TOROMONT ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2026 AND QUARTERLY DIVIDEND

TORONTO, July 28, 2026 /CNW/ — Toromont Industries Ltd. (TSX: TIH) today reported its financial results for the second quarter ended June 30, 2026.

“We are pleased with our second quarter and first-half performance,” said Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. “Revenue and earnings increased, reflecting solid execution across the business. The Equipment Group delivered growth in new and used equipment sales, rentals, and product support, while AVL continued to expand production. We also increased our ownership in AVL to 80% and acquired land in Canada to support future manufacturing growth. CIMCO’s results were slightly lower in the quarter due to project timing and investments for future growth. Across the business, bookings were strong and backlog healthy. Our financial position remained robust, supported by strong cash generation and disciplined working capital management.”

HIGHLIGHTS:

Consolidated Results

• Revenue increased $221.3 million or 16% in the second quarter compared to the similar period last year, with the Equipment Group up 18%, while CIMCO was lower by 1%. The Equipment Group’s increase resulted from good activity across all revenue streams, predominantly driven by power system revenue (inclusive of the AVL Manufacturing Inc. (“AVL”) enclosure business), along with higher mining deliveries and product support revenue. CIMCO’s decrease reflects lower package revenue, partially offset by higher product support revenue. 
• Revenue increased $359.7 million (up 15%) to $2.8 billion for the year-to-date period. Revenue increased in both groups with the Equipment Group up 16% and CIMCO up 1% compared to 2025. Equipment Group growth reflects higher revenue across all revenue streams, resulting from strong execution against order backlog and the growing enclosure business. CIMCO’s growth reflects higher product support activity, while package revenue was largely unchanged. 
• Gross profit margin increased 230 basis points (“bps”) in the quarter to 26.9% versus the comparable period last year. The Equipment Group reported increased margins on higher equipment and rental margins, offset by lower product support margins and an unfavourable sales mix (a lower proportion of product support revenue to total). CIMCO reported decreased margins reflecting lower package and product support margins, slightly offset by a favourable sales mix (higher product support to total revenue). 
• Gross profit margins increased 290 bps to 26.5% for the year. Equipment Group margins increased on the same basis as the quarter and CIMCO reported lower margins, on lower package margins, partially offset by a favourable sales mix and higher product support margins. 
• Operating income⁽¹⁾ increased 41% in the quarter to $242.5 million, reflecting the higher revenue and improved gross profit margins, partially offset by higher expenses. 
• Operating income was $385.5 million for the year-to-date period, up 42% from the prior year, reflecting the higher revenue and improved gross profit margins, partially offset by higher expenses. Operating income margin was 13.6% of revenue compared to 11.0% in the similar period last year, reflecting higher gross profit margins and the mix of business. 
• During the quarter the Company increased its percentage ownership of AVL from 60% to 80% by advancing the purchase of shares from a minority shareholder. The purchase price of the shares was $71.0 million, paid in cash, and resulted in an expense of $45.0 million. Total purchase commitment expenses related to AVL for the quarter amounted to $54.3 million (2025 – $1.7 million). On a year-to-date basis, purchase commitment expenses also included a dividend paid to non-controlling shareholders of AVL, resulting in total expenses of $68.2 million (2025 – $2.8 million). These expenses are not deductible for tax purposes. 
• Net earnings of $124.5 million was largely unchanged for the quarter. Net earnings, excluding purchase commitment expenses, increased $52.8 million or 42% to $178.8 million, reflecting good contribution from the acquired business. 
• EPS and fully diluted EPS were both largely unchanged at $1.53 and $1.51 respectively for the quarter. EPS basic excluding the purchase commitment expenses was $2.20 up 42% compared to the same period last year. 
• For the year-to-date period, net earnings increased $18.4 million or 9% to $217.2 million compared to the prior year. Net earnings excluding the purchase commitment expenses increased $83.8 million or 42% to $285.3 million, reflecting growth in the acquired business. 
• For the year-to-date period, EPS was $2.66 (basic) and $2.64 (fully diluted), 9% higher compared to last year, reflecting the higher revenue and improved gross profit margins, offset by the higher purchase commitment expenses. EPS basic excluding the purchase commitment expenses was up $1.02 or 41% to $3.50 year-to date, on growth in earnings from the acquired business. 
• Bookings⁽¹⁾ for the second quarter increased 171% compared to last year with higher bookings in the Equipment Group, including a significant contribution from the acquired business, while CIMCO bookings were relatively unchanged. For the year-to-date, bookings increased 116% with the Equipment Group up 129% and CIMCO up 11% from the comparable period last year. 
• Backlog⁽¹⁾ of $2.9 billion as at June 30, 2026, was up from $1.4 billion as at June 30, 2025. Backlog reflects good demand for our products, including at the acquired business.

