Financial Analysis

2 Acquisitions and Divestitures Acquisition Technology and Distributor Acquisition On February 3, 2025, during the second quarter of fiscal 2025, the company completed the acquisition of certain technology assets and substantially all of the assets of, and assumed certain liabilities for, a U.S. based distributor of underground construction equipment. The purchase price of this acquisition was allocated to the identifiable assets acquired and liabilities assumed based on estimates of their fair value and no goodwill or indefinite-lived intangible assets were recorded. The company finalized the purchase accounting for this acquisition during the second quarter of fiscal 2025. Additional purchase accounting disclosures have been omitted due to immateriality of this acquisition in relation to the company's Consolidated Financial Condition and Results of Operations. Divestitures Auger Boring During the third quarter of fiscal 2025, the company completed the sale of assets related to the auger boring product line, a subset of the American Augers brand. The financial results have historically been included in the company's Professional segment. The divestiture was immaterial in relation to the company's Consolidated Financial Condition and Results of Operations. Trencor During the third quarter of fiscal 2025, the company completed the sale of assets related to the Trencor brand. The financial results have historically been included in the company's Professional segment. The divest …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"11 Commitments and Contingencies Customer Financing Inventory Financing Arrangements The company is party to inventory financing arrangements with Red Iron, HCFC, and other third-party financial institutions (collectively, the ""financial institutions"") which provide inventory financing to certain dealers and distributors of certain of the company's products in the U.S. and internationally. These financing arrangements are structured as an advance in the form of a payment by the financial institutions to the company on behalf of a distributor or dealer with respect to invoices financed by the financial institution. These payments extinguish the obligation of the dealer or distributor to make payment to the company under the terms of the applicable invoice. Under separate agreements between the financial institutions and the dealers and distributors, the financial institutions provide loans to the dealers and distributors for the advances paid by the financial institutions to the company. Under these financing arrangements, down payments are not required, and depending on the finance program for each product line, finance charges are incurred by the company, shared between the company and the distributor and/or the dealer, or paid by the distributor or dealer. The financial institutions retain a security interest in the distributors' and dealers' financed inventories and such inventories are monitored regularly through audits. Financing terms to the distributors and dealers …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate the company's reportable segment net sales by similar product type and geographic market (dollars in millions): Fiscal Year Ended October 31, 2025 Professional Residential Other Total Revenue by product type: Equipment $ 3,189.4 $ 856.4 $ 21.6 $ 4,067.4 Irrigation 434.6 2.0 6.4 443.0 Total net sales $ 3,624.0 $ 858.4 $ 28.0 $ 4,510.4 Revenue by geographic market: United States $ 2,863.2 $ 740.9 $ 28.0 $ 3,632.1 International Countries 760.8 117.5 878.3 Total net sales $ 3,624.0 $ 858.4 $ 28.0 $ 4,510.4 Fiscal Year Ended October 31, 2024 Professional Residential Other Total Revenue by product type: Equipment $ 3,133.5 $ 981.1 $ 19.6 $ 4,134.2 Irrigation 423.4 17.2 9.0 449.6 Total net sales $ 3,556.9 $ 998.3 $ 28.6 $ 4,583.8 Revenue by geographic market: United States $ 2,766.4 $ 865.8 $ 28.6 $ 3,660.8 International Countries 790.5 132.5 923.0 Total net sales $ 3,556.9 $ 998.3 $ 28.6 $ 4,583.8 Fiscal Year Ended October 31, 2023 Professional Residential Other Total Revenue by product type: Equipment $ 3,236.9 $ 819.2 $ 13.1 $ 4,069.2 Irrigation 437.7 35.0 11.3 484.0 Total net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 Revenue by geographic market: United States $ 2,898.5 $ 682.6 $ 24.4 $ 3,605.5 International Countries 776.1 171.6 947.7 Total net sales $ 3,674.6 $ 854.2 $ 24.4 $ 4,553.2 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

