Toro (NYSE:TTC) Set to Increase Dividend Compared to Last Year
Dividend Increase: The Toro Company (NYSE:TTC) is increasing its dividend to $0.39, resulting in a yield of 2.1%, which is expected to please shareholders.
Earnings and Sustainability: Toro's last dividend was well-covered by earnings, with a forecasted 14% rise in earnings per share, leading to an estimated payout ratio of 44%, indicating sustainability.
Stable Dividend History: The company has shown a stable dividend history, growing its annual payments from $0.50 in 2015 to $1.56, reflecting a yearly growth rate of about 12%.
Caution on Earnings Growth: Despite a solid dividend history, Toro's earnings per share growth has been modest at 4.3% per annum over the past five years, raising concerns about future dividend growth unless earnings improve.
Trade with 70% Backtested Accuracy
Analyst Views on TTC
About TTC
About the author
Douglas Dynamics Benefits from Northeast Snowfall, Projected 2026 EBITDA of $84M
- Northeast Snowfall Boost: According to D.A. Davidson, major cities in the Northeast saw approximately 6 inches of snow in December, slightly above the long-term average and three times last year's levels, providing strong support for Douglas Dynamics' sales of snowplows and de-icing equipment.
- Midwest Harsh Winter Impact: The Midwest experienced 12.8 inches of snowfall in December, the highest since 2013-14 and over three times last year's amount, further driving market demand for Douglas Dynamics' products.
- EBITDA Forecast Increase: Analysts project that normalized Attachments EBITDA for Douglas Dynamics could reach $84 million, significantly higher than the current estimate of $59 million for 2026, indicating substantial growth potential in the coming years.
- M&A Expansion Opportunities: The company is pursuing M&A expansions outside of Snow & Ice for the first time in over a decade, laying a solid foundation for future growth and enhancing its competitive position in the market.
AI Stocks Decline as Nvidia Reaches 3-Month Low: What’s Influencing Markets on Wednesday?
Tech Stock Selloff: Investors sold off tech and AI-linked stocks, leading to a significant decline in the Nasdaq 100 and semiconductor ETFs, with notable drops in companies like Nvidia and Oracle.
Sector Performance: The semiconductor sector experienced its worst stretch since April, with chipmakers falling 9% over four days, while energy stocks like the Energy Select Sector SPDR Fund showed some resilience.
Precious Metals Rally: Silver prices surged over 4%, reaching $66.50 an ounce, while gold also rose, inching closer to its October record high, indicating a shift in investor interest towards precious metals.
Market Indices Overview: Major US indices, including the Dow Jones and S&P 500, experienced slight declines, reflecting a fragile risk appetite in the market, with Bitcoin also down 1.2%.
What’s Driving the Surge in Toro Company Stock on Wednesday?
Fourth-Quarter and Full-Year Results: The Toro Company reported fourth-quarter net sales of $1.07 billion and full-year net sales of $4.51 billion, with adjusted earnings per share exceeding analyst estimates at 91 cents for the quarter and $4.20 for the year.
Segment Performance: The Professional segment saw stable sales at $910 million for the fourth quarter and a 1.9% increase to $3.62 billion for the full year, while the Residential segment experienced a decline in sales by 5% and 14% respectively.
Financial Highlights: Toro generated record free cash flow of $578 million and reported net cash from operating activities of $662 million, maintaining a strong balance sheet with $341 million in cash and approximately $922 million in long-term debt.
Fiscal 2026 Outlook: For fiscal 2026, Toro anticipates adjusted EPS between $4.35 and $4.50 and sales ranging from $4.601 billion to $4.736 billion, with shares rising 7.06% to $77.78 following the earnings report.
Toro, DBV Technologies, Udemy, ABM Industries, and Other Major Stocks Rising on Wednesday
U.S. Stock Market Performance: U.S. stocks showed mixed results, with the Dow Jones gaining over 150 points, while several companies, including Toro Co, reported better-than-expected quarterly earnings, leading to significant stock price increases.
