We prove that every simple 2-connected subcubic graph on $n$ vertices with $n_2$ vertices of degree 2 has a TSP walk of length at most $\frac{5n+n_2}{4}-1$, confirming a conjecture of Dvořák, Král', and Mohar. This bound is best possible; there are infinitely many subcubic and cubic graphs whose minimum TSP walks have lengths $\frac{5n+n_2}{4}-1$ and $\frac{5n}{4} - 2$ respectively. We characterize the extremal subcubic examples meeting this bound. We also give a quadratic-time combinatorial algorithm for finding such a TSP walk. In particular, we obtain a $\frac{5}{4}$-approximation algorithm for the graphic TSP on simple cubic graphs, improving on the previously best known approximation ratio of $\frac{9}{7}$.