Toro Co (TTC) 2025 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to The Toro Company's third quarter earnings conference call. My name is Marvin, and I'll be your coordinator for today. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

女士們、先生們，大家好，歡迎參加 Toro 公司第三季財報電話會議。我叫馬文，今天我將擔任你們的協調員。（操作員指示）提醒一下，本次會議將會被錄音以供重播。

I'd like to turn the presentation over to your host for today's conference, Heather Lilly, Managing Director, Corporate Affairs. Please proceed, Ms. Lilly.

我想將演講交給今天會議的主持人、企業事務董事總經理 Heather Lilly。請繼續，莉莉女士。

Good morning, everyone, and thank you for joining us for The Toro Company's third quarter 2025 earnings conference call. I'm Heather Hilley, Head of Investor Relations. On the line with me today are Rick Olson, Chairman and Chief Executive Officer; Edric Funk, who was recently President and Chief Operating Officer; and Angie Drake, Vice President and Chief Financial Officer. Rick, Edric and Angie will provide an overview of our quarter results, which were released earlier this morning and discuss our priorities and outlook for the remainder of the year. Following their remarks, we'll open the phone lines for a question-and-answer session.

大家早安，感謝您參加 Toro 公司 2025 年第三季財報電話會議。我是 Heather Hilley，投資人關係主管。今天與我通話的有董事長兼首席執行官里克·奧爾森 (Rick Olson)、最近擔任總裁兼首席營運官的埃德里克·芬克 (Edric Funk) 以及副總裁兼首席財務官安吉·德雷克 (Angie Drake)。Rick、Edric 和 Angie 將概述我們今天早上發布的季度業績，並討論我們今年剩餘時間的優先事項和展望。在他們發言之後，我們將開通電話熱線進行問答環節。

As a reminder, any forward-looking statements that we make this morning are subject to risks and uncertainties, including those described in today's earnings release, investor presentation and most recent SEC filings, and may cause actual results to differ materially from those contemplated by these statements. Also in our remarks, we'll refer to certain non-GAAP financial measures, which we believe are important in evaluating the company's performance. Reconciliations of all non-GAAP numbers to the most directly comparable GAAP number are included in this morning's press release, which, along with a third quarter presentation containing supplemental information, is posted in the Investor Information section of our corporate website.

提醒一下，我們今天早上做出的任何前瞻性陳述都存在風險和不確定性，包括今天的收益報告、投資者介紹和最近的美國證券交易委員會文件中描述的風險和不確定性，並且可能導致實際結果與這些陳述所預期的結果存在重大差異。在我們的評論中，我們也會提及某些非公認會計準則財務指標，我們認為這些指標對於評估公司的表現非常重要。今天早上的新聞稿中包含了所有非 GAAP 數據與最直接可比較的 GAAP 數據的對賬，該新聞稿與包含補充信息的第三季度演示文稿一起發佈在我們公司網站的投資者信息部分。

With that, I will now turn the call over to Rick.

說完這些，我現在將電話轉給里克。

Thanks, Heather, and good morning, everyone. 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.

謝謝，希瑟，大家早安。儘管住宅業務持續面臨的不利因素要求我們對全年前景採取審慎態度，但我們第三季的調整後收益超出了預期。

As a leader in the innovative solutions for environment, we are well positioned to benefit from powerful secular growth trends, including record Golf participation and multiyear infrastructure investment cycles. The benefit of these trends is enhanced by our focus on leveraged technology investments and operational excellence, which we believe will drive significant value for our customers and shareholders. Our third quarter results reflect the strong positioning. We strategically capitalized on continued momentum within our Professional segment, especially for our Underground Construction and Golf and Ground Solutions, where robust demand for our innovative products and net price realization drove 6% year-over-year growth with margins expanding 250 basis points year-over-year.

作為環境創新解決方案的領導者，我們完全有能力從強勁的長期成長趨勢中受益，包括創紀錄的高爾夫參與度和多年的基礎設施投資週期。我們對槓桿技術投資和卓越營運的關注增強了這些趨勢的好處，我們相信這將為我們的客戶和股東帶來巨大的價值。我們的第三季業績反映了強大的定位。我們策略性地利用了專業部門的持續發展勢頭，特別是地下建築和高爾夫及地面解決方案，對我們創新產品和淨價格實現的強勁需求推動了 6% 的同比增長，利潤率同比增長 250 個基點。

Total consolidated net sales in the quarter were $1.13 billion, down 2.2% from the same period 1 year ago. Half of this decline was due to prior year strategic divestitures of non-core assets. 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.

本季合併淨銷售額總計 11.3 億美元，較去年同期下降 2.2%。下降的一半是由於前一年對非核心資產的策略性剝離。儘管受到住宅部門不利因素的影響，但我們對卓越營運的承諾和專業部門的實力使我們在本季度實現了 1.24 美元的調整後每股收益，超出了我們的預期。

Although 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. Channel inventory is clearly meaningfully, particularly in Residential, setting up a cleaner foundation for the 2026 selling season. Our order books remain healthy in key Professional categories, and we continue to launch innovative products that resonate with our customers.

儘管我們的全年指引反映了近期消費者的謹慎態度和住宅市場壓力（Angie 將很快詳細介紹），但我對 Toro 公司的發展軌跡充滿信心。我們看到專業領域的利潤率正在持續提高，這表明即使在混合需求環境中我們也有能力提高獲利能力。通路庫存顯然意義重大，尤其是住宅庫存，為2026年的銷售季奠定了更清晰的基礎。我們在主要專業類別的訂單保持健康，我們將繼續推出引起客戶共鳴的創新產品。

Most importantly, the secular trends driving our Golf and Infrastructure businesses remain intact with multiyear visibility that supports our growth investments. These factors, combined with our productivity initiatives position us to emerge stronger as markets normalize. To support this trajectory, we further intensified our operational improvements to control costs and identify additional opportunities for greater efficiency. We moderated the impact of higher material and manufacturing costs through initiatives that drove productivity improvements and realization of net pricing gains. We also continued to benefit from our AMP productivity program, which has now delivered $75 million in annualized cost savings and remain on track to deliver at least $100 million by 2027.

最重要的是，推動我們的高爾夫和基礎設施業務的長期趨勢保持不變，並具有多年的可預見性，可以支持我們的成長投資。這些因素加上我們的生產力措施使我們在市場正常化時變得更加強大。為了支持這一軌跡，我們進一步加強了營運改進，以控製成本並尋找提高效率的更多機會。我們透過推動生產力提高和實現淨價格收益的措施來緩和材料和製造成本上漲的影響。我們也繼續受益於我們的 AMP 生產力計劃，該計劃目前已實現 7,500 萬美元的年度成本節約，並預計在 2027 年實現至少 1 億美元的節約。

Additionally, although supply chain strategies we began implementing in 2018 are limiting our exposure in the current global tariff environment, we continue to monitor and respond to their impact on our business. While we are protecting our profit margins through thoughtful and selective price increases as necessary, we're also working diligently to ensure our products remain competitive by omitting the effects of tariffs through productivity improvements.

此外，儘管我們從 2018 年開始實施的供應鏈策略限制了我們在當前全球關稅環境中的風險敞口，但我們仍將繼續監控並應對其對我們業務的影響。我們透過在必要時深思熟慮和有選擇地提高價格來保護我們的利潤率，同時我們也在努力透過提高生產力來消除關稅的影響，以確保我們的產品保持競爭力。

Within Golf, growing participation levels are sustaining already strong momentum in driving incremental equipment and irrigation investments. And Underground Construction is benefiting from a compelling runway of infrastructure projects. By maintaining our position at the forefront of innovation in alternative power, smart connected products and autonomous solutions we continue to drive significant customer value and differentiate our offerings.

在高爾夫運動中，不斷增長的參與水準正在維持強勁的勢頭，推動設備和灌溉投資的增加。地下建築正受益於一系列引人注目的基礎設施項目。透過保持在替代能源、智慧互聯產品和自主解決方案創新領域的領先地位，我們將繼續推動顯著的客戶價值並使我們的產品與眾不同。

Our Professional businesses continue to capture share in markets experiencing structural growth. After recent BMW championship, we showcased our innovative Toro Spatial Adjust Irrigation Control Software paired with moisture sensing technology. Industry professionals experienced these groundbreaking precision turf management solutions firsthand. Following the event, attendees expressed strong enthusiasm for these cutting-edge advancements and their potential to transform golf course maintenance through meaningful water usage reductions.

