Mining & Metals
Toromont Industries Posted Q1 Earnings and Revs Beat; Focus On Power and Energy Businesses
Toromont Industries (TIH.TO) overnight Tuesday reported better than expected earnings and revenues for the first quarter, while it "continues to consider opportunities to invest in the growth in its Power and Energy businesses".For the three months ended March 31, 2026, the company reported net earnings of $92.7 million or earnings per diluted share of $1.13 compared with $74.44 million or earnings per diluted share of $0.91, a year earlier. The result beat a consensus estimate compiled by FactSet of $1.07 per share.Revenue increased to near $1.23 billion in the quarter compared with $1.09 billion, a year-ago. It beat a consensus forecast of $1.172.5 billion."Our team performed well in the quarter despite ongoing uncertainty in global trade markets," stated Michael S. McMillan, President and Chief Executive Officer "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, McMillan said.As such, effective today, the company increased its percentage ownership of AVL to 80% by advancing the purchase of half of the shares not currently owned. It noted 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 about $45.0 million to be recorded in Q2 of 2026.Its board also approved the regular quarterly dividend of $0.56 per share, payable on July 2, to shareholders of record at the close of business on June 5. The quarterly dividend was increased by 7.7% to $0.56 per share in the prior-month period.Shares of the company closed down 1% to $208.86 on Tuesday on the Toronto Stock Exchange.
$TIH.TO