9 Stock-Based Compensation On March 15, 2022, the companys shareholders approved The Toro Company 2022 Equity and Incentive Plan (the 2022 Plan), which became effective immediately and replaced The Toro Company Amended and Restated 2010 Equity and Incentive Plan, as amended (the 2010 Plan) with respect to future grants of awards. The 2022 Plan is administered by the Compensation and Human Resources Committee of the Board of Directors and permits the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, annual performance awards, non-employee director awards and other cash-based and stock-based awards to eligible individuals. Subject to adjustment as provided in the 2022 Plan, the maximum aggregate number of shares of the companys common stock authorized for issuance under the 2022 Plan is equal to the sum of: (a) 1,250,000 shares, plus (b) the number of shares remaining available for grant under the 2010 Plan but not subject to outstanding awards thereunder as of March 15, 2022, and plus (c) the number of shares subject to awards outstanding under the 2010 Plan as of March 15, 2022 but only to the extent that such outstanding awards are forfeited, expire or otherwise terminate without the issuance of such shares. The number of unissued shares of common stock available for future stock-based compensation award grants under the 2022 Plan was 1,797,299 as of October 31, 2025. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

14 Fair Value Measurements The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservabl …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5 Goodwill and Other Intangible Assets Impairment Goodwill and indefinite-lived intangible assets are assessed for impairment at least annually during the fourth quarter of each fiscal year unless events or changes in circumstances indicate that impairment may have occurred prior to the annual assessment. Goodwill is assessed for impairment at the reporting unit level and the company's reporting units are its eight operating segments. Indefinite-lived intangible assets are assessed for impairment at the individual indefinite-lived intangible asset level. During the third quarter of fiscal 2025, the company identified that future expected cash flows of the Spartan business were lower than previously expected primarily due to a decline in customer demand for many of its products associated with homeowners who prefer professional grade products. Based on the above factors, the company concluded it was more likely than not that the indefinite-lived Spartan trade name intangible asset was impaired. As such, during the third quarter of fiscal 2025 the company performed a quantitative impairment analysis to compare the fair value of the Spartan trade name intangible asset with its respective carrying amount. The fair value of the Spartan trade name intangible asset was determined using the relief-from-royalty method under the income approach which utilized various inputs and assumptions, including projected revenues from the company's projection process, assumed royalty rates that c …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"8 Income Taxes Earnings Before Income Taxes Earnings before income taxes were as follows (dollars in millions): Fiscal Years Ended October 31 2025 2024 2023 Earnings before income taxes: United States $ 278.6 $ 436.6 $ 345.0 Foreign 99.0 76.2 55.5 Total earnings before income taxes $ 377.6 $ 512.8 $ 400.5 Reconciliation of Effective Tax Rate A reconciliation of the statutory federal income tax rate to the company's effective tax rate is summarized as follows: Fiscal Years Ended October 31 2025 2024 2023 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Excess deduction for stock-based compensation (0.1) (0.6) (1.1) State and local income taxes, net of federal benefit 1.6 2.2 1.8 Foreign operations (2.2) (1.2) (0.7) Federal research tax credit (2.5) (1.9) (2.3) Foreign-derived intangible income (1.2) (0.9) (1.1) Other, net (0.3) (0.3) 0.1 Effective tax rate 16.3 % 18.3 % 17.7 % Provision for Income Taxes Components of the company's provision for income taxes were as follows (dollars in millions): Fiscal Years Ended October 31 2025 2024 2023 Current provision: Federal $ 91.6 $ 94.9 $ 94.4 State 15.6 18.5 17.0 Foreign 13.0 8.4 7.3 Total current provision $ 120.2 $ 121.8 $ 118.7 Deferred (benefit) provision: Federal $ (48.6) $ (23.6) $ (37.8) State (8.2) (4.6) (10.3) Foreign (1.9) 0.3 0.2 Total deferred benefit (58.7) (27.9) (47.9) Total provision for income taxes $ 61.5 $ 93.9 $ 70.8 The Organization for Economic Co-operation and Development (""OECD"") has issued the Pilla …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

