Toromont Industries (TIH) Q2 2026 earnings summary

Executive summary

• Revenue grew 16% year-over-year in Q2 2026, driven by strong Equipment Group performance, robust equipment deliveries, and stable CIMCO results despite project timing impacts.

• Operating income rose 41% in Q2 to $242.5 million, supported by higher revenue and improved gross profit margins, partially offset by increased expenses.

• Net earnings were stable at $124.5 million for Q2, but excluding AVL purchase commitment expenses, net earnings increased 42% to $178.8 million.

• Bookings surged 171% year-over-year in Q2, and backlog more than doubled to $2.9 billion, reflecting robust demand, especially in power systems and mining.

• Financial position remains strong with ample liquidity and disciplined operational focus.

Financial highlights

• Q2 revenue: $1,597.7 million (+16% YoY); YTD revenue: $2,825.8 million (+15% YoY), led by the Equipment Group.

• Q2 operating income: $242.5 million (+41% YoY); YTD: $385.5 million (+42% YoY); operating margin at 13.6% YTD versus 11% last year.

• Q2 net earnings: $124.5 million (flat YoY); YTD: $217.2 million (+9% YoY); excluding AVL purchase commitment expenses, net earnings rose 42% in both periods.

• Basic EPS was $1.53 in Q2, unchanged year-over-year, and $2.66 YTD; excluding AVL PCE, Q2 EPS was $2.20 (+42% YoY).

• Gross profit margin increased 230 bps to 26.9% in Q2; YTD margin up 290 bps to 26.5%.

Outlook and guidance

• Management expects continued strong demand, with about 60% of Equipment Group backlog and 75% of CIMCO backlog to be realized as revenue over the next twelve months.

• Focus remains on safe, efficient operations, disciplined capital deployment, and leveraging a strong balance sheet for future growth.

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

• Technician hiring remains a key priority to support growing demand.

• Construction market outlook is stable with early-stage nation-building projects; residential remains soft.