Overview

* Toromont Q2 revenue rises 1% yr/yr, beating analyst expectations, per LSEG data

* Net earnings for Q2 fall 8% yr/yr, impacted by AVL acquisition costs

* Equipment Group sees growth in rental and product support, offset by lower equipment deliveries in mining segment

Outlook

* Company expects new Charlotte facility to begin production in Q4

* Toromont monitoring economic and political environments for impacts

* Company maintains focus on operating disciplines and balance sheet optimization

* Toromont aims for ROE exceeding 18% over a cycle

Result Drivers

* EQUIPMENT GROUP - Growth in rental and product support activity, offset by lower mining deliveries

* CIMCO PERFORMANCE - Higher revenue and earnings driven by strong market demand and execution in Canada and US

* AVL ACQUISITION COSTS - Net earnings impacted by non-cash costs related to AVL acquisition

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat C$1.38 C$1.34

Revenue bln bln (7

Analysts

)

Q2 EPS C$1.53

Q2 Net C$124.30

Income mln

Q2 C$170.70

Operatin mln

g Income

Q2 12.4%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

* Wall Street's median 12-month price target for Toromont Industries Ltd ( TMTNF ) is C$130.00, about 1.9% below its July 28 closing price of C$132.49

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)