12 Leases The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets utilized in the normal course of business, such as buildings for manufacturing facilities, office space, distribution centers, and warehouse facilities; land for product testing sites; machinery and equipment for research and development activities, manufacturing and assembly processes, and administrative tasks; and vehicles for sales, service, marketing, and distribution activities. Contracts that explicitly or implicitly relate to property, plant, and equipment are assessed at inception to determine if the contract is, or contains, a lease. Such contracts for operating lease agreements convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and includes all non-cancelable periods. The lease term may also include options to extend or terminate the lease when it is reasonably certain that such options will be exercised after considering all relevant economic and financial factors. Options to extend or terminate a lease are generally exercisable at the company's sole discretion, subject to any required minimum notification period and/or other contractual term …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"6 Indebtedness The following is a summary of the company's indebtedness (dollars in millions): October 31 2025 2024 Revolving credit facility, due October 2029 $ $ Term loan, due October 2029 200.0 200.0 Term loan, due April 2027 200.0 3.81% series A senior notes, due June 2029 100.0 100.0 3.91% series B senior notes, due June 2031 100.0 100.0 3.97% senior notes, due June 2032 100.0 100.0 5.27% senior notes, due September 2032 200.0 7.8% debentures, due June 2027 100.0 100.0 6.625% senior notes, due May 2037 124.3 124.2 Less: unamortized debt issuance costs 2.8 2.4 Long-term debt 921.5 921.8 Less: current portion of long-term debt 10.0 Long-term debt, less current portion $ 921.5 $ 911.8 Principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for the succeeding fiscal years is as follows (dollars in millions): Succeeding fiscal year Principal payments 2026 $ 2027 100.0 2028 20.0 2029 280.0 2030 Thereafter 525.0 Total principal payments $ 925.0 Revolving Credit Facility On October 2, 2024, the company entered into the second amended and restated credit agreement (""2024 Credit Agreement"") that provided for, among other things, a five-year unsecured revolving credit facility with a borrowing capacity of up to $900.0 million (""revolving credit facility"") that matures on October 2, 2029 and replaced the company's prior $600.0 million unsecured senior revolving credit facility (""prior r …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"New Accounting Pronouncements In September 2025, the Financial Accounting Standards Board (""FASB"") issued accounting standard update (""ASU"") No. 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which is intended to modernize the accounting for software costs that are accounted for under Subtopic 350-40 by replacing the stage-based model with a principles-based approach. The amended guidance will become effective for the company's fiscal 2029 annual period and interim periods beginning with the first quarter of fiscal 2029. Early adoption is permitted. The company is currently evaluating the impact of this new standard on its Consolidated Financial Statements and related disclosures. In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which is intended to improve guidance on the measurement of credit losses on accounts receivable and contract assets. The amended guidance is optional and, if the company elects the practical expedient and accounting policy election, will become effective for the company's fiscal 2027 annual period and interim periods beginning with the first quarter of fiscal 2027. Early adoption is permitted. The company is currently evaluating the impact of this new standard on its Consolidated Financial Statements and related disclosures. In No …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"15 Employee Retirement Plans Defined Contribution Plan The company maintains The Toro Company Retirement Plan for eligible employees. The company's expenses under this plan, which include costs related to matching contributions and discretionary retirement fund contributions, as applicable, were $36.4 million, $32.0 million, and $38.1 million for the fiscal years ended October 31, 2025, 2024, and 2023, respectively. Defined Benefit Plans The company has a defined benefit pension plan covering certain employees in the United Kingdom (""defined benefit retirement plan""). The projected and accumulated benefit obligation of the defined benefit retirement plan was $19.5 million and $19.6 million as of October 31, 2025 and 2024, respectively. The fair value of the defined benefit retirement plan assets as of October 31, 2025 and 2024 was $21.8 million and $20.7 million, respectively. The net funded status of the defined benefit retirement plan was fully funded as of October 31, 2025 and October 31, 2024. Service costs of the defined benefit retirement plans are presented in selling, general and administrative expense within the Consolidated Statements of Earnings. Non-service cost components of net periodic benefit cost (income), including realized gains or losses as a result of changes in actuarial valuation assumptions, are presented in other income, net within the Consolidated Statements of Earnings. The company recognized expense of $0.3 million, $0.4 million, and $0.2 millio …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

