Rick, Edric, and Angie will provide an overview of our third quarter results, which were released earlier this morning, and discuss our priorities and outlook for the remainder of the year. We delivered third quarter adjusted earnings that exceeded our expectations, though persistent headwinds in our residential segment require us to take a prudent approach to our full-year outlook. As a leader in innovative solutions for the outdoor environment, we are well positioned to benefit from powerful secular growth trends, including record golf participation and multi-year infrastructure investment cycles. While impacted by headwinds in our residential segment, our commitment to operational excellence and strength in professional enabled us to achieve adjusted earnings per share in the quarter of $1.24, exceeding our expectations.

While our full-year guidance reflects near-term consumer caution and residential market pressures, which Angie will detail shortly, I am confident in The Toro Company's trajectory. We are seeing sustainable margin improvement in our professional segment, demonstrating our ability to drive profitability even in a mixed demand environment. Most importantly, the secular trends driving our golf and infrastructure businesses remain intact, with multi-year visibility that supports our growth investments. Our professional businesses continue to capture share in markets experiencing structural growth.

We delivered solid operational performance in the quarter with adjusted diluted EPS of $1.24, $0.06 above the same period last year, and better than our internal expectations. Reported EPS of $0.54 per diluted share included a non-cash impairment charge of $0.62 per diluted share, or $81 million pre-tax, compared to $1.14 in the third quarter of last year. This impairment of the Spartan trade name is the result of persistently lower homeowner demand and slower market recovery. Our third quarter segment results reflect the variability in demand environments across our markets, driving growth in the pro segment and creating challenges for the residential segment.

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Reported 2025-09-04 · figures from the Toro Co Q3 2025 earnings call.

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