Techtronic Industries Company (0669) H1 2026 earnings summary

Executive summary

• Achieved record first-half 2026 results with revenue up 5.9% to US$8.3 billion, net profit up 17.5% to US$738 million, and record EBIT margin of 9.9%, driven by strong performances from core brands Milwaukee and Ryobi.

• Core brands Milwaukee and Ryobi accounted for 93% of total sales, with Milwaukee up 10.5% and Ryobi up 1.7% in local currency; underlying core brand growth was 8.2%.

• Exited noncore HART brand and rationalized other consumer brands, contributing to improved sales mix and margin expansion.

• Segment structure redefined to Professional and Consumer to better align with end-user and brand strategies.

• Launched a US$500 million share repurchase plan and increased interim dividend by 20%.

Financial highlights

• Revenue rose 5.9% year-over-year to US$8.3 billion; gross profit increased 12.6% to US$3.6 billion, with gross margin up 258 bps to 42.9%.

• EBIT grew 15.9% to US$822 million; EBIT margin up 86 bps to 9.9%.

• Net profit increased 17.5% to US$738 million; EPS up 17.8% to US40.50 cents.

• Free cash flow reached US$753 million, up US$285 million year-over-year, with conversion at 102%.

• Interim dividend per share increased 20% to US19.31 cents; payout ratio 47.8%.

Outlook and guidance

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

• Raised 2026 internal free cash flow target from US$1 billion+ to over US$1.3 billion.

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

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

• CapEx to remain stable as a percentage of sales, with expansions in Vietnam, Mexico, and the Americas planned.