4 Revenue The company enters into contracts with its customers for the sale of products or rendering of services in the ordinary course of business. A contract with commercial substance exists at the time the company receives and accepts a purchase or sales order under a sales contract with a customer. The company recognizes revenue when, or as, performance obligations under the terms of a contract with its customer are satisfied, which generally occurs with the transfer of control of product or services. Control is typically transferred to the customer at the time a product is shipped, or in the case of certain agreements, when a product is delivered or as services are rendered. Revenue is recognized based on the transaction price, which is measured as the amount of consideration the company expects to receive in exchange for transferring product or rendering services pursuant to the terms of the contract with a customer. The amount of consideration the company receives and the revenue the company recognizes varies with changes in the variable consideration associated with the estimated expense of certain of the company's sales promotions and incentives programs offered to customers, as well as anticipated product returns, when applicable. The company recognizes a provision for estimated variable consideration at the time revenue is recognized as a reduction of the transaction price. If a contract contains more than one performance obligation, the transaction price is alloca …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"3 Segment Data The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. Segment determination is based on the manner in which the CODM organizes segments for making operating and investment decisions and assessing performance. In the fourth quarter of fiscal 2025, the company modified the level at which information was being reviewed, including modification to the reporting packages and materials regularly reviewed by the CODM to evaluate the companys operating results to assess performance and allocate resources. As a result, the company has identified eight operating segments and has aggregated certain of those operating segments into two reportable segments: Professional and Residential. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. For a summary of our products by market for our Professional and Residential reportable segments, refer to refer to Part I, Item 1, ""Business,"" of this Annual Report on Form 10-K. The company's remaining activities consists of a wholly-owned domestic distribution company, certain corporate activities, and the elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information techn …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

10 Stockholders' Equity Stock Repurchase Program During fiscal 2025 and 2024, the company paid $290.0 million and $245.5 million to repurchase 3,780,167 and 2,777,534 shares of common stock under the stock repurchase program, respectively. As of October 31, 2025, 4,391,790 shares of common stock remain available for repurchase. Treasury Shares Treasury shares generally consist of shares of the company's common stock repurchased under the stock repurchase program. The company values treasury shares on an average cost basis. As of October 31, 2025, the company had a total of 29,918,769 treasury shares at a total average cost of $2,244.8 million. As of October 31, 2024, the company had a total of 26,319,681 treasury shares at a total average cost of $1,968.9 million. Accumulated Other Comprehensive Loss The components of AOCL, net of tax, within the Consolidated Statements of Stockholders' Equity were as follows (dollars in millions): As of October 31 2025 2024 Foreign currency translation adjustments $ 25.4 $ 33.9 Pension benefits 5.1 4.3 Cash flow derivative instruments 4.6 7.8 Total accumulated other comprehensive loss $ 35.1 $ 46.0 The components and activity of AOCL, net of tax, were as follows (dollars in millions): Foreign Currency Translation Adjustments Pension Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2024 $ 33.9 $ 4.3 $ 7.8 $ 46.0 Other comprehensive (income) loss before reclassifications (8.5) 0.8 1.9 (5.8) Amounts reclassified from AO …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"16 Subsequent Events Acquisition of Tornado Infrastructure Equipment, Ltd. (""Tornado Infrastructure Equipment"") On October 6, 2025, the company entered into an Arrangement Agreement (""Purchase Agreement"") to acquire Tornado Infrastructure Equipment Ltd., a publicly held Calgary, Alberta company, a manufacturer in the hydrovac excavation solutions industry, for a purchase price of CAD $279.3 million in cash, representing CAD $1.92 per share. On December 8, 2025, (""Tornado Infrastructure Equipment closing date""), pursuant to the Purchase Agreement, the company completed its acquisition of Tornado Infrastructure Equipment. Tornado Infrastructure Equipment manufactures hydrovac excavation solutions and industrial equipment solutions for the underground construction, power transmission and energy markets and provides innovative product offerings that broaden and strengthen the company's Professional segment and expands its dealer network. As a result of the acquisition, all of the outstanding equity securities of Tornado Infrastructure Equipment were canceled and now only represent the right to receive the applicable consideration as described in the Purchase Agreement. The company funded the acquisition with borrowings under its existing revolving credit facility and additional financial arrangements. Due to the limited time since the Tornado Infrastructure Equipment closing date, at this time it is impracticable for the company to make the additional disclosures required …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

