The Toro Company reported significant financial performance improvements in its third quarter and year-to-date results for fiscal 2024, ending August 2, 2024. Net sales for the third quarter reached $1,156.9 million, a 6.9% increase from $1,081.8 million in the same period of fiscal 2023. However, year-to-date net sales decreased by 1.7% to $3,507.8 million compared to $3,570.0 million in the prior year.

The company's gross profit for the third quarter was $402.8 million, up 8.2% from $372.4 million in the previous year, resulting in a gross margin of 34.8%. Year-to-date gross profit fell to $1,200.3 million, down 3.8% from $1,248.0 million, with a slight decrease in gross margin to 34.2%. Operating earnings for the third quarter surged to $148.1 million, compared to an operating loss of $(19.1) million in Q3 2023. Year-to-date operating earnings increased to $424.3 million from $336.1 million.

Net earnings for the third quarter were $119.3 million, a turnaround from a net loss of $(15.0) million in Q3 2023, translating to $1.14 per diluted share. For the first nine months, net earnings rose to $329.0 million, up from $259.4 million, with earnings per diluted share increasing to $3.14 from $2.46.

The Professional segment experienced a decline in net sales, reporting $880.9 million for Q3, down 1.7% from $896.3 million, and $2,643.0 million year-to-date, a 7.1% decrease. In contrast, the Residential segment saw a substantial increase in net sales, reaching $267.5 million for Q3, up 52.6%, and $843.2 million year-to-date, a 19.5% increase.

The company undertook strategic actions, including the divestiture of its Pope Products garden watering and irrigation business in Australia, which was completed on July 1, 2024. This divestiture was deemed immaterial to the overall financial condition. Additionally, Toro modified its segment reporting structure, consolidating certain operating segments within the Professional reportable segment.

Cash and cash equivalents as of August 2, 2024, stood at $221.1 million, an increase from $147.9 million a year earlier. The company reported total assets of $3,731.4 million, up from $3,585.9 million, while total long-term debt decreased to $966.6 million from $1,061.3 million.

Overall, Toro's financial results reflect a recovery in profitability and strategic adjustments aimed at enhancing operational efficiency, despite challenges in certain market segments.