Toro Company Exceeds FY 2025 Expectations with $578 Million Free Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
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Source: Newsfilter
- 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.
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Analyst Views on TTC
Wall Street analysts forecast TTC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTC is 88.00 USD with a low forecast of 86.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 90.010
Low
86.00
Averages
88.00
High
90.00
Current: 90.010
Low
86.00
Averages
88.00
High
90.00
About TTC
The Toro Company is a global provider of solutions for the outdoor environment, including turf and landscape maintenance, snow and ice management, underground utility construction, rental and specialty construction, and irrigation and outdoor lighting solutions. The Company’s segments include Professional, Residential and Other. The Professional segment is engaged in designing professional turf maintenance; landscape and lighting; rental, specialty, and underground construction; snow and ice management; and agricultural products. The Residential segment includes products, such as walk power mower, zero-turn riding mower, snow thrower, and yard tools and garden equipment. The Company operates in approximately 125 countries through a portfolio of brands that includes Toro, Ditch Witch, Exmark, Spartan, BOSS, Ventrac, Tornado, American Augers, Subsite, HammerHead, Radius, Perrot, Hayter, Unique Lighting Systems, Irritrol, and Lawn-Boy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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