The Toro Company (TTC) SEC Filings & Earnings Calls

Restructuring execution risk

“Non-cash impairment charges $43.1 million related to the planned closure of the Monterrey manufacturing facility and the write-down of assets associated with the exit of a residential mower platform”

Tariff and supply chain risk

“ongoing challenges related to tariffs and strategies to mitigate the effect thereof” · word for word

Inventory destocking risk

“the anticipated impacts of field inventory levels and backlog” · word for word

Higher material and manufacturing costs partially offset by price realization and productivity.

“Professional segment margin decreased to 20.9% from 21.3% due to higher material and manufacturing costs.”

Inflationary pressures and higher interest rates cited as risks.

“Forward-looking statements mention adverse economic conditions including inflationary pressures and higher interest rates.”

Leadership transition risk is low as it is planned and internal; continuity with Olson as Executive Chairman.

“Planned succession; Funk has long tenure at company; Olson remains as Executive Chairman.”

Tariff cost pressure

“Our business has incurred, and expects to continue to incur, additional costs related to tariffs.” · word for word

Macroeconomic uncertainty

“Adverse economic conditions and outlook in the United States and in other countries in which we conduct business, such as but not limited to: economic uncertainty; business slowdowns, suspensions or delays of production and commercial activity; slow or negative economic growth rates or recessionary conditions.” · word for word

Supply chain disruption

“Disruption and/or shortages in the availability and cost of commodities, components, parts, or accessories used in our products, including as a result of tariffs, the conflict in the Middle East, and the effect of our supply chain strategies to mitigate the effect of tariffs.” · word for word

Seasonality and weather

“Seasonality of our businesses and its impact on demand for our products and our working capital; Effect that weather conditions or climate change have on demand for our products and operations, including our supply chain.” · word for word

Inflationary pressures on material, manufacturing, and freight costs partially offset margin gains.

“partially offset by higher material, manufacturing, and freight costs, as well as product mix” · word for word

No material risk; routine governance matters.

“All proposals passed with strong support.”

Higher material and manufacturing costs pressuring gross margin.

“Gross margin down due to higher material and manufacturing costs.”

Residential segment weakness with 6.8% sales decline.

“Residential segment net sales down 6.8%.”

Tariff and trade policy risk

“The company mentions 'ongoing challenges related to tariffs and strategies to mitigate the effect thereof' in forward-looking statements.”

Integration risk from acquisition

“The acquisition of Tornado Infrastructure Equipment adds $137.6M goodwill and $63.8M intangibles; integration risks are inherent.”

Weak performance in Landscapes and Contractor segment

“Landscapes and Contractor Group: performance for both goals was below threshold, resulting in a payout percentage of 0% of target.”

Low payout on long-term performance shares

“In December 2025, the Committee certified payouts under the performance share awards that were granted in fiscal 2023 for the fiscal 2023 to fiscal 2025 performance period which amounted to 22.2% of target.” · word for word

Shareholder dilution from new equity plan

“The maximum number of shares of our common stock to be authorized for issuance under the 2026 Plan will be equal to the sum of: (a) 3,650,000 shares, plus (b) the number of shares remaining available for grant under the 2022 Plan but not subject to outstanding awards thereunder as of the effective date of the 2026 Plan, and plus (c) the number of shares subj” · word for word

Tariff headwinds and consumer market softness

“Mitigated tariff headwinds and maintained margins; Conservative assumptions for homeowner markets reflecting current consumer dynamics”

Integration risk and potential dilution from debt financing; acquisition expected to be neutral to EPS in first year.

“The transaction is expected to be neutral to adjusted earnings per share in the first year after closing and will be increasingly accretive thereafter.” · word for word