TORO CO

As more fully described in Note 3, Segment Data, of the Notes to the Condensed Consolidated Financial Statements, we operate in two reportable business segments: Professional and Residential. Segment earnings (loss) before interest and taxes ("EBIT") for our Professional and Residential reportable segments are defined as earnings from operations plus other income, net. Our remaining activities consisting of a wholly-owned domestic distribution company, Red Iron joint venture, certain corporate activities, impairment charges, and the elimination of intersegment revenues and expenses, are presented as "Other" due to their insignificance. Corporate activities include general corporate expenditures, such as finance, human resources, legal, information technology, public relations, business development, and similar activities, productivity initiative charges, and other unallocated corporate assets and liabilities, such as corporate facilities and deferred tax assets and liabilities. The following tables summarize net sales for our reportable business segments and Other activities:

The following tables summarize EBIT (Loss) for our reportable business segments and Other activities:

1 Presentation of EBIT (Loss) for the first quarter of fiscal 2025 has been conformed to the current year presentation.

Professional Segment

Segment Net Sales

Worldwide net sales for our Professional segment for the first quarter of fiscal 2026 increased 7.2 percent compared to the first quarter of fiscal 2025. This increase was driven primarily by net price realization, higher shipments of snow and ice management and underground construction products, in addition to the Tornado acquisition.

Segment EBIT

Professional segment EBIT for the first quarter of fiscal 2026 increased 8.2 percent compared to the first quarter of fiscal 2025, and Professional segment EBIT margin increased to 16.7 percent from 16.5 percent in the first quarter of fiscal 2025. The increase in Professional segment EBIT margin was primarily due to net price realization and productivity improvements, partially offset by higher material and manufacturing costs.

Residential Segment

Segment Net Sales

Worldwide net sales for our Residential segment for the first quarter of fiscal 2026 decreased 6.8 percent compared to the first quarter of fiscal 2025. The decrease in Residential segment net sales was primarily driven by lower shipments of lawn care products, partially offset by higher shipments of snow and ice management products and net price realization.

Segment EBIT

Residential segment EBIT for the first quarter of fiscal 2026 decreased 23.3 percent compared to the first quarter of fiscal 2025, and Residential segment EBIT margin decreased to 6.4 percent from 7.8 percent in the first quarter of fiscal 2025. The decrease in Residential segment EBIT margin for the first quarter of fiscal 2026 was primarily due to higher materials costs and lower net sales volume, partially offset by net price realization, productivity improvements, product mix, and cost savings measures.

Other Activities

Other Net Sales

Net sales for our Other activities includes sales from our wholly-owned domestic distribution company net of intersegment sales from the Professional and Residential segments to the distribution company. Net sales for our Other activities in the first quarter of fiscal 2026 increased by $1.1 million compared to the first quarter of fiscal 2025.

Other EBIT (loss)

The loss before interest and taxes for our Other activities for the first quarter of fiscal 2026 decreased $13.6 million compared to the first quarter of fiscal 2025, primarily due to lower productivity initiative charges and lower corporate expenses.