TOROMONT ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2026 AND QUARTERLY DIVIDEND

• Toromont reported Q1 2026 revenue of $1,228.1 million, up 13% year-over-year (YoY).
• Net earnings increased 25% YoY to $92.7 million, with EPS rising 24% to $1.14.
• Gross profit margin expanded significantly by 340 basis points to 25.8%.
• The company increased its ownership stake in AVL (Advanced Vehicle Logistics) from a minority position to 80% via a $71.0 million cash purchase.
• A specific accounting note warns of an approximate $45.0 million expense to be recorded in Q2 2026 related to the AVL share purchase.
• Quarterly dividend was maintained at $0.56 per share (previously announced increase from $0.52 in Feb 2026).
• Total backlog grew to $1.7 billion, up from $1.3 billion previously.
• CIMCO segment operating income declined 36% YoY despite a 3% revenue increase.

• The Q1 earnings beat is positive but largely follows the trajectory set by strong backlog growth in late 2025.
• The 25% earnings growth is impressive compared to the flat/down trend seen in Q4 2025 and Q3 2025, suggesting operational leverage is kicking in.
• However, the $45 million expense warning for Q2 2026 acts as a near-term headwind that offsets some of the Q1 optimism.
• The dividend increase to $0.56 was already announced in February 2026; confirming it now is routine.
• The AVL consolidation to 80% increases control but reduces cash reserves (Net Debt to Capitalization moved from -19% to -12%).
• Given the stock has appreciated nearly 100% over the last 52 weeks, this news confirms the bullish thesis rather than providing a new catalyst for significant multiple expansion.

• Toromont Industries Ltd. operates primarily in two segments: Equipment Group (Caterpillar dealership) and CIMCO (IT solutions).
• The flagship asset is its exclusive Caterpillar dealership rights in Canada, providing stable cash flows through equipment sales, rentals, and product support.
• AVL (Advanced Vehicle Logistics) represents a strategic growth initiative to expand into vehicle logistics and fleet management services.
• Development has shifted from pure organic growth to integration of acquisitions like AVL to drive revenue scale.