Toromont addresses climate-related risks and opportunities through our strategic planning process. Connect26, Toromont’s three-year strategic plan, is based on comprehensive risk assessments, industry analyses, market conditions, and other material factors and analyses that our Board and management team deem relevant to Toromont.

In recent years, our governance process and strategic plan have added consideration of both climate- and sustainability-related risks and opportunities, influenced in part by stakeholder engagement processes involving customers, employees, business partners and third-party experts with intimate knowledge of evolving practices and regulations. In 2025, we used this governance and planning process to reaffirm our sustainability focus areas (described in this report) and guide our investments in carbon-reduction technologies and initiatives.

Now to our 2025 actions.

We commissioned an independent climate change materiality assessment.

Our third-party materiality assessment quantifies potential climate factors that impact Toromont and the risk severity of such factors, so that we can take more informed and deliberate decisions and a focused approach to further prepare for key climate factors and energy transition effects, as they relate to our facilities, vehicle fleet, technology and markets. This assessment represents the continued evolution of our strategy and actions to integrate climate considerations in our strategic decision-making process. Ultimately, the goal is to enhance risk mitigation, improve operational efficiency and keep our competitive positioning sharp as we grow. The results of the assessment have been integrated into our Enterprise Risk Management (ERM) framework.

We further enhanced our approach to GHG data collection to inform our reduction efforts.

Over the past three years, we have institutionalized our process for collecting, calculating and maintaining emissions data under Toromont’s GHG Inventory Management Plan. In concert with the plan’s implementation, we added carbon accounting software that enables us to track emissions, analyze results and identify opportunities to set and realize reduction targets. Our efforts were enhanced in 2025 as we employed a third-party platform to track fleet fuel purchases and fuel consumption data. This data, along with utility usage information captured by our facility energy management systems, is now being added to our accounting software. Automating the collection process will improve reporting velocity and data quality, which is key to understanding exactly where we need to improve.

In 2025, energy intensity, measured by kilowatt hour per square foot, was lower year over year in both Scope 1 and Scope 2. Emissions intensity per footprint source, measured by tCO₂e/area unit, was also lower in Scope 1 compared to 2024 and equal in Scope 2. Unlike gross emissions, these key performance indicators demonstrate that our efficiency improvement efforts are delivering results even as we grow. We are using this information to continue to pursue reduction efforts that will have the greatest impact on our carbon footprint. Gross emissions in 2025 of 60,300 tCO₂ (equivalent tonnes) were higher than in 2024, reflecting several factors, including: the addition of two entirely new businesses to Toromont; growth in revenue and, in particular, product support revenue; acquired and new facilities; colder winter temperatures than in 2024 that led to additional heating requirements; as well as enhanced data capture.

We added another dimension to our fleet management approach.

Truck and vehicle fleets serve an important purpose in delivering service to customers. They are also our largest source of emissions and the number of kilometres driven in 2025 to field-support our larger installed base was a contributor to higher year-over-year emissions as was growth in the size of the fleet, partially offset by lower average emissions per vehicle. Beyond normal-course efforts to reduce those emissions such as anti-idling policies and route optimization, we added another filter by which we can screen and, where appropriate, shift trucks to lower weight classes to achieve better fuel economy without losing service capability. Please see page 23 for details. New insights from consolidated fuel tracking noted above and other actions will help us drive better fleet performance and reduce emissions in future years.

We used a sustainability-informed process to design our next-generation facilities.

By the end of 2027, we expect to open a new Toromont Cat/Toromont Industries Ltd. head office, a new remanufacturing centre in Québec City, a new Toromont Cat branch in Brooklin, Ontario and a new automation-enabled warehouse in Halton Hills, Ontario. In total, we will build and occupy over 500,000 sq. ft. of purpose-built space that will give us the capacity to grow for years to come, and in some cases, exit older, energy-inefficient properties. Consistent with our sustainability goals, we are modelling our new facilities to optimize energy consumption and efficiency. For example, we have committed to mass timber construction for our new headquarters because of its thermal insulation properties and carbon sequestration benefits, versus standard building materials. Smart building designs will help us to reduce energy use, while the capabilities of Toromont Power Systems and CIMCO will be leveraged to introduce, where possible, alternative energy sources, including renewables.

We continued to meet customers where they are in their sustainability journeys.

Toromont is uniquely positioned to help customers, across multiple industries, achieve the business sustainability objectives that are most important to them. Our partnership with Caterpillar means we have access to an innovative powerhouse that is investing smartly to continuously develop machines that are energy efficient, highly productive and safe to use. As customer demand grows for autonomous, hybrid and alternative energy equipment, our partnership with Caterpillar will serve us well. Through CIMCO, we enable customers to save energy, reduce their carbon footprints, employ natural refrigerants and operate safely as they use our thermal equipment. While representing the right products is critically important no matter where the energy transition takes us, or when, Toromont must also be ready to help customers embrace (and maximize the use of) new technologies and keep customers’ equipment operating at peak levels of efficiency. To do both, we invested heavily once again in 2025 in our rental fleets – which give customers an economical way to try out new equipment – and in the development of our workforce of technicians. Overall, we invested some $400 million in property, plant and equipment to empower Toromont to better serve customers.

We remanufactured tonnes of worn equipment.

Through five Toromont Remanufacturing facilities, supported by Toromont Cat branches, we continued to contribute to the circular economy. Restoring well-worn components and rebuilding entire machines to factory specifications result in extended service life for equipment, saving customers money and diverting waste from landfill. Toromont’s investments in these capabilities will continue as we position ourselves to serve the lifecycle needs of our large installed equipment base.

We succeeded again in 2025 because of the efforts of our people.

Toromont now employs ~7,900 people who serve in many different capacities at over 165 locations. Their efforts give us a high-performance culture. In turn, we strive to provide recognition for and support to our employees through our total rewards program, the annual delivery of training – including over 139,000 hours in 2025 (not including training investments by AVL Manufacturing) – and enriching experiences within a safe and respectful workplace.

We are disciplined, dedicated and driven to grow responsibly in future years.

Achieving our ambitious goals will require sustained momentum, ongoing focused investments, and an openness to learning and innovation. We are dedicated to driving that momentum forward in 2026 to position Toromont for responsible growth that serves all stakeholders.

Yours sincerely,