On revenue of $5.2 billion, 4% more than in 2024, the company earned $496.6 million or $6.11 basic per share, a 1% year-over-year reduction primarily due to growth-related investments and lower interest income on our cash balances. Return on shareholders’ equity was 16.9%, or 20.3% on a five-year basis in line with our long-term 18% target. Strong cashflows enabled Toromont to: invest $338.8 million in our capital infrastructure and rental fleets (net of dispositions); deliver its 36th annual dividend increase (37 years including 2026) and maintain a strong capital position with net debt to total capitalization of minus 19% (net cash position). We also provided approximately 82,900 hours of skills training to empower our team.

In short, 2025 was a productive year, despite persistent macroeconomic and trade uncertainty, and reflected the progression of Connect26, Toromont’s three-year business plan introduced in 2024. While we recommend our MD&A for financial insights, this letter serves as a Connect26 report card on activities started or completed in 2025 and planned for 2026.

To provide value to our customers, partners, employees and shareholders, our actions are grounded in Toromont’s corporate values and core strategies: expand markets, broaden product offerings, invest in resources, strengthen product support and maintain a strong financial position. It is our belief that the Connect26 agenda, and the principles that guide us, will help to deliver a stronger, more productive and more efficient Toromont for all stakeholders. We seek nothing less than to position for mutually rewarding growth.

Connect for safety and sustainability

To position for growth, we first prioritize the safety, health and development of our people. These are not new priorities, but we strive to be more intentional about how we deliver them. We encourage readers to view our Sustainability Report for details, but here we underscore the Connect2026 emphasis on strengthening our safety culture, reducing risk exposure, and ensuring compliance and accountability across all regions. This is important as workplace risks are evolving, driven by technological advancements and environmental changes.

Toromont delivered ~56,200 hours of safety training in 2025, not including training investments by AVL Manufacturing – and 82% of our facilities achieved a Total Recordable Injury Rate (TRIR) of zero. We will incorporate AVL in these calculations in the future, but we note that over the past three years, TRIR for our base business has improved by 31%. While the trend is good, we have increased emphasis on leading safety indicators – including completion of safety inspections – as part of pay for performance for all leaders beginning in 2026.

To ensure Toromont remains an employer of choice for talented, ambitious people, we maintain a competitive total rewards compensation program and more than 54% of eligible employees participate in our matching Toromont share purchase plan. Giving back to the communities where we live and work has always been a Toromont mainstay but here again, we are strategic with emphasis placed by our teams on causes related to health and wellness. We are particularly proud of Toromont’s support of the Princess Margaret Cancer Foundation, which brings innovative treatments and care to patients across Canada and around the world.

Connect for growth in core and adjacent thermal management markets

CIMCO is our thermal management solutions business. Its longstanding core markets are ice rinks, and food and beverage facilities that count on safe, reliable, energy efficient and environmentally sound cooling/heating solutions. In 2025, core markets produced strong growth and exciting new orders for CIMCO such as a $40 million assignment to outfit a food distribution centre in Ontario, requiring us to fabricate, install and commission 53 penthouse evaporators that use natural refrigerants.

CIMCO’s leadership in the development of dual cooling/heating systems such as ECO CHILL and next-generation Thermal Force One is derived, in large part, by its engineering capabilities. Those resources and CIMCO’s ability to employ CO₂ and ammonia refrigerants rather than fluorinated gases provide us with optionality to grow geographically – in the U.S. and Canada – and in adjacent markets. Under the auspices of Connect26, we are on our way.

To manage urban growth and meet climate goals, municipalities are investing in district heating and cooling. With CIMCO’s help, the community of Blatchford, Alberta is at the leading edge of this trend in Canada. In 2025, we completed the third wave of our assignment to install heat pump technology that is integrated into the community’s District Energy Sharing System. With this capacity expansion, Blatchford is becoming one of Canada’s largest carbon-neutral neighbourhoods.

To further our growth ambitions, CIMCO recently formed a strategic partnership with Everllence, a global leader in industrial decarbonization technologies. This alliance began when CIMCO delivered its Smart Transfer system to the Vicinty project in Boston where Everllence is providing a 35-megawatt industrial-scale steam heat pump to harness thermal energy from the Charles River. Using autonomous sensors, Smart Transfer shuts down a thermal system when a fault is detected, such as an ammonia leak, and then safely pumps the refrigerant into a secure holding tank.

CIMCO’s versatile product portfolio, including CO₂ industrial chiller packages, provides Toromont with the means to expand solutions to pharmaceutical and specialty manufacturing industries. In 2025, CIMCO secured an order for a thermal system to serve the heating and cooling needs of a leading producer of protective gloves used in the healthcare industry. This system will reduce the customer’s operating expenditures and meet their decarbonization targets by eliminating a fossil fuel boiler. The project will also utilize CIMCO’s full mechanical, electrical and plumbing capabilities. To better connect with adjacent markets, CIMCO broadened the work of its thermal decarbonization team to include customers like this for whom we evaluate total heat recovery potential and advise on ways to conserve energy and eliminate fossil fuel use.

