Toro earnings rise 12.5% in first half as professional equipment sales grow
Red Iron financing venture investment declines 12.1% year over year
The Toro Co. reported higher earnings and sales during the first half of fiscal 2026, driven by growth in its professional equipment business despite continued softness in residential markets.
The Bloomington, Minn.-based manufacturer’s professional segment sales increased during the six months ended May 1, supported by demand for equipment serving landscape, specialty construction and infrastructure customers, according to today’s 10-Q filing with the SEC.
Toro’s dealer financing joint venture, Red Iron Acceptance, remained a key source of inventory financing for distributors and dealers, according to the filing. The company owns 45% of Red Iron, while Huntington Distribution Finance owns the remaining 55%, with Toro’s investment in the venture declined from a year earlier but increased from fiscal year-end 2025.
Red Iron provides floorplan financing for certain Toro dealers and distributors in the United States, according to the filing. The venture operates through a secured revolving credit facility, and Toro does not guarantee Red Iron’s outstanding debt.
By the numbers
Toro reported the following results for the first half of fiscal 2026:
- Investment in Red Iron totaled $45 million, down 12.1% year over year;
- Total net sales reached $2.5 billion, up 6.4% YoY;
- Professional segment sales increased 8.3% YoY to $1.9 billion;
- Residential segment sales decreased 0.4% YoY to $516.4 million;
- Net earnings rose 12.5% YoY to $213.3 million;
- Total assets declined 2.2% YoY to $3.7 billion.
MARKET REACTION: Shares of The Toro Co. [NYSE: TTC] were down 2.3% or $2.12 from market open to $88.83 as of market close today. The company has a market capitalization of $8.61 billion.
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