Operating margins have demonstrated significant volatility, bottoming at 5.7% in 2025Q3 before recovering to 13.7% in 2026Q2, reflecting inconsistent operating leverage.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Sales/Revenue | 4.66B | 4.51B | 4.58B | 4.55B | 4.51B | 3.96B | 3.38B | 3.14B | 2.62B | 2.51B | 2.39B | 2.39B | 2.17B | 2.04B | 1.96B | 1.88B | 1.69B | 1.52B | 1.88B | 1.88B | 1.84B | 1.8B | 1.65B | 1.5B | 1.4B | 1.35B | 1.34B | 1.28B | 1.11B | 1.05B | 930.9M |
| Revenue Growth % | 2.51% | -1.6% | 0.67% | 0.85% | 14.02% | 17.19% | 7.67% | 19.84% | 4.53% | 4.72% | 0.05% | 10.04% | 6.43% | 4.22% | 3.97% | 11.45% | 10.96% | -18.89% | 0.07% | 2.23% | 2.03% | 8.89% | 10.42% | 6.95% | 3.41% | 1.05% | 4.63% | 15.25% | 5.63% | 12.92% | -0.21% |
| Cost of Goods Sold | 3.11B | 3.01B | 3.03B | 2.98B | 3.01B | 2.62B | 2.19B | 2.09B | 1.68B | 1.58B | 1.52B | 1.55B | 1.4B | 1.32B | 1.29B | 1.25B | 1.11B | 1.01B | 1.23B | 1.2B | 1.19B | 1.16B | 1.06B | 961.13M | 914.01M | 892.85M | 875.82M | 843.45M | 687.9M | 632.3M | 571M |
| COGS % of Revenue | - | 66.64% | 66.2% | 65.35% | 66.67% | 66.2% | 64.79% | 66.61% | 64.07% | 63.24% | 63.44% | 65.04% | 64.41% | 64.5% | 65.64% | 66.21% | 65.9% | 66.46% | 65.25% | 63.86% | 64.96% | 64.69% | 64.11% | 64.22% | 65.32% | 65.99% | 65.41% | 65.91% | 61.95% | 60.15% | 61.34% |
| Gross Profit | 1.55B | 1.5B | 1.55B | 1.58B | 1.5B | 1.34B | 1.19B | 1.05B | 941.01M | 920.84M | 874.6M | 835.93M | 773.27M | 724.8M | 673.09M | 636.65M | 576.39M | 510.98M | 652.71M | 678.38M | 643.32M | 635.37M | 593.07M | 535.46M | 485.26M | 460.24M | 463.16M | 436.26M | 422.5M | 418.9M | 359.9M |
| Gross Margin % | 33.32% | 33.36% | 33.8% | 34.65% | 33.33% | 33.8% | 35.21% | 33.4% | 35.94% | 36.76% | 36.56% | 34.96% | 35.59% | 35.5% | 34.36% | 33.79% | 34.1% | 33.54% | 34.75% | 36.14% | 35.04% | 35.31% | 35.89% | 35.78% | 34.68% | 34.01% | 34.59% | 34.09% | 38.05% | 39.85% | 38.66% |
| Gross Profit Growth % | - | -2.87% | -1.79% | 4.85% | 12.41% | 12.5% | 13.53% | 11.37% | 2.19% | 5.29% | 4.62% | 8.1% | 6.69% | 7.68% | 5.72% | 10.45% | 12.8% | -21.71% | -3.78% | 5.45% | 1.25% | 7.13% | 10.76% | 10.34% | 5.44% | -0.63% | 6.17% | 3.26% | 0.86% | 16.39% | 2.3% |
| Operating Expenses | 1.11B | 1.01B | 1.02B | 1.15B | 928.9M | 820.2M | 763.42M | 722.93M | 567.93M | 565.73M | 540.2M | 536.82M | 510.11M | 494.13M | 467.48M | 452.16M | 425.13M | 395.78M | 454.3M | 454.73M | 440.44M | 452.64M | 427.85M | 408.46M | 386.3M | 365.61M | 365.95M | 361.48M | 383.8M | 346.6M | 296.5M |
| OpEx % of Revenue | - | 22.48% | 22.17% | 25.19% | 20.57% | 20.71% | 22.59% | 23.04% | 21.69% | 22.58% | 22.58% | 22.45% | 23.48% | 24.21% | 23.87% | 24% | 25.15% | 25.98% | 24.19% | 24.23% | 23.99% | 25.16% | 25.89% | 27.29% | 27.61% | 27.02% | 27.33% | 28.25% | 34.56% | 32.97% | 31.85% |
