La empresa Toro (TTC): Lienzo del modelo de negocio [Actualizado en enero de 2025]

Descubra el plan estratégico detrás del notable éxito de la compañía Toro en la industria de equipos de energía al aire libre. Desde soluciones de cuidado del césped meticulosamente elaboradas hasta tecnologías agrícolas innovadoras, el lienzo de modelo de negocio de Toro revela un complejo ecosistema de asociaciones, recursos y propuestas de valor que han posicionado a la compañía como líder mundial. Con una base de clientes diversas que abarca paisajes profesionales, gerentes de golf y propietarios residenciales de viviendas, Toro ha diseñado magistralmente un modelo de negocio que equilibra la innovación de vanguardia con una sólida penetración en el mercado y estrategias centradas en el cliente.

The Toro Company (TTC) - Modelo de negocio: asociaciones clave

Proveedores estratégicos de materias primas y componentes

La compañía Toro mantiene asociaciones estratégicas con proveedores clave para componentes críticos y materias primas:

Categoría de proveedor	Proveedores específicos	Foco de suministro
Fabricantes de motores	Briggs & Stratton, Kawasaki	Motores de equipos de césped y jardín
Componentes de acero y metal	ArcelorMittal, Nucor Corporation	Materiales de metales crudos para la fabricación de equipos
Componentes electrónicos	Texas Instruments, Bosch	Sistemas electrónicos de precisión

Concesionarios y distribuidores para el césped y los equipos agrícolas

La red de distribución de Toro incluye:

• Aproximadamente 2.500 concesionarios independientes en todo el país
• Home Depot y las asociaciones minoristas de Lowe's
• Concesionarios de equipos agrícolas en 125 países

Canal de distribución	Número de socios	Alcance geográfico
Distribuidores independientes	2,500+	Estados Unidos
Asociaciones minoristas	Más de 500 tiendas	América del norte

Proveedores de servicios de mantenimiento de campos de paisajismo y golf

Los segmentos de asociación clave incluyen:

• Empresas de paisajismo profesional
• Organizaciones de mantenimiento del campo de golf
• Departamentos de Parques y Recreación Municipales

Tipo de proveedor de servicios	Número estimado de socios	Segmento de equipos
Paisajistas profesionales	75,000+	Equipo de corte comercial
Mantenimiento del campo de golf	Más de 15,000 cursos	Equipo de gestión de césped especializado

Socios de tecnología para innovación digital y equipos de precisión

La colaboración tecnológica se centra en:

• GPS y tecnologías agrícolas de precisión
• IoT e integración de equipos inteligentes
• Desarrollo de software para la gestión de equipos

Socio tecnológico	Enfoque de colaboración	Área de innovación
Trimble Inc.	Sistemas de guía de precisión GPS	Navegación de equipos agrícolas
Microsoft Azure	Infraestructura de computación en la nube	Gestión de datos de equipos

The Toro Company (TTC) - Modelo de negocio: actividades clave

Diseño y fabricación del cuidado de la césped y equipos de energía al aire libre

En el año fiscal 2023, Toro Company fabricó aproximadamente 3.5 millones de unidades de equipos de energía al aire libre en múltiples categorías de productos.

Categoría de productos	Volumen de producción anual
Cortadoras de césped residencial	1,200,000 unidades
Equipo de paisajismo profesional	850,000 unidades
Sistemas de riego agrícola	450,000 unidades

Investigación y desarrollo de soluciones innovadoras agrícolas y de paisajismo

Toro invirtió $ 146.3 millones en investigación y desarrollo durante el año fiscal 2023.

• Las áreas de enfoque de innovación incluyen tecnologías agrícolas de precisión
• Desarrollo de equipos eléctricos y con batería
• Mejoras del sistema de riego inteligente

Marketing y ventas de líneas de equipos profesionales y residenciales

Canal de ventas	Contribución de ingresos
Equipo profesional	$ 2.1 mil millones
Equipo residencial	$ 1.8 mil millones

Mantenimiento de productos y servicios de atención al cliente

Toro opera 127 centros de servicio autorizados en América del Norte, proporcionando mantenimiento y apoyo integrales para equipos profesionales y residenciales.