我們的專業業務繼續在經歷結構性成長的市場中佔據份額。在最近的寶馬錦標賽之後，我們展示了創新的 Toro Spatial Adjust 灌溉控制軟體和濕度感測技術。業界專業人士親身體驗了這些突破性的精準草坪管理解決方案。活動結束後，與會者對這些尖端技術以及透過大幅減少用水量來改變高爾夫球場維護的潛力表示了極大的熱情。

During the third quarter, we began shipping the all-new Ventrac 45RC offering dual operation modes for steep terrain whether seated on the tractor or operating remotely from up to 500 feet away. This advanced system combines intuitive controls with industrial-grade durability to enhance the remote operation experience in demanding environments. We launched two new Specialty Construction products Attract eDingo and Attract Electric Ultra Buggy establishing the most comprehensive, fully electric material handling and compact utility loader portfolio in the market. We continue to build on the strong performance of our Underground Construction portfolio with steady improvement in output and favorable customer response to new directional drills and vacuum excavators including the innovative JT21 Drill, the ATJT 120 and the WA hydrovac.

在第三季度，我們開始發售全新的 Ventrac 45RC，它提供針對陡峭地形的雙重操作模式，無論是坐在拖拉機上還是在 500 英尺外遠端操作。此先進的系統將直覺的控制與工業級耐用性相結合，以增強苛刻環境下的遠端操作體驗。我們推出了兩款新的專業建築產品 Attract eDingo 和 Attract Electric Ultra Buggy，建立了市場上最全面的全電動物料搬運和緊湊型多用途裝載機產品組合。我們持續鞏固地下建築產品組合的強勁表現，產量穩步提高，客戶對新型定向鑽機和真空挖掘機（包括創新的 JT21 鑽機、ATJT 120 和 WA 真空吸塵器）的反應良好。

We have invested in R&D and capacity while divesting noncore construction assets to sharpen our focus and effectively meet demand. The innovation and superior quality of our Exmark-branded equipment, combined with favorable weather in key regions, drove higher-than-anticipated landscape contractor orders during the third quarter. Customers value the performance and durability of the Laser lineup and productivity-enhancing features, including our exclusive Adapt technology for quick tool-free deck adjustments.

我們投資了研發和產能，同時剝離了非核心建築資產，以集中精力並有效滿足需求。我們的 Exmark 品牌設備的創新性和卓越品質，加上重點地區的良好天氣，推動了第三季景觀承包商訂單量高於預期。客戶重視雷射系列的性能和耐用性以及提高生產率的功能，包括我們獨有的 Adapt 技術，可快速進行免工具甲板調整。

Before turning the call over to Angie, I'd like to acknowledge the participation of Edric Funk on this call, and I hope you will join me in welcoming him today and in the future. A 29-year veteran of The Toro Company, most recently as Group Vice President of Golf Grounds and Irrigation. Edric has been appointed President and Chief Operating Officer; and has assumed responsibility for all global businesses and our integrated supply chain operations. I'm excited to be collaborating with Edric in his new capacity and know his leadership will propel our company's profitable growth and competitive position.

在將電話轉給安吉之前，我想感謝 Edric Funk 參加這次電話會議，我希望你們能和我一起在今天和將來歡迎他。他在 Toro 公司工作了 29 年，最近擔任的是高爾夫球場和灌溉集團副總裁。Edric 被任命為總裁兼首席營運官，並負責所有全球業務和我們的綜合供應鏈營運。我很高興能與 Edric 在新職位上合作，並相信他的領導將推動我們公司的獲利成長和競爭地位。

I want to thank our employees and channel partners for their ingenuity and resourcefulness in advancing the product innovations and technology-driven solutions that enhance our customers' productivity. These advancements are critical drivers of our profitable growth and reinforce our confidence in The Toro Company's future.

我要感謝我們的員工和通路合作夥伴，感謝他們的聰明才智和足智多謀，推動了產品創新和技術驅動的解決方案，提高了客戶的生產力。這些進步是我們獲利成長的關鍵驅動力，並增強了我們對 Toro 公司未來的信心。

Now Angie will provide additional details and insights on our third quarter results and outlook for the remainder of the year.

現在，安吉將提供有關我們第三季業績和今年剩餘時間展望的更多細節和見解。

Thank you, Rick, and good morning, everyone. 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. Consolidated net sales for the quarter were $1.13 billion, down 2.2% from Q3 last year. As we annualize on the prior year divestitures of company-owned dealers and products, which account for about half of the quarter sales decline.

謝謝你，里克，大家早安。本季我們實現了穩健的營運業績，調整後稀釋每股收益為 1.24 美元，比去年同期高出 0.06 美元，且優於我們的內部預期。本季綜合淨銷售額為 11.3 億美元，較去年第三季下降 2.2%。由於我們將上一年公司自有經銷商和產品的剝離按年計算，這佔了本季銷售額下降的約一半。

Reported EPS of $0.54 per diluted share included a noncash impairment charge of $0.62 per diluted share or $81 million pretax 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.

報告每股攤薄收益為 0.54 美元，其中包括每股攤薄收益 0.62 美元的非現金減損費用或稅前 8,100 萬美元，而去年第三季為 1.14 美元。Spartan 品牌的受損是由於房主需求持續走低和市場復甦放緩造成的。我們第三季的分部業績反映了我們各個市場需求環境的變化。推動專業領域的成長並為住宅領域帶來挑戰。

Professional segment net sales for the third quarter were $931 million, up about 6% year-over-year, driven primarily by higher shipments of Underground Construction and Golf and Grounds products and net price realization. We achieved this growth in the quarter despite the unfavorable current year revenue impact from our 2024 strategic divestitures of company-owned dealers. Professional segment earnings for the third quarter were $199 million, up 20% year-over-year, resulting in an earnings margin of 21.3% up from 18.8% in the prior year. We delivered this 250 basis point increase in profitability through a combination of productivity improvements, net realization, net sales leverage and our purposeful initiatives to reduce costs. These favorable contributors were partially offset by higher material and manufacturing costs.

專業部門第三季淨銷售額為 9.31 億美元，年增約 6%，主要得益於地下建築和高爾夫及場地產品出貨量增加以及淨價格實現。儘管 2024 年公司自有經銷商的策略性剝離對當年收入產生了不利影響，但我們仍在本季度實現了這一增長。第三季專業部門獲利為 1.99 億美元，年增 20%，獲利利潤率從上年的 18.8% 上升至 21.3%。我們透過提高生產力、淨實現、淨銷售槓桿和有針對性的降低成本舉措，實現了盈利能力 250 個基點的成長。這些有利因素被材料和製造成本的上升部分抵消。

Residential segment net sales for the third quarter were $193 million, down 28% year-over-year. This was due to lower shipment across the segment as homeowners deferred big ticket purchases. In addition, channel partners remain cautious about inventory in the current environment due to continued volatility in consumer confidence. We are encouraged by the meaningful reduction we have seen in as distribution partners sell through current stocks. This inventory level positions us well for the 2026 spring selling season.

第三季住宅部門淨銷售額為 1.93 億美元，年減 28%。這是由於房主推遲購買大件商品導致整個領域的出貨量下降。此外，由於消費者信心持續波動，通路夥伴在當前環境下對庫存仍持謹慎態度。隨著分銷合作夥伴售出現有庫存，我們看到庫存顯著減少，這令我們感到鼓舞。這項庫存水準為我們在 2026 年春季銷售季做好了準備。

Residential segment earnings for the quarter were $4 million or 1.9% of sales compared to $33 million or 12.2% of sales last year. The decrease was primarily due to lower volume higher sales and incentives to drive demand and inventory valuation adjustments, partially offset by productivity improvements.

本季住宅部門獲利為 400 萬美元，佔銷售額的 1.9%，去年同期為 3,300 萬美元，佔銷售額的 12.2%。下降的主要原因是銷售下降、銷售額增加以及推動需求和庫存估價調整的激勵措施，但生產力提高部分抵消了這一影響。

While Residential remains challenged by macro factors, our decisive actions to rightsize operations and reduce field inventory position us for improved performance of consumer confidence returns.

儘管住宅業務仍然受到宏觀因素的挑戰，但我們採取果斷行動，調整營運規模並減少現場庫存，使我們能夠提高消費者信心回報的表現。

Now turning to our operating results for the total company. Our reported and adjusted gross margins for the quarter were 33.7% and 34.4%, respectively, compared to 34.8% and 35.4%, respectively, in the same period last year. Year-over-year changes on both the reported and adjusted basis were primarily due to lower net sales volume, higher material and manufacturing costs and inventory valuation adjustments, partially offset by productivity improvements, net price realization and favorable product mix.