| Selling, General & Admin | 1.03B | 1.01B | 842.5M | 995.6M | 928.9M | 820.2M | 763.42M | 722.93M | 567.93M | 565.73M | 540.2M | 536.82M | 510.11M | 494.13M | 467.48M | 452.16M | 425.13M | 395.78M | 454.3M | 454.73M | 440.44M | 432.64M | 428.53M | 406.64M | 377.89M | 366.28M | 365.95M | 359.74M | 345.6M | 315.7M | 278.3M |
| SG&A % of Revenue | - | 22.48% | 18.38% | 21.87% | 20.57% | 20.71% | 22.59% | 23.04% | 21.69% | 22.58% | 22.58% | 22.45% | 23.48% | 24.21% | 23.87% | 24% | 25.15% | 25.98% | 24.19% | 24.23% | 23.99% | 24.04% | 25.93% | 27.17% | 27.01% | 27.07% | 27.33% | 28.11% | 31.12% | 30.03% | 29.9% |
| Research & Development | 0 | 0 | 173.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 3.78% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 400K | 151.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20M | -682K | 1.83M | 8.41M | -679K | 0 | 1.73M | 38.2M | 30.9M | 18.2M |
| Operating Income | 442.4M | 491M | 533.3M | 430.7M | 575.7M | 518.3M | 426.36M | 325.03M | 373.08M | 355.11M | 334.4M | 299.11M | 263.16M | 230.66M | 205.61M | 184.49M | 151.27M | 115.2M | 198.41M | 223.65M | 202.88M | 182.73M | 165.22M | 126.99M | 98.97M | 94.63M | 97.2M | 74.78M | 38.7M | 72.3M | 63.4M |
| Operating Margin % | 9.49% | 10.89% | 11.63% | 9.46% | 12.75% | 13.09% | 12.62% | 10.36% | 14.25% | 14.18% | 13.98% | 12.51% | 12.11% | 11.3% | 10.5% | 9.79% | 8.95% | 7.56% | 10.56% | 11.92% | 11.05% | 10.15% | 10% | 8.49% | 7.07% | 6.99% | 7.26% | 5.84% | 3.49% | 6.88% | 6.81% |
| Operating Income Growth % | - | -7.93% | 23.82% | -25.19% | 11.07% | 21.56% | 31.18% | -12.88% | 5.06% | 6.19% | 11.8% | 13.66% | 14.09% | 12.18% | 11.45% | 21.96% | 31.31% | -41.94% | -11.29% | 10.24% | 11.03% | 10.59% | 30.1% | 28.32% | 4.58% | -2.65% | 29.98% | 93.24% | -46.47% | 14.04% | -2.16% |
| EBITDA | 558.1M | 633.9M | 661.5M | 549.9M | 684.5M | 617.6M | 521.97M | 412.73M | 434.36M | 420.1M | 398.49M | 362.26M | 316.3M | 284.8M | 259.25M | 232.99M | 158.38M | 159.73M | 246.6M | 265.75M | 245.44M | 225.56M | 201.32M | 161.13M | 129.84M | 131.8M | 135.36M | 113.89M | 76.9M | 103.2M | 81.6M |
| EBITDA Margin % | 11.98% | 14.05% | 14.43% | 12.08% | 15.16% | 15.6% | 15.45% | 13.15% | 16.59% | 16.77% | 16.66% | 15.15% | 14.56% | 13.95% | 13.24% | 12.37% | 9.37% | 10.48% | 13.13% | 14.16% | 13.37% | 12.54% | 12.18% | 10.77% | 9.28% | 9.74% | 10.11% | 8.9% | 6.93% | 9.82% | 8.77% |
| EBITDA Growth % | -12.88% | -4.17% | 20.29% | -19.66% | 10.83% | 18.32% | 26.47% | -4.98% | 3.4% | 5.42% | 10% | 14.53% | 11.06% | 9.86% | 11.27% | 47.11% | -0.85% | -35.23% | -7.21% | 8.28% | 8.82% | 12.04% | 24.94% | 24.1% | -1.49% | -2.62% | 18.85% | 48.09% | -25.48% | 26.47% | -0.49% |
| D&A (Non-Cash Add-back) | 112.5M | 142.9M | 128.2M | 119.2M | 108.8M | 99.3M | 95.61M | 87.7M | 61.28M | 64.99M | 64.1M | 63.14M | 53.14M | 54.13M | 53.63M | 48.51M | 0 | 44.53M | 48.19M | 42.1M | 42.56M | 42.83M | 36.09M | 34.14M | 30.88M | 37.17M | 38.15M | 39.1M | 38.2M | 30.9M | 18.2M |
