TOROMONT ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2025 AND QUARTERLY DIVIDEND

Executive Summary

• Toromont Industries reported Q3 2025 revenue of C$1.315 billion (‑2% YoY) and net earnings of C$140.6 million (+7% YoY), with basic EPS of $1.73 (+8%).
• The Board declared a quarterly cash dividend of $0.52 per share, payable 5 Jan 2026.
• Highlights include a pre‑tax gain of C$13.7 million from a property sale, continued strong order backlog ($1.3 billion), and solid bookings growth (+47% Q3 YoY).

Key Details

• Revenue: $1,314.9 M (Q3) vs. $1,338.0 M (2024); YTD $3,781.0 M vs. $3,714.2 M.
• Operating Income: $189.5 M (+8% YoY); excluding property gain, operating income up only $0.9 M.
• Net Earnings: $140.6 M (+7% YoY); basic EPS $1.73 (up 8%).
• Dividends: Quarterly dividend of $0.52 per share; payable 5 Jan 2026 to shareholders of record 5 Dec 2025.
• Property Sale: Pre‑tax gain of C$13.7 M recorded in the quarter.
• AVL Acquisition Impact: Pre‑tax earnings contribution of C$6.3 M (Q3) and $2.2 M YTD; non‑cash amortization expense of $27 M (Q3) and $57 M YTD.
• Equipment Group: Q3 revenue $1.2 B (‑4% YoY); new equipment sales down 15%, used equipment sales up 7%; rental revenue +5%.
• CIMCO Segment: Q3 revenue $391.1 M (+22% YoY); package revenue +28%, product support +14%.
• Bookings: Q3 total bookings $548.8 M (↑49% YoY); YTD bookings $1.7 B (↑13%).
• Backlog: $1.3 B at 30 Sep 2025, up from $1.1 B a year earlier.
• Financial Position: Share price $154.52; market cap $12.6 B; net debt to total capitalization –9% (cash‑rich).
• Debt Redemption: Early redemption of 10‑year senior debentures ($151.6 M) on 11 Jul 2025 at par plus accrued interest.
• Share Repurchases: Cancelled 337,500 shares for $40.3 M in the nine‑month period.

Notable Quotes

“Our team delivered solid results in the third quarter… Net income rose, aided by a property sale…” – Michael S. McMillan, President & CEO
“We continue to monitor the economic and political environment… operating disciplines and balance‑sheet optimization remain top priorities.” – John M. Doolittle, EVP & CFO

Materiality: Material – Positive (significant earnings improvement, dividend declaration, strong backlog and bookings).