TOROMONT ANNOUNCES 2025 FOURTH QUARTER AND FULL YEAR RESULTS AND INCREASES QUARTERLY DIVIDEND
Feb 11, 2026, 11:04 AM ET
TORONTO, Feb. 10, 2026 /CNW/ - Toromont Industries Ltd. (TSX: TIH) today reported its financial results for the three months and year ended December 31, 2025.
"Our team delivered solid results in the fourth quarter, closing out the year on a positive note despite persistent macroeconomic and trade uncertainty. We remain focused on long-term performance, continuing to invest in our people and capabilities to support our customers and driving sustainable growth over the longer term cycle," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "Earnings improved over the course of the year, although full year earnings showed a modest decline due to factors such as investment in growth-related initiatives, lower net interest income, and short-term non‑cash costs from the AVL acquisition. The Equipment Group performed well, with solid activity in rentals, product support, and new equipment deliveries in power systems. As expected, mining deliveries were lower due to the segment's inherent variability and against a strong comparator last year, however fourth quarter bookings were strong. CIMCO posted higher revenue and earnings, driven by good demand and disciplined execution in both Canada and the US. Market activity improved through the year, with good order intake and strong closing backlogs for the year in both Groups."
Considering the Company's strong financial position and long-term outlook, the Board of Directors today increased the regular quarterly dividend by four cents per share (7.7%) to 56 cents per share. Toromont has paid dividends every year since 1968 and this is the 37th consecutive year of dividend increases. The next dividend will be payable on April 2, 2026 to shareholders of record at the close of business on March 6, 2026.
HIGHLIGHTS:
Consolidated Results
- Revenue increased $114.9 million or 9% in the fourth quarter compared to the similar period last year, with the Equipment Group up 9% and CIMCO up 10%. The Equipment Group's increase resulted from revenue from the acquired business along with higher product support revenue. CIMCO's growth reflects good package revenue and higher product support revenue in Canada and the US.
- Revenue increased $181.7 million (up 4%) to $5.2 billion for the year. Revenue increased in both groups with the Equipment Group up 3% and CIMCO up 14% compared to 2024. Equipment Group growth reflects revenue from the acquired business, along with higher rental activity, partially offset by lower new equipment sales against a strong comparable. CIMCO's growth reflects higher package revenue. Product support activity increased in both groups, reflecting continued activity in end markets.
- During the year, a property was sold resulting in a pre-tax gain of $13.7 million. In addition, the acquisition has contributed approximately $254.7 million of revenue and $1.1 million of net income (EPS basic – $0.01) to full year results. Both of these items are reported in the Equipment Group and impact comparability of results in both the quarter and year-to-date.
- Gross profit margins(1) increased 10 bps to 27.3% in the fourth quarter, with the Equipment Group reporting a modest increase and CIMCO matching margins reported in Q4 2024.
- Gross profit margins increased 30 bps to 25.4% for the year. Both the Equipment Group and CIMCO reported slightly higher margins. Margins are generally at or near last year's levels, with modest changes in sales mix, supported by good execution.
- Operating income(1) increased 3% in the quarter, reflecting the higher revenue and gross profit margins, partially offset by higher expenses.
- Operating income was $681.3 million for the year, up 2% from the prior year, reflecting the higher revenue and improved gross profit margins, partially offset by the higher expenses. Operating income margin was 13.1% of revenue compared to 13.3% in the similar period last year.
- Net interest income increased by $0.7 million in the quarter and decreased $16.9 million for the year, reflecting interest expense on higher long-term borrowings, as well as lower interest income earned on cash on hand due to lower interest rates.
- In connection with the acquisition of AVL Manufacturing Inc. ("AVL") in early 2025, the Company made a commitment to purchase the remaining 40% shares not purchased and outstanding. Revaluation of this commitment liability resulted in a $7.9 million expense for the year.
- Net earnings increased $0.9 million or 1% to $157.2 million. EPS was $1.93 (basic) and $1.91 (fully diluted), 1% higher compared to the same period last year.
- For the year, net earnings decreased $9.9 million or 2% to $496.6 million compared to the prior year. EPS was $6.11 (basic) and $6.07 (fully diluted), 1% lower compared to last year, reflecting the lower earnings.
- Bookings(1) for the fourth quarter increased 47% compared to last year with higher bookings in the Equipment Group, including a significant contribution from the acquired business, offset by lower bookings at CIMCO. For the year, bookings increased 20% with the Equipment Group up 25% and CIMCO down 11% from the previous year.
- Backlog(1) of $1.5 billion as at December 31, 2025, was up from $1.1 billion as at December 31, 2024. Backlog reflects good demand for our products, including at the acquired business.
Equipment Group
- Revenue increased 9% to $1.3 billion for the quarter. New equipment sales increased 10%, on higher power systems revenue, which includes revenue from the acquired business, partially offset by lower mining deliveries against a strong comparable. Rental revenue increased 5%, with improved utilization and a larger fleet. Product support revenue was up 9% in Q4 on higher parts and service revenue.
- Revenue of $4.7 billion, increased 3% for the year. New equipment sales increased 1%, as higher construction and power systems markets, including the acquired business, were largely offset by lower mining revenue. Rental revenue increased 9% and product support revenue increased 4%, with similar trends as noted for the quarter above.