| EBIT | 470.4M | 409.9M | 574.7M | 459.2M | 588.2M | 528.5M | 440.23M | 350.97M | 391.49M | 372.3M | 349.8M | 309.79M | 271.87M | 242.92M | 213.17M | 191.8M | 158.38M | 113.37M | 200.62M | 223.65M | 202.88M | 202.73M | 164.54M | 128.82M | 107.37M | 93.95M | 97.2M | 74.78M | 38.7M | 72.3M | 63.4M |
| Net Interest Income | -57.3M | -59.1M | -61.9M | -58.7M | -35.7M | -28.7M | -31.9M | -26.08M | -16.63M | -17.75M | -18.51M | -18.26M | -14.96M | -15.76M | -16.12M | -14.93M | -16.06M | -16.68M | -17.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 1.25M | 2.75M | 2.46M | 1.36M | 827K | 494K | 465K | 447K | 786K | 1.07M | 1.06M | 898K | 1.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 57.3M | 59.1M | 61.9M | 58.7M | 35.7M | 28.7M | 33.16M | 28.84M | 19.1M | 19.11M | 19.34M | 18.76M | 15.43M | 16.21M | 16.91M | 16.97M | 17.11M | 17.58M | 15.9M | 4.19M | 2.45M | 27.18M | 7.1M | 4.07M | 49.24M | 5.75M | 24.23M | 14.3M | 38.4M | 5.8M | 0 |
| Other Income/Expense | -29.3M | -113.4M | -20.5M | -30.2M | -23.2M | -18.5M | -19.29M | -2.9M | -688K | -1.93M | -3.94M | -8.08M | -6.71M | -3.95M | -9.35M | -9.66M | -10M | -19.41M | -17.12M | -10.42M | -10.12M | -12.45M | -11.99M | -6.08M | -12.17M | -14.56M | -25.32M | -17.31M | -31.9M | -12M | -3.2M |
| Pretax Income | 413.1M | 377.6M | 512.8M | 400.5M | 552.5M | 499.8M | 407.07M | 322.13M | 372.4M | 353.18M | 330.46M | 291.03M | 256.44M | 226.71M | 196.26M | 174.83M | 141.27M | 95.79M | 181.29M | 213.23M | 192.75M | 170.27M | 153.23M | 120.92M | 86.8M | 80.08M | 71.88M | 57.47M | 6.8M | 60.3M | 60.2M |
| Pretax Margin % | 8.87% | 8.37% | 11.19% | 8.8% | 12.24% | 12.62% | 12.05% | 10.27% | 14.22% | 14.1% | 13.81% | 12.17% | 11.8% | 11.11% | 10.02% | 9.28% | 8.36% | 6.29% | 9.65% | 11.36% | 10.5% | 9.46% | 9.27% | 8.08% | 6.2% | 5.92% | 5.37% | 4.49% | 0.61% | 5.74% | 6.47% |
| Income Tax | 73.3M | 61.5M | 93.9M | 70.8M | 109.2M | 89.94M | 77.37M | 48.15M | 100.46M | 85.47M | 99.47M | 89.44M | 82.58M | 71.87M | 66.72M | 57.17M | 48.03M | 32.95M | 61.64M | 70.79M | 63.61M | 56.19M | 50.57M | 39.3M | 26.87M | 29.63M | 26.6M | 22.4M | 2.7M | 23.8M | 23.8M |
| Effective Tax Rate % | 17.74% | 16.29% | 18.31% | 17.68% | 19.77% | 17.99% | 19.01% | 14.95% | 26.98% | 24.2% | 30.1% | 30.73% | 32.2% | 31.7% | 34% | 32.7% | 34% | 34.4% | 34% | 33.2% | 33% | 33% | 33% | 32.5% | 30.95% | 37% | 37% | 38.97% | 39.71% | 39.47% | 39.53% |
| Net Income | 339.8M | 316.1M | 418.9M | 329.7M | 443.3M | 409.9M | 329.7M | 273.98M | 271.94M | 267.72M | 230.99M | 201.59M | 173.87M | 154.84M | 129.54M | 117.66M | 93.24M | 62.84M | 119.65M | 142.44M | 129.15M | 114.08M | 102.67M | 81.62M | 35.32M | 50.45M | 45.28M | 35.1M | 4.1M | 34.8M | 36.4M |
| Net Margin % | 7.29% | 7.01% | 9.14% | 7.24% | 9.82% | 10.35% | 9.76% | 8.73% | 10.38% | 10.69% | 9.66% | 8.43% | 8% | 7.59% | 6.61% | 6.25% | 5.52% | 4.12% | 6.37% | 7.59% | 7.03% | 6.34% | 6.21% | 5.45% | 2.52% | 3.73% | 3.38% | 2.74% | 0.37% | 3.31% | 3.91% |
