Toro Co (NYSE: TTC)

The Toro Company designs, manufactures, markets and sells professional turf maintenance equipment and services, turf irrigation systems, landscaping equipment and lighting products, snow and ice management products, agricultural irrigation systems, rental, specialty and underground construction equipment, and residential yard and snow thrower products. It operates in the outdoor power equipment and related solutions industry, serving markets such as golf, sports fields, landscape contracting, underground construction, agriculture, and residential consumers worldwide. Founded over a century ago, the company has grown through internal product development and strategic acquisitions. Its mission is to help customers enrich the beauty, productivity, and sustainability of the land. The company maintains manufacturing facilities in multiple countries and sales offices worldwide to support its global distribution.

The Toro Company generates revenue primarily through the sale of its equipment and related irrigation, lighting, and snow management products to distributors, dealers, mass retailers, hardware retailers, equipment rental centers, home centers, and directly to end-users. Revenue also comes from aftermarket parts, service agreements, and financing arrangements offered through joint ventures and third-party providers. In fiscal 2025, the Professional segment contributed approximately 80.3% of consolidated net sales, while the Residential segment accounted for 19.0% and Other activities made up the remaining 0.7%. The company also earns revenue from licensing its trademarks on certain yard tools and garden equipment. Additionally, Toro offers inventory financing arrangements through joint ventures with financial institutions to support its dealer network.

The company operates through the following segments: Professional and Residential. These two segments comprise the vast majority of its business, with Other activities being immaterial and consisting of corporate overhead and intersegment eliminations.

• Professional: This segment encompasses turf maintenance for golf courses and sports fields, landscape and lighting solutions, rental and specialty construction equipment, underground construction tools, snow and ice management products, and agricultural irrigation systems. It serves professional users including golf course superintendents, sports facility managers, municipal agencies, landscape contractors, rental companies, and agricultural producers through a network of distributors, dealers, and direct government channels.

• Residential: This segment includes walk-behind and zero-turn riding mowers, snow throwers, yard tools, and garden equipment designed for homeowners. Products are sold via mass retailers, hardware stores, home centers, online platforms, and direct-to-consumer channels, reaching consumers seeking reliable lawn and garden solutions.

The Toro Company is a principal competitor in the outdoor power equipment industry, facing rivals such as Deere & Company, Husqvarna Group, and Briggs & Stratton. Its competitive advantages stem from a broad portfolio of patented products, a reputation for innovation and quality, an extensive global distribution network, and strong aftermarket service and financing capabilities. The company invests continuously in research and development to introduce new and enhanced products, which historically have driven a significant portion of net sales. Its brand lineup, including Toro, Ditch Witch, eXmark, BOSS, and Ventrac, provides differentiated solutions across multiple end markets.

The company serves a diverse customer base that includes golf courses, sports fields, municipal parks and recreation departments, landscape contractors, rental companies, agricultural producers, and residential homeowners across more than 125 countries. Distribution channels vary by segment, with professional products relying heavily on specialty distributors and dealers, while residential goods flow through mass merchants and home improvement retailers. This broad reach reduces dependence on any single customer and supports stable demand across geographic regions.