• Interacciones anuales de servicio al cliente: 850,000
• Reclamaciones de garantía procesadas: 215,000
• Tiempo de respuesta promedio de reparación del equipo: 5.2 días

The Toro Company (TTC) - Modelo de negocio: recursos clave

Instalaciones de fabricación avanzadas y capacidades de producción

La compañía Toro opera múltiples instalaciones de fabricación en los Estados Unidos:

Ubicación	Tipo de instalación	Líneas de productos primarias
Bloomington, Minnesota	Sede y fabricación	Equipo de césped profesional
El Paso, Texas	Planta de fabricación	Cortadoras de césped residencial
Tomah, Wisconsin	Instalación de fabricación	Sistemas de riego

Cartera de propiedades intelectuales

A partir de 2023, Toro Company posee:

• 278 patentes activas
• 127 marcas registradas
• Aproximadamente $ 42.7 millones invertidos en investigación y desarrollo

Reputación de marca y posición de mercado

Métrico de mercado	Valor
Cuota de mercado global (equipo de energía al aire libre)	7.3%
Ranking de valor de marca	Top 15 en el sector de equipos agrícolas

Capacidades de la fuerza laboral

Composición de la fuerza laboral en 2023:

• Total de empleados: 13,500
• Personal de ingeniería: 672
• Empleados de fabricación: 8,200
• Promedio de la tenencia del empleado: 9.4 años

Infraestructura de distribución global

Canal de distribución	Número de ubicaciones
Distribuidores autorizados	1,700+
Centros de distribución internacionales	12
Países con presencia de ventas directas	27

The Toro Company (TTC) - Modelo de negocio: propuestas de valor

Equipo de energía al aire libre de alta calidad y duradero

Toro Company reportó $ 4.25 mil millones en ingresos para el año fiscal 2023, con equipos de energía al aire libre que representa una parte significativa de su cartera de productos.

Categoría de productos	Contribución de ingresos	Cuota de mercado
Equipo de paisajismo profesional	$ 2.1 mil millones	18.5%
Equipo de cuidado del césped residencial	$ 1.6 mil millones	22.3%
Sistemas de riego agrícola	$ 550 millones	12.7%

Soluciones innovadoras para el cuidado del césped y la gestión agrícola

Toro invirtió $ 98.3 millones en investigación y desarrollo en 2023, centrándose en avances tecnológicos en la eficiencia del equipo.

• Controladores de riego inteligentes con tecnología de conservación del agua
• Sistemas de gestión de césped de precisión
• Líneas de equipos eléctricos y con batería

Tecnología de vanguardia en paisajismo de precisión

Las soluciones de tecnología de precisión de Toro generaron $ 675 millones en ventas de equipos especializados en 2023.

Segmento tecnológico	Ingresos anuales	Índice de crecimiento
Equipo habilitado para GPS	$ 275 millones	8.2%
Sistemas de corte autónomos	$ 165 millones	15.6%
Controladores de riego inteligentes	$ 235 millones	12.4%

Gama de productos integral

Toro ofrece más de 1,200 modelos de equipos diferentes en múltiples segmentos de mercado.

• Equipo de paisajismo profesional
• Herramientas de cuidado del césped residencial
• Sistemas de mantenimiento del campo de golf
• Soluciones de riego agrícola
• Equipo de construcción y alquiler

Soluciones de equipos confiables y sostenibles

Las iniciativas de sostenibilidad contribuyeron a $ 225 millones en el desarrollo de productos ecológicos en 2023.

Métrica de sostenibilidad	Actuación
Ventas de equipos eléctricos	$ 385 millones
Compromiso de reducción de carbono	Reducción del 30% para 2030
Uso de material reciclado	22% de las entradas de fabricación

The Toro Company (TTC) - Modelo de negocios: relaciones con los clientes

Soporte de ventas directo para clientes profesionales y comerciales

The Toro Company mantiene un equipo de ventas dedicado de 487 representantes de ventas directas dirigidas a paisajes profesionales, campo de golf y clientes agrícolas a partir del año fiscal 2023.

Segmento de clientes	Representantes de ventas	Ingresos anuales promedio por representante
Paisajismo profesional	218	$ 1.3 millones
Gestión del campo de golf	156	$ 1.7 millones
Clientes agrícolas	113	$ 1.1 millones

Extensa red de distribuidores que proporciona servicio al cliente local

Toro opera a través de una red integral de distribuidores de 1.742 distribuidores autorizados en América del Norte en 2024.