| Net Income Growth % | -14.79% | -24.54% | 27.05% | -25.63% | 8.15% | 24.32% | 20.34% | 0.75% | 1.58% | 15.9% | 14.59% | 15.94% | 12.29% | 19.53% | 10.1% | 26.19% | 48.38% | -47.48% | -16% | 10.29% | 13.2% | 11.12% | 25.79% | 131.11% | -29.99% | 11.4% | 29.02% | 756.1% | -88.22% | -4.4% | -0.82% |
| Net Income (Continuing) | 339.8M | 316.1M | 418.9M | 329.7M | 443.3M | 409.9M | 329.7M | 273.98M | 271.94M | 267.72M | 230.99M | 201.59M | 173.87M | 154.84M | 129.54M | 117.66M | 93.24M | 62.84M | 119.65M | 142.44M | 129.15M | 114.08M | 102.67M | 81.62M | 59.93M | 50.45M | 45.28M | 35.06M | 4.1M | 36.5M | 36.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.50 | 3.17 | 4.01 | 3.13 | 4.20 | 3.78 | 3.03 | 2.53 | 2.50 | 2.41 | 2.06 | 1.78 | 1.51 | 1.31 | 1.07 | 0.93 | 0.70 | 0.43 | 0.78 | 0.85 | 0.73 | 0.61 | 0.51 | 0.39 | 0.17 | 0.24 | 0.22 | 0.17 | 0.02 | 0.18 | 0.18 |
| EPS Growth % | -11.03% | -20.95% | 28.12% | -25.48% | 11.11% | 24.75% | 19.76% | 1.2% | 3.73% | 16.99% | 15.73% | 17.88% | 15.27% | 22.43% | 15.05% | 32.86% | 62.79% | -44.87% | -8.24% | 16.44% | 19.67% | 19.61% | 30.77% | 129.41% | -29.17% | 9.09% | 29.41% | 776.29% | -89.22% | 0% | 0% |
| EPS (Basic) | - | 3.18 | 4.04 | 3.16 | 4.23 | 3.82 | 3.06 | 2.57 | 2.56 | 2.47 | 2.10 | 1.82 | 1.55 | 1.34 | 1.09 | 0.94 | 0.71 | 0.44 | 0.79 | 0.88 | 0.75 | 0.64 | 0.53 | 0.41 | 0.18 | 0.25 | 0.22 | 0.17 | 0.02 | 0.18 | 0.19 |
| Diluted Shares Outstanding | 97.1M | 99.8M | 104.4M | 105.3M | 105.65M | 108.47M | 108.66M | 108.09M | 108.66M | 111.25M | 111.99M | 113.51M | 115.26M | 118.21M | 121.24M | 127.19M | 133.75M | 144.96M | 154.32M | 167.46M | 177.38M | 186.16M | 203.3M | 209.28M | 207.75M | 209.07M | 208.93M | 212.48M | 211.17M | 198.86M | 200.83M |
| Basic Shares Outstanding | 96.6M | 99.5M | 103.8M | 104.4M | 104.82M | 107.34M | 107.66M | 106.77M | 106.37M | 108.31M | 109.83M | 111.13M | 112.72M | 115.84M | 118.89M | 125.07M | 131.93M | 143.15M | 150.94M | 162.73M | 171.55M | 178.86M | 194.63M | 200.29M | 201.81M | 203.2M | 204.32M | 206.23M | 204.7M | 193.33M | 194.13M |
| Dividend Payout Ratio | - | 47.8% | 35.69% | 43.04% | 28.36% | 27.42% | 32.67% | 35.09% | 31.27% | 28.3% | 28.52% | 27.56% | 25.91% | 20.99% | 20.25% | 21.22% | 25.44% | 34.06% | 18.9% | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Dealer Inventory Overhang
As reported in recent financial filings, TTC's revenue growth has exhibited significant volatility, swinging from a 12.8% contraction in 2024Q1 to an 8.1% expansion by 2026Q2, suggesting that the company is struggling to maintain consistent top-line momentum amidst shifting seasonal demand and broader macroeconomic headwinds.