Notable Stock Gains: Toro Co's shares rose 7% after reporting earnings of 91 cents per share, while DBV Technologies saw a 35.5% increase following positive trial results. Other companies like Udemy and Kodiak Sciences also experienced substantial gains.
Sector Highlights: Cannabis-related stocks surged after reports of potential reclassification of marijuana, with Canopy Growth Corp gaining 16.2%. Lithium-related stocks also rose following the cancellation of mining permits in Yichun.
Company Announcements and Upgrades: Several companies, including Recursion Pharmaceuticals and Two Harbors Investment Corp, saw stock price increases due to upgrades and acquisition announcements, reflecting positive investor sentiment.
Toro Company Exceeds FY 2025 Expectations with $578 Million Free Cash Flow
- Financial Performance Exceeds Expectations: Toro Company reported net sales of $4.51 billion for FY 2025, down 2% from FY 2024, yet still surpassing market expectations, demonstrating strong performance in the underground construction and golf professional segments.
- Record Free Cash Flow: The company generated $578 million in free cash flow, primarily driven by improvements in net working capital, reflecting its financial discipline and strong balance sheet, which provides ample funding for future investments.
- Increased Shareholder Returns: In FY 2025, Toro returned $441 million to shareholders through cash dividends and stock repurchases, underscoring its commitment to shareholder value and sustained profitability.
- Improved Profitability: The Professional segment achieved a full-year earnings margin of 19.4%, up 1.4 percentage points from last year, indicating significant progress in productivity enhancement and cost control, thereby strengthening its competitive position in the market.
Toro Co Reports Q4 Profit Decline, Exceeding Expectations
Fourth Quarter Earnings: Toro Co reported a profit of $73 million ($0.74 per share) for the fourth quarter, down from $89.9 million ($0.87 per share) last year, but exceeded analysts' expectations of $0.87 per share.
Revenue Decline: The company's revenue fell by 0.9% to $1.066 billion compared to $1.076 billion in the previous year.
Future Earnings Guidance: For fiscal 2026, Toro expects earnings below analyst forecasts, projecting adjusted diluted earnings per share between $4.35 and $4.50, with net sales growth of 2% to 5%.
Stock Performance: Following the earnings report, Toro Co's stock rose by 3.11% to $75 in pre-market trading on the New York Stock Exchange.
Douglas Dynamics Benefits from Northeast Snowfall, Projected 2026 EBITDA of $84M
- Northeast Snowfall Boost: According to D.A. Davidson, major cities in the Northeast saw approximately 6 inches of snow in December, slightly above the long-term average and three times last year's levels, providing strong support for Douglas Dynamics' sales of snowplows and de-icing equipment.
- Midwest Harsh Winter Impact: The Midwest experienced 12.8 inches of snowfall in December, the highest since 2013-14 and over three times last year's amount, further driving market demand for Douglas Dynamics' products.
- EBITDA Forecast Increase: Analysts project that normalized Attachments EBITDA for Douglas Dynamics could reach $84 million, significantly higher than the current estimate of $59 million for 2026, indicating substantial growth potential in the coming years.
- M&A Expansion Opportunities: The company is pursuing M&A expansions outside of Snow & Ice for the first time in over a decade, laying a solid foundation for future growth and enhancing its competitive position in the market.
AI Stocks Decline as Nvidia Reaches 3-Month Low: What’s Influencing Markets on Wednesday?
Tech Stock Selloff: Investors sold off tech and AI-linked stocks, leading to a significant decline in the Nasdaq 100 and semiconductor ETFs, with notable drops in companies like Nvidia and Oracle.
Sector Performance: The semiconductor sector experienced its worst stretch since April, with chipmakers falling 9% over four days, while energy stocks like the Energy Select Sector SPDR Fund showed some resilience.