"2 Acquisitions and Divestitures Tornado Infrastructure Equipment Ltd. (""Tornado Infrastructure Equipment"") On December 8, 2025 (""closing date""), pursuant to an Arrangement Agreement (""Purchase Agreement"") dated October 6, 2025, the company completed its acquisition of Tornado Infrastructure Equipment, a publicly held Canadian company and a manufacturer in the hydrovac excavation solutions industry. Tornado Infrastructure Equipment manufactures hydrovac excavation solutions and industrial equipment solutions for the underground construction, power transmission and energy markets and provides innovative product offerings that broaden and strengthen the company's Professional segment and expands its dealer network. The Tornado Infrastructure Equipment acquisition was structured as an equity purchase, pursuant to which the company acquired 100 percent of the equity interests of the legal entities that comprised Tornado Infrastructure Equipment, with the legal entities continuing as surviving entities and wholly-owned subsidiaries of the company. As part of the acquisition, the company also acquired the real property used by Tornado Infrastructure Equipment. The cash consideration, net of cash acquired, was $210.3 million (""purchase price""). The company funded the purchase price with borrowings under its existing revolving credit facility. As a result of the acquisition, the company incurred approximately $3.5 million and $5.7 million of acquisition-related transaction co …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate the company's reportable segment net sales by major product type and geographic market (dollars in millions): Three Months Ended May 1, 2026 Professional Residential Other Total Revenue by product type: Equipment $ 988.7 $ 309.9 $ 5.5 $ 1,304.1 Irrigation 117.9 0.5 2.2 120.6 Total net sales $ 1,106.6 $ 310.4 $ 7.7 $ 1,424.7 Revenue by geographic market: United States $ 869.5 $ 268.7 $ 7.7 $ 1,145.9 International countries 237.1 41.7 278.8 Total net sales $ 1,106.6 $ 310.4 $ 7.7 $ 1,424.7 Six Months Ended May 1, 2026 Professional Residential Other Total Revenue by product type: Equipment $ 1,712.5 $ 515.3 $ 10.7 $ 2,238.5 Irrigation 218.1 1.1 3.3 222.5 Total net sales $ 1,930.6 $ 516.4 $ 14.0 $ 2,461.0 Revenue by geographic market: United States $ 1,533.9 $ 446.8 $ 14.0 $ 1,994.7 International countries 396.7 69.6 466.3 Total net sales $ 1,930.6 $ 516.4 $ 14.0 $ 2,461.0 Three Months Ended May 2, 2025 Professional Residential Other Total Revenue by product type: Equipment $ 892.3 $ 296.9 $ 4.9 $ 1,194.1 Irrigation 121.8 0.5 1.5 123.8 Total net sales $ 1,014.1 $ 297.4 $ 6.4 $ 1,317.9 Revenue by geographic market: United States $ 795.6 $ 260.3 $ 6.4 $ 1,062.3 International countries 218.5 37.1 255.6 Total net sales $ 1,014.1 $ 297.4 $ 6.4 $ 1,317.9 Six Months Ended May 2, 2025 Professional Residential Other Total Revenue by product type: Equipment $ 1,554.2 $ 517.0 $ 9.1 $ 2,080.3 Irrigation 228.7 1.4 2.5 232.6 Total net sales $ 1,782.9 $ 518.4 $ …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"11 Stock-Based Compensation Compensation costs related to stock-based compensation awards were as follows: Three Months Ended Six Months Ended (Dollars in millions) May 1, 2026 May 2, 2025 May 1, 2026 May 2, 2025 Stock option awards $ 1.2 $ 2.6 $ 2.6 $ 4.3 Performance share awards 1.6 1.1 2.8 1.7 Restricted stock unit awards 3.8 1.7 6.4 3.1 Unrestricted common stock awards 0.7 0.7 Total compensation cost for stock-based compensation awards $ 6.6 $ 5.4 $ 12.5 $ 9.8 On March 17, 2026, the companys shareholders approved The Toro Company 2026 Equity Plan (the 2026 plan), which became effective immediately and replaced The Toro Company 2022 Equity and Incentive Plan (the 2022 plan). The 2026 plan is administered by the Compensation & Human Resources Committee of the Board and permits the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, and other stock-based awards to eligible individuals. Subject to adjustment as provided in the 2026 plan, the maximum aggregate number of shares of the companys common stock authorized for issuance under the 2026 plan is equal to the sum of: (a) 3,650,000 shares, plus (b) the number of shares remaining available for grant under the 2022 plan but not subject to outstanding awards thereunder as of March 17, 2026, and plus (c) the number of shares subject to awards outstanding under the 2022 plan as of March 17, 2026 but only to the extent …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