Equipment Group

• Revenue increased 18% to $1.5 billion for the quarter. New equipment sales increased 31%, largely on higher power systems revenue, which includes revenue from the acquired business and higher mining deliveries. Rental revenue increased 11%, with improved utilization and a larger fleet. Product support revenue was up 8% in Q2 on increased customer activity. 
• Revenue of $2.6 billion, increased 16% for the year-to-date period. New equipment sales increased 25%, as higher power systems, and improved mining activity, were slightly offset by lower construction deliveries due to project timing. Used equipment sales increased 9%, with higher activity in most markets. Rental revenue increased 11%, generally reflecting the larger fleet and improved activity across most markets and regions. Product support revenue increased 9% with increased customer activity. 
• AVL’s operational capacity and execution continued to expand in the quarter. Revenue was $170.6 million in the second quarter of 2026 (Q2 2025 – $57.0 million) and $299.7 million for the first half of 2026 (first half of 2025 – $79.0 million). 
• Operating income of $229.2 million in the second quarter was up $73.4 million or 47% from the similar period last year, reflecting the higher revenue and gross margins, partially offset by the higher expense levels. 
• Operating income of $366.1 million increased 49% in the year-to-date period, reflecting higher revenue and improved gross profit margins, offset by higher expenses. Operating income margin was 14.1% versus 11.0% in 2025, partly reflecting product/service sales mix. 
• Bookings in the second quarter were $1.9 billion, an increase of 196% from the comparable period last year, mainly reflecting higher power system orders (including the acquired business), which includes a $1.0 billion order previously announced, for delivery substantially in 2027. Mining orders were up 11%, while construction orders were relatively unchanged compared to Q2 2025. Year-to-date bookings were $2.6 billion, an increase of 129% from the similar period last year. Bookings increased in power systems, reflecting good execution and demand for our power products. Mining orders were up 46%, while construction was relatively unchanged. 
• Backlog of $2.5 billion at the end of June 2026 was up by $1.5 billion or 146% from the end of June 2025, largely reflecting good new power system order intake in the quarter.

CIMCO

• Revenue decreased $1.3 million or 1% compared to the second quarter last year. Package revenue was lower, down 5%, reflecting project timing, with lower activity in the recreational market, partially offset by an increase in the industrial market. Product support revenue was up 6%, reflecting good market activity in Canada.  
• Revenue increased $1.4 million or 1% to $237.6 million for the year-to-date period. Package revenue was largely unchanged compared to 2025 and reflects similar trends as the quarter above, with lower recreational market activity (down 33%), being offset by higher industrial market activity (up 21%). Product support activity increased 1%, with higher activity in Canada (up 9%), offset by lower activity in the US (down 23%).  
• Operating income decreased $3.4 million or 20% for the quarter, reflecting the lower revenue, gross profit margins and the higher expenses.  
• Operating income was down $6.8 million or 26% to $19.4 million for the year-to-date period, reflecting lower gross profit margins and higher expense levels, partially offset by the higher revenue. Operating income margin decreased to 8.2% (2025 – 11.1%), reflecting project timing and investment for future growth.  
• Bookings of $92.8 million in the second quarter were largely unchanged compared to Q2 2025, and increased 11% for the year-to-date period to $156.7 million. For the year, lower bookings in Canada, down 17%, were more than offset by higher bookings in the US, up 111%. Both industrial bookings and recreational bookings were higher (+12% and +11% respectively). Booking activity can be variable over time based on customer decision making and construction schedules.  
• Backlog of $375.3 million as at June 30, 2026 was up $24.3 million or 7% from June 2025. Backlog in the US was strong, up 19% from this time last year, while backlog in Canada was relatively unchanged.