現在來談談我們整個公司的經營業績。本季我們的報告毛利率和調整後毛利率分別為 33.7% 和 34.4%，而去年同期分別為 34.8% 和 35.4%。報告和調整後的同比變化主要歸因於淨銷售量下降、材料和製造成本上升以及庫存估價調整，但被生產力提高、淨價實現和有利的產品組合部分抵消。

SG&A expense as a percentage of net sales for the quarter was 20.8%, a meaningful improvement from 22% a year ago. Given decline in net sales for the quarter, this result was particularly compelling, driven by deliberate AMP program measures as well as lower marketing costs. Operating earnings margin, including the noncash impairment charge, was 5.7%, down from 12.8% in the same period last year. On an adjusted basis, operating earnings margin was down 10 basis points to 15.6% due to lower volume. The third quarter reported effective tax rate was 7.4% compared with 17.3% last year.

本季銷售、一般及行政費用佔淨銷售額的百分比為 20.8%，較去年同期的 22% 有顯著改善。鑑於本季淨銷售額下降，這一結果尤其引人注目，這得益於刻意採取的 AMP 計劃措施以及降低的營銷成本。包括非現金減損費用在內的營業利益率為 5.7%，低於去年同期的 12.8%。經調整後，由於銷量下降，營業利潤率下降 10 個基點至 15.6%。第三季報告的有效稅率為 7.4%，而去年同期為 17.3%。

The decrease was primarily due to the impact of noncash impairment charge and a more favorable geographic mix of earnings this year, partially offset by lower tax benefits recorded as excess tax deductions for stock-based compensation in the current year period.

下降的主要原因是今年非現金減損費用的影響以及更有利的地域收益組合，但本年期間記錄為股票薪酬超額稅收減免的稅收優惠減少部分抵消了這一影響。

The adjusted effective tax rate for the third quarter was 17.3% compared with 18% a year ago. Free cash flow through the third quarter was $292 million, a year-over-year increase that was largely due to net favorable changes in working capital. This resulted in a free cash flow conversion rate for the quarter of 90%.

第三季調整後有效稅率為 17.3%，去年同期為 18%。第三季的自由現金流為 2.92 億美元，較去年同期成長，這主要歸因於營運資本的淨有利變化。這使得本季的自由現金流轉換率達到 90%。

During the quarter, we invested $90 million in share repurchases, bringing our year-to-date total to $290 million. This reflects our confidence in cash generation and our commitment to returning value to shareholders while maintaining balance sheet flexibility for continued investment in technology innovation and new product development. Year-to-date, our actions have generated favorable momentum in our return on invested capital.

本季度，我們投資了 9,000 萬美元用於股票回購，使我們年初至今的回購總額達到 2.9 億美元。這反映了我們對現金創造的信心以及我們致力於為股東帶來價值的承諾，同時保持資產負債表的靈活性，以便繼續投資於技術創新和新產品開發。今年迄今為止，我們的行動為投資資本回報帶來了良好的動力。

Looking ahead to the fourth quarter of fiscal 2025. We are excited about the continued strong demand and stable supply for our Underground Construction and Golf And Grounds businesses. At the same time, we anticipate continued pressure both from home owner demand and channel cautions that affected our third quarter results. With this backdrop and based on our current visibility, inclusive of anticipated tariff impacts, I will lay out our full year guidance.

展望2025財年第四季。我們對地下建築和高爾夫及場地業務持續強勁的需求和穩定的供應感到非常興奮。同時，我們預期房主需求和通路謹慎將繼續對我們的第三季業績帶來壓力。在此背景下，並根據我們目前的可見性（包括預期的關稅影響），我將製定全年指導。

For fiscal 2025, we expect total company net sales to be at the low end of our guidance range of flat to down 3%. We expect Professional segment revenue to be up slightly year-over-year while the Residential segment is expected to be down mid-teens. We continue to expect total company adjusted gross margin to improve on a year-over-year basis. We now expect adjusted operating earnings margin to be flat to slightly lower than prior year. Looking at segment profitability.

對於 2025 財年，我們預計公司總淨銷售額將處於我們指導範圍的低端，即持平至下降 3%。我們預計專業部門的收入將比去年同期略有增長，而住宅部門的收入預計將下降百分之十幾。我們繼續預期公司調整後的總毛利率將年增。我們現在預計調整後的營業利潤率將與上年持平或略低於去年。看看分部獲利能力。

We continue to expect Professional segment earnings margins to expand versus the prior year. However, economic headwinds from homeowners are expected to pressure Residential segment earnings margins resulting in a year-over-year decline.

我們繼續預計專業部門的獲利利潤率將比上一年擴大。然而，來自房主的經濟逆風預計將給住宅部門的獲利利潤率帶來壓力，導致其同比下降。

Finally, we expect adjusted diluted EPS to be at the low end of our prior guidance range at about $4.15. These projections also assume normal weather patterns aligned with historical averages for the remainder of the fiscal year. Additional elements of our full year guidance includes interest expense of up $60 million capital expenditures of about $90 million and an increase in our free cash flow conversion guidance to about 110%. The strategic actions we discussed our AMP transformational productivity initiative and our tariff mitigation strategies are delivering immediate benefits and positions us for improved operating leverage as markets normalize. Our Professional segment continues to perform well.

最後，我們預計調整後稀釋每股盈餘將位於我們先前指引區間的低端，約4.15美元。這些預測也假設本財年剩餘時間的天氣狀況與歷史平均值一致。我們全年指引的其他內容包括利息支出高達 6,000 萬美元、資本支出約 9,000 萬美元以及自由現金流轉換指引增加至約 110%。我們討論的 AMP 轉型生產力計劃和關稅減免策略等策略行動正在帶來直接效益，並使我們能夠在市場正常化時提高營運槓桿。我們的專業部門繼續表現良好。

Our innovation pipeline remains robust, and our strong cash generation supports our investments in continued growth as well as returning capital to shareholders. We are resolutely managing factors within our control as we navigate the current environment, and we remain keenly focused on turning our business to sustained profitable growth.

我們的創新管道依然強勁，強勁的現金產生能力支持我們對持續成長的投資以及向股東返還資本。在應對當前環境時，我們堅決管理我們可控制的因素，並始終專注於將我們的業務轉向持續獲利成長。

With that, I'll turn the call over to Edric.

說完這些，我會把電話轉給埃德里克。

Thank you, Angie, and good morning, everyone. I'm excited to join you this morning, and I look forward to engaging with all of you in the coming months. Since joining The Toro Company in 1996, I've had the privilege of working with and leading talented teams across all our segments to strengthen our competitive advantage, advance our technology innovation and accelerate the development and delivery of exceptional solutions for our customers.

謝謝你，安吉，大家早安。我很高興今天早上能和大家在一起，並期待在接下來的幾個月裡與大家交流。自 1996 年加入 Toro 公司以來，我有幸與各部門的優秀團隊合作並領導他們，以增強我們的競爭優勢、推動我們的技術創新並加速為客戶開發和提供卓越的解決方案。

As I transitioned from my most recent position, leading Golf Grounds and Irrigation the diligent efforts of our team in driving innovation and delivering profitable growth. Our partnership with the Ryder Cup which will be held this month at the Bethpage Black Course in New York, exemplifies our market leadership and provides a global platform to demonstrate technologies that are already generating significant commercial interest. We also recently launched our new GeoLink Mow Autonomous Fairway Mower. This introduction complements the robotic platforms that we released earlier this year and is another example of leveraging technology across the company to deliver customer value solutions.

當我從最近的職位轉變過來，領導高爾夫球場和灌溉部門時，我們的團隊勤奮努力地推動創新並實現盈利成長。我們與本月將在紐約貝斯佩奇黑球場舉行的萊德杯的合作體現了我們的市場領導地位，並提供了一個全球平台來展示已經引起巨大商業興趣的技術。我們最近也推出了新款 GeoLink Mow 自動球道割草機。此次推出的產品是我們今年稍早發布的機器人平台的補充，也是利用公司技術提供客戶價值解決方案的另一個例子。

As I begin my new role, I'm excited for the opportunity to partner with our leadership team to strengthen the performance and resilience of our business. We're doing that by strategically investing in value-generating technology and innovation and by optimizing our global supply chain operations. We're already taking decisive steps with our AMP productivity program tariff mitigation initiatives and prudent capital investment strategies to position the company for accelerated growth when the macro environment recovers.

