2024 Annual Report PRODUCT INNOVATION • Designed to deliver unyielding performance, optimal comfort and bold, ATV-inspired styling, the new Toro ® TimeCutter ® MAX and TITAN ® mowers are ready to conquer any challenge from ample acreage to tough terrain. • Continuing to drive innovation, Exmark’s Lazer Z ® X-Series with the patented, industry-exclusive Adapt system allows contractors to make quick deck rake adjustments from the operator seat to optimize deck performance in varying cutting conditions. • The Ditch Witch ® JT21 is designed to help utility contractors get the job done quickly and efficiently. With a carriage speed of 215 feet per minute, the JT21 is 35% faster than other drills in its class and features 40% more downhole horsepower than its predecessor. • For golf courses, sports fields and green spaces, cut quality and productivity mean everything. The Toro ® Groundsmaster ® 4500 delivers the picture-perfect cut of a reel mower with the power to mow up to 10.6 acres in an hour. LOWE’S RELATIONSHIP Building on the strength of our brands, innovation and shared leadership in the zero-turn mower category, Toro’s new strategic retail partnership with Lowe’s got off to a tremendous start in fiscal 2024. With an expansive range of equipment being introduced at stores nationwide, we saw strong momentum throughout the year. Combined with our best-in-class dealer network, this relationship has helped further extend our footprint in key customer segments and positions us for growth in the residential market. AUTONOMOUS SOLUTIONS Across our global brands and businesses, we continue to leverage innovation breakthroughs and are focused on prioritizing investments in the key technology areas of alternative power, smart-connected and autonomous solutions. Aligned with market growth trends and the productivity needs of our customers, we are excited about the introduction of autonomous products for golf, commercial and residential applications. This includes our Toro ® GeoLink ® Solutions ™ Autonomous Fairway Mower, Exmark ® Turf Tracer ® with XiQ technology and Toro ® Haven ™ robotic mower. Fiscal 2024 was a year of progress and resilience for The Toro Company. In what was an extremely dynamic operating environment for our markets, we delivered full-year net sales growth and reached significant achievements that underscore the strength of our diversified portfolio and the disciplined execution of our talented team. Net sales for the year were up slightly over last fiscal year to $4.58 billion, marking an incredible milestone – our 15th consecutive year of top-line growth. We delivered substantial net sales growth for underground construction products, and golf and grounds solutions, as we strategically managed output to capitalize on strong end market demand. This sustained strength in demand continues to keep order backlog elevated, but we are making significant progress. Revenue growth for the fiscal year was also exceptional in our residential segment, driven by successful new product introductions that exceeded expectations and the strength of our mass channel. Our new strategic partnership with Lowe’s is off to a fantastic start, highlighted by our shared leadership in the zero-turn mower category. We are honored to have been recognized by Lowe’s as “Vendor of the Year” for their seasonal and outdoor department, underscoring the collaborative spirit and mutual commitment to excellence that defines our partnership. The strength in these areas has been instrumental in balancing the industry-wide dynamics affecting other parts of our portfolio. While we navigate macro factors and post-pandemic adjustments with our lawn care products in the dealer channel, as well as two consecutive seasons of below-average snowfall impacting our snow and ice management businesses, we remain confident in our strategic direction. These variables are meaningful, but our strong leadership position across segments and compelling product lineup position us to continue delivering value to our shareholders into the future. Turning to profitability, we delivered adjusted diluted earnings per share of $4.17 for the fiscal year, in line with our expectations. Despite margins being somewhat affected by product mix given the outsized growth in our residential segment, our ability to drive productivity gains, as well as positive net price benefits, enabled us to offset inflationary pressures. Our teams were also able to adjust production throughout the year to meet the changing demand landscape. We were extremely pleased to deliver $471 million in free cash flow for the year*, an increase of more than $300 million over the prior year. This is a reflection of our commitment to financial excellence and strategic growth. With this