Canadian Cat Dealer Toromont Boosts Total Revenue 8.6 Percent in 2024
Toromont Industries posted CDN $1,307 million in revenue in the fourth quarter of 2024 compared to $1,226.9 million in the fourth quarter of 2023, a 6.5-percent increase. For the full year, Toromont’s total reveue was $5,021.2 million compared to $4,622.3 million in 2023, an 8.6-percent upswing.
Most of Toromont’s revenue comes from its Equipment Group, which includes one of the world’s largest Caterpillar dealerships. A much smaller portion comes from CIMCO, a refrigeration business.
“Results in 2024, and in particular Q4, reflect good execution across most markets against a strong order backlog,” said Michael McMillan, president and CEO of Toromont Industries. “For the year, bottom line results were below the strong comparator last year, in part due to the reduced activity in the residential sector. Overall the team performed well in Q4, improving on last year’s bottom line. The Equipment Group executed well with improved new equipment deliveries in both the construction and mining segments. While rental markets remain generally constrained, utilization levels improved toward the end of 2024. CIMCO revenue and bottom-line improvements demonstrated the team’s strong execution while they continued to build their backlog throughout the year. Our solid financial position was maintained while we continued to build their backlog throughout the year. Our solid financial position was maintained while we continued to exercise disciplined capital allocation, investing in the business to support organic initiatives and our heavy rents business acquisition. Our team is committed to building strong partnerships with our suppliers and customers, while executing and allocating our resources with discipline in order to deliver sustainable growth over the long term.”
Revenue in the Equipment Group rose $57 million or 5 percent to $1.2 billion for the fourth quarter. New equipment sales increased 7 percent, with good activity and deliveries in the mining, construction and material handling markets. Rental revenue increased 6 percent, largely because of higher rental with purchase option fleet revenue. Product support activity also increased 4 percent in the fourth quarter.
For the full year, revenue rose $335.4 million or 8 percent to $4.6 billion for the year. New equipment sales, product support and rental activity were higher across most markets and product groups, partially offset by lower used equipment sales.
“We are pleased with our team’s performance in 2024, given the changing market dynamics,” said John Doolittle, executive vice president and chief financial officer of Toromont Industries. “We are mindful of the uncertain economic and political environment and continue to monitor and focus on controllables. The recent announcements on the tariffs between the U.S. and Canada has created additional economic turbulence for every company engaged in cross border trade. Our team is engaged, monitoring and developing an appropriate action plan to navigate the potential impacts over the short and longer term when details become available. We will maintain our focus on operating and financial disciplines to manage our cost structure, while we invest in capacity and capabilities to provide exceptional service to our customers today and in the future. The strong order backlog and improved operating disciplines, along with our strong financial position, position us well for the future.”
In other Toromont news, the company acquired 60 percent of the shares of AVL Manufacturing for $67.5 million in cash plus the issuance of 110.4 thousand Toromont shares (worth about $13.5 million.) AVL designs and manufactures power generation and storage enclosures. We will have more information about the acquisition in tomorrow’s RER Pump & Power newsletter and on www.rermag.com.
Toromont Industries, headquartered in Concord, Ontario, Canada, is No. 13 on the RER 100. Toromont is the Caterpillar dealership for the Canadian provinces of Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Quebec, Ontario, Manitoba and most of the territory of Nunavut
