Techtronic Industries Company (0669) H1 2026 earnings summary

Executive summary

• Achieved record first-half 2026 results with revenue up 5.9% to $8.3B and net profit up 17.5% to $738M, driven by strong performance in core brands Milwaukee and Ryobi.

• EBIT margin reached a record 9.9%, with robust free cash flow of $753M and strengthened net cash position.

• Strategic focus on operational excellence, product development, and R&D investment continues to support market leadership.

• Launched a $500M share buyback plan and increased interim dividend by 20%.

• Exited noncore HART brand, contributing to underlying sales growth of 8.2% for core brands.

Financial highlights

• Revenue rose 5.9% year-over-year to $8.3B; core brands Milwaukee and Ryobi grew 8.2% in local currency.

• Gross profit increased 12.6% to $3.6B; gross margin expanded 258 bps to 42.9%.

• EBIT up 15.9% to $822M; EBIT margin improved 86 bps to 9.9%.

• Net profit climbed 17.5% to $738M; EPS up 17.8% to $0.405.

• Free cash flow reached $753M, with conversion at 102%.

Outlook and guidance

• Confident in achieving or exceeding 10% EBIT margin by 2027, with 9.9% already reached in H1 2026.

• Raised 2026 internal free cash flow target from over $1B to over $1.3B.

• Core Milwaukee and Ryobi businesses expected to grow mid- to high-single digits in 2026.

• Anticipates further increases in shareholder returns, including dividends and share buybacks.

• Gross margin expected to remain at current high levels, with further upside possible from tariff refunds.