The recent return to positive growth in 2026Q2 appears to be a recovery from a prolonged period of negative year-over-year performance throughout 2025. Investors should monitor whether this acceleration is driven by sustainable end-market demand or if it reflects a temporary restocking cycle within the dealer network.
Based on the company's reported figures, gross margins have remained relatively stable, oscillating within a narrow band between 32.4% and 34.8% over the last ten quarters, which indicates a resilient pricing strategy despite the inflationary pressures impacting raw material and freight costs across the industrial sector.
This consistency suggests that TTC retains some degree of pricing power, likely supported by its specialized professional dealer network. However, the inability to expand margins beyond the 34% threshold may imply that competitive pressures or rising input costs are effectively capping the company's profitability potential.
According to the income statement data, operating margins have fluctuated significantly, reaching a low of 5.7% in 2025Q3 before recovering to 13.7% in 2026Q2, which highlights a lack of consistent operating leverage as SG&A expenses continue to consume a substantial portion of gross profit.
The wide variance in operating income suggests that the company's cost structure is not yet optimized for the current revenue environment. The high sensitivity of operating margins to top-line changes warrants further investigation into whether management can effectively scale overhead costs during periods of slower growth.
As indicated by the historical income statement trends, the reliance on sell-in revenue recognition creates a risk that reported figures may be inflated by channel stuffing, particularly given the recent inventory accumulation observed in the residential segment during periods of negative year-over-year revenue growth.
Short-term revenue gains may be masking a deeper issue regarding actual end-user demand, especially if dealers are forced to carry excess stock. Investors should be cautious that future quarters may require significant promotional discounting to clear this inventory, which would likely lead to material margin compression.
Quick answers to the most common questions about buying TTC stock.
For fiscal year 2025, The Toro Company (TTC) reported total revenue of $4.51B. This represents a 384.5% increase compared to $930.9M in 1996.
The Toro Company (TTC) is profitable, generating $316.1M in net income for the fiscal year ending 2025 with a net profit margin of 7.0%.
The Toro Company (TTC) reported an operating income of $491.0M, resulting in an operating profit margin of 10.9%. This margin reflects the operational efficiency of the business before interest and taxes.
The Toro Company (TTC) generated $1.50B in gross profit for the year, representing a gross profit margin of 33.4%. This demonstrates the company's core pricing power and production efficiency.