TOROMONT ANNOUNCES 2025 FOURTH QUARTER AND FULL YEAR RESULTS AND INCREASES QUARTERLY DIVIDEND

Executive Summary

• Toromont Industries reported Q4 2025 revenue of C$1.42 bn (+9%) and full‑year revenue of C$5.20 bn (+4%).
• Net earnings were flat quarter‑over‑quarter (C$157 m, +1%) but down 2% year‑over‑year to C$496.6 m; EPS was $1.93 Q4 vs $1.91 prior year.
• The Board increased the quarterly dividend by 7.7% to $0.56 per share (payable April 2, 2026).

Key Details

• Revenue: Q4 2025 C$1,421.9 m (+9% YoY); FY 2025 C$5,202.8 m (+4%).
• Operating Income: Q4 2025 C$218.0 m (+3% YoY); FY 2025 C$681.3 m (+2%).
• Net Earnings: Q4 2025 C$157.2 m (+1% QoQ, –1% YoY); FY 2025 C$496.6 m (‑2% YoY).
• EPS (Basic): $1.93 Q4 vs $1.91 prior year; $6.11 FY vs $6.18 prior year.
• Dividend: Increased 4¢ per share to $0.56 (7.7% increase); payable 2 Apr 2026 to shareholders of record 6 Mar 2026.
• Segment Highlights – Equipment Group:
• Q4 revenue C$1.3 bn (+9%). New equipment sales +10%; rentals +5%; product support +9%.
• FY revenue C$4.7 bn (+3%). Backlog $1.2 bn (up 68% YoY, includes $428 m AVL backlog).
• Segment Highlights – CIMCO:
• Q4 revenue C$524.2 m (+10%). Package revenue +4%; product support +17%.
• FY revenue C$524.2 m (+14%). Backlog $342.6 m (flat YoY).
• Acquisitions & Integration: AVL acquisition contributed $254.7 m of FY revenue; non‑cash amortization and commitment liability expense of $33.4 m Q4 and $90.4 m YTD.
• Financial Position: Share price $166.05 (Dec 2025) → market cap C$13.5 bn; net debt –C$529 m (‑19% of capital). No NCIB purchases in Q4; 337,500 shares repurchased for $40.1 m YTD.
• Leverage & Returns: ROE 16.9% (down from 19.2%); ROCE 23.4% (down from 25.7%).
• Bookings & Backlog: Q4 bookings $834.8 m (+71% YoY); FY bookings $2.5 bn (+25%). Total backlog $1.5 bn (up from $1.1 bn).
• Management Commentary: CEO Michael S. McMillan highlighted solid Q4 performance despite macro uncertainty; CFO John M. Doolittle emphasized focus on cost discipline, balance‑sheet strength, and continued investment in capacity.

Notable Quotes

“Our team delivered solid results in the fourth quarter… We remain focused on long‑term performance, continuing to invest in our people and capabilities…” – Michael S. McMillan, President & CEO
“We will maintain our focus on operating and financial disciplines to manage our cost structure, while we invest in capacity and capabilities…” – John M. Doolittle, EVP & CFO