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.
Three months ended December 31 Years ended December 31
($ millions, 2025 2024 % change 2025 2024 % change
except per
share
amounts)
Revenue $ 1,421.9 $ 1,307.0 9 % $ 5,202.8 $ 5,021.2 4 %
Operating
income $ 218.0 $ 211.2 3 % $ 681.3 $ 670.2 2 %
Net earnings $ 157.2 $ 156.3 1 % $ 496.6 $ 506.5 (2) %
Basic
earnings per
share
("EPS") $ 1.93 $ 1.91 1 % $ 6.11 $ 6.18 (1) %
"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."
FINANCIAL AND OPERATING RESULTS
All financial information presented in this press release has been prepared in accordance with IFRS Accounting Standards ("IFRS"), except as noted below, and are reported in Canadian dollars. This press release contains only selected financial and operational highlights and should be read in conjunction with Toromont's audited consolidated financial statements and related notes and Management's Discussion and Analysis ("MD&A"), as at and for the year ended December 31, 2025, which are available on SEDAR at www.sedar.com and on the Company's website at www.toromont.com.
The Company's audited consolidated financial statements and MD&A contain detailed information about Toromont's financial position, results, liquidity and capital resources, strategy, plans and outlook, which investors are encouraged to read carefully.
QUARTERLY CONFERENCE CALL AND WEBCAST
Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Wednesday, February 11, 2026 at 8:00 a.m. (EDT). The call may be accessed by telephone at 1--888--699--1199 (North American toll free) or 416-945-7677 (Toronto area). A replay of the conference call will be available until Wednesday, February 18, 2026 by calling 1--888--660--6345 (North American toll free) or 289--819--1450 (Toronto area) and quoting passcode 31497#. The live webcast can also be accessed at www.toromont.com.
Presentation materials to accompany the call will be available on our website.
NON-GAAP AND OTHER FINANCIAL MEASURES
Management believes that providing certain non-GAAP measures provides users of the Company's audited consolidated financial statements and MD&A with important information regarding the operational performance and related trends of the Company's business. By considering these measures in combination with the comparable IFRS measures set out below, management believes that users are provided a better overall understanding of the Company's business and its financial performance during the relevant period than if they simply considered the IFRS measures alone.
The non-GAAP measures used by management do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Accordingly, these measures should not be considered as a substitute or alternative for net income or cash flow, in each case as determined in accordance with IFRS.
Management also uses key performance indicators to enable consistent measurement of performance across the organization. These KPIs are non-GAAP financial measures, do not have a standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers.
Gross Profit / Gross Profit Margin
Gross Profit is defined as total revenue less cost of goods sold.
Gross Profit Margin is defined as gross profit (defined above) divided by total revenue.
Operating Income / Operating Income Margin
Operating income is defined as net earnings from operations before interest expense, interest and investment income and income taxes and is used by management to assess and evaluate the financial performance of its operating segments. Financing and related interest charges cannot be attributed to business segments on a meaningful basis that is comparable to other companies. Business segments do not correspond to income tax jurisdictions and it is believed that the allocation of income taxes distorts the historical comparability of the performance of the business segments.
Operating income margin is defined as operating income (defined above) divided by total revenue.
Three months ended Year ended
December 31 December 31
($ thousands) 2025 2024 2025 2024
Net earnings $ 157,185 $ 156,296 $ 496,586 $ 506,516
plus: Interest expense 8,895 7,415 35,395 28,655
less: Interest and
investment income (12,719) (10,588) (43,446) (53,637)
plus: Change in fair value
of purchase commitment 3,366 -- 7,891 --
plus: Income taxes 61,273 58,044 184,855 188,638
Operating income $ 218,000 $ 211,167 $ 681,281 $ 670,172
Total revenue $ 1,421,882 $ 1,306,953 $ 5,202,837 $ 5,021,163
Operating income margin 15.3 % 16.2 % 13.1 % 13.3 %
Net Debt to Total Capitalization/Equity and Net Debt/Equity
Net debt to total capitalization/equity and net debt/equity are calculated as net debt divided by total capitalization and shareholders' equity, respectively, as defined below, and are used by management as measures of the Company's financial leverage.
Net debt is calculated as long-term debt plus current portion of long-term debt less cash and cash equivalents. Total capitalization is calculated as shareholders' equity plus net debt.
The calculations are as follows:
($ thousands) 2025 2024 Long-term debt $ 796,428 $ 498,518 Current portion of long-term debt -- 149,910 less: Cash and cash equivalents 1,325,466 890,815 Net debt (529,038) (242,387) Shareholders' equity 3,290,495 2,955,393 Total capitalization $ 2,761,457 $ 2,713,006 Net debt to total capitalization (19) % (9) % Net debt to equity (0.16):1 (0.08):1
Market Capitalization & Total Enterprise Value
Market capitalization represents the total market value of the Company's equity. It is calculated by multiplying the closing share price of the Company's common shares by the total number of common shares outstanding.
Total enterprise value represents the total value of the Company and is often used as a more comprehensive alternative to market capitalization. It is calculated by adding debt/net debt (defined above) to market capitalization.
The calculations are as follows:
($ thousands, except for shares and share price) 2025 2024 Outstanding common shares 81,449,458 81,300,574 times: Ending share price $ 166.05 $ 113.64 Market capitalization $ 13,524,683 $ 9,238,997 Long-term debt $ 796,428 $ 498,518 Current portion of long-term debt -- 149,910 less: Cash and cash equivalents 1,325,466 890,815 Net debt $ (529,038) $ (242,387) Total enterprise value $ 12,995,645 $ 8,996,610
Order Bookings and Backlog
Order bookings represent the retail value of firm equipment or project orders received during a period. Backlog is defined as the retail value of equipment units ordered by customers with future delivery, and the remaining retail value of package/project orders remaining to be recognized in revenue under the percentage--of--completion method. Management uses order backlog as a measure of projecting future equipment and project deliveries. There are no directly comparable IFRS measures for order bookings or backlog.