• Estados Unidos: 1.384 distribuidores
• Canadá: 258 distribuidores
• Mercados internacionales: 100 distribuidores

Soporte de productos en línea y plataformas digitales de participación del cliente

Métricas de participación del cliente digital para 2023:

Plataforma digital	Compromiso de usuario	Crecimiento anual
Portal de soporte de Toro.com	352,000 visitantes mensuales únicos	14.6%
Aplicación de soporte de productos móviles	127,500 usuarios activos	22.3%

Programas de servicio de garantía y mantenimiento

Detalles de cobertura de garantía para 2024:

• Garantía estándar de equipos residenciales: 2 años
• Garantía de equipo profesional: 3 años
• Cobertura de garantía extendida: disponible para su compra

Capacitación del cliente y recursos educativos

Estadísticas de capacitación y programa educativo para 2023:

Tipo de entrenamiento	Número de participantes	Horas de entrenamiento
Seminarios web en línea	8,750	15,600
Capacitación técnica en persona	3,425	9,800

The Toro Company (TTC) - Modelo de negocio: canales

Redes de distribuidores autorizadas

La compañía Toro opera a través de aproximadamente 2.500 distribuidores autorizados en América del Norte. Estos distribuidores generaron $ 3.2 mil millones en ventas de segmentos profesionales en el año fiscal 2023.

Categoría de distribuidor	Número de distribuidores	Cobertura de ventas
Distribuidores de equipos de paisajes profesionales	1,200	62% de los ingresos del segmento profesional
Distribuidores de equipos agrícolas	800	28% de los ingresos del segmento profesional
Distribuidores de equipos de campo de golf	500	10% de los ingresos del segmento profesional

Plataforma directa de ventas en línea

La plataforma de comercio electrónico de Toro generó $ 175 millones en ingresos de ventas directas en el año fiscal 2023, lo que representa un crecimiento del 12% del año anterior.

• La plataforma de ventas en línea cubre equipos residenciales y profesionales
• Admite las compras directas del consumidor
• Proporciona información del producto y opciones de configuración

Tiendas minoristas de mejoras para el hogar

Toro distribuye productos a través de las principales cadenas minoristas, incluidas Home Depot y Lowe's. Las ventas de canales minoristas alcanzaron $ 1.8 mil millones en el año fiscal 2023.

Detallista	Volumen de ventas	Categorías de productos
Depósito de hogar	$ 1.1 mil millones	Forraje de césped residencial, sopladores de nieve
Lowe's	$ 700 millones	Equipo residencial, sistemas de riego

Distribuidores de equipos agrícolas y de paisajismo

Toro trabaja con 350 distribuidores especializados de equipos agrícolas y de paisajismo, generando $ 2.5 mil millones en ventas de segmentos profesionales.

• Red de distribución internacional que cubre 125 países
• Distribuidores especializados para equipos de paisajismo profesional
• Fuerte presencia en los mercados de maquinaria agrícola

Ubicaciones minoristas propiedad de la empresa

Toro mantiene 15 centros de demostración minorista propiedad de la compañía, generando $ 50 millones en ventas directas y brindando capacitación en productos para clientes profesionales.

Tipo de ubicación	Número de centros	Función principal
Centros de demostración de equipos profesionales	10	Exhibición y capacitación de productos
Centros de equipos residenciales	5	Demostraciones de productos de consumo

The Toro Company (TTC) - Modelo de negocio: segmentos de clientes

Empresas de paisajismo profesional

Tamaño del mercado: $ 99.8 mil millones de la industria de servicios de paisajes en 2022

Características de segmento	Penetración del mercado
Empresas de paisajismo comercial	37% de los ingresos por equipos profesionales de Toro
Compañías de mantenimiento del paisaje	28% de las ventas de equipos profesionales

Campo de golf y gerentes de césped deportivo

Mercado mundial de equipos de campos de golf: $ 4.2 mil millones en 2023

• Camsos de golf profesionales: 25% de las ventas de equipos especializados de Toro
• Instalaciones deportivas municipales y privadas: 15% de los ingresos por equipos de gestión de césped

Usuarios de equipos agrícolas

Mercado de equipos agrícolas: $ 155 mil millones en todo el mundo en 2022

Segmento agrícola	Cuota de mercado de toro
Granjas pequeñas a medianas	2.3% de penetración del mercado
Sistemas de riego	Cuota de mercado de 8.5%

Propietarios residenciales

Mercado de cuidado de césped residencial: $ 110.1 mil millones en 2022

• Ventas de cortacésped residencial: 42% de los ingresos por equipos de consumo de Toro
• Equipo de jardinería doméstica: $ 18.6 millones en ventas anuales

