Toromont Equipment Group revenue climbs 26% in Q3
New equipment sales surged 49% YoY
Canadian Caterpillar dealer Toromont Industries saw Equipment Group revenue rise in the third quarter, driven by a surge in new equipment sales and strong rental demand.
The company’s Q3 results reflect “higher mining and construction deliveries, as well as higher power system sales along with increased rental and product support revenue,” Chief Financial Officer John Doolittle said during today’s earnings call.
“Looking at the market segments for the quarter, total equipment revenue was up 55% in mining,” he said. “Power Systems is up 108% and construction up 11%, while material handling was down 36%.”
Toromont reported in Q3:
- Equipment Group revenue totaling CA$1.5 billion ($1 billion), up 26.1% year over year;
- New-equipment sales of $484.3 million, up 49% YoY;
- Used-equipment sales of $55.5 million, down 3.8% YoY;
- Rental revenue of $120.2 million; and
- Operating income of $185.1 million.
The surge in new-equipment sales was “mainly led by higher mining deliveries and power systems revenue as well as improved construction activity,” Doolittle said.
Shares of Toromont [OTCMKTS: TMTNF] rose 9% from market open to $149.33 as of market close today. It has a market capitalization of $12.2 billion.
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