Toro designs and sells outdoor power equipment and underground construction equipment, primarily for professional customers. The Professional segment (~80% of revenue) serves four main end markets: golf courses, underground construction contractors, landscape contractors, and snow and ice management. Toro is the only company that offers both turf maintenance equipment and irrigation systems to golf courses, which gives it a differentiated position with golf customers. For underground construction, Toro sells horizontal directional drills, trenchers, and vacuum excavators under the Ditch Witch, American Augers, and HammerHead brands to contractors installing fiber, utilities, and infrastructure. For landscape contractors, Toro sells commercial zero-turn and walk-behind mowers under the Exmark, Toro, Spartan, and Ventrac brands. The BOSS brand sells snowplows to contractors and municipalities. The Residential segment (~19% of revenue) sells mowers, snow throwers, and yard tools to homeowners through mass retailers and dealers. Toro's business model is largely transactional — revenue is driven by unit volume, pricing, and product mix. Toro's growth strategy focuses on underground construction, where demand is driven by broadband rollout, data center build-out, and grid modernization, and on golf, where participation has grown for seven consecutive years. Toro is also investing in autonomous mowing and electric products across its portfolio. Toro operates a 50/50 financing JV with Huntington Bank that provides floor plan financing to dealers.
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