Departamentos de mantenimiento municipales y gubernamentales

Adquisición de equipos del sector público: $ 3.7 mil millones en 2023

Segmento gubernamental	Gasto de equipo
Parques municipales	$ 1.2 mil millones
Mantenimiento de infraestructura pública	$ 850 millones

The Toro Company (TTC) - Modelo de negocio: Estructura de costos

Gastos de fabricación y producción

Para el año fiscal 2023, la compañía Toro informó costos de fabricación totales de $ 2.64 mil millones. El desglose de los gastos de producción incluye:

Categoría de costos	Monto ($)
Costos de material directo	1,124,000,000
Costos de mano de obra directa	412,000,000
Sobrecarga de fabricación	1,104,000,000

Inversiones de investigación y desarrollo

La compañía Toro invirtió $ 131.4 millones en investigación y desarrollo para el año fiscal 2023, lo que representa el 4.7% de los ingresos totales de la compañía.

• Las áreas de enfoque de I + D incluyen tecnologías agrícolas de precisión
• Desarrollo de equipos eléctricos y con batería
• Soluciones de gestión de césped avanzado

Costos operativos de marketing y ventas

Los gastos de marketing y ventas para el año fiscal 2023 totalizaron $ 346.5 millones, lo que representa el 12.4% de los ingresos totales de la compañía.

Categoría de gastos de marketing	Monto ($)
Marketing digital	84,000,000
Participación de la feria comercial	42,000,000
Compensación del equipo de ventas	220,500,000

Gestión de la cadena de suministro y logística

La cadena de suministro y los gastos de logística para 2023 fueron de aproximadamente $ 412.6 millones.

• Costos de transporte y carga: $ 187.2 millones
• Operaciones de almacén: $ 112.4 millones
• Gestión de inventario: $ 113,000,000

Garantía del producto y gastos de atención al cliente

La garantía total y los costos de atención al cliente para el año fiscal 2023 ascendieron a $ 98.7 millones.

Categoría de gastos de garantía	Monto ($)
Procesamiento de reclamos de garantía	53,400,000
Piezas de repuesto	35,200,000
Infraestructura de atención al cliente	10,100,000

The Toro Company (TTC) - Modelo de negocio: flujos de ingresos

Ventas de equipos de paisajismo profesional

Para el año fiscal 2023, Toro informó ingresos por equipos de paisajismo profesional de $ 2.08 mil millones, lo que representa el 48% de los ingresos totales de la compañía.

Categoría de productos	Ingresos anuales	Cuota de mercado
Cortadoras profesionales	$ 875 millones	52%
Sistemas de riego profesionales	$ 425 millones	33%
Equipo de construcción	$ 780 millones	41%

Ingresos de productos de cuidado del césped residencial

El segmento residencial generó $ 1.45 mil millones en ingresos para el año fiscal 2023, representando el 34% de los ingresos totales de la compañía.

• Fragadores de potencia de caminata residencial: $ 620 millones
• Madas de montar residencial: $ 530 millones
• Herramientas de mantenimiento del césped residencial: $ 300 millones

Ventas de sistemas de maquinaria y riego agrícola

El segmento agrícola contribuyó con $ 510 millones en ingresos para el año fiscal 2023.

Línea de productos agrícolas	Ingresos anuales
Sistemas de riego agrícola	$ 285 millones
Maquinaria agrícola	$ 225 millones

Piezas de posventa y servicios de mantenimiento

Los servicios de posventa generaron $ 350 millones en ingresos para el año fiscal 2023.

• Piezas de repuesto: $ 210 millones
• Servicios de mantenimiento: $ 140 millones

Ofertas de arrendamiento y equipos de alquiler

El segmento de alquiler de equipos y arrendamiento generó $ 125 millones en ingresos para el año fiscal 2023.

Categoría de alquiler	Ingresos anuales
Alquiler de equipos profesionales	$ 85 millones
Alquiler de equipos residenciales	$ 40 millones

The Toro Company (TTC) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose The Toro Company, and the numbers from late 2025 definitely show where the strength is right now. The value proposition is clearly anchored in the professional side of the business, which is outperforming the residential market significantly.