improvement, we returned nearly $400 million to shareholders, including share repurchases of about $250 million. These actions demonstrate the confidence we have in our ability to maintain a strong cash position and deliver positive financial results into the future. The Toro Company has a long and consistent track record of driving attractive returns on our investments through effective capital allocation. This year, we made significant strides in advancing our three enterprise strategic priorities of accelerating profitable growth, driving productivity and operational excellence, and empowering our people. This progress is a testament to the dedication and hard work of our incredible team, whose unwavering commitment has been instrumental in creating value for our shareholders and building a sustainable future together. Leading with Innovation Throughout the year, we continued to strengthen our Richard M. Olson Chairman and Chief Executive Officer To Our Valued Shareholders, innovation leadership and leverage prioritized investments across the portfolio. This focus is the lifeblood of our company and key to driving long-term profitable growth. During the year, we introduced several new products aligned with market growth trends and designed to enhance productivity for our customers. This includes the Ditch Witch ® W8 Warlock ® series vacuum excavator for underground construction, the Toro ® Groundsmaster ® e3200 fully electric out-front rotary mower for golf and grounds, and new and improved zero-turn mower models across our Exmark, Toro and Spartan brands. Additionally, our Ventrac team launched the all-new 45RC tractor that has been receiving a great response and is expected to reshape the future of slope mowing. Our commitment to advancing autonomous solutions also remained strong. We have been field testing our Toro ® GeoLink ® autonomous fairway mower at golf courses nationwide and are excited for its upcoming retail launch in the coming year – along with the introduction of our Exmark ® Turf Tracer ® with XiQ technology for professional contractors and Toro ® Haven ™ robotic mower for homeowners. With our people at the forefront of our success, we remain focused on fostering collaboration across our teams and global brands. This includes our TTC Tech Forum, where employees from around the world came together at our global headquarters to connect, collaborate and inspire new product innovation. Every day, we’re inspired by the passion of our technology teams as they continue to drive progress and fuel groundbreaking advancements. As we continue to expand our portfolio with solutions that enhance productivity for our customers, we remain steadfast in our corporate purpose of helping our customers enrich the beauty, productivity, and sustainability of the land. This mission guides us every day and fuels our passion for innovation and excellence. Driving Productivity and Strategic Growth In a quickly changing environment, our team did an outstanding job delivering productivity gains this year. We remain on track to deliver $100 million of annualized run- rate savings by fiscal 2027 from our multi-year productivity initiative, named AMP, for Amplifying Maximum Productivity. In its first year, our team implemented $14.5 million of run- rate savings, surpassing our initial expectations at this point. Building on this momentum, we intend to prudently reinvest up to half of the savings to further accelerate innovation and long-term growth. We also made targeted adjustments across our brand portfolio to further position the company for profitable growth. In June, we announced the sale of our Australia- based Pope Products garden watering and irrigation business. This transaction allows our Toro Australia team to enhance its focus on core strategic priorities where we have the best opportunities to drive long-term profitable growth in this region. Following our acquisition of Intimidator Group in 2022, we have begun efforts to rebrand their Intimidator UTV and eNVy ® product lines under the Spartan brand which allows us to leverage marketing investments and capitalize on the strength of the Spartan brand. These strategic moves reflect our commitment to optimizing our portfolio and driving sustainable growth. Strengthening Trusted Relationships In fiscal 2024, we were honored to serve as the official golf course maintenance equipment and irrigation partner for the PGA Championship at Valhalla Golf Club in Kentucky. We also supported the 152nd Open Championship at Royal Troon in Scotland, providing an innovative all-electric fleet of turf management solutions to uphold the highest standards of play. These partnerships reflect more than just our industry leadership – they highlight our shared commitment to environmental