The Toro Company (TTC): Modelo de Negócios Canvas [Jan-2025 Atualizado]

Descubra o plano estratégico por trás do notável sucesso da Toro Company na indústria de equipamentos de energia ao ar livre. De soluções meticulosamente criadas para cuidados com o gramado a tecnologias agrícolas inovadoras, o modelo de negócios da Toro Canvas revela um complexo ecossistema de parcerias, recursos e proposições de valor que posicionaram a empresa como líder global. Com uma base de clientes diversificada que abrange paisagistas profissionais, gerentes de campos de golfe e proprietários residenciais, a Toro projetou magistralmente um modelo de negócios que equilibra a inovação de ponta com a penetração robusta do mercado e as estratégias centradas no cliente.

The Toro Company (TTC) - Modelo de Negócios: Principais Parcerias

Fornecedores estratégicos de matérias -primas e componentes

A empresa Toro mantém parcerias estratégicas com os principais fornecedores para componentes críticos e matérias -primas:

Categoria de fornecedores	Fornecedores específicos	Foco de fornecimento
Fabricantes de motores	Briggs & Stratton, Kawasaki	Motores de equipamentos de gramado e jardim
Componentes de aço e metal	ArcelorMittal, Nucor Corporation	Materiais de metal cru para fabricação de equipamentos
Componentes eletrônicos	Texas Instruments, Bosch	Sistemas eletrônicos de precisão

Revendedores e distribuidores para equipamentos de gramado e agrícola

A rede de distribuição da Toro inclui:

• Aproximadamente 2.500 revendedores independentes em todo o país
• Home Depot e parcerias de varejo da Lowe
• Concessionárias de equipamentos agrícolas em 125 países

Canal de distribuição	Número de parceiros	Alcance geográfico
Revendedores independentes	2,500+	Estados Unidos
Parcerias de varejo	500 mais de lojas	América do Norte

Provedores de serviços de manutenção de paisagismo e campos de golfe

Os principais segmentos de parceria incluem:

• Empresas de paisagismo profissional
• Organizações de manutenção de campos de golfe
• Departamentos de Parques e Recreação Municipais

Tipo de provedor de serviços	Número estimado de parceiros	Segmento de equipamentos
Paisagistas profissionais	75,000+	Equipamento comercial de corte
Manutenção do campo de golfe	Mais de 15.000 cursos	Equipamento especializado em gerenciamento de grama

Parceiros de tecnologia para inovação digital e equipamentos de precisão

A colaboração de tecnologia se concentra em:

• Tecnologias de Agricultura de GPs e Precisão
• IoT e integração de equipamentos inteligentes
• Desenvolvimento de software para gerenciamento de equipamentos

Parceiro de tecnologia	Foco de colaboração	Área de inovação
Trimble Inc.	Sistemas de orientação de precisão do GPS	Navegação de equipamentos agrícolas
Microsoft Azure	Infraestrutura de computação em nuvem	Gerenciamento de dados de equipamentos

The Toro Company (TTC) - Modelo de Negócios: Atividades -chave

Projeto e fabricação de cuidados com o gramado e equipamentos de energia ao ar livre

No ano fiscal de 2023, a Toro Company fabricou aproximadamente 3,5 milhões de unidades de equipamentos de energia externa em várias categorias de produtos.

Categoria de produto	Volume anual de produção
Cortadores de grama residencial	1.200.000 unidades
Equipamento de paisagismo profissional	850.000 unidades
Sistemas de irrigação agrícola	450.000 unidades

Pesquisa e desenvolvimento de soluções inovadoras de agricultura e paisagismo

A Toro investiu US $ 146,3 milhões em pesquisa e desenvolvimento durante o ano fiscal de 2023.

• As áreas de foco de inovação incluem tecnologias de agricultura de precisão
• Desenvolvimento de equipamentos elétricos e movidos a bateria
• Aprimoramentos do sistema de irrigação inteligentes

Marketing e vendas de linhas de equipamentos profissionais e residenciais

Canal de vendas	Contribuição da receita
Equipamento profissional	US $ 2,1 bilhões
Equipamento residencial	US $ 1,8 bilhão

Manutenção de produtos e serviços de suporte ao cliente

A Toro opera 127 centros de serviços autorizados em toda a América do Norte, fornecendo manutenção e suporte abrangentes para equipamentos profissionais e residenciais.

