Here’s What Contributed to The Toro Company’s (TTC) Enduring Growth

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%.  It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, LRT Global Opportunities Strategy highlighted stocks such as The Toro Company (NYSE:TTC). Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) designs, manufactures, markets, and sells professional turf maintenance equipment and services. The one-month return of The Toro Company (NYSE:TTC) was -2.89%, and its shares lost 9.38% of their value over the last 52 weeks. On October 6, 2025, The Toro Company (NYSE:TTC) stock closed at $76.60 per share, with a market capitalization of $7.5 billion.

LRT Global Opportunities Strategy stated the following regarding The Toro Company (NYSE:TTC) in its third quarter 2025 investor letter:

“The Toro Company (NYSE:TTC) stands as a premier, category-defining enterprise in the design, manufacture, and marketing of solutions for the turf, landscape, and construction markets. Through its portfolio of iconic brands, including Toro, Exmark, and Ditch Witch, the company has cultivated an unparalleled reputation for quality, innovation, and reliability. This has established Toro not merely as a product manufacturer, but as an indispensable partner to its professional and residential customers, creating a durable competitive moat and a long-term compounding enterprise.

The foundation of Toro’s competitive advantage is its powerful brand equity and its unmatched global distribution network. The Toro brand is synonymous with performance and durability, particularly among high-end professional users such as golf course superintendents, groundskeepers for sports fields, and landscape contractors who rely on the equipment for their livelihoods. This brand loyalty is reinforced by a culture of continuous innovation, which has consistently delivered solutions that enhance productivity and efficiency. This brand strength is amplified by a vast, independent network of dealers and distributors, a critical asset that is nearly impossible to replicate. This network provides not only sales but also expert service, parts, and support, fostering deep, long-standing customer relationships and creating significant switching costs.…” (Click here to read the full text)

In another article, we covered The Toro Company (NYSE:TTC) and shared Mairs & Power Balanced Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.