17 Fair Value Measurements The company categorizes its assets and liabilities into one of three levels based on the assumptions (inputs) used in valuing the asset or liability. Estimates of fair value for financial assets and financial liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value, and requires certain disclosures. The framework discusses valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are defined as follows: Level 1 : Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 : Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 : Unobserv …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5 Goodwill and Other Intangible Assets, Net The company's acquisition of Tornado Infrastructure Equipment on December 8, 2025 resulted in the recognition of $138.1 million and $63.8 million of preliminary goodwill and other intangible assets, respectively. For additional information on the company's acquisition of Tornado Infrastructure Equipment, refer to Note 2, Acquisitions and Divestitures . Goodwill The changes in the carrying amount of goodwill by reportable segment for the first six months of fiscal 2026 were as follows: (Dollars in millions) Professional Residential Other Total Balance as of October 31, 2025 $ 440.9 $ 10.0 $ $ 450.9 Goodwill acquired 138.1 138.1 Translation adjustments 2.0 2.0 Balance as of May 1, 2026 $ 581.0 $ 10.0 $ $ 591.0 Other Intangible Assets, Net The components of other intangible assets, net as of May 1, 2026, May 2, 2025, and October 31, 2025 were as follows (dollars in millions): May 1, 2026 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.5 $ 10.1 $ (9.5) $ 0.6 Customer-related 15.3 350.0 (158.7) 191.3 Developed technology 7.2 117.1 (89.1) 28.0 Trade names 12.9 9.6 (7.0) 2.6 Backlog and other 0.5 5.0 (4.1) 0.9 Total finite-lived 13.0 491.8 (268.4) 223.4 Indefinite-lived - trade names 210.4 210.4 Total other intangible assets, net $ 702.2 $ (268.4) $ 433.8 May 2, 2025 Weighted-Average Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Patents 9.9 $ 18.2 $ (17.1) $ 1.1 C …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

15 Leases The company enters into contracts that are, or contain, operating lease agreements for certain property, plant, or equipment assets utilized in the normal course of business, such as buildings for manufacturing facilities, office space, distribution centers, and warehouse facilities; land for product testing sites; machinery and equipment for research and development activities, manufacturing and assembly processes, and administrative tasks; and vehicles for sales, service, marketing, and distribution activities. Contracts that explicitly or implicitly relate to property, plant, and equipment are assessed at inception to determine if the contract is, or contains, a lease. Such contracts for operating lease agreements convey the company's right to direct the use of, and obtain substantially all of the economic benefits from, an identified asset for a defined period of time in exchange for consideration. The lease term begins and is determined upon lease commencement, which is the point in time when the company takes possession of the identified asset, and generally includes all non-cancelable periods. Lease expense for the company's operating leases is recognized on a straight-line basis over the lease term and is recorded within cost of sales or selling, general and administrative expense within the Condensed Consolidated Statements of Earnings as dictated by the nature and use of the underlying asset. The company does not recognize right-of-use assets and lease lia …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

