The Toro Company (TTC) Q4 2024 earnings summary

Executive summary

• Achieved record net sales of $4.58 billion for fiscal 2024, up 1% year-over-year, marking the 15th consecutive year of growth.

• Q4 net sales rose 9.4% year-over-year, driven by strong performance in underground construction, golf, and grounds products.

• Adjusted diluted EPS for the year was $4.17, with Q4 adjusted EPS up 34% to $0.95.

• Free cash flow exceeded $470 million, enabling nearly $400 million returned to shareholders via dividends and buybacks.

• Productivity initiatives, including AMP, targeted $100 million+ annual cost savings by 2027 and supported profitability.

Financial highlights

• Full year net sales: $4.58 billion, up from $4.55 billion last year.

• Q4 net sales: $1.08 billion, up 9.4% year-over-year.

• Full year adjusted EPS: $4.17 (down slightly from $4.21); Q4 adjusted EPS: $0.95 (up 34%).

• Free cash flow: $470.7 million, 112.4% conversion of net earnings.

• Gross margin for the year: 33.8% reported, 33.9% adjusted (down from 34.6%/34.7%).

Outlook and guidance

• Fiscal 2025 net sales growth expected in the 0%-1% range.

• Professional segment net sales to rise low single digits; residential segment net sales to decline high single digits.

• Full year adjusted EPS guidance: $4.25–$4.40.

• Adjusted gross margin and operating earnings as a percentage of net sales expected to improve.

• $100 million in run-rate cost savings targeted by 2027 from the AMP productivity initiative.