Review of Toromont Industries Ltd.

MAR 12, 2026 - Data center construction spending has surged in recent years, as AI requires massive facilities such as hyperscale data centers, energy infrastructure, and transmission networks. These developments naturally drive demand for construction and specialized equipment that TIH provides. Though recent operating results are not particularly impressive, investors are optimistic about the company’s near-term prospects. As a result, TIH is trading at a record valuation multiple. TIH has a highly durable business model that has consistently provided investors with decent returns for decades. During that period, the company has gone through multiple economic recessions, industry cyclical downturns, and even the pandemic. We continue to view TIH as one of the great operators in the industry with a solid track record and a consistent and progressive dividend policy. We are open to a future upgrade if the company can maintain strong revenue and booking growth in the near term. For now, we are maintaining our rating at “B+”.