Toromont Industries (TIH) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 9%, driven by strong equipment deliveries, robust backlog, and the positive impact of the AVL acquisition, despite macroeconomic and trade uncertainty.

• Operating income increased 3% in Q4, with higher revenue and gross profit margins, though full-year earnings declined 2% due to growth investments, lower net interest income, and non-cash AVL acquisition costs.

• Equipment Group and CIMCO both posted strong revenue and product support growth, with AVL contributing $254.7M in revenue and $1.1M in net income for the year.

• Backlog rose to $1.5 billion, up 46% year-over-year, reflecting robust new order intake and AVL's contribution.

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

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); basic EPS: $1.93 in Q4, $6.11 for the year.

• 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% year-over-year; backlog at $1.5 billion, up 46%.

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, with proactive mitigation plans.

• AVL acquisition expected to continue ramping up production, with modest near-term earnings due to non-cash adjustments.

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