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    Toromont Rental Equipment 6542ea27ef921
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    Cat Dealer Toromont Revenues Rise 14 Percent for First Nine Months of 2023

    Nov. 2, 2023
    Rental revenue increased on higher market activity, good execution and an expanded heavy and light equipment fleet, Toromont said.

    Toromont Industries, owner of one of the world’s largest Caterpillar dealerships, posted CDN $1,174 million in third quarter 2023 revenue, compared to $1,086.5 million for the third quarter of 2022, an 8 percent increase. For the first nine months of 2023, total revenue was $3,395.4 million, compared to $2,986.8 million for the first nine months of 2022, a 13.7-percent increase.

    In the third quarter, the Equipment Group rose 7 percent on higher equipment sales, product support revenues were up 7 percent, and rental activity increased 11 percent.

    Revenue for the Equipment group was $1.1 billion for the quarter. Rental revenue increased on higher market activity, good execution and an expanded heavy and light equipment fleet, Toromont said.

    “We are pleased with the operating and financial performance through the first nine months of the year,” said Michael McMillan, Toromont president and CEO. “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 in the quarter 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.”

    McMillan elaborated on the overall market conditions and Toromont’s strategies. “We are mindful of the uncertain economic environment and continue to monitor key metrics and supply dynamics,” he noted. “We have seen some softening in demand for equipment in construction markets after a period of strong growth. We will continue to follow our disciplined approach, working our operational model while delivering results for our customers, suppliers and employees. While focused on managing discretionary spend, we continue to recruit technicians, to support our critical after-market service strategies and value-added product offering over the long term.”

    Toromont’s Caterpillar dealerships cover Quebec, Ontario, Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island. A major player in rental, Toromont Cat, headquartered in Toronto, is No. 14 on the RER 100.

    About the Author

    Michael Roth | Editor

    Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.