Connect for growth from better coverage

Market coverage fuels and supports growth. In recognition, Connect26 has guided us in making several deliberate moves to enhance convenience for customers and improve our market share. One was to shift responsibility for sales of Caterpillar’s Compact Construction Equipment (CCE) line to Toromont Cat from Battlefield, our diversified rental equipment business. The early impact was positive as Toromont Cat’s larger sales force generated strong growth in CCE unit sales by connecting with both large and small contractors while continuing to leverage Battlefield’s storefronts. We intend to build on this performance in 2026, buoyed by positive customer reaction to a consolidated product offering that includes CCE along with a full line of Caterpillar equipment.

The drive to enhance coverage brought change to our industrial pump business. In years past, construction customers looked to Battlefield to rent small pumps and to Toromont Power Systems for larger-capacity products. This division diluted growth efforts. In 2025, we eliminated it by moving our industrial pump business from Toromont Power Systems to Battlefield. Customers across all Battlefield territories gained single-point access to pumps – from 2-inch to 12-inch capacities – with Battlefield representatives trained to support all applications. Early results were positive.

In early 2026, Battlefield added responsibility for the industrial-chilling rental equipment business previously operated by Toromont Power Systems. This move elevates Battlefield’s status as a one-stop rental shop for customers who utilize cooling towers, water chillers, air handlers and dehumidifiers. Moreover, when a climate control system fails, Battlefield can now provide a full range of specialty rental equipment on an emergency basis. For a permanent temperature control solution, CIMCO stands ready.

Market coverage is also important for CIMCO. In early 2026, it added its fourth fabrication facility: a 20,000 sq.ft. plant in Bradford, Ontario. CIMCO’s fabrication network in Ontario, Alberta and South Carolina enables us to get innovative thermal management packages to market faster and more efficiently. Prefabrication, along with recent tooling upgrades, also improve build quality and in 2025, supported a year of revenue and backlog growth for CIMCO.

To bolster market coverage for our heavy rental business, we took a page from recently acquired Tri-City Equipment Rentals and added a mobile rental specialist team and integrated Tri-City disciplines to improve customer convenience. As customer propensity to rent continues to grow, Toromont is ready to serve with one of the largest heavy equipment fleets in the market.

Market coverage improvements, or what might be called proximity retailing, also come from strategic branch openings. In 2025, Jobsite, our industrial tool crib rental business, opened its 15th location, this time in Saskatoon, where we also co-located a Toromont Material Handling (TMH) branch. By diversifying its presence across Canada, Jobsite is better able to serve and grow in core customer segments including potash, mining, oil, chemical, petrochemical, pulp and paper and fisheries. In mid-2026, Toromont Cat will open its newest branch – in Brooklin, Ontario – to serve a large customer base east of the Greater Toronto Area.

In recognition of sales synergies, we are building tighter connections between Toromont Cat and SITECH, our construction technology and consulting business. SITECH’s advanced site positioning, machine control and asset management solutions fit perfectly with Toromont Cat’s broader construction offerings.

As we make coverage decisions, and shift responsibilities, we always consider how to optimize our operating and management structures to best deliver growth and performance.

Connect for growth in the circular economy

Since 1989, Toromont has participated in what is now known as the circular economy (see our Sustainability Report) by remanufacturing machine components as a complement to our product support business. Through Connect26, we are intentionally increasing our ability to remanufacture a broader variety of products and in different regions. After opening a 143,000 sq.ft. remanufacturing plant in Bradford, Ontario in 2024, and fully commissioning it in 2025, we recently broke ground on a remanufacturing centre in Québec City. Scheduled to open in the second half of 2027, this facility will allow Toromont to keep pace with growth in our installed equipment base as engines, drive trains and other key components reach the end of their productive first, second and third lives. To further our growth ambitions, we are working to gain Caterpillar certification as a Component Rebuild Centre, a standard of excellence recognized by multinational customers.

aNot to be missed is the work we do to restore complete machines in our branches. We completed 140 certified rebuilds in 2025. This included the disassembly, cleaning, testing and rebuilding of the 40,000 parts that make up a Cat 657 Wheel Tractor-Scraper used to move molten steel pots. Some 6,000 branch technician hours were devoted to this project, and our remanufacturing facility provided remanufactured components.

Customers like the fact that we can typically rebuild a machine for 60% to 70% of the cost of buying a new unit. There is also an advantage for customers who participate in our exchange program whereby they turn in worn components to Toromont and receive rebuilt replacements (with full warranties) to get their machines moving again with minimal downtime. Given recent and planned capacity investments, and our mandate to grow, we are intensifying sales efforts to connect with customers who have not used our remanufacturing/rebuilding services before.