Toromont Industries Ltd. (TSX:TIH) is a Concord-based company that is engaged in the design, engineering, fabrication, and installation of refrigeration systems. The stock was down 2.77% in early afternoon trading on February 26. Shares have increased 2.6% in 2018 and 22.5% year over year. The company released its 2017 fourth quarter and full-year results on February 22.
Revenues surged 67% to $822.8 million compared to Q4 2016 and for the full-year revenues totalled $2.35 billion which represented a 23% increase from 2016. In the fourth quarter net earnings rose 30% year over year to $59.1 million and for the full-year net earnings reached $176 million – a 13% jump from the prior year. Toromont also hiked its quarterly dividend by 21% to $0.23 per share representing a 1.6% dividend yield.
CIMCO Refrigeration, one of the subsidiaries of Toromont, had a record year in 2017. CIMCO is the preferred supplier of ice rink equipment for the National Hockey League (NHL). In August Toromont also acquired Hewitt Refrigeration for $1.02 billion. Hewitt is an authorized Caterpillar Inc. heavy equipment dealer based in Quebec.
Toromont has established itself as a top shelf growth stock on the TSX – climbing over 130% over a five-year period. Its solid dividend should also pique interest for investors that are seeking income. Toromont leadership is confident that it stands to benefit from a continued infrastructure spending push from provincial and federal governments in Canada.