當我開始擔任新職務時，我很高興有機會與我們的領導團隊合作，以增強我們業務的績效和彈性。我們透過策略性地投資於創造價值的技術和創新以及優化我們的全球供應鏈營運來實現這一目標。我們已經採取果斷措施，包括 AMP 生產力計劃關稅減免措施和審慎的資本投資策略，以使公司在宏觀環境復甦時實現加速成長。

While both streamlining our footprint and aligning our production capacity with demand have resulted in lower current year revenue, we are confident these are the right strategic decisions for business. We are laser-focused on levering earnings growth, independent of revenue expansion, and we're committed to investing in the core businesses and growth opportunities that ensure enduring value for all our stakeholders.

雖然精簡我們的業務範圍和根據需求調整我們的生產能力都導致了當年收入的下降，但我們相信這些都是正確的商業策略決策。我們專注於實現獲利成長，而不限於收入擴張，我們致力於投資核心業務和成長機會，確保為所有利害關係人帶來持久的價值。

Now Rick has a few closing remarks.

現在，瑞克要講幾點結束語。

Thank you, Edric. The Toro Company is positioned to deliver long-term value through our focus on key growth markets and operational improvements. As we navigate a challenging environment, we are being proactive and purposeful in taking steps to accelerate our performance. We are strengthening our product innovation and technology leadership with a continuous pipeline of new offerings that elevate our customers performance. We are aggressively pursuing opportunities for greater operational efficiency that align our costs and capacity with near-term demand.

謝謝你，埃德里克。Toro 公司致力於透過專注於關鍵成長市場和營運改善來實現長期價值。在應對充滿挑戰的環境中，我們積極主動、有目的地採取措施來提高我們的績效。我們不斷推出新產品來提升客戶的績效，從而加強我們的產品創新和技術領先地位。我們正在積極尋求提高營運效率的機會，使我們的成本和產能與近期需求保持一致。

We are focused on returning value to shareholders by maintaining a disciplined approach to capital allocation, balance sheet flexibility and strong cash flow.

我們專注於透過保持嚴謹的資本配置方式、資產負債表靈活性和強勁的現金流來為股東帶來價值回報。

Now Edric, Angie and I would be happy to take your questions.

現在，艾德里克、安吉和我很樂意回答你們的問題。

(Operator Instructions)

（操作員指示）

Michael Shlisky, D.A Davidson and Co.

邁克爾·施利斯基（Michael Shlisky）、D.A Davidson 和公司

Yeah, hi, good morning. Thanks for taking my question. I wanted to start with a Professional segment question and how it relates to the consumer. Has the professional landscape channel, which has some consumers that on the large acreage side have come over to buy from new dealers. Is that part of your business still putting for that next leg up is the consumer challenges? So I guess i was kind of wondering what you have had organic growth even higher Professional had not been for that small trust of consumer does shop in the Professional channel?

是的，你好，早安。感謝您回答我的問題。我想從一個專業領域的問題開始，以及它與消費者的關係。擁有專業的園林景觀通路，一些大面積的消費者已經從新經銷商購買。您的業務是否仍在為應對消費者挑戰而努力？所以我想知道，你們的有機成長甚至更高，但專業管道卻沒有為消費者在專業通路購物提供那麼小的信任嗎？

Comments about the landscape contractor business. In total, that business actually grew in the third quarter, and that was the combination of a very strong demand from Professional contractors themselves. Particularly responding to the new products that one of those, which I mentioned, the Exmark new laser, which is kind of a flagship of Exmark and be kind of the standard in the industry. So the latest version of that products great response to that.

關於景觀承包商業務的評論。總體而言，該業務在第三季實際上有所成長，這是專業承包商自身強勁需求的綜合作用。特別是針對我提到的其中一款新產品，Exmark 新雷射器，它是 Exmark 的旗艦產品，也是業界的標準。因此該產品的最新版本對此反應良好。

And then that strength of demand from the true contractors made up from still muted demand from homeowners that would typically be in that market. So Overall, we grew landscape contractors. That was a combination of strong contractor demand and lower homeowner demand. The homeowners are acting much more like they do in the Residential side at this point. So good question.

然後，真正的承包商的需求強勁，彌補了通常在該市場中的房主仍然低迷的需求。總體而言，我們發展了景觀承包商。這是承包商需求強勁和房主需求下降的綜合結果。此時，房主的行為與住宅區的情況更加相似。這個問題問得好。

Great. And then sticking with Professional. This was a it looks like a record third quarter for Professional from a margin perspective, and this is going back a bunch of years in my model, you noted things like having lower marketing costs and some of your comments in your press release. I guess is that part of the AMP program or are those permanent reductions? Or are those just temporary?

偉大的。然後堅持專業。從利潤率的角度來看，這似乎是專業部門創紀錄的第三季度，在我的模型中，這可以追溯到幾年前，您提到了行銷成本降低等情況，並在新聞稿中發表了一些評論。我猜這是 AMP 計劃的一部分還是永久性的削減？還是這些只是暫時的？

Just trying to see if Professional has entered a new and a higher margin range going forward after this great performance here. I also be curious about mix and Professional, whether that was a role on the strong margin as well?

只是想看看專業人士在取得如此出色的表現後是否已經進入了一個新的更高的利潤範圍。我還對混合和專業感到好奇，這是否也是強勢邊緣的作用？

Yeah. Mix did have an impact the quarter. We continue to see strong demand from our Underground and Golf and Grounds businesses and saw increased production output as well. So that made an impact there. We did have a very strong quarter, up 250 basis points on operating margins for the Professional segment.

是的。混合確實對本季產生了影響。我們繼續看到來自地下和高爾夫及場地業務的強勁需求，產量也有所增加。這在那裡產生了影響。我們確實度過了一個非常強勁的季度，專業部門的營業利潤率上升了 250 個基點。

So it continues to be a strong story there.

因此，這仍然是一個強有力的故事。

And yes, your question about AMP. AMP did have an impact. We saw strong impacts year-over-year in our cost savings related to transformational productivity efforts. A lot of that coming into the Professional segment, but overall total company. So we took, let's say, in our quarter, we had $21 million worth of in-year realized savings from AMP.

是的，您的問題是關於 AMP 的。AMP 確實產生了影響。我們看到，與轉型生產力努力相關的成本節約逐年顯著增加。其中很大一部分進入了專業領域，但總體而言，是整個公司。因此，假設我們在本季從 AMP 實現了價值 2,100 萬美元的年度節省。

So year-to-date or project to date, that's actually at $51 million for FY25 or sitting at $50 -- $47 million in realized savings for the year.

因此，從年初至今或專案至今來看，2025 財年的節省金額實際上為 5,100 萬美元，或者說，全年已實現節省金額為 5,000 至 4,700 萬美元。

Great. And maybe the last one I've got for you. If we see a rate cutter even two, before the end of the year, the calendar year, I guess, would that improve the rest outlook and any kind of decent size way or do you just see a cadence of rate cuts going to 2026 to really see the consumer responds to lower interest rates?

偉大的。這也許就是我為你準備的最後一個了。如果我們看到利率下調兩次，那麼在今年年底之前，也就是日曆年，我想，這是否會改善其餘前景並帶來任何體面的改善，或者您是否只是看到利率下調的節奏持續到 2026 年，才能真正看到消費者對降低利率的反應？

We would all be speculating exactly on how the consumer would respond, but they're looking for a trigger to be more positive, but potentially part of the lower consumer confidence that we see right now. The fact that interest rates are higher. So interest rate cut or the start of cutting would -- you would have to imagine would be seen as a positive to consumers, give them some confidence to make those bigger ticket purchases, which they've with them to do in the last -- really the last couple of years.

我們都在猜測消費者會如何反應，但他們正在尋找一個更積極的觸發因素，但這可能是我們目前看到的消費者信心下降的部分原因。事實是利率較高。因此，你可以想像，降息或開始降息將對消費者產生正面影響，讓他們有信心購買大額商品，而這正是他們在過去幾年裡一直在做的事情。

Okay, fair enough. I'll pass it along.

好的，很公平。我會傳達的。

Thank you.

謝謝。

Thank you, Mike.

謝謝你，麥克。

Samuel Darkosh of RJF.

RJF 的 Samuel Darkosh。

Yeah, hey, Rick, Angie, Edric, how are you? Good morning. So a few questions. First off, your Residential business. So I guess I'll just ask it as relates to your market share of sell-in and sell-through. I know two of your big retailers, Lowe's and Tractor Supply, both called out the lawn and garden category as being a positive, favorable category for them. So how are you feeling about your market share?

是的，嘿，瑞克、安吉、艾德里克，你們好嗎？早安.有幾個問題。首先，您的住宅業務。所以我想我只會問與你的銷售市場佔有率和銷售率有關的問題。我知道你們的兩家大型零售商 Lowe's 和 Tractor Supply 都稱草坪和花園類別對他們來說是積極的、有利的類別。那麼您對自己的市佔率感覺如何？

Your floor plan -- your floor space at those retailers and your prospects for growth in the those two customers next year?

