Toromont Industries has reported a strong end to 2023, with double-digit growth in revenue and earnings per share, and is focusing on continuing to meet similar targets despite softening conditions in 2024.
Toromont reported a revenue increase of $507 million through the full 12-month reporting period in 2023, an increase of 12 percent to $4.6 billion. That growth was fueled by strength in both of Toromont's groups, with the Equipment Group reporting a 12 percent increase year-over-year and CIMCO showing a 13 percent rise. The company stated that growth reflected improved supply from vendors, good opening order backlog, solid execution, and larger rental fleet investment. Product support revenues were up in both groups, and an increased technician labour workforce has continued to support growth.
Revenue for the fourth quarter of 2023 was up 9 percent to $1.226 billion, while operating income, net earnings, and basic earnings per share showed slight decreases. Toromont noted that a property sold in the fourth quarter of 2022 is reflected in the fourth quarter declines.
Bookings in the fourth quarter increased 49 percent compared to the same period in 2022, and were 15 percent higher on a full year basis. Backlog has remained relatively unchanged from the same time in 2022, at $1.2 billion.
The Equipment Group reported a 9 percent increase in the fourth quarter, to $1.1 billion, and a 12 percent rise for the full year, reaching $4.2 billion. Equipment sales, product support, and rental activity were higher across most geographical markets and product groups.
"We are pleased with the operating and financial performance which our teams delivered this year," stated Michael S. McMillan, President and Chief Executive Officer of Toromont Industries Ltd. "The Equipment Group executed well, delivering against the opening order backlog in line with customer schedules and improvement in inventory flow, coupled with good growth in rental and product support activity, as well as a continued focus on expense control. CIMCO revenue and bottom line improved for the year on good execution and higher product support activity. Across the organization, we continue to navigate through uncertain economic conditions and remain committed to our operating disciplines, driving our after-market strategies and delivering customer solutions."