Precious Metals Rally: Silver prices surged over 4%, reaching $66.50 an ounce, while gold also rose, inching closer to its October record high, indicating a shift in investor interest towards precious metals.
Market Indices Overview: Major US indices, including the Dow Jones and S&P 500, experienced slight declines, reflecting a fragile risk appetite in the market, with Bitcoin also down 1.2%.
What’s Driving the Surge in Toro Company Stock on Wednesday?
Fourth-Quarter and Full-Year Results: The Toro Company reported fourth-quarter net sales of $1.07 billion and full-year net sales of $4.51 billion, with adjusted earnings per share exceeding analyst estimates at 91 cents for the quarter and $4.20 for the year.
Segment Performance: The Professional segment saw stable sales at $910 million for the fourth quarter and a 1.9% increase to $3.62 billion for the full year, while the Residential segment experienced a decline in sales by 5% and 14% respectively.
Financial Highlights: Toro generated record free cash flow of $578 million and reported net cash from operating activities of $662 million, maintaining a strong balance sheet with $341 million in cash and approximately $922 million in long-term debt.
Fiscal 2026 Outlook: For fiscal 2026, Toro anticipates adjusted EPS between $4.35 and $4.50 and sales ranging from $4.601 billion to $4.736 billion, with shares rising 7.06% to $77.78 following the earnings report.
Toro, DBV Technologies, Udemy, ABM Industries, and Other Major Stocks Rising on Wednesday
U.S. Stock Market Performance: U.S. stocks showed mixed results, with the Dow Jones gaining over 150 points, while several companies, including Toro Co, reported better-than-expected quarterly earnings, leading to significant stock price increases.
Notable Stock Gains: Toro Co's shares rose 7% after reporting earnings of 91 cents per share, while DBV Technologies saw a 35.5% increase following positive trial results. Other companies like Udemy and Kodiak Sciences also experienced substantial gains.
Sector Highlights: Cannabis-related stocks surged after reports of potential reclassification of marijuana, with Canopy Growth Corp gaining 16.2%. Lithium-related stocks also rose following the cancellation of mining permits in Yichun.
Company Announcements and Upgrades: Several companies, including Recursion Pharmaceuticals and Two Harbors Investment Corp, saw stock price increases due to upgrades and acquisition announcements, reflecting positive investor sentiment.
Toro Company Exceeds FY 2025 Expectations with $578 Million Free Cash Flow
- Financial Performance Exceeds Expectations: Toro Company reported net sales of $4.51 billion for FY 2025, down 2% from FY 2024, yet still surpassing market expectations, demonstrating strong performance in the underground construction and golf professional segments.
- Record Free Cash Flow: The company generated $578 million in free cash flow, primarily driven by improvements in net working capital, reflecting its financial discipline and strong balance sheet, which provides ample funding for future investments.
- Increased Shareholder Returns: In FY 2025, Toro returned $441 million to shareholders through cash dividends and stock repurchases, underscoring its commitment to shareholder value and sustained profitability.
- Improved Profitability: The Professional segment achieved a full-year earnings margin of 19.4%, up 1.4 percentage points from last year, indicating significant progress in productivity enhancement and cost control, thereby strengthening its competitive position in the market.
Toro Co Reports Q4 Profit Decline, Exceeding Expectations
Fourth Quarter Earnings: Toro Co reported a profit of $73 million ($0.74 per share) for the fourth quarter, down from $89.9 million ($0.87 per share) last year, but exceeded analysts' expectations of $0.87 per share.
Revenue Decline: The company's revenue fell by 0.9% to $1.066 billion compared to $1.076 billion in the previous year.
Future Earnings Guidance: For fiscal 2026, Toro expects earnings below analyst forecasts, projecting adjusted diluted earnings per share between $4.35 and $4.50, with net sales growth of 2% to 5%.
Stock Performance: Following the earnings report, Toro Co's stock rose by 3.11% to $75 in pre-market trading on the New York Stock Exchange.