Trusted performance and durability for professional-grade equipment

The Professional segment is the engine, showing consistent growth and margin expansion, which speaks directly to the perceived quality and reliability of that equipment. For the third quarter of fiscal 2025, net sales in the Professional segment grew to $930.8 million, marking a 5.7% increase year-over-year. Furthermore, the earnings margin for this segment expanded to 21.3% of net sales, up from 18.8% in the prior-year period, showing that the premium, durable products are translating into better profitability. This segment's strength is what management pointed to as a primary driver of profitability for the quarter.

The contrast with the Residential segment is stark, which underscores the focus on professional-grade value. Residential segment net sales for the same period fell by 27.9% to $192.8 million, with the earnings margin dropping to just 1.9% of net sales.

Here's a quick look at the segment performance for Q3 Fiscal 2025:

Metric	Professional Segment	Residential Segment
Net Sales (Q3 FY2025)	$930.8 million	$192.8 million
Year-over-Year Change	+5.7%	-27.9%
Earnings Margin (% of Sales)	21.3%	1.9%

Labor and cost savings via autonomous golf and grounds solutions

The Toro Company is delivering on innovation that directly reduces customer operating expenses. This is evidenced by the introduction of new technology aimed at automation. During the first quarter of fiscal 2025, the company showcased new robotic solutions, including the Toro® Turf Pro™ autonomous mower and the Toro® Range Pro™ golf ball picking robot. The company's productivity initiative, named AMP, is also a direct cost-saving value proposition for its internal operations, targeting at least $100 million in run-rate cost savings by fiscal 2027, with $75 million in annualized savings already delivered.

Water-efficient irrigation and smart water management technology

For irrigation, the value is in efficiency and data-driven resource management. The company announced an exclusive partnership with TerraRad in Q1 2025 to introduce a data-driven soil moisture sensing and irrigation control technology. This technology is designed to recommend and enable real-time sprinkler adjustments, helping customers optimize water usage. The Toro Company's global presence, extending to more than 125 countries, means this efficiency value is available across a massive installed base.

Comprehensive product lines for all-season outdoor environment solutions

The breadth of the portfolio supports year-round revenue stability, even if some lines face headwinds. The Professional segment's growth in Q3 2025 was driven by underground construction and golf and grounds products, showing demand outside of just turf maintenance. The full portfolio includes solutions for:

• Turf and landscape maintenance machinery.
• Snow and ice management equipment.
• Underground utility construction machinery.
• Irrigation and outdoor lighting solutions.

The company's total net sales for the trailing twelve months ending August 1, 2025, were $4.52 billion, up 0.65% year-over-year, reflecting the stability provided by this diverse offering despite residential softness.

Broad distribution and after-sale parts/service support

The ability to service and supply parts is critical for professional uptime. The Toro Company supports its products through a network that spans over 125 countries. This network includes manufacturing facilities, regional sales offices, and authorized dealers. This infrastructure ensures that customers relying on their equipment for commercial operations-like golf course superintendents-receive the necessary agronomic expertise and service support to maintain their landscapes effectively.

Finance: draft 13-week cash view by Friday.

The Toro Company (TTC) - Canvas Business Model: Customer Relationships

The Toro Company manages distinct relationship strategies tailored to its diverse customer base, ranging from highly specialized professional service to standardized retail support. This approach is critical given the split in performance, where the Professional segment drives profitability while the Residential segment faces headwinds.

Dedicated professional distributor/dealer support for complex equipment

The relationship with professional distributors and dealers is foundational for complex, high-value equipment in the Professional segment. This segment, which includes underground construction and golf and grounds machinery, accounted for 77.6 percent of The Toro Company's consolidated net sales in fiscal 2024. The company supports this channel with specialized service and parts access, which is vital for minimizing downtime on job sites. The strength in this area is evident in the Q3 2025 results, where the Professional segment's net sales grew 5.7 percent year-over-year to $930.8 million, leading to an operating margin expansion of 250 basis points to 21.3 percent in that quarter.

Long-term, high-touch relationships with golf course and construction pros

For golf course superintendents and construction professionals, The Toro Company emphasizes long-term partnership, often through product innovation that directly addresses labor and efficiency concerns. This high-touch approach is supported by the success of specialized product lines. For example, new autonomous equipment like the Turf Pro™ mower and the Range Pro™ ball-collecting robot are designed to save labor, with the Range Pro capable of collecting over 15,000 balls in 24 hours. The company's global distribution network, spanning more than 125 countries, facilitates this close relationship through authorized dealers providing parts, service, and support.