• Interações anuais de atendimento ao cliente: 850.000
• Reivindicações de garantia processadas: 215.000
• REPARO MÁRIO DE REPARO DE EQUIPAMENTO Tempo de resposta: 5,2 dias

The Toro Company (TTC) - Modelo de Negócios: Recursos -Principais

Instalações de fabricação avançadas e recursos de produção

A Toro Company opera várias instalações de fabricação nos Estados Unidos:

Localização	Tipo de instalação	Linhas de produtos primárias
Bloomington, Minnesota	Sede e fabricação	Equipamento profissional de grama
El Paso, Texas	Fábrica	Cortadores de grama residencial
Tomah, Wisconsin	Instalação de fabricação	Sistemas de irrigação

Portfólio de propriedade intelectual

A partir de 2023, a Toro Company possui:

• 278 patentes ativas
• 127 Marcas registradas
• Aproximadamente US $ 42,7 milhões investidos em pesquisa e desenvolvimento

Reputação da marca e posição de mercado

Métrica de mercado	Valor
Participação de mercado global (equipamento de energia ao ar livre)	7.3%
Classificação de valor da marca	Top 15 no setor de equipamentos agrícolas

Recursos de força de trabalho

Composição da força de trabalho em 2023:

• Total de funcionários: 13,500
• Equipe de engenharia: 672
• Funcionários de manufatura: 8.200
• Posse média dos funcionários: 9,4 anos

Infraestrutura de distribuição global

Canal de distribuição	Número de locais
Revendedores autorizados	1,700+
Centros de distribuição internacionais	12
Países com presença direta de vendas	27

The Toro Company (TTC) - Modelo de Negócios: Proposições de Valor

Equipamento de energia externa durável e de alta qualidade

A Toro Company registrou US $ 4,25 bilhões em receita para o ano fiscal de 2023, com equipamentos de energia externa representando uma parte significativa de seu portfólio de produtos.

Categoria de produto	Contribuição da receita	Quota de mercado
Equipamento de paisagismo profissional	US $ 2,1 bilhões	18.5%
Equipamento residencial de cuidados com o gramado	US $ 1,6 bilhão	22.3%
Sistemas de irrigação agrícola	US $ 550 milhões	12.7%

Soluções inovadoras para atendimento ao gramado e gestão agrícola

A Toro investiu US $ 98,3 milhões em pesquisa e desenvolvimento em 2023, com foco em avanços tecnológicos na eficiência do equipamento.

• Controladores de irrigação inteligente com tecnologia de conservação de água
• Sistemas de gerenciamento de relvado precisão
• Linhas de equipamentos elétricos e de bateria

Tecnologia de ponta em paisagismo de precisão

As soluções de tecnologia de precisão da Toro geraram US $ 675 milhões em vendas de equipamentos especializados em 2023.

Segmento de tecnologia	Receita anual	Taxa de crescimento
Equipamento habilitado para GPS	US $ 275 milhões	8.2%
Sistemas de corte autônomos	US $ 165 milhões	15.6%
Controladores de irrigação inteligentes	US $ 235 milhões	12.4%

Gama abrangente de produtos

A Toro oferece mais de 1.200 modelos de equipamentos diferentes em vários segmentos de mercado.

• Equipamento de paisagismo profissional
• Ferramentas residenciais de atendimento ao gramado
• Sistemas de manutenção de campos de golfe
• Soluções de irrigação agrícola
• Equipamento de construção e aluguel

Soluções de equipamentos confiáveis ​​e sustentáveis

As iniciativas de sustentabilidade contribuíram para US $ 225 milhões em desenvolvimento de produtos ecológicos em 2023.

Métrica de sustentabilidade	Desempenho
Vendas de equipamentos elétricos	US $ 385 milhões
Compromisso de redução de carbono	Redução de 30% até 2030
Uso de material reciclado	22% dos insumos de fabricação

The Toro Company (TTC) - Modelo de Negócios: Relacionamentos do Cliente

Suporte de vendas diretas para clientes profissionais e comerciais

A Toro Company mantém uma equipe de vendas dedicada de 487 representantes de vendas diretas direcionadas ao paisagismo profissional, campo de golfe e clientes agrícolas a partir de 2023 o ano fiscal.

Segmento de clientes	Representantes de vendas	Receita anual média por representante
Paisagismo profissional	218	US $ 1,3 milhão
Gerenciamento de campos de golfe	156	US $ 1,7 milhão
Clientes agrícolas	113	US $ 1,1 milhão

Rede de revendedores extensa fornecendo atendimento ao cliente local

A Toro opera através de uma rede de revendedores abrangente de 1.742 revendedores autorizados na América do Norte em 2024.