sustainability and delivering world-class playing conditions. By working alongside industry leaders, we are advancing solutions that reduce emissions, conserve water, and minimize resource use. This year, we renewed our decade- Commemorating Our Past, Shaping Our Future Building on our long-standing history of innovation and technological excellence, we proudly partnered with the Association of Equipment Manufacturers (AEM) to celebrate American manufacturing through the AEM Manufacturing Express tour. Coinciding with the 110th anniversary of our global headquarters in Bloomington, Minnesota, we showcased our cutting-edge products and celebrated the people and processes that drive our industries. The tour also made a significant stop in Perry, Oklahoma, where our Ditch Witch team celebrated their 75th anniversary by breaking ground on a new 170,000 square-foot paint facility, creating new jobs and strengthening our community presence. As we celebrate these historic milestones, we also set the stage for continued innovation and growth in the years ahead. long partnership with the GEO Foundation for Sustainable Golf, an organization focused on accelerating sustainability in and through golf worldwide. Together, we are advancing initiatives that support environmental stewardship and drive meaningful change across the global golf community. We were excited to also expand our longstanding partnership with the National Recreation and Park Association through the new Workforce Pathways for Youth initiative. Building critical workforce skills and connecting young people to new career opportunities will help strengthen the park and recreation industry pipeline and workforce, ensuring that parks and recreation continues its essential role in creating inclusive, thriving and resilient communities. Focused on the Future As we look to the year ahead, our strong business fundamentals and market leadership position us for profitable growth. Despite industrywide challenges over the past two years, we’ve maintained focus on what we can control: investing in industry-leading innovation, providing superior customer care, and strengthening our distribution networks and talented team. Excited for the future, we have many growth opportunities before us that are the result of the many years of diligence in developing our diversified and complementary portfolio of businesses, our leading market positions in high-value spaces, and our deep customer and channel relationships. First, we are excited about our underground construction business. The prospects are incredibly promising, driven by the growing demand for data communication infrastructure, energy grid modernization, and the global push to replace aging infrastructure. As a worldwide leader with the most comprehensive equipment and brand lineup in the industry, we offer unparalleled opportunities in this advancing market. Our strong channel relationships and sophisticated equipment solutions create a competitive edge that is hard to replicate. With significant public and private multi-year investments, we have clear visibility into a robust pipeline of projects addressing global infrastructure needs. Much like underground construction, our golf business thrives on a powerful combination of strong, long-term market fundamentals, industry leadership and deep, trusted relationships. Global momentum continues to drive both the maintenance of existing courses and new developments. As the only company offering both equipment and irrigation solutions in this market, and as the worldwide leader in both, we hold a distinct competitive advantage. With global enthusiasm for the game showing no signs of slowing down, we are fully prepared to capitalize on this opportunity through continued innovation and the strength of our best- in-class distributor network. We are also reinforcing our multi-brand leadership in the zero-turn mower space, the largest single lawn care category for both our professional and residential segments. We’ve enhanced our market leadership position through investments in our innovative product lineup, and the strategic development of our independent dealer networks and mass retail partnerships. The demand for our new product introductions exceeded our expectations this year, which, coupled with the strength and breadth of our distribution networks, creates momentum in this space. We are positioned extremely well for further growth, especially as these markets return to normal strength. Innovation continues to be a cornerstone of our strategy, and we have a proven ability to leverage our technology investments across our broad portfolio to drive progress. This enables the accelerated development of new products that enhance customer productivity and deliver