您的平面圖—您在這些零售商的面積以及明年您在這兩個客戶群中的成長前景？

I think importantly, we have maintained our market share through an incredibly sort of extreme cycle through the last few years. This is a business that historically is growing over a couple of decades by 3%. And within the last five years, we've had some plus 20s and some minus similar amounts. So this is something that we've experienced before.

我認為重要的是，在過去幾年極其極端的周期中，我們仍然保持著我們的市場份額。從歷史上看，該業務在過去幾十年中一直以 3% 的速度成長。在過去五年中，我們的成長率有的超過了 20%，有的則下降了類似的幅度。這是我們以前經歷過的事情。

The positive thing is that we have maintained our market share through that process. So it really reflects the cycle that the market is going through. Specific to our year-over-year business and related to Lowe's specifically for us, it's kind of a tough comp for us from a shipment standpoint. Our business, to a large extent, driven by the Lowe's selling was up 53% in the last third quarter. That's from a comp standpoint.

積極的一面是，我們透過這個過程保持了我們的市場份額。所以它確實反映了市場正在經歷的週期。具體到我們的同比業務以及與 Lowe's 的具體關係，從出貨量的角度來看，這對我們來說是一種艱難的比較。我們的業務在很大程度上受到勞氏銷售額的推動，去年第三季我們的業務成長了 53%。這是從公司角度來看的。

And in the current environment, it's the hesitant homeowners that we talked about along with all consumers at this point on big ticket items that has them more hesitant to make purchases.

在當前環境下，我們討論的猶豫不決的房主以及所有消費者在購買大件商品時都更加猶豫。

The good news is that retail has been strong through the latter part of the season. It was a slow start to the season. So the retail some of which you're seeing reported in those retailer reports has been strong later in the season. That's for us, made up for some of the slow starts in the early portion of the season. But what you see is a hesitancy, particularly by dealers to restock at this point in the current environment.

好消息是，零售業在本季後期表現強勁。本季的開局比較緩慢。因此，您在零售商報告中看到的一些零售情況在本季後期表現強勁。對我們來說，這彌補了賽季初期的一些緩慢開局。但你看到的是一種猶豫，尤其是經銷商在當前環境下對補貨的猶豫。

So most of the dynamic, again, holding market share seen the benefit of longer retail with those channel partners. And the good news is even though they're not taking more stock, we are further adjusting the field inventory, which is both up for a healthy of FY26.

因此，大多數充滿活力、佔有市場份額的企業都看到了與這些通路合作夥伴進行更長期零售的好處。好消息是，儘管他們沒有增加庫存，但我們正在進一步調整現場庫存，預計 2026 財年庫存將保持健康成長。

And then my follow-up or segue question to that, Angie, you mentioned, and this is no surprise, obviously, but the Residential margins are expected to be down this year. To what degree are you expecting the margins to be down? What do you peg as, I guess, "normal resi margins" at this point? And what's the likelihood that 2026 is going to look like that sort of normal margin profile in the segment?

然後我的後續問題，安吉，你提到了，這顯然並不奇怪，但預計今年住宅利潤率將會下降。您預計利潤率會下降到什麼程度？我猜，您現在將什麼定義為「正常保留利潤率」？那麼，2026 年該細分市場的利潤率達到正常水準的可能性有多大？

Yeah. As we talk about residential margins, we said that those would be for the full year, those would be lower year-over-year from last year's 7.9%. So we do expect those to be a little lower with all of the things that we've talked about impacting those Residential margins this year and this past quarter.

是的。當我們談論住宅利潤率時，我們說過這將是全年的利潤率，與去年的 7.9% 相比，今年的利潤率將有所下降。因此，我們確實預計這些數字會略低一些，因為我們討論過的所有因素都會影響今年和上個季度的住宅利潤率。

From a normal basis, Sam, those are typically somewhere in that 8% to 10% margin range. Although we expect to get to that over time, we likely will not in FY25 and we expect to get closer to that sometime in the near future. I think like Rick said, it really what is the actions that we've taken this year have really set us up for a stronger FY26, whether those are or onetime reductions like E&O, things like that, that will set us up for a better FY26.

從正常情況下來說，Sam，這些通常在 8% 到 10% 的利潤範圍內。儘管我們期望隨著時間的推移能夠實現這一目標，但我們可能不會在 25 財年實現這一目標，並且我們期望在不久的將來能夠更接近這一目標。我認為就像 Rick 所說的那樣，我們今年採取的行動確實為我們更強勁的 26 財年奠定了基礎，無論是 E&O 等一次性削減，還是諸如此類的事情，都將為我們更好的 26 財年奠定基礎。

And then my last question, and I apologize if you covered this in your prepared remarks and I missed it. What are your expectations now for year-end backlog and the prospects for Pro growth next year?

這是我的最後一個問題，如果您在準備好的發言中提到了這個問題而我卻沒有提到，我深感抱歉。現在您對年底的積壓情況以及明年 Pro 成長的前景有何預期？

Yeah. We would expect year-end backlog to be substantially reduced from previous years as we work down to the more normal order cycle and lead times. There are a lot of dynamics there. The time frame in which customers are ordering is also pulling in back more towards normal. So I think we previously had commented that the Underground Construction categories would extend well into 2026.

是的。隨著我們逐步恢復正常的訂單週期和交貨時間，我們預計年底積壓訂單量將比往年大幅減少。那裡有很多動態。顧客下單的時間範圍也逐漸恢復正常。所以我認為我們之前曾評論過地下建築類別將延續到 2026 年。

Golf and Grounds should be close to normal, although the recent order trends indicated that will spill into next year in some categories as well. So continued good prospects for growth, but returning more to normal versus driven by the back order overload.

高爾夫和場地應該接近正常水平，儘管最近的訂單趨勢表明，某些類別的訂單也將延續到明年。因此，成長前景仍然良好，但更多地回歸正常，而不是受積壓訂單過多的影響。

So you're still thinking '26 as a growth year comfortably for Pro?

所以您仍然認為 26 年是 Pro 舒適的增長年嗎？

For Pros. Yes.

對於專業人士來說。是的。

Yeah. Demand in Golf and Ground and Underground. Expect the Professional that we talked about earlier with our landscape areas. The contractor is still very strong as well, and we've got a good book of orders in front of us.

是的。高爾夫球場、地面和地下的需求。期待我們之前談到的景觀區域的專業人士。承包商仍然非常強大，我們面前有大量訂單。

Thank you much.

非常感謝。

David MacGregor, Longbow Research.

大衛麥格雷戈，長弓研究公司。

Yeah, good morning, everyone. Welcome, Hendrick.

是的，大家早安。歡迎，亨德里克。

I guess I wanted to start off just on the AMP program, you'd expect it to reinvest 50% of the benefit and take the remaining 50% to the bottom line. So $75 million that you referred to this morning, what's been taken to the bottom line so far?

我想，我只是想從 AMP 計畫開始，你會期望它將 50% 的收益再投資，並將剩餘的 50% 計入底線。那麼，您今天上午提到的 7500 萬美元，目前實際支出是多少？

David. So the $75 million is program-to-date savings. So that's run rate savings, so those will be annualized cost savings that we expect to get in the future. For our project today, actually, I'll go back to our FY25 in-year realized savings, which means what we should have expected to see potentially in the P&L and that this year is $47 million to date through 2025.

大衛。因此，7500 萬美元是該計劃迄今為止的節省。這就是運行率節省，也就是我們預計未來能夠實現的年度成本節省。對於我們今天的項目，實際上，我將回顧我們 25 財年的年度實現節省，這意味著我們應該預期在損益表中看到的潛在節省，並且今年到 2025 年為止的節省額為 4700 萬美元。

A lot of that is impacting the P&L in the ways of things that you're seeing with SG&A savings, some of the footprint rationalization we've have done, capacity. But we're also having to offset some of the costs that we're seeing in this homeowner volume reduction and tariff headwinds, overall under absorption and some lower volumes, but we're using some of that also to fuel our continued innovations in technology. So you're not seeing those directly related to AMP because we are reinvesting a big portion of that this year into the other things that I've mentioned.

其中許多因素都會對損益表產生影響，例如您所看到的銷售、一般和行政費用的節省、我們所做的一些佔地面積合理化以及產能。但我們也必須抵消房主數量減少和關稅逆風帶來的部分成本，整體吸收不足和數量減少，但我們也利用其中的一部分來推動我們在技術方面的持續創新。因此，您不會看到與 AMP 直接相關的內容，因為我們今年將把其中很大一部分重新投資到我提到的其他內容中。

And even though it goes to offset some of the specific challenges this year with lower volume, et cetera, in Residential. Those are run rate savings, so they will continue in the future and where we start to get relief from some of those factors where we're spending it today, those benefits will still be there in the future.