• Estados Unidos: 1.384 revendedores
• Canadá: 258 revendedores
• Mercados internacionais: 100 revendedores

Suporte ao produto on -line e plataformas de engajamento de clientes digitais

Métricas de engajamento de clientes digitais para 2023:

Plataforma digital	Engajamento do usuário	Crescimento anual
Toro.com Portal de suporte	352.000 visitantes mensais únicos	14.6%
Aplicativo de suporte a produtos móveis	127.500 usuários ativos	22.3%

Programas de serviço de garantia e manutenção

Detalhes da cobertura da garantia para 2024:

• Garantia de equipamento residencial padrão: 2 anos
• Garantia de equipamentos profissionais: 3 anos
• Cobertura de garantia estendida: disponível para compra

Treinamento do cliente e recursos educacionais

Estatísticas do Programa de Treinamento e Educação para 2023:

Tipo de treinamento	Número de participantes	Horário de treinamento
Webinars online	8,750	15,600
Treinamento técnico pessoal	3,425	9,800

The Toro Company (TTC) - Modelo de Negócios: Canais

Redes de revendedores autorizados

A empresa da Toro opera aproximadamente 2.500 revendedores autorizados em toda a América do Norte. Esses revendedores geraram US $ 3,2 bilhões em vendas de segmento profissional no ano fiscal de 2023.

Categoria de revendedor	Número de revendedores	Cobertura de vendas
Revendedores profissionais de equipamentos de paisagem	1,200	62% da receita do segmento profissional
Revendedores de equipamentos agrícolas	800	28% da receita do segmento profissional
Revendedores de equipamentos de campo de golfe	500	10% da receita do segmento profissional

Plataforma de vendas on -line direta

A plataforma de comércio eletrônico da Toro gerou US $ 175 milhões em receita direta de vendas no ano fiscal de 2023, representando um crescimento de 12% em relação ao ano anterior.

• A plataforma de vendas on -line abrange equipamentos residenciais e profissionais
• Suporta compras diretas de consumidores
• Fornece informações e opções de configuração do produto

Lojas de melhoramento da casa de varejo

A Toro distribui os produtos por meio de principais redes de varejo, incluindo a Home Depot e a Lowe's. As vendas de canais de varejo atingiram US $ 1,8 bilhão no ano fiscal de 2023.

Varejista	Volume de vendas	Categorias de produtos
Home Depot	US $ 1,1 bilhão	Cortadores de grama residencial, sopradores de neve
Lowe's	US $ 700 milhões	Equipamentos residenciais, sistemas de irrigação

Distribuidores de equipamentos agrícolas e paisagísticos

A Toro trabalha com 350 distribuidores de equipamentos agrícolas e paisagísticos especializados, gerando US $ 2,5 bilhões em vendas de segmentos profissionais.

• Rede de distribuição internacional cobrindo 125 países
• Distribuidores especializados para equipamentos de paisagismo profissional
• Presença forte nos mercados de máquinas agrícolas

Locais de varejo de propriedade da empresa

A Toro mantém 15 centros de demonstração de varejo de propriedade da empresa, gerando US $ 50 milhões em vendas diretas e fornecendo treinamento de produtos para clientes profissionais.

Tipo de localização	Número de centros	Função primária
Centros de demonstração de equipamentos profissionais	10	Apresentação de produtos e treinamento
Centros de equipamentos residenciais	5	Demonstrações de produtos de consumo

A Toro Company (TTC) - Modelo de Negócios: Segmentos de Clientes

Empresas de paisagismo profissional

Tamanho do mercado: US $ 99,8 bilhões da indústria de serviços de paisagem em 2022

Características do segmento	Penetração de mercado
Empresas de paisagismo comercial	37% da receita de equipamentos profissionais da Toro
Empresas de manutenção de paisagens	28% das vendas de equipamentos profissionais

Campos de golfe e gerentes de grama de grama esportiva

Mercado global de equipamentos de campo de golfe: US $ 4,2 bilhões em 2023

• Campos de golfe profissionais: 25% das vendas de equipamentos especializados da Toro
• Instalações esportivas municipais e privadas: 15% da receita de equipamentos de gerenciamento de grama

Usuários de equipamentos agrícolas

Mercado de equipamentos agrícolas: US $ 155 bilhões globalmente em 2022

Segmento agrícola	Participação de mercado da Toro
Fazendas pequenas a médias	2,3% de penetração no mercado
Sistemas de irrigação	8,5% de participação de mercado

