Toromont Industries Ltd. TIH Earnings Beat Estimates by 10.4%

Toromont’s third-quarter EPS beat the calendar estimate, while revenue, operating income and backlog all rose sharply from a year earlier.

Toromont Industries Ltd. (TSX: TIH) reported its third-quarter 2026 results after markets closed on November 2. Calendar data shows EPS of C$2.33, 10.4% above the C$2.11 estimate. The company reported basic EPS of C$2.35, up 36% year over year, and diluted EPS of C$2.33. Revenue rose 26% to C$1.652 billion, supported by higher equipment deliveries, rentals and product support, as well as continued growth in its power enclosure business. Visit the TIH stock page for more company and share information.

Recent earnings trend

Analyst coverage: 8 analyst(s) cover this name; upcoming EPS consensus is available.

Beat estimates in 3 of the last 4 comparable quarter(s).

Investor takeaway: Toromont delivered strong growth and improved consolidated margins, but results varied by business. The Equipment Group performed well, while CIMCO’s gross margin fell. Investors should weigh AVL’s growing contribution and the large backlog against rising expenses and the shares’ valuation.

C$2.33 EPS, 10.4% above the calendar estimate

Toromont’s diluted EPS was C$0.22 above the calendar estimate of C$2.11. The company reported basic EPS of C$2.35 and diluted EPS of C$2.33, matching the calendar actual. The recent earnings trend table shows results from previous quarters.

Analysis

Toromont reported revenue of C$1.652 billion for the three months ended September 30, up 26% from C$1.315 billion a year earlier. Operating income rose 46% to C$279.3 million, and net earnings increased 37% to C$192.1 million. Basic EPS was C$2.35, compared with C$1.73 in the third quarter of 2025. Diluted EPS was C$2.33, up 35% year over year.

Calendar data puts EPS at C$2.33 against an estimate of C$2.11, a 10.4% positive surprise. The company reports two EPS measures: basic EPS of C$2.35 and diluted EPS of C$2.33. For the first nine months of 2026, revenue rose 18% to C$4.478 billion, and basic EPS increased 20% to C$5.02.

Consolidated gross margin improved 240 basis points to 29.1%. Toromont attributed the gain to higher equipment and rental margins in the Equipment Group, partly offset by lower product support margins and an unfavourable sales mix. The company also reported C$16.4 million in third-quarter expenses related to purchase commitments and acquisition-related intangible amortization. These expenses reduced EPS by C$0.19.

Analysis

Equipment Group revenue grew 26% in the quarter, supported by power systems, mining and construction deliveries, rentals and product support. Gross margin rose 320 basis points, and operating income increased 50%. Bookings climbed 59%, with particularly strong orders in mining and power systems. At September 30, the group’s backlog stood at C$2.5 billion, with about 70% expected to be delivered over the next 12 months.

AVL, Toromont’s power enclosure business, continued to grow. Third-quarter revenue reached C$218 million, compared with C$78 million a year earlier. This adds to Toromont’s exposure to demand for power infrastructure, though execution and capacity expansion remain important to the longer-term outlook.

CIMCO revenue rose 23%, but gross margin fell 410 basis points. Lower package and product support margins, along with an unfavourable sales mix, contributed to the decline. Operating income increased 10% in the quarter, but was down 11% for the first nine months. CIMCO’s backlog was C$324 million, down 5% year over year. The difference between the two groups makes segment mix and CIMCO’s margin recovery worth watching alongside overall growth.

Analysis

The supplied analyst-target data shows an average target of C$247.91, compared with a last close of C$209.40. That implies 18.4% upside to the average target. The consensus label is bullish based on the target comparison, but a formal rating is unavailable for Canadian listings. See analyst price targets for TIH for details.

Wealth Awesome’s statistical 90-day price model gives a mean forecast of C$194.88. Its 68% range is C$151.19 to C$251.19, and its 95% range is C$117.30 to C$323.77. This is a statistical model, not financial advice or a price target. The wide ranges reflect uncertainty and don’t offer a dependable prediction. Review the TIH price forecast and the company stock page alongside the business results before drawing your own conclusions.