Toromont Industries (TIH) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 26% YoY to $1.652B, gross margin expanded 240 bps to 29.1%, operating income increased 46% to $279.3M, and net earnings rose 37% to $192.1M.

• Higher equipment deliveries, power systems, rental activity and product support drove growth; bookings rose 50% and backlog reached $2.9B, up from $1.3B a year earlier.

Financial highlights

• 9M revenue increased 18% to $4.478B and operating income rose 43% to $664.7M; net earnings grew 21% to $409.3M.

• Q3 basic EPS was $2.35, up 36%; 9M basic EPS was $5.02, up 20%. Excluding AVL purchase commitment expenses and acquisition-related intangible amortization, EPS rose 28% in Q3 and 30% for 9M.

• 9M gross margin rose 270 bps to 27.4%; Equipment Group gross margin increased 320 bps in Q3 and 330 bps YTD.

• Q3 SG&A rose $41.2M, or 30%; comparisons included a $13.7M pre-tax property-disposition gain in Q3 2025.

Outlook and guidance

• Backlog supports visibility into Q4 2026 and 2027; ~70% of Equipment Group backlog and ~65% of CIMCO backlog are expected to convert over the next 12 months, subject to timing and supply conditions.

• A previously announced $1.0B power systems order is scheduled for delivery substantially in 2027.

• AVL’s Waterdown facility is expected to begin production in Q3 2027, with a non-linear ramp and costs preceding revenue; rental fleet investment is expected to increase in 2027.