Return on Capital Employed ("ROCE")
ROCE is utilized to assess both current operating performance and prospective investments. The adjusted earnings numerator used for the calculation is income before income taxes, interest expense and interest income (excluding interest on rental conversions). The denominator in the calculation is the monthly average capital employed, which is defined as net debt plus shareholders' equity, also referred to as total capitalization, adjusted for discontinued operations.
($ thousands) 2025 2024 Net earnings $ 496,586 $ 506,516 plus: Interest expense 35,395 28,655 less: Interest and investment income (43,446) (53,637) plus: Interest income -- rental conversions 6,508 3,635 plus: Income taxes 184,855 188,638 Adjusted net earnings $ 679,898 $ 673,807 Average capital employed $ 2,900,883 $ 2,621,627 Return on capital employed 23.4 % 25.7 %
Return on Equity ("ROE")
ROE is monitored to assess profitability and is calculated by dividing net earnings by opening shareholders' equity (adjusted for shares issued and shares repurchased and cancelled during the year).
($ thousands) 2025 2024 Net earnings $ 496,586 $ 506,516 Opening shareholder's equity (net of adjustments) $ 2,944,707 $ 2,636,834 Return on equity 16.9 % 19.2 %
ADVISORY
Information in this press release that is not a historical fact is "forward-looking information". Words such as "plans", "intends", "outlook", "expects", "anticipates", "estimates", "believes", "likely", "should", "could", "would", "will", "may" and similar expressions are intended to identify statements containing forward-looking information. Forward-looking information in this press release reflects current estimates, beliefs, and assumptions, which are based on Toromont's perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. Toromont's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Toromont can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Toromont's assumptions underpinning forward-looking information include but are not limited to the following: none of the risks identified below materialize; there are no unforeseen changes to economic and market conditions; and, no significant events occur outside the ordinary course of business.
Numerous risks and uncertainties could cause the actual results to differ materially from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements, including, but not limited to: business cycles, including general economic conditions in the countries in which Toromont operates; new tariffs and counter-tariffs imposed on cross-border trade, commodity price changes, including changes in the price of precious and base metals; inflationary pressures; potential risks and uncertainties relating to a potential new world health issue; increased regulation of or restrictions placed on our businesses; changes in foreign exchange rates, including the Cdn$/US$ exchange rate; the termination of distribution or original equipment manufacturer agreements; equipment product acceptance and availability of supply, including reduction or disruption in supply or demand for our products stemming from external factors; increased competition; credit of third parties; additional costs associated with warranties and maintenance contracts; changes in interest rates; the availability and cost of financing; level and volatility of price and liquidity of Toromont's common shares; potential environmental liabilities and changes to environmental regulation; information technology failures, including data or cybersecurity breaches; failure to attract and retain key employees as well as the general workforce; damage to the reputation of Caterpillar, product quality and product safety risks which could expose Toromont to product liability claims and negative publicity; new, or changes to current, federal and provincial laws, rules and regulations including changes in infrastructure spending; any requirement to make contributions or other payments in respect of registered defined benefit pension plans or postemployment benefit plans in excess of those currently contemplated; increased insurance premiums; and risk related to integration of acquired operations including cost of integration and ability to achieve the expected benefits. Readers are cautioned that the foregoing list of factors is not exhaustive.
Any of the above mentioned risks and uncertainties could cause or contribute to actual results that are materially different from those expressed or implied in the forward-looking information and statements included herein. For a further description of certain risks and uncertainties and other factors that could cause or contribute to actual results that are materially different, see the risks and uncertainties set out under the heading "Risks and Risk Management" and "Outlook" sections of Toromont's most recent annual Management Discussion and Analysis, as filed with Canadian securities regulators at www.sedarplus.ca or at our website www.toromont.com. Other factors, risks and uncertainties not presently known to Toromont or that Toromont currently believes are not material could also cause actual results or events to differ materially from those expressed or implied by statements containing forward--looking information.
Readers are cautioned not to place undue reliance on statements containing forward-looking information, which reflect Toromont's expectations only as of the date of this MD&A, and not to use such information for anything other than their intended purpose. Toromont disclaims any obligation to update or revise any forward--looking information, whether as a result of new information, future events or otherwise, except as required by law.
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.
For more information contact:
John M. Doolittle
Executive Vice President and
Chief Financial Officer
Toromont Industries Ltd.
Tel: 416-514-4790
FOOTNOTE
(1) These financial metrics do not have a standardized
meaning under IFRS Accounting Standards ("IFRS"),
which are also referred to herein as Generally Accepted
Accounting Principles ("GAAP"), and may not be comparable
to similar measures used by other issuers. These measurements
are presented for information purposes only. The Company's
Management's Discussion and Analysis ("MD&A") includes
additional information regarding these financial metrics,
including definitions and a reconciliation to the
most directly comparable GAAP measures, under the
headings "Additional GAAP Measures", "Non-GAAP Measures"
and "Key Performance Indicators."
SOURCE Toromont Industries Ltd.
Copyright CNW Group 2026
(END) Dow Jones Newswires
February 10, 2026 17:42 ET (22:42 GMT)