In a Wednesday press release, the Toro Company reported its fourth quarter as well as annual fiscal results. The company said it surpassed its yearly expectations, which it credited to underground construction and golf.

Toro, which primarily manufactures and sells outdoor environmental equipment, recorded fourth quarter net sales of $1.07 billion and full-year net sales of $4.51 billion. In fiscal year 2024, it reported $1.08 billion Q4 net sales and $4.58 billion full-year net sales. It blamed this year’s dip on divestitures of non-core assets.

Toro also reported diluted earnings per share (EPS) of $0.74, compared to $0.87 in the preceding fiscal year, while the full-year diluted EPS was $3.17, compared to $4.01.

The company operates two main segments: professional (sales to contractors) and residential (sales to homeowners). Richard M. Olson, chairman and CEO of Toro, said in a release that the company’s professional segment, which makes up about 80% of the company’s portfolio, achieved a full-year earnings margin of 19.4%. He credited the “resilience” of the professional sector.

Toro’s residential segment experienced a significant drop. Full-year 2025 net sales amounted to $858.4 million, down 14% from $998.3 million the previous year. The company blamed the decrease on “lower shipments broadly across the segment,” as well as its divestiture of the Australia-based Pope Products, a residential garden watering and irrigation business, in 2024.

Residential losses for the fourth quarter were $1.2 million, compared to $13.8 million last year. According to Toro, “cost savings measures, productivity improvements, and net price realization, partially offset by inventory valuation adjustments, higher material costs, and lower net sales volume,” were the difference makers.

Among the cost saving measures, Olson added, was AMP, which stands for Amplifying Maximum Productivity, a productivity initiative launched by Toro in the first quarter of fiscal year 2024.

For the next fiscal 2026, net sales for the company are expected to grow 2-5%.