The Toro Company (TTC) Baird 2024 Global Industrials Conference summary

Strategic direction and business transformation

• Focused on transitioning from a residential to a professional business, now less than 20% residential.

• Celebrating 110 years, with long-standing relationships across suppliers, customers, and channels.

• Achieved 8.4% CAGR and nearly 24% average return on invested capital over the past decade.

• Professional segment growth driven by golf, underground, and specialty construction markets.

• Maintains market leadership in golf equipment and irrigation with about 50% global share.

Market performance and outlook

• Golf market remains healthy and sustained post-COVID, with a growing core golfer base.

• Underground construction experiencing high growth, fueled by telecom, fiber, and data center investments.

• Snow business has faced two weak years but is historically a strong profit contributor.

• Landscape contractor segment is stabilizing after a post-COVID demand reset and inventory adjustment.

• Residential segment saw strong growth, especially with mass retail partners.

Technology and innovation priorities

• R&D spend reached $170–$180 million, emphasizing alternative power, smart/connected, and autonomous solutions.

• Developed scalable battery platforms (HyperCell) to serve multiple product lines efficiently.

• Acquisitions have enabled leveraging and consolidating redundant R&D programs.

• Autonomous and AI-driven products are being introduced, especially in golf and landscaping.

• Adoption of battery and electric solutions is highest in golf, with benefits like reduced noise and maintenance.