儘管它可以抵消今年住宅領域銷量下降等一些具體挑戰。這些都是運行率節省，因此它們將在未來繼續，當我們開始從我們今天花費的一些因素中獲得緩解時，這些好處在未來仍然存在。

Right. And I guess you're talking about 2027 at the end of 2027, but you appear to be, at least on a run rate basis, three quarters of the way through this program already. I guess the obvious question is the potential to see this target raised over the remaining two years of the planning horizon?

正確的。我猜您說的是 2027 年，也就是 2027 年底，但至少從運行率來看，您似乎已經完成了該計劃的四分之三。我想顯而易見的問題是，在規劃期剩餘的兩年內，是否有可能實現這一目標？

Yes, you're exactly right. So we're very excited about the progress that we've made with our AMP initiative, and we've had great success to date, we're tracking well ahead of with our $75 million of run rate savings towards that $100 million goal. So when we give our guidance in Q4, I think we'll be prepared to talk about AMP 2.0 or AMP Square.

是的，你說得完全正確。因此，我們對 AMP 計劃所取得的進展感到非常興奮，到目前為止，我們取得了巨大的成功，我們已節省了 7500 萬美元的運行成本，距離實現 1 億美元的目標還有很長的路要走。因此，當我們在第四季度給予指導時，我認為我們會準備好談論 AMP 2.0 或 AMP Square。

Okay. Sounds good. I look forward to that. Second question is on tariffs. I guess, just talk about your success to date with tariff mitigation and what impacted tariffs -- I guess, net of mitigation actions have on third quarter margins?

好的。聽起來不錯。我對此充滿期待。第二個問題是關於關稅。我想，只需談談您迄今為止在降低關稅方面取得的成功以及對關稅的影響——我想，扣除降低關稅的措施對第三季的利潤率有何影響？

Yeah. If you just a little commentary from where we picked up or picking up from last earnings call. Last call, we talked about roughly 3% of COGS being the impact that we estimated at that point from tariffs for the year in FY25. That equates to about $90 million. And just one note on the $90 million that would also be inclusive of existing tariffs that were there since 2017, '18 time frame.

是的。如果您只是從我們上次收益電話會議中了解到的情況發表一點評論。上次我們談到，大約 3% 的 COGS 是我們當時估計的 25 財年關稅的影響。這相當於約 9000 萬美元。關於這 9,000 萬美元，需要注意的是，這筆錢還包括 2017 年至 2018 年期間的現有關稅。

So the actual incremental in '25 due to new tariffs would have been $75 million at that time.

因此，25 年由於新關稅而產生的實際增量當時將達到 7,500 萬美元。

At this point, we are estimating that the equivalent incremental tariffs would be about $45 million. And what's interesting is the split, how that breaks down has shifted. So our second quarter call, it was mostly about China, even though we had small exposure. There was an exceptionally large tariff that was on the horizon that we have built in. Today, the largest portion is steel and aluminum based on the general tariffs there, even though the vast majority of our steel comes from the US.

目前，我們估計相當於增量關稅約 4500 萬美元。有趣的是，分裂的方式已經改變了。因此，儘管我們的曝光度不高，但我們第二季的電話會議主要討論的是中國市場。我們已經制定了即將實施的異常高的關稅。今天，根據那裡的一般關稅，最大的一部分是鋼鐵和鋁，儘管我們的絕大多數鋼鐵都來自美國。

It does we are affected because of the very high rate even on a small percentage that does not and then that would be followed by an equal measure of China, the baseline reciprocal tariffs and a small portion of Mexico from Mexico and China, maybe $5 million out of that. Thankfully, our products have been USMCA compliant they have been from the start in Mexico and are currently not subject to significant tariffs there.

確實如此，我們受到了影響，因為稅率非常高，即使是很小一部分也沒有受到影響，然後是中國同等程度的基準互惠關稅和墨西哥和中國的一小部分，大概是其中的 500 萬美元。值得慶幸的是，我們的產品從一開始就符合 USMCA 的規定，目前在那裡不受高額關稅的約束。

I know the IEPA or the reciprocal tariffs are sort of a point of debate right now. How much within that $45 million would be the IEPA?

我知道《國際經濟政策與政策法案》或互惠關稅目前是一個爭論點。這 4500 萬美元中有多少是 IEPA 的？

Not that we've broken it out specifically to address the IEPA, we haven't broken it out.

並不是說我們已經專門針對 IEPA 進行了分解，我們還沒有分解。

We can get that information?

我們能得到這些資訊嗎？

We can.

我們可以。

Okay. Great. And then how much incremental pricing and mitigation traction should hit the P&L in the fourth quarter?

好的。偉大的。那麼，第四季增量定價和緩解牽引力會對損益產生多大影響？

So in the second quarter, we expected to offset the dollar for dollar tariffs at this point. We see a potential path by year-end to be able to maintain our margins as well through a combination of the productivity measures that Angie talked about, plus the careful pricing that we did in this environment as well. So we see a way to be margin neutral by the end of the year.

因此，在第二季度，我們預計此時美元對美元的關稅將會抵銷。我們看到，到年底，透過結合安吉談到的生產力措施以及我們在這種環境下進行的謹慎定價，我們能夠保持利潤率。因此，我們認為到今年年底可以實現利潤中立。

Margin neutral by the year-end. Okay. Good. Last question for me. I guess I just want to go back to Sam's question on Residential and exploring the margin potential there.

到年底，利潤率將保持中立。好的。好的。我的最後一個問題。我想我只是想回到 Sam 關於住宅的問題並探索那裡的利潤潛力。

and have that conversation around the Professional segment margins. And I'm just thinking back prior to April 2019, Charles acquisition, and Toro was, I guess, generating consistent 20% margins in the Professional segment, as I recall. Charles Machine work is obviously dilutive and margins dropped to mid-teens levels, but you've been making pretty steady progress on rebuilding those margins to -- now despite sort of the headwinds in the landscape contractor, the Professional segment margins are running at a kind of a 19% annual trajectory.

並圍繞專業領域利潤展開討論。我只是回想一下 2019 年 4 月收購 Charles 之前的情況，我記得 Toro 在專業領域一直保持著 20% 的利潤率。查爾斯機械工作顯然具有稀釋性，利潤率下降至十幾歲左右的水平，但你們在重建這些利潤率方面取得了相當穩定的進展 - 現在，儘管景觀承包商面臨一些阻力，但專業部門的利潤率仍以每年 19％ 的軌跡增長。

So I guess the question is how much upside is realistically achievable in Pro segment margins given the remaining recovery opportunities that may still exist at Charles Machine Works and Underground Construction. And I guess on top of that, a recovery in the larger landscape contractor business?

因此，我想問題在於，考慮到 Charles Machine Works 和 Underground Construction 可能仍然存在的復甦機會，Pro 部門的利潤率實際上能夠實現多大的上漲空間。我想除此之外，大型景觀承包商業務也會復甦嗎？

We do have opportunity to expand those margins. As you noticed, our SG&A spend is down. We've made purposeful cost reductions in those areas. We're continuing to see productivity improvements. We're getting the net rate realization of the tariff mitigation efforts, pricing that we implemented and also additional pricing and then also some lower marketing costs.

我們確實有機會擴大這些利潤。正如您所注意到的，我們的銷售、一般及行政費用 (SG&A) 支出下降了。我們在這些領域有目的地削減了成本。我們持續看到生產力的提升。我們正在實現關稅減免措施的淨利率、我們實施的定價以及額外的定價，然後還降低了一些行銷成本。

But the piece of the homeowner that carries over into our Professional segment is also impacting us somewhat there creates us -- creates some manufacturing variances and capacity utilization. So as we think about those types of things and what we can take forward, there will be improvements as we continue to go forward.

但是，房主部分延續到我們的專業領域也對我們產生了一定的影響——造成了一些製造差異和產能利用率。因此，當我們思考這些事情以及我們可以採取哪些行動時，隨著我們繼續前進，就會有進步。

And just to acknowledge the first thing you said, I think, is Charles Machine Works and Ditch Witch specifically has made tremendous progress in moving up from a profitability standpoint. So I just want to acknowledge the work that's been done there by our team.