Standardized retail sales and customer service for homeowners

Customer relationships in the Residential segment rely on standardized retail sales and service, often through mass channel partnerships. This contrasts sharply with the professional focus. In the third quarter of fiscal 2025, the Residential segment net sales were down 27.9 percent from the prior-year period, indicating increased homeowner and channel caution. For context, in fiscal 2024, the Residential segment represented 21.8 percent of total consolidated net sales.

Digital engagement for product information and remote asset management

Digital engagement is increasingly important, particularly for professional asset management. Innovations include the Toro Spatial Adjust Irrigation Control Software and wireless monitoring capabilities integrated into new professional equipment. These digital tools help customers track and adjust performance via computer or mobile device, moving the relationship beyond just the physical product sale to ongoing operational support. The company's ongoing investment in R&D for smart irrigation controllers and software platforms supports this digital relationship evolution.

Brand-specific loyalty programs and warranties across the portfolio

Warranties and associated service costs are a direct measure of the post-sale relationship commitment. While specific loyalty program details aren't public, the financial impact of product quality is reflected in operating expenses. For instance, in the fourth quarter of fiscal 2024, Selling, General & Administrative (SG&A) expense as a percentage of net sales was negatively impacted, partially offset by lower marketing costs, due to higher warranty expense.

The operational efficiency drive, the Amplifying Maximum Productivity (AMP) initiative, is also a relationship factor, as the $75 million in annualized cost savings achieved by Q3 2025 allows for reinvestment into product quality and innovation, which ultimately benefits the customer relationship.

Here's a quick look at the segment focus that dictates relationship intensity:

• Professional segment operating margin expanded 250 basis points in Q3 2025.
• Residential segment net sales fell 27.9 percent in Q3 2025.
• AMP initiative delivered $75 million in annualized savings by Q3 2025.
• FY2024 Professional segment was 77.6 percent of total net sales.
• FY2025 Adjusted diluted EPS guidance is around $4.15.

The difference in segment performance highlights where the high-touch relationship investment is yielding the best financial return:

Metric	Professional Segment (Q3 2025)	Residential Segment (Q3 2025)
Net Sales Change YOY	Up 5.7 percent	Down 27.9 percent
Operating Margin (% of Net Sales)	21.3 percent	1.9 percent
Net Sales Amount	$930.8 million	$192.8 million

Finance: draft 13-week cash view by Friday.

The Toro Company (TTC) - Canvas Business Model: Channels

You're looking at how The Toro Company moves its products to market as of late 2025, which is a mix of specialized professional channels and broad consumer retail. The overall picture shows a split focus, with the Professional segment driving profitability even as the Residential side faces volume headwinds.

The Toro Company's global reach extends to over 125 countries, supported by a multi-faceted distribution system including distributors, dealers, retailers, and rental stores. This structure helps them serve diverse end-markets like golf courses, commercial properties, and construction sites. For instance, one of their key professional brands, Ditch Witch, relies on a dedicated dealer network of over 175 locations worldwide to support its specialized equipment. This network is crucial for the Professional segment, which posted net sales of $930.8 million in the third quarter of fiscal 2025. That Q3 performance represented a 5.7% increase year-over-year for that segment. To be fair, the Residential segment sales for the same quarter were significantly lower at $192.8 million, a drop of 27.9%. This disparity highlights the channel strength in the professional space.

Here's a quick look at how the segment sales, which map to different channels, stacked up in the third quarter of fiscal 2025:

Channel Proxy Segment	Fiscal 2025 Q3 Net Sales	Year-over-Year Change (Q3)
Professional Segment	$930.8 million	5.7% increase
Residential Segment	$192.8 million	27.9% decrease
Total Company Net Sales (Q3)	$1.13 billion	2% decrease (from prior year)

The company's full-year fiscal 2025 net sales guidance, as of the third quarter report, was set to be flat to down 3%, reflecting the macro factors impacting the lower-volume channels.

The specific channel structures supporting these segments include:

• Network of authorized professional distributors and specialty dealers: These are the primary route for the high-value Professional segment, including turf, underground construction, and irrigation solutions.
• Major home centers and mass retailers like Lowe's for Residential sales: The strategic retail partnership with Lowe's Companies, Inc. ensures broad consumer access for products like zero-turn mowers and snow blowers, aiming to bolster placement of the 60V battery portfolio.
• Rental stores for construction and specialty equipment: This channel supports the sale and service of equipment used in the rental and specialty construction markets, often through specialized dealer/distributor arms like those supporting Ditch Witch.
• Direct sales to large institutional customers (e.g., government, universities): This is often managed through specialized sales teams or dedicated distributors focusing on large-scale fleet purchases for grounds maintenance or construction projects.
• E-commerce platforms for parts, accessories, and select products: While not the largest revenue driver, this channel supports aftermarket service and direct-to-consumer sales for smaller items and parts, often integrated through dealer websites or the main company site.