6 Indebtedness The following is a summary of the company's indebtedness: (Dollars in millions) May 1, 2026 May 2, 2025 October 31, 2025 Revolving credit facility, due October 2029 $ 95.0 $ 175.0 $ Term loan, due October 2029 200.0 200.0 200.0 Term loan, due April 2027 200.0 3.81% series A senior notes, due June 2029 100.0 100.0 100.0 3.91% series B senior notes, due June 2031 100.0 100.0 100.0 3.97% senior notes, due June 2032 100.0 100.0 100.0 5.27% senior notes, due September 2032 200.0 200.0 7.8% debentures, due June 2027 100.0 100.0 100.0 6.625% senior notes, due May 2037 124.3 124.3 124.3 Less: unamortized debt issuance costs 2.5 2.2 2.8 Total debt 1,016.8 1,097.1 921.5 Less: current maturities and short-term borrowings 20.0 Long-term debt, less current portion $ 1,016.8 $ 1,077.1 $ 921.5 As of May 1, 2026, principal payments required on the company's outstanding indebtedness, based on the maturity dates defined within the company's debt arrangements, for the remainder of fiscal 2026 and succeeding fiscal years are as follows: (Dollars in millions) May 1, 2026 2026 (remaining) $ 2027 100.0 2028 20.0 2029 375.0 2030 2031 100.0 Thereafter 425.0 Total principal payments required $ 1,020.0 …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"New Accounting Pronouncements In September 2025, the Financial Accounting Standards Board (""FASB"") issued accounting standard update (""ASU"") No. 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which is intended to modernize the accounting for software costs that are accounted for under Subtopic 350-40 by replacing the stage-based model with a principles-based approach. The amended guidance will become effective for the company's fiscal 2029 annual period and interim periods beginning with the first quarter of fiscal 2029. Early adoption is permitted. The company is currently evaluating the impact of this new standard on its Condensed Consolidated Financial Statements and related disclosures. In July 2025, the FASB issued ASU No. 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which is intended to improve guidance on the measurement of credit losses on accounts receivable and contract assets. The amended guidance is optional and, if the company elects the practical expedient, will become effective for the company's fiscal 2027 annual period and interim periods beginning with the first quarter of fiscal 2027. Early adoption is permitted. The company is currently evaluating the impact of this new standard on its Condensed Consolidated Financial Statements and related disclosures. In November 2024 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

4 Revenue The following tables disaggregate the company's reportable segment net sales by major product type and geographic market (dollars in millions): Three Months Ended May 1, 2026 Professional Residential Other Total Revenue by product type: Equipment $ 988.7 $ 309.9 $ 5.5 $ 1,304.1 Irrigation 117.9 0.5 2.2 120.6 Total net sales $ 1,106.6 $ 310.4 $ 7.7 $ 1,424.7 Revenue by geographic market: United States $ 869.5 $ 268.7 $ 7.7 $ 1,145.9 International countries 237.1 41.7 278.8 Total net sales $ 1,106.6 $ 310.4 $ 7.7 $ 1,424.7 Six Months Ended May 1, 2026 Professional Residential Other Total Revenue by product type: Equipment $ 1,712.5 $ 515.3 $ 10.7 $ 2,238.5 Irrigation 218.1 1.1 3.3 222.5 Total net sales $ 1,930.6 $ 516.4 $ 14.0 $ 2,461.0 Revenue by geographic market: United States $ 1,533.9 $ 446.8 $ 14.0 $ 1,994.7 International countries 396.7 69.6 466.3 Total net sales $ 1,930.6 $ 516.4 $ 14.0 $ 2,461.0 Three Months Ended May 2, 2025 Professional Residential Other Total Revenue by product type: Equipment $ 892.3 $ 296.9 $ 4.9 $ 1,194.1 Irrigation 121.8 0.5 1.5 123.8 Total net sales $ 1,014.1 $ 297.4 $ 6.4 $ 1,317.9 Revenue by geographic market: United States $ 795.6 $ 260.3 $ 6.4 $ 1,062.3 International countries 218.5 37.1 255.6 Total net sales $ 1,014.1 $ 297.4 $ 6.4 $ 1,317.9 Six Months Ended May 2, 2025 Professional Residential Other Total Revenue by product type: Equipment $ 1,554.2 $ 517.0 $ 9.1 $ 2,080.3 Irrigation 228.7 1.4 2.5 232.6 Total net sales $ 1,782.9 …