我想首先要承認的是，您所說的是 Charles Machine Works 和 Ditch Witch 在獲利能力方面取得了巨大的進步。所以我只想感謝我們的團隊在那裡所做的工作。

And just one thing I would add. As you've noticed with our transformational activity initiative, we are making some portfolio adjustment. We are looking at SKUs just this past quarter, we looked at some assets that could be potentially non-core assets and with Trencor and the boring products and are moving those out as we see necessary.

我只想補充一點。正如您在我們的轉型活動計劃中註意到的那樣，我們正在進行一些投資組合調整。就在上個季度，我們正在研究 SKU，我們研究了一些可能成為非核心資產的資產以及 Trencor 和無聊的產品，並根據我們認為的需要將它們轉移出去。

So within the progress this quarter on Professional margins, that 250 basis points of improvement, how much of that was productivity benefit versus price cost and volume leverage and cost cuts?

那麼，本季專業利潤率的進步，即 250 個基點的提高，其中有多少是生產力效益與價格成本、數量槓桿和成本削減的結合？

Well, it's all price up. We saw productivity improvements being an impact. So both of those are pretty big factors as well as part of the mix.

嗯，全部漲價了。我們看到生產力的提高正在產生影響。所以這兩個都是非常重要的因素，也是混合因素的一部分。

Got it. Thanks very much. Good luck.

知道了。非常感謝。祝你好運。

Thomas Mahoney, Cleveland Research Company.

托馬斯·馬奧尼，克利夫蘭研究公司。

Hello, good morning. I want to look through the moving pieces in the 4Q revenue guidance. I wonder if you look through the moving pieces in the 4Q revenue guidance. I guess, first, is there a way -- it does look like the Pro segment could be implied down year-over-year. Is there a way to size the divestiture impact inside that and just speak through if there's in the remaining business, if there's any instance where maybe some has been pulled into the third quarter that comes out of the fourth quarter, anything along those lines?

你好早安。我想看一下第四季營收指引中的變化部分。我想知道您是否看過第四季度收入指引中的變化部分。我想，首先，有沒有辦法——看起來 Pro 部分的銷售額可能會比去年同期下降。有沒有辦法衡量其中的資產剝離影響，並說明剩餘業務中是否存在一些情況，是否有一些情況可能將第四季度的部分業務拉入第三季度，諸如此類？

We did mention in Q3 that half of the decline in Q3 was related to the divestitures year-over-year. So that not only includes the divestiture, which is in the residential segment, but also the many owned dealers in the Underground Construction space. So it was half of contract. that's part of the fourth quarter. And yes, it will be part of the fourth quarter guide as well.

我們確實在第三季提到過，第三季的下降有一半與年比資產剝離有關。因此，這不僅包括住宅領域的資產剝離，也包括地下建築領域的眾多自有經銷商。所以這是合約的一半。這是第四季的一部分。是的，它也將成為第四季指南的一部分。

And American Augers remains in the future, not a part of the fourth quarter guidance?

而 American Augers 仍將保留在未來，而不是第四季指導的一部分？

So just to correct that. So American Augers is still part of the Underground Construction. This is just a product line. It's called Auger Boring. It is just a very small component.

所以只是為了糾正這一點。因此，American Augers 仍然是地下建築的一部分。這只是一個產品線。這被稱為螺旋鑽孔。它只是一個非常小的組件。

It's not a horizontal directional drills. So the Auger Boring piece is what we sold off as well as the large Trencor Trenchers. So those are the two pieces that will come out of the Underground Construction group.

這不是水平定向鑽。因此，我們出售的是螺旋鑽孔機以及大型 Trencor 挖溝機。這就是地下建築集團將要推出的兩件作品。

Understood. And then from a from a cost basket perspective, is there anything outside of tariffs to be sure to consider as we move through the second half of the year and into '26? Or do you view the incrementals as you frame them up here, pretty complete in terms of the cost and the cadence that you're thinking about looking into next year?

明白了。然後從成本籃的角度來看，當我們進入下半年並進入 26 年時，除了關稅之外還有什麼需要考慮的嗎？或者，您是否認為這裡提出的增量在成本和您考慮明年研究的節奏方面已經相當完整了？

I think the thing that you should continue to consider, you mentioned tariffs, the inflation that also comes along with that. And then also the manufacturing variances that have been related to us really aligning our production and demand. So as we look at those plants that are producing Residential and homeowner products, and really aligning the plus the inventory valuations that we've completed. So I think those are part of the factors that you'll have to consider for cost in Q4 and early '26.

我認為您應該繼續考慮的事情，您提到的關稅，以及隨之而來的通貨膨脹。然後還有與我們真正協調生產和需求相關的製造差異。因此，當我們查看那些生產住宅和房主產品的工廠時，我們會真正調整我們已經完成的庫存估價。所以我認為這些是你在第四季和 26 年初必須考慮的成本因素的一部分。

Okay, makes sense. Thank you.

好的，有道理。謝謝。

Bob Schultz, Baird.

鮑伯‧舒爾茨，貝爾德。

Hey, good morning, guys. Thanks for taking the questions. Most of mine have been answered already, but maybe just one on the Golf side first. Could you give us an update on where lead times are today? And just remind us on how that compares to what normal lead times are and give your -- what sort of line of sight do you have to see continued lead time improvement there?

嘿，大家早安。感謝您回答這些問題。我的大部分問題都已經得到解答，但也許首先只有一個關於高爾夫方面的答案。您能否向我們介紹一下目前的交貨時間？請提醒我們，這與正常的交貨時間相比如何，並提供您的 - 您有什麼樣的視角來看到交貨時間的持續改善？

Yeah. Good question Bobby. I'm happy to give you a little insight there. As I think you know, lead times have become extremely extended as we navigated some of the supply chain disruptions. We've talked before about as we got to the end of this fiscal year, we thought we'd be getting pretty close to current.

是的。問得好，鮑比。我很高興能為您提供一些見解。我想您知道，由於我們處理了一些供應鏈中斷問題，交貨時間已經變得非常長。我們之前曾談到，當我們接近本財政年度結束時，我們認為我們會非常接近當前水準。

And as Rick mentioned earlier, as orders continue to come in strong, there are still going to be individual models where that lead time is longer than normal. But we're getting to a point where we're much more current. We're certainly more current on our own production. We also have to realize, though, that ultimately, the product is prepped for delivery to the customers from our channel partners. And there are still cases there where some of them are working that product through, but it's much more current and a much more healthier position than we were, say, this time last year.

正如 Rick 之前提到的，隨著訂單持續強勁增長，個別型號的交貨時間仍會比正常情況更長。但我們已經到達了一個更現代化的階段。我們自己的產品當然更先進。但我們也必須認識到，最終產品是由我們的通路合作夥伴準備好交付給客戶的。並且仍然有一些情況是他們中的一些人正在研究該產品，但它比我們去年這個時候的情況更加先進，狀況也更加健康。

Got it. And then on Spartan Mower, I think when you guys acquired Intimidator, its annual sales were about $200 million. Any high-level way to frame what the Intimidater group sales are today relative to that $200 million?

知道了。然後是 Spartan Mower，我想當你們收購 Intimidator 時，它的年銷售額約為 2 億美元。有沒有高層次的方式來描述 Intimidater 集團目前的銷售額相對於那 2 億美元的比例？

Yeah. It is now part of the Landscape Contractor Group, but just rough ballpark, I mean, it's significantly less than that because it is significantly less than it was at the time of acquisition because it has a higher penetration of homeowners. So that's probably the biggest factor. It is substantially down from where it was at the time of acquisition. That relates to the impairment that we've.

是的。現在它是景觀承包商集團的一部分，但只是粗略估計，我的意思是，它比這要少得多，因為它比收購時要少得多，因為它對房主的滲透率更高。所以這可能是最大的因素。與收購時相比，其水準大幅下降。這與我們所遭受的損害有關。

That was Bobby, particularly hard hit because there are a lot of more residential buyers, like Rick said. We do believe there is value in providing a suite of zero-turn mowers that are complementary to both Toro and Exmark and this addresses a geography and a customer base that we serve. We don't serve well today.

就像里克說的那樣，鮑比受到的打擊尤其嚴重，因為有更多的住宅買家。我們確實相信，提供一套與 Toro 和 Exmark 互補的零轉彎割草機是有價值的，而且這解決了我們服務的地理和客戶群的問題。我們今天發球不太好。

Understood. Thanks, guys. I'll leave it there.

明白了。謝謝大家。我就把它留在那裡。

Thank you.

謝謝。

Ted Jackson, Northland.

泰德傑克遜，北地。

Thank you very much. I've got a couple of questions around inventories, both on your balance sheet and the dealer itself. And so just starting with the Toro inventory levels, would you view your current inventory levels as being kind of balanced to demand or still work being done there? And then when you think about your inventory levels what would be kind of your target when that could be either like days inventory turns?