Proprietários residenciais

Mercado residencial de cuidados com o gramado: US $ 110,1 bilhões em 2022

• Vendas residenciais de cortador de grama: 42% da receita de equipamentos de consumo da Toro
• Equipamento de jardinagem em casa: US $ 18,6 milhões em vendas anuais

Departamentos de manutenção municipal e governamental

Aquisição de equipamentos do setor público: US $ 3,7 bilhões em 2023

Segmento do governo	Gastos com equipamentos
Parques municipais	US $ 1,2 bilhão
Manutenção de infraestrutura pública	US $ 850 milhões

The Toro Company (TTC) - Modelo de Negócios: Estrutura de Custo

Despesas de fabricação e produção

Para o ano fiscal de 2023, a Toro Company registrou custos totais de fabricação de US $ 2,64 bilhões. A quebra das despesas de produção inclui:

Categoria de custo	Valor ($)
Custos de material direto	1,124,000,000
Custos diretos de mão -de -obra	412,000,000
Manufatura de sobrecarga	1,104,000,000

Investimentos de pesquisa e desenvolvimento

A empresa da Toro investiu US $ 131,4 milhões em pesquisa e desenvolvimento para o ano fiscal de 2023, representando 4,7% da receita total da empresa.

• As áreas de foco em P&D incluem tecnologias de agricultura de precisão
• Desenvolvimento de equipamentos elétricos e movidos a bateria
• Soluções avançadas de gerenciamento de relva

Custos operacionais de marketing e vendas

As despesas de marketing e vendas para o ano fiscal de 2023 totalizaram US $ 346,5 milhões, o que representa 12,4% da receita total da empresa.

Categoria de despesa de marketing	Valor ($)
Marketing digital	84,000,000
Participação na feira	42,000,000
Compensação da equipe de vendas	220,500,000

Cadeia de suprimentos e gerenciamento de logística

A cadeia de suprimentos e as despesas de logística de 2023 foram de aproximadamente US $ 412,6 milhões.

• Custos de transporte e frete: US $ 187,2 milhões
• Operações de armazém: US $ 112,4 milhões
• Gerenciamento de inventário: US $ 113.000.000

Garantia do produto e despesas de suporte ao cliente

A garantia total e os custos de suporte ao cliente para o ano fiscal de 2023 totalizaram US $ 98,7 milhões.

Categoria de despesa de garantia	Valor ($)
Processamento de reivindicações de garantia	53,400,000
Peças de reposição	35,200,000
Infraestrutura de suporte ao cliente	10,100,000

The Toro Company (TTC) - Modelo de negócios: fluxos de receita

Vendas de equipamentos de paisagismo profissional

Para o ano fiscal de 2023, a Toro relatou receitas de equipamentos de paisagismo profissional de US $ 2,08 bilhões, representando 48% da receita total da empresa.

Categoria de produto	Receita anual	Quota de mercado
Cortadores profissionais	US $ 875 milhões	52%
Sistemas de irrigação profissional	US $ 425 milhões	33%
Equipamento de construção	US $ 780 milhões	41%

Receitas residenciais de produtos para cuidados com o gramado

O segmento residencial gerou US $ 1,45 bilhão em receita para o ano fiscal de 2023, representando 34% da receita total da empresa.

• Mowers residenciais de caminhada: US $ 620 milhões
• Mowers residenciais: US $ 530 milhões
• Ferramentas de manutenção residencial de gramado: US $ 300 milhões

Máquinas agrícolas e vendas do sistema de irrigação

O segmento agrícola contribuiu com US $ 510 milhões em receitas para o ano fiscal de 2023.

Linha de produtos agrícolas	Receita anual
Sistemas de irrigação agrícola	US $ 285 milhões
Maquinaria agrícola	US $ 225 milhões

Após o mercado de peças e serviços de manutenção

Os serviços de pós -venda geraram US $ 350 milhões em receita para o ano fiscal de 2023.

• Peças de reposição: US $ 210 milhões
• Serviços de manutenção: US $ 140 milhões

Ofertas de aluguel e aluguel de equipamentos

O segmento de aluguel e leasing de equipamentos gerou US $ 125 milhões em receita para o ano fiscal de 2023.

Categoria de aluguel	Receita anual
Aluguel de equipamentos profissionais	US $ 85 milhões
Aluguel de equipamentos residenciais	US $ 40 milhões

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.