Toromont Q2 revenue beats estimates

Toromont Industries

29/07/2025 22:15

Overview

Toromont Q2 revenue rises 1% yr/yr, beating analyst expectations, per LSEG data

Net earnings for Q2 fall 8% yr/yr, impacted by AVL acquisition costs

Equipment Group sees growth in rental and product support, offset by lower equipment deliveries in mining segment

Outlook

Company expects new Charlotte facility to begin production in Q4

Toromont monitoring economic and political environments for impacts

Company maintains focus on operating disciplines and balance sheet optimization

Toromont aims for ROE exceeding 18% over a cycle

Result Drivers

EQUIPMENT GROUP - Growth in rental and product support activity, offset by lower mining deliveries

CIMCO PERFORMANCE - Higher revenue and earnings driven by strong market demand and execution in Canada and US

AVL ACQUISITION COSTS - Net earnings impacted by non-cash costs related to AVL acquisition

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$1.38 bln
C$1.34 bln (7 Analysts)
Q2 EPS
C$1.53
Q2 Net Income
C$124.30 mln
Q2 Operating Income
C$170.70 mln
Q2 Operating Margin
12.4%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "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$130.00, about 1.9% below its July 28 closing price of C$132.49

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nCNWB5V8ra

(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.)