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

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

TORONTO, April 28, 2026 /CNW/ - Toromont Industries Ltd. (TSX: TIH) today reported its financial results for the first quarter ended March 31, 2026.

"Our team performed well in the quarter despite ongoing uncertainty in global trade markets," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "Both revenue and earnings increased, reflecting good execution across most areas of the business. The Equipment Group had healthy increases in both new and used equipment sales along with solid activity in rentals and product support. Our AVL enclosure business continued to increase production, supporting data centre requirements primarily in the eastern US region. CIMCO posted higher package revenue however profitability was lower mainly due to timing of projects and deferred support activity. Bookings were strong and backlog is healthy. Our balance sheet and financial position remained strong, with good cash generation along with working capital management."

Based upon operating performance and market demand, the Company continues to consider opportunities to invest in the growth in its Power and Energy businesses. As such, effective today, the Company has increased its percentage ownership of AVL to 80% by advancing the purchase of half of the shares not currently owned. It is important to note that the purchased shares were owned by a passive investor and do not impact the ownership or status of Vince DiCristofaro, President of AVL. The purchase price of the shares was $71.0 million, paid in cash, and will result in an expense of approximately $45.0 million to be recorded in the second quarter of 2026.

HIGHLIGHTS:

Consolidated Results

• Revenue increased $138.5 million (up 13%) to $1.2 billion for the quarter. Revenue increased in both groups with the Equipment Group up 14% and CIMCO up 3% compared to 2025. Equipment Group growth reflects higher revenue across all revenue streams, resulting from strong execution against order backlog and our growing enclosure business. CIMCO's growth reflects higher package revenue offset by lower product support activity.
• Gross profit margins increased 340 bps to 25.8% for the quarter. The Equipment Group reported higher margins in all areas, offset by slightly lower margins at CIMCO.
• Operating income was $143.0 million for the quarter, up 44% from the prior year, reflecting the higher revenue and improved gross profit margins, partially offset by higher expenses. Operating income margin was 11.6% of revenue compared to 9.1% in the similar period last year, reflecting higher gross profit margins and the mix of business.
• Net interest income decreased by $1.3 million in the quarter, reflecting higher interest expense on higher long-term borrowing levels, slightly offset by higher interest income earned on higher average cash balances.
• For the quarter, net earnings increased $18.3 million or 25% to $92.7 million compared to the prior year. EPS was $1.14 (basic) and $1.13 (fully diluted), 24% higher compared to last year, reflecting the higher earnings.
• Bookings⁽¹⁾ increased $243.2 million or 44% compared to the similar period last year. Equipment Group bookings increased mainly reflecting higher power system orders, which includes AVL, which saw strong order activity. CIMCO bookings increased with higher orders in both markets and regions reflective of continued activity. Booking activity can be lumpy, resulting in variability quarter over quarter, reflecting market-related factors and customer buying patterns.
• Backlog⁽¹⁾ of $1.7 billion as at March 31, 2026, was up from $1.3 billion as at March 31, 2025. Backlog reflects good demand for our products, including at the acquired business.

Equipment Group

• Revenue of $1.1 billion, increased 14% for the quarter. New equipment sales increased 18%, as higher power systems, construction and material handling markets, were slightly offset by lower mining deliveries due to project timing and a tough comparable last year. Used equipment sales increased 21%, with higher activity in the construction, power systems and mining markets, slightly offset by lower material handling market activity. Rental revenue increased 11%, generally reflecting the larger fleet and improved activity across all markets and regions. Product support revenue increased 10% with higher parts and service activity.
• AVL's operational capacity and execution continued to expand in the quarter. Revenues were $129.0 million (Q1 2025 - $22.1 million) and contribution to EPS (basic) was $0.19 (Q1 2025 - $nil). Results in the first quarter of 2026 are net of purchase commitment expenses of $13.9 million, which included dividends paid to minority shareholders and which were reflective of earnings and distributable position in 2025.
• Operating income of $136.9 million increased 52% in the quarter, reflecting higher revenue and improved gross profit margins, offset by higher expenses. Operating income margin was 12.1% versus 9.1% in 2025, partly reflecting product/service sales mix.
• Bookings in the first quarter of 2026 were $728.9 million, an increase of $227.0 million or 45% versus the prior year, largely reflecting healthy power system order activity, including enclosures, on good demand for our products and supported by expanded capacity. Mining orders were higher, but are lumpy due to the nature of the business. Construction orders were slightly lower reflecting normal demand dynamics and material handling order intake was also down compared to the prior period.
• Backlog of $1.4 billion at the end of March 2026 was up by $390.3 million or 40% from the end of March 2025, reflecting good new order intake throughout the quarter.

CIMCO

• Revenue increased $2.6 million or 3% to $99.0 million for the quarter. Package revenue was up 10% on progress against order backlog in the US (up 42%), slightly offset by lower revenue in Canada (down 3%). Product support activity decreased 3%, with higher activity in Canada (up 8%), slight offset by lower activity in the US (down 34%).
• Operating income was down $3.4 million or 36% to $6.2 million for the quarter, reflecting lower gross profit margins and higher expense levels, partially offset by the higher revenue. Operating income margin decreased to 6.2% (2025 – 10.0%), reflecting project timing and normal seasonality.
• Bookings increased 34% to $63.9 million in the first quarter of 2026. Both markets and regions were higher, reflecting continued activity.
• Backlog of $360.2 million as at March 31, 2026 was up $12.5 million or 4% from March 2025. Backlog in Canada was strong, up 11% from this time last year, while backlog in the US was down 6%.

Financial Position

• Toromont's share price of $194.76 at the end of March 2026, translated to a market capitalization⁽¹⁾ of  $15.9 billion and a total enterprise value⁽¹⁾ of $15.5 billion.
• The Company maintained a strong financial position. Leverage as represented by the net debt to total capitalization⁽¹⁾ ratio was -12% at the end of March 2026, compared to -19% at the end of December 2025 and -1% at the end of March 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 July 2, 2026 to shareholders of record at the close of business on June 5, 2026.
• The Company's return on equity⁽¹⁾ was 17.3% at the end of March 2026, on a trailing twelve‑month basis, compared to 16.9% at the end of December 2025 and 18.5% at the end of March 2025. Trailing twelve‑month pre‑tax return on capital employed⁽¹⁾ was 24.4% at the end of March 2026, compared to 23.4% at the end of December 2025 and 24.1% at the end of March 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 targets remain a top priority. We are very pleased with the results of AVL as we pass the first year anniversary. 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 comparative figures in this press release are for the three months ended March 31, 2026 compared to the three months ended March 31, 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 months ended March 31, 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, April 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, May 6, 2026 by calling 1‑888‑660‑6345 (North American toll free) or 289-819-1450 (Toronto area) and quoting passcode 83115#. The live webcast can also be accessed at www.toromont.com.

Presentation materials to accompany the call will be available on our website.

ANNUAL GENERAL MEETING OF SHAREHOLDERS

The Company will be holding its Annual General Meeting of Shareholders at the Company's Offices in Pointe‑Claire, Quebec, located at 5001 Trans-Canada Highway, Pointe‑Claire, Quebec, on Wednesday, April 29, 2026, at 10:00 a.m. (EDT).

For those unable to attend in-person, a recording of the meeting will be available through a link on Toromont's website at: www.toromont.com.

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 producing offering and services, strong financial position and disciplined operating culture; the delivery of approximately 90% 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 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 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

TOROMONT INDUSTRIES LTD.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

SOURCE Toromont Industries Ltd.