- Production at AVL has been expanding since the date of acquisition in recognition of the healthy order backlog and building new order demand. Hiring and development of production capacity continues. Revenue for the fourth quarter and full year 2025 were $97.7 million and $254.7 million respectively. As part of the accounting for the acquisition, the company recognized intangible assets related to order backlog and customer relationships, both of which are amortized over time. Certain other non-cash expenses are recorded as a result of the acquisition accounting related to the commitment for purchase of the remaining shares of AVL. Non-cash expenses recognized for these items amounted to $33.4 million and $90.4 million respectively (pre-tax basis), for Q4 and year-to-date of 2025. Net income for AVL after consideration of amortization of intangibles recognized at acquisition was approximately -$0.01 and $0.01 per share for Q4 2025 and year-to-date 2025 respectively. In Q2 2025, the Company acquired a facility in Charlotte, North Carolina for approximately $60.0 million to expand production capacity and serve the eastern US market. The facility commenced the first phase of production during the third quarter of 2025.
- Operating income of $198.4 million in the fourth quarter was up $5.3 million or 3% from the similar period last year, reflecting the higher revenue and gross margins, partially offset by the higher expense levels.
- Operating income increased marginally to $617.2 million in the year. Higher revenue and higher gross profit margins were largely offset by the higher expenses. Operating income margin was 13.2% versus 13.5% in 2024 primarily reflecting higher relative expense levels, including acquisition-related items.
- Bookings in the fourth quarter were $834.8 million, an increase of 71% from the comparable period last year, led by improved bookings in power systems (including the acquired business), mining and construction. Year-to-date bookings were $2.5 billion, an increase of 25% from the similar period last year. Bookings increased in construction (+7%), material handling (+4%) and in power systems (+181%), reflecting good execution and the acquired business. Mining orders were lower against a strong comparable last year (lower by 6%).
- Backlog of $1.2 billion at the end of December 2025 was up by $478.9 million or 68% from the end of December 2024. Backlog includes $428.1 million order backlog related to the recently acquired company AVL. Excluding this, backlog was up 7% compared to the same time last year, reflecting good deliveries against customer orders over the last year, along with solid new order intake throughout the year.
CIMCO
- Revenue increased $12.1 million or 10% compared to the fourth quarter last year. Package revenue was higher, up 4%, with good execution on package project construction and improvements in equipment delivery schedules. Product support revenue was up 17%, reflecting good market activity in Canada.
- Revenue increased $63.6 million or 14% to $524.2 million for the year. Package revenue was up 18% on good execution on projects in the US (+71%), slightly offset by lower revenue in Canada (-1%). Product support activity increased 9%, with higher activity in Canada (+12%), slight offset by lower activity in the US (-1%).
- Operating income increased $1.6 million or 9% for the quarter, as the higher revenue was partially offset by the higher expenses.
- Operating income was up $10.6 million or 20% to $64.0 million for the year, reflecting higher revenue and improved gross profit margins, partially offset by higher expense levels supporting growth. Operating income margin improved to 12.2% (2024 – 11.6%) reflecting good execution overall.
- Bookings decreased 45% in the fourth quarter to $69.7 million, and decreased 11% for the year to $282.5 million. For the year, higher bookings in Canada, up 6%, were more than offset by lower bookings in the US, down 34%. Both industrial bookings and recreational bookings were lower (-9% and 14% respectively). Booking activity can be variable over time based on customer decision making and construction schedules.
- Backlog of $342.6 million as at December 31, 2025 was relatively unchanged from December 2024. Backlog in Canada was strong, up 9% from this time last year, while backlog in the US was down 12%.
Financial Position
- Toromont's share price of $166.05 at the end of December 2025, translated to a market capitalization(1) of $13.5 billion and a total enterprise value(1) of $13.0 billion.
- The Company maintained a strong financial position. Leverage, as represented by the net debt to total capitalization(1) increased to -19% at the end of December 31, 2025 compared to -9% at the end of December 2024. The change in the ratio reflects continuing cash inflow from operations and improved working capital, partially offset by capital expenditures and two business acquisitions.
- There were no purchases of shares in the fourth quarter of 2025 under the Normal Course Issuer Bid program. The Company purchased and cancelled 337,500 common shares for $40.1 million in the year ended December 31, 2025 (1,321,500 common shares for $160.4 million in 2024).
- The Company's return on equity(1) ("ROE") was 16.9% for 2025, compared to 19.2% for 2024, while return on capital employed(1) was 23.4% for 2025, compared to 25.7% for 2024. Both metrics decreased year over year reflecting higher investments levels and lower net earnings levels.
"We continue to monitor the economic and political environment in which we operate and focus on operating disciplines, including expense management and balance sheet optimization," stated John M. Doolittle, Executive Vice President and Chief Financial Officer of Toromont Industries Ltd. "The ongoing trade tensions create additional variability and uncertainty for every company engaged in cross border trade. Our team is monitoring developments and preparing potential action plans to navigate the likely impacts over the short and longer term as necessary. We will maintain our focus on operating and financial disciplines to manage our cost structure, while we invest in capacity and capabilities to provide exceptional service to our customers today and in the future. Our long-term, disciplined approach to deploying capital is even more important in this economic environment and our return on capital targets remain a top priority. We are very pleased with the results of AVL through the first year, and recognize that the largely one-time non-cash charges related to the acquisition do have a significant impact on many of our key metrics, including ROE. We believe we are well positioned to benefit from future growth and returns in this market over the longer term. The order backlog and our operating disciplines, along with our strong balance sheet, position us well for the future."
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ABOUT TOROMONT
Toromont Industries Ltd. operates through two business segments: the Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory, spanning the Canadian provinces of Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario and Manitoba, in addition to most of the territory of Nunavut. The Equipment Group includes industry-leading rental operations, a material handling business and a power generation enclosure manufacturer. CIMCO is one of North America's leading suppliers of thermal management solutions that enable customers to reduce energy consumption and emissions, use natural refrigerants, and monitor and control their operating environments autonomously. Both segments offer comprehensive product support capabilities. This press release and more information about Toromont Industries Ltd. can be found at www.toromont.com.
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