superior results, while strengthening The Toro Company’s competitive advantage and ensuring market leadership into the future. We remain committed to driving returns on innovation through prioritized investments, particularly in the key technology areas of alternative power, smart connectivity, and autonomous solutions. And finally, it comes down to our disciplined execution and consistent financial performance. Through many macro cycles, we have built a strong and agile organization capable of adapting to change. As a result, we have reported 15 consecutive years of year-over-year growth in net sales – a testament to our resilience and focus. Behind this success is a talented team determined to seize opportunities and build on our legacy of delivering strong financial results. Our strategically aligned network of channel partners continues to go above and beyond to serve our customers every day. Together, these strengths position us to confidently seize the opportunities ahead and drive lasting value for our customers, channel partners, and shareholders – both now and for years to come. Sincerely, Richard M. Olson Chairman and Chief Executive Officer *This Annual Report includes certain non-GAAP financial measures. Please refer to the disclosure, entitled “Non-GAAP Financial Measures,” which begins on page 43 of the Form 10-K. BILLION $4.58 0.7% CASH DIVIDENDS PAID ON COMMON STOCK OUTSTANDING $149.5M ADJUSTED OPERATING EARNINGS1 $560.5M SHARE REPURCHASES $245.5M ADJUSTED OPERATING EARNINGS MARGIN2 12.2% RETURN ON AVERAGE INVESTED CAPITAL2 16.6% R & D INVESTMENT $173.1M ADJUSTED DILUTED EPS1 $4.17 AVERAGE NET WORKING CAPITAL AS A PERCENTAGE OF NET SALES3 25.9% vs. 2023 vs. 2023 vs. 2023 1.0% 0.5% vs. 2023 4.6% 2020 2021 2022 2023 2024 NET SALES NET SALES BY SEGMENT ¢ Professional 78% ¢ Residential 22% NET SALES BY GEOGRAPHIC LOCATION ¢ United States 80% ¢ International 20% NET SALES BY PRODUCT TYPE ¢ Equipment 90% ¢ Irrigation 10% 1 This Annual Report includes certain non-GAAP financial measures. Please refer to the disclosure, entitled “Non-GAAP Financial Measures,” which begins on page 43 of the Form 10-K. 2 This metric represents a non-GAAP financial metric and a reconciliation of this non-GAAP financial metric can be found in our Investor Presentation, which is available in the Investor section at www.thetorocompany.com. 3 Defined as average net accounts receivable plus average net inventory, less average accounts payable as a percentage of net sales for a 12-month period. Fiscal years ended October 31 FINANCIAL HIGHLIGHTS EXECUTIVE OFFICERS (as of January 1, 2025) BOARD OF DIRECTORS Richard M. Olson Chairman of the Board, President and Chief Executive Officer Jason P. Baab Vice President, Strategy, Corporate Development and Sustainability Kevin N. Carpenter Vice President, Global Operations and Integrated Supply Chain Amy E. Dahl Vice President, International Angela C. Drake Vice President and Chief Financial Officer Edric C. Funk Group Vice President, Golf, Grounds and Irrigation Gregory S. Janey Group Vice President, Landscapes and Contractor Peter D. Moeller Group Vice President, Underground and Specialty Construction Kurt D. Svendsen Vice President, Technology Joanna M. Totsky Vice President, General Counsel and Corporate Secretary Dianne C. Craig President, Lincoln Ford Motor Company Gary L. Ellis* Retired, Executive Vice President Medtronic plc Eric P. Hansotia Chairman, President and Chief Executive Officer AGCO Corporation Jeffrey L. Harmening Chairman and Chief Executive Officer General Mills, Inc. D. Christian Koch Chairman, President and Chief Executive Officer Carlisle Companies Incorporated Joyce A. Mullen President and Chief Executive Officer Insight Enterprises Richard M. Olson Chairman of the Board, President and Chief Executive Officer The Toro Company James C. O’Rourke Retired, President and Chief Executive Officer The Mosaic Company Jill M. Pemberton Chief Financial Officer, North America LVMH Moët Hennessy Louis Vuitton *Lead Independent Director SHAREHOLDER INFORMATION Shareholder Assistance Communications concerning The Toro Company stock, including shareholder change of address, certificate replacement, share transfer requirements, the direct stock purchase plan, dividends, the dividend reinvestment plan and similar matters should be directed to our transfer agent at: Broadridge Shareholder Services c/o Broadridge Corporate Issuer Solutions P.O. Box 1342 Brentwood, NY 11717-0718 1-844-956-0809 or 1-303-562-9697 shareholder@broadridge.com www.shareholder.broadridge.com/TTC Investor Inquiries Individual shareholders may direct any questions to invest@thetorocompany.com. The Toro Company 8111 Lyndale Avenue South Bloomington, MN 55420-1196 952-888-8801 www.thetorocompany.com