非常感謝。我對庫存有幾個問題，包括您的資產負債表和經銷商本身的庫存。那麼，就從 Toro 的庫存水準開始，您是否認為當前的庫存水準與需求保持平衡，或者仍在進行工作？然後，當您考慮庫存水準時，您的目標是什麼，例如庫存週轉天數？

Now my sense is that you still may be little heavy there would like to get a sense in terms of where that stands and kind of what the target is? And maybe some color in terms of how you expect to get there?

現在我的感覺是，您可能仍然有點沉重，想了解一下情況以及目標是什麼？或許您能對如何到達那裡做出一些說明？

And on the dealer side, you're positioning yourself the set up for a solid season in 2026. And you made a reference to efforts that we're going to allow you to bring the dealer inventory further to ensure that you are positioned. So maybe some discussion with regards to kind of dealer inventories. Where they are now? What your are going to be put them to where it sounds like you want them to be when we get to spring and then maybe just because we're coming up to winter, some discussion with regards to I don't know, mix is with regards to snow products and such as well?

從經銷商角度來說，你們正在為 2026 年的穩定賽季做好準備。您提到了我們將努力允許您進一步增加經銷商庫存，以確保您處於有利地位。因此也許可以討論一下經銷商庫存的情況。他們現在在哪裡？當我們來到春天時，你會把它們放到你想要它們放的地方，然後也許只是因為我們即將進入冬天，一些關於我不知道的討論，混合是否也與雪產品等有關？

Ted, maybe I could start out talking about the field inventory and then Angie can finish up talking about our own balance sheet inventory. So if you look broadly across our businesses, we've made really good progress in the right directions for each of those. So first of all, Underground is an area that we've been very short of field inventory. We've made good progress there, but we still have some distance to go to have the right stock at our dealers and available for immediate delivery if they need that. So we have made good progress.

泰德，也許我可以先談論現場庫存，然後安吉可以最後談論我們自己的資產負債表庫存。因此，如果你廣泛地審視我們的業務，你會發現我們在每項業務的正確方向上都取得了非常好的進展。首先，地下是我們現場庫存非常缺乏的領域。我們在那裡取得了良好的進展，但我們還需要走一段路才能在經銷商處擁有合適的庫存，並在他們需要時可以立即交付。因此我們取得了良好的進展。

We still have more to go to add to our field inventory in Underground.

我們還需要進一步增加地下現場庫存。

Golf and Grounds is about right at this point. But similar to Edric's comments in some categories, we still are short field inventory. Many of the categories we're in good shape at this point and the product is flowing through with good velocity through those through those distributors right now, those dealers and distributors.

高爾夫球場和場地就在這一點上。但與 Edric 在某些類別中的評論類似，我們仍然缺少現場庫存。目前，我們的許多產品類別都處於良好狀態，產品正在透過這些分銷商、經銷商和分銷商快速流通。

And on the Residential side, good progress because of the factors that we talked about as you said, set up well for next year, we will continue to manage that very prudently with our channel partners to make sure that we match the retail as we go forward here. So that's really our that's really our plan at this point.

在住宅方面，由於您所說的我們討論的因素，住宅方面取得了良好的進展，為明年做好了準備，我們將繼續與我們的通路合作夥伴非常謹慎地管理住宅方面，以確保我們在未來的發展中能夠與零售業相匹配。所以這確實是我們目前的計劃。

Our inventory... Go ahead, if you have a question.

我們的庫存...如果您有疑問，請繼續。

Just a little more clarity in there. So when you talk about the lining and being the Residential making good progress and being aligned. Making sure it's aligned for the spring selling season. I mean, that would imply that you feel -- I mean, do you feel like it's still a little heavy and then you have some things to do?

那裡稍微清楚一點。因此，當您談論襯砌和住宅取得良好進展並保持一致時。確保與春季銷售季節保持一致。我的意思是，這意味著你感覺——我的意思是，你是否覺得它仍然有點沉重，然後你有一些事情要做？

I mean how is that going to be aligned for the spring selling season, given where we are in the we're at the end of the season now, because we're getting at with that is like -- is there any actions that Toro is doing to bring those into alignment? Is it kind of where you want it to be given your view for '26 and there's really nothing else to do. I mean I guess that's kind of -- I'm just a little lost on that one. That's all.

我的意思是，考慮到我們現在正處於銷售季末，那麼如何將這些與春季銷售季結合？因為我們要解決的問題是——Toro 是否有採取任何行動來使這些結合起來？從您對 26 年的看法來看，這是否符合您的期望，而且確實沒有其他事情可做。我的意思是，我猜這有點——我只是對這一點有點迷茫。就這樣。

Yeah. I think in a general sense, we'll continue to work with our channel partners like dealers on promotional activities to help move the product through at this time of the year. We are in a much better position than we were last year. We'll continue to still help our dealers drive retail at this time here given spring is a few months away.

是的。我認為從總體上來說，我們將繼續與經銷商等通路合作夥伴合作進行促銷活動，以幫助在每年的這個時候推銷產品。我們目前的狀況比去年好多了。鑑於距離春季還有幾個月的時間，我們將繼續幫助我們的經銷商推動零售業務。

And then just keep in mind that we're coming off two years of low snow in our key markets. That cuts across our Residential business, the BOSS business and some portion of Ventrac. So we do have snow inventory. In some cases, that's been there for a season or even two. So that is part of the sort of dealer capacity inventory that's out there they may talk about if they're describing our inventory.

請記住，我們的主要市場已經經歷了兩年的低雪量。這涉及我們的住宅業務、BOSS 業務和 Ventrac 的部分業務。所以我們確實有雪庫存。在某些情況下，這種情況已經持續了一個賽季甚至兩個賽季。因此，如果他們描述我們的庫存，他們可能會談論的是經銷商容量庫存的一部分。

At this point, sort of a normal preseason snow load that's out there in the channel. It's just that it was loaded in last year or the year before.

此時，水道中已經出現了季前正常的降雪量。只不過是去年或前年裝進去的。

Our inventory has made progress. As you know, Ted, it's been a focus area for us for the full year. But we made good progress sequentially. So we're down since last quarter and down a bit since year-end as well. Working first and foremost to kind of get back to our the levels that we expect and probably driving those turns above three.

我們的庫存取得了進展。如你所知，泰德，這是我們全年關注的重點領域。但我們隨後取得了良好的進展。因此，自上個季度以來我們的業績一直處於下降趨勢，自年底以來也略有下降。首先要努力回到我們期望的水平，並可能將這些轉變推至三以上。

We still feel like we're a bit heavy on our total inventory.

我們仍然覺得我們的總庫存有點重。

For Q3, finished goods actually went up a little bit. Some of that in good inventory as we continue to get more inventory produced for our Underground business and commercial to be able to fill some of that backlog. But sequentially, it was down. Our WIP inventory continues to come down on a year-over-year basis and then also sequentially. So we're making good progress.

對於第三季度，成品價格實際上略有上漲。其中一些是良好的庫存，因為我們繼續為我們的地下業務和商業生產更多的庫存，以便能夠填補一些積壓。但隨後，它就下降了。我們的 WIP 庫存年比和季比持續下降。所以我們正在取得良好的進展。

We know we still have work to do there, but it continues to be a focus area as well.

我們知道我們在那裡還有工作要做，但它仍然是一個重點領域。

So in your target, then it would be around three turns. Obviously, just on average over, lets say, the course of the year. That's kind of where you're trying to get yourself to?

因此，您的目標應該是大約三圈。顯然，這只是一年中的平均值。這就是你想要達到的目標嗎？

I'd say that's my first step. I'd like to get there first and then continue to make it better.

我想說這是我的第一步。我希望先達到這個目標，然後繼續讓它變得更好。

That's a great answer. So, okay, I'll get out of line in case there's anyone else thank you.

這是一個很好的答案。那麼，好吧，如果還有其他人的話，我就離開隊伍了，謝謝。

This concludes the question-and-answer session. Ms. Hilley, please proceed to closing remarks.

問答環節到此結束。希利女士，請繼續致閉幕詞。

Thank you, everyone, for your questions and interest in The Toro Company. We look forward to talking with you again in December to discuss our fiscal 2025 fourth quarter and full year results.

謝謝大家的提問和對 Toro 公司的關注。我們期待 12 月再次與您交談，討論我們的 2025 財年第四季和全年業績。

Thank you for your participation in today's conference. This does conclude the presentation. You may now disconnect. Good day.

感謝大家參加今天的會議。演講到此結束。您現在可以斷開連線。再會。