Toromont Industries (TIH) Q1 2026 earnings summary

Executive summary

• Revenue and earnings increased 13% year-over-year in Q1 2026, driven by strong execution across Equipment Group, CIMCO, and AVL, with AVL's data center enclosure business expanding production and contributing $129 million in revenue and $0.19 to EPS.

• Net earnings rose 25% to $92.7 million, and basic EPS was $1.14, up from $0.92 in Q1 2025.

• Bookings surged 44% and backlog reached $1.7 billion, up 30% year-over-year, reflecting robust demand.

• Ownership in AVL increased to 80% with a CAD 71 million ($71 million) cash purchase, resulting in a CAD 45 million ($45 million) expense to be recorded in Q2.

• AVL dividend of CAD 12 million paid to minority shareholders, treated as an expense under IFRS.

Financial highlights

• Consolidated revenue rose 13% year-over-year to $1.23 billion; Equipment Group up 14%, CIMCO up 3%.

• Operating income increased 44% to $143.0 million, with margin improving to 11.6% from 9.1%.

• Gross profit margin improved by 340–400 basis points to 25.8%; equipment margins up 370 basis points.

• Net earnings up $18.3 million, 25% year-over-year.

• Strong liquidity with $1.2 billion cash on hand and $452 million in available credit.

Outlook and guidance

• Management expects to deliver about 90% of Equipment Group backlog and 75% of CIMCO backlog as revenue over the next twelve months.

• Focus remains on safe, reliable operations, disciplined financial management, and strategic growth.

• Monitoring global trade, FX volatility, inflation, and macroeconomic trends; proactive mitigation plans in place.

• Backlog and bookings expected to support strong performance; technician workforce investment prioritized.

• Ongoing investment in Power and Energy businesses, with AVL expected to support future growth.