The professional channel strength is evident when you look at the first quarter of 2025, where Professional segment net sales were $768.8 million, up from $756.5 million the prior year, while the Residential segment saw a drop to $221.0 million from $240.1 million. The professional segment's earnings margin reached 16.5% in that quarter, showing the channel's importance to overall profitability.

Finance: draft 13-week cash view by Friday.

The Toro Company (TTC) - Canvas Business Model: Customer Segments

You're looking at the customer base for The Toro Company as of late 2025, and the picture is definitely split. The Professional side is carrying the weight, while the Residential side is feeling significant macroeconomic pressure.

The Professional Segment, which serves commercial and institutional users, is the primary revenue engine. This group includes entities that require heavy-duty, reliable equipment for large-scale maintenance and infrastructure work.

Here's a snapshot of the segment performance for the third quarter of fiscal 2025, which ended August 1, 2025:

Customer Group Proxy	Segment Net Sales (Q3 FY2025)	Segment Earnings Margin (Q3 FY2025)	Year-over-Year Net Sales Change (Q3 FY2025)
Professional Segment (Golf, Grounds, Construction)	$930.8 million	21.3%	+5.7%
Residential Segment (Homeowners)	$192.8 million	1.9%	-27.9%

Professional Segment: Golf courses, sports fields, and groundskeepers

This group is a key driver within the overall Professional Segment. Demand here remains strong, supported by new product introductions and sustained operational needs.

• Net sales for the entire Professional Segment in Q3 2025 were $930.8 million.
• The segment delivered a strong earnings margin of 21.3% in Q3 2025.
• Growth in this area was propelled by higher shipments of golf and grounds products.

Professional Segment: Underground construction and specialty contractors

Contractors working on infrastructure projects are another vital part of the Professional Segment, showing resilience despite broader economic softness.

• Underground construction products were a primary driver of net sales and profitability for the quarter ending August 1, 2025.
• The overall Professional Segment saw net sales increase by 5.7% year-over-year in Q3 2025.

Residential Segment: Homeowners and small landscaping firms

The Residential Segment, which includes sales to homeowners, is experiencing significant headwinds. Small landscaping firms, if served through the residential channel, are likely included here, though they may also overlap with the Pro segment.

The drop in this segment is stark; net sales for Q3 2025 were only $192.8 million, a decline of 27.9% year-over-year. The earnings margin for this segment collapsed to just 1.9% in Q3 2025. Lower demand from homeowners was the primary driver for the sales decrease.

Rental companies and government/educational institutions

These customers fall under the broader Professional umbrella, relying on the same durable equipment lines. While not broken out separately in the latest reports, their purchasing patterns influence the Professional Segment's performance.

• The overall Professional Segment achieved $198.5 million in earnings for Q3 2025.
• The full-year fiscal 2025 guidance for total company net sales is set at the low end, flat to down 3%.

Agricultural growers and commercial property managers

These users are served through the Professional Segment portfolio, which includes turf and landscape maintenance equipment. Their purchasing decisions contribute to the segment's overall revenue stream.

The company is relying on operational improvements, like the AMP program which delivered $75 million in annualized savings as of the Q3 2025 report, to support profitability across all customer groups.

The Toro Company (TTC) - Canvas Business Model: Cost Structure

You're looking at the cost side of The Toro Company's operations as of late 2025, which is heavily influenced by productivity programs and external trade pressures. Honestly, the numbers show a clear split between managing input costs and driving internal efficiency.

Significant cost of goods sold (COGS) from manufacturing and materials is a primary driver. The reported gross margin for the third quarter of fiscal 2025 stood at 33.7%, with the adjusted gross margin at 34.4%. The change in gross margin from the prior year was driven by factors including higher material and manufacturing costs, which the company moderated through productivity improvements and net price realization.

The company's focus on internal cost control centers on the Amplifying Maximum Productivity (AMP) initiative. This program is delivering tangible results in offsetting rising expenses. As of the third quarter of fiscal 2025, the AMP program had already delivered $75 million in annualized cost savings. The target remains firm: achieving at least $100 million in run-rate savings by fiscal 2027. This efficiency drive is also visible in Selling, General, and Administrative (SG&A) expenses; for the third quarter, SG&A as a percentage of net sales improved to 20.8%, down from 22.0% in the prior-year period, driven by these deliberate AMP program measures and lower marketing costs.

