The Toro Company has reported its financial results for the second quarter of fiscal 2025, highlighting a slight decline in net sales to $1.32 billion, down from $1.349 billion in the same period of fiscal 2024. The company's reported diluted earnings per share $(EPS)$ were $1.37, a marginal decrease from $1.38 in the prior-year period. However, the adjusted diluted EPS improved to $1.42, up from $1.40 in the same period last year. Net earnings for the second quarter were $136.8 million, a decrease from $144.8 million in fiscal 2024. The professional segment saw a reduction in gross margin, attributed to higher material and manufacturing costs, as well as inventory valuation adjustments. The company's interest expense was reduced to $15.8 million due to lower average interest rates. For the full fiscal year 2025, The Toro Company has updated its guidance, expecting total company net sales to range from flat to a decrease of 3%. The adjusted diluted EPS for the year is projected to be between $4.15 and $4.30. This outlook considers various factors, including anticipated tariff impacts, macroeconomic conditions affecting homeowner and channel behavior, and sustained demand in the underground construction and golf and grounds businesses.
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