TOROMONT ANNOUNCES 2025 FOURTH QUARTER AND FULL YEAR RESULTS AND INCREASES QUARTERLY DIVIDEND

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.

"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.

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:

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:

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.  

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).

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

SOURCE Toromont Industries Ltd.

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