Here's a quick look at some of the key cost-related financial metrics we have for the recent period:

Metric	Fiscal 2025 Q3 Value	Fiscal 2024 Q3 Value
Reported Gross Margin	33.7%	34.8%
Adjusted Gross Margin	34.4%	35.4%
SG&A as % of Net Sales	20.8%	22.0%
Adjusted Operating Earnings Margin	13.6%	13.7%

R&D investment to advance battery and autonomous technology is being supported by the AMP savings, with a portion intended to be prudently reinvested to drive further innovation and growth. This focus is evident in the early 2025 launch of robotic solutions, such as the Toro Turf Pro autonomous mower, which targets labor cost reduction for golf customers. Full-year fiscal 2025 interest expense is projected to be about $60 million.

Distribution and logistics costs for a global network are being managed through strategic shifts. The company has been implementing supply chain strategies since 2018 to limit exposure in the current global tariff environment, alongside strategic capacity alignment. Full-year fiscal 2025 capital expenditures are expected to be about $90 million.

The impact of trade policy remains a direct cost factor. For fiscal 2025, the company's guidance is inclusive of anticipated tariff impacts, estimated at approximately $70 million. The Toro Company noted that while 85% of its products are U.S.-manufactured, mitigating some risk, they are working diligently to offset the effects of tariffs through productivity improvements and selective price increases.

You should note the following specific cost-related elements:

• AMP program run-rate savings delivered to date: $75 million.
• AMP program target savings by 2027: at least $100 million.
• Fiscal 2025 full-year expected interest expense: about $60 million.
• Fiscal 2025 full-year expected capital expenditures: about $90 million.
• Estimated tariff impact factored into fiscal 2025 guidance: $70 million.

Finance: draft 13-week cash view by Friday.

The Toro Company (TTC) - Canvas Business Model: Revenue Streams

You're looking at how The Toro Company brings in the cash, and right now, it's a story of two very different markets. The professional side is carrying the weight, while the residential side is taking a breather. Honestly, understanding this split is key to valuing the company right now.

The Professional Segment product sales were the star performer in the third quarter of fiscal 2025, driving revenue of $930.8 million. That's up 5.7% from the prior year, fueled by strong shipments in underground construction and golf and grounds equipment, plus they realized better pricing. This segment's profitability also expanded, with earnings as a percentage of net sales hitting 21.3% for the quarter.

In sharp contrast, the Residential Segment product sales saw a significant pullback. For Q3 2025, residential sales totaled $192.8 million, marking a steep 27.9% decrease year-over-year. This weakness is tied to homeowners being cautious about big-ticket purchases. Still, the company is focused on efficiency to manage through this, with its AMP program on track to deliver savings.

To give you a clear snapshot of the top-line drivers for that quarter, here's the breakdown of the major components we have hard numbers for:

Revenue Source Category	Q3 2025 Amount (in millions USD)	Notes/Context
Professional Segment Product Sales	$930.8	Up 5.7% year-over-year.
Residential Segment Product Sales	$192.8	Down 27.9% year-over-year.
Total Consolidated Net Sales (for context)	$1,131.3	Down 2.2% from the same period last year.
Financing Income (Non-cash)	($14.6)	Non-cash income from finance affiliate for Q3 2025.

The Toro Company pulls revenue from several other important areas, which contribute to the overall financial picture, even if we don't have the specific Q3 2025 dollar amounts for every single one right here. These streams are critical for margin health and customer retention, you know.

Here are the other defined revenue streams that make up the full model:

• Aftermarket parts, service, and maintenance revenue (noted as high-margin).
• Sales of irrigation and outdoor lighting solutions.
• Distributions from the finance affiliate, net (which was $22.5 million in Q3 2025).

The financing income, specifically the distributions from the finance affiliate, Red Iron Acceptance, LLC, is a steady contributor, showing $22.5 million in net distributions for the third quarter. Red Iron itself saw originations volume increase 15.5% year-over-year for the first six months of fiscal 2025, financing $1.3 billion for dealers and distributors. That's a good sign for future sales pipeline health, even if the immediate revenue recognition is complex.

Finance: draft 13-week cash view by Friday.