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"3 Segment Data The company's businesses are organized, managed, and internally grouped into segments based on similarities in products and services. Segment determination is based on the manner in which the Chief Operating Decision Maker ""CODM"" organizes segments for making operating and investment decisions and assessing performance. The company has identified eight operating segments and has aggregated certain of those operating segments into two reportable segments: Professional and Residential. The aggregation of the company's segments is based on the segments having the following similarities: economic characteristics, types of products and services, types of production processes, type or class of customers, and method of distribution. For a summary of our products by market for our Professional and Residential reportable segments, refer to Part I, Item 1, ""Business,"" of the companys Annual Report on Form 10-K for the fiscal year ended October 31, 2025. The company's remaining activities consist of a wholly-owned domestic distribution company, certain corporate activities, and the elimination of intersegment revenues and expenses. Corporate activities include general corporate expenditures (finance, human resources, legal, information technology, public relations, business development, and similar activities) and other unallocated corporate assets and liabilities, such as corporate facilities, severance and termination benefits, facility exit costs, and deferred tax …

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"12 Stockholders' Equity Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss (""AOCL""), net of tax, within the Condensed Consolidated Statements of Stockholders' Equity were as follows: (Dollars in millions) May 1, 2026 May 2, 2025 October 31, 2025 Foreign currency translation adjustments $ 9.0 $ 29.0 $ 25.4 Pension benefits 5.1 4.3 5.1 Cash flow derivative instruments 5.0 8.7 4.6 Total accumulated other comprehensive loss $ 19.1 $ 42.0 $ 35.1 The components and activity of AOCL, net of tax, for the three and six month periods ended May 1, 2026 and May 2, 2025 were as follows: (Dollars in millions) Foreign Currency Translation Adjustments Pension Benefits Cash Flow Derivative Instruments Total Balance as of January 30, 2026 $ 3.4 $ 5.1 $ 8.8 $ 17.3 Other comprehensive (income) loss before reclassifications 5.6 (1.2) 4.4 Amounts reclassified from AOCL (2.6) (2.6) Net current period other comprehensive (income) loss 5.6 (3.8) 1.8 Balance as of May 1, 2026 $ 9.0 $ 5.1 $ 5.0 $ 19.1 (Dollars in millions) Foreign Currency Translation Adjustments Pension Benefits Cash Flow Derivative Instruments Total Balance as of October 31, 2025 $ 25.4 $ 5.1 $ 4.6 $ 35.1 Other comprehensive (income) loss before reclassifications (16.4) 5.3 (11.1) Amounts reclassified from AOCL (4.9) (4.9) Net current period other comprehensive (income) loss (16.4) 0.4 (16.0) Balance as of May 1, 2026 $ 9.0 $ 5.1 $ 5.0 $ 19.1 (Dollars in millions) Foreign Currency Translati …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

18 Subsequent Events The company has evaluated all subsequent events and concluded that no subsequent events have occurred that would require recognition in the Condensed Consolidated Financial Statements or disclosure in the Notes to the Condensed Consolidated Financial Statements.

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