses. This growth is further bolstered by strategic acquisitions, such as Tornado Infrastructure Equipment, which has expanded Toro's capabilities in underground construction and hydrovac excavation solutions, opening new revenue streams.

2. Product Innovation and Technological Advancement: Significant investments in research and development are central to Toro's growth strategy, focusing on enhancing customer productivity through advanced technology. Key innovations include the expansion of battery-powered and electric offerings (e.g., Revolution Series, Greensmaster® eTriflex®), the development of autonomous solutions (e.g., Toro Turf Pro autonomous mower), and AI-enabled systems like Spatial Adjust irrigation software. These advancements are expected to create competitive advantages and potentially generate new recurring revenue streams.

3. Geographic Market Expansion and Channel Development: Toro is actively expanding its global footprint and strengthening its distribution channels. This includes establishing new distribution partnerships in regions like Southeast Asia to support demand for golf and resort equipment, as well as expanding its European manufacturing presence. The company is also targeting growth in specialized areas such as precision-ag micro-irrigation to access water-efficient farming markets.

4. Net Price Realization and Operational Efficiency: While not a new revenue stream, consistent net price increases play a role in driving revenue growth, particularly within the Professional segment. Additionally, ongoing productivity improvements and cost savings achieved through programs like the AMP (Achieving Manufacturing Productivity) initiative contribute to stronger operating margins, which in turn support continued investment in growth initiatives and product development.

Share Repurchases

• The Toro Company repurchased $290 million in shares in 2025, $245.5 million in 2024, and $60 million in 2023.
• On December 9, 2025, the board authorized a new stock repurchase program for up to an additional 6,000,000 shares.
• As of December 9, 2025, the total share repurchase authorization was 10,391,790 shares.

Outbound Investments

• The Toro Company completed the acquisition of Tornado Infrastructure Equipment Ltd. on December 8, 2025, for a fully diluted equity value of CAD $279 million.
• This acquisition expands Toro's Professional segment by adding hydrovac excavation and industrial equipment, broadening its product range and dealer network.
• In August 2025, Toro announced the sale of its Trencor equipment brand and the auger boring product category under the American Augers brand to focus on core underground construction markets.

Capital Expenditures

• The last twelve months (LTM) capital expenditure for The Toro Company was $29.3 million as of April 12, 2025.
• Capital expenditures peaked in 2022.
• In the first quarter of fiscal year 2026, Toro invested $11.5 million in capital expenditures.