Financial Position

• Toromont’s share price of $233.22 at the end of June 2026, translated to a market capitalization⁽¹⁾ of $19.0 billion and a total enterprise value⁽¹⁾ of $18.6 billion.  
• The Company maintained a strong financial position. Leverage as represented by the net debt to total capitalization⁽¹⁾ ratio was -13% at the end of June 2026, compared to -19% at the end of December 2025 and -3% at the end of June 2025. The change in ratio from this time last year reflects continuing cash inflow from operations and good working capital management, partially offset by capital expenditures and recent business acquisitions.  
• The Board of Directors approved the regular quarterly dividend of $0.56 cents per share. The dividend will be payable on October 2, 2026 to shareholders of record at the close of business on September 4, 2026. 
• The Company’s return on equity⁽¹⁾ was 17.0% at the end of June 2026, on a trailing twelve-month basis, compared to 16.9% at the end of December 2025 and 17.6% at the end of June 2025. Trailing twelve-month pre-tax return on capital employed⁽¹⁾ was 24.8% at the end of June 2026, compared to 23.4% at the end of December 2025 and 23.1% at the end of June 2025.

“We continue to focus on operating disciplines, including expense management and balance sheet optimization, while investing in capacity and capabilities to provide exceptional service to our customers today and in the future,” stated John M. Doolittle, Executive Vice President and Chief Financial Officer of Toromont Industries Ltd. “Our long-term, disciplined approach to deploying capital is even more important in this economic environment and our return on capital deployed remains a top priority. We continue to believe we are well positioned to benefit from future growth and returns 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 comparative figures in this press release are for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025. 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 unaudited interim condensed consolidated financial statements and related notes and Management’s Discussion and Analysis (“MD&A”), as at and for the three and six months ended June 30, 2026, which are available on SEDAR at www.sedarplus.ca and on the Company’s website at www.toromont.com.

Additional information is contained in the Company’s filings with Canadian securities regulators, including the 2025 Annual Report and 2026 Annual Information Form, which are available on SEDAR and the Company’s website.

QUARTERLY CONFERENCE CALL AND WEBCAST

Interested parties are invited to join the quarterly conference call with investment analysts, in listen-only mode, on Wednesday, July 29, 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, August 5, 2026 by calling 1-888-660-6345 (North American toll free) or 289-819-1450 (Toronto area) and quoting passcode 86791#. 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 unaudited interim condensed 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, purchase commitment expenses 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. Purchase commitment expenses are not considered to be operational items. 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 period), both calculated on a trailing twelve month period.

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 statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Toromont, including regarding the expected impact of the acquisition of AVL Manufacturing Inc. (“AVL”) on Toromont’s combined revenue; the effect of hedging and pricing policies; the effect of the investment in an enclosure manufacturer on Toromont’s position and future market growth; the long-term outlook for infrastructure projects and other construction activity; future product support activity, expectations regarding future operations and growth trends stemming from the Company’s installed base of equipment; growth opportunities resulting from the Company’s track record and geographical coverage; expectations of future activity based on the current backlog; long-term positive results arising from the diversity of the markets served, expanding product offering and services, strong financial position and disciplined operating culture; the delivery of approximately 60% of the Equipment Group backlog over the next twelve months; the realization of approximately 75% of the CIMCO backlog as revenue over the next twelve months; the sufficiency of cash flows from operations, cash and cash equivalents on hand and currently available credit facilities to fund requirements for investments in working capital and capital assets; and, the flexibility in Toromont’s operating and investing plans to mitigate fluctuations in working capital and capital assets. 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 post-employment 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 annual Management Discussion and Analysis dated February 10, 2026, 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

TOROMONT INDUSTRIES LTD. 

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)           

SOURCE Toromont Industries Ltd.