Toromont Industries (TIH) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 9%, driven by strong equipment deliveries, robust backlog, and AVL acquisition, with both Equipment Group and CIMCO contributing.

• Operating income increased 3% in Q4, but full-year earnings declined 2% due to growth investments, lower net interest income, and non-cash AVL acquisition costs.

• Net earnings rose 1% in Q4, with basic EPS at $1.93; full-year EPS was $6.11.

• Board increased quarterly dividend by 7.7% to $0.56 per share, marking the 37th consecutive annual increase.

• Strong order intake and closing backlogs in both business segments support a positive outlook.

Financial highlights

• Q4 revenue: $1,421.9M (+9% YoY); full-year revenue: $5,202.8M (+4% YoY).

• Q4 operating income up 3%; full-year operating income up 2% to $681.3M; margin at 13.1%.

• Q4 net earnings: $157.2M (+1% YoY); full-year net earnings: $496.6M (-2% YoY).

• Gross profit margin increased 10 bps in Q4 to 27.3% and 30 bps for the year to 25.4%.

• Bookings in Q4 rose 47% YoY; backlog at $1.5B, up 46% YoY.

Outlook and guidance

• Focus on executing strategic priorities, maintaining operational discipline, and supporting long-term growth.

• Strong backlog and healthy booking activity position the company well for 2026.

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

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