Canada's Toromont Q2 revenue beats estimates on Equipment Group growth

Toromont Industries

28/07/2026 23:14

Overview
Canada industrial equipment dealer's Q2 revenue rose 16%, beating analyst expectations
Q2 net earnings and EPS were flat, reflecting higher purchase commitment expenses
During qtr, company increased AVL stake to 80%, incurring C$54.3 mln in related expenses

Outlook
Toromont did not provide specific financial guidance for the current qtr or full yr in the press release

Result Drivers
EQUIPMENT GROUP GROWTH - Revenue rose 18% in Equipment Group, led by higher new equipment sales, rentals, and product support, with strong contribution from AVL acquisition
GROSS MARGIN IMPROVEMENT - Gross profit margin increased 230 bps to 26.9% in Q2, mainly due to higher equipment and rental margins in Equipment Group
PURCHASE COMMITMENT EXPENSES - Net earnings and EPS were flat due to C$54.3 mln in purchase commitment expenses related to increasing AVL stake

Company press release: ID:nCNWqH4wja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$1.60 bln
C$1.49 bln (8 Analysts)
Q2 EPS
 
C$1.51
 
Q2 Net Income
 
C$124.50 mln
 
Q2 Operating Income
 
C$242.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"
Wall Street's median 12-month price target for Toromont Industries Ltd is C$242.00, about 14.9% above its July 27 closing price of C$210.63
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago

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July 28 - Herc Holdings beats Q2 revenue estimates, lifts 2026 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)