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.

• Full-year earnings declined 2% due to growth investments, lower net interest income, and significant non-cash costs from the AVL acquisition.

• Equipment Group and CIMCO both posted gains, with CIMCO showing higher revenue and earnings from strong demand and disciplined execution.

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

• Financial position remains strong, with ample liquidity to support ongoing activity and growth.

Financial highlights

• Q4 consolidated revenue increased 9% year-over-year to $1,421.9M; full-year revenue up 4% to $5,202.8M.

• Operating income increased 3% in Q4 and 2% for the year to $681.3M; margin at 13.1% (down from 13.3%).

• Net earnings up 1% in Q4 to $157.2M, down 2% for the year to $496.6M; basic EPS was $1.93 in Q4 and $6.11 for the year.

• Bookings in Q4 rose 47% year-over-year; backlog at $1.5 billion, up 46% YoY.

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

Outlook and guidance

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

• Strong order backlog and disciplined execution expected to support future growth.

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

• Technician hiring and investment in people and capabilities remain key priorities.

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