Techtronic Industries Company (0669) H2 2024 earnings summary

Executive summary

• Achieved record 2024 sales of $14.6 billion, up 6.5%, with net profit up 14.9% to $1.12 billion and EPS up 15.1%, driven by strong performance in Milwaukee (+11.6% local currency) and RYOBI (+6.4% local currency) brands.

• Gross margin improved by 85 bps to 40.3%, and EBIT rose 11.9% to $1.27 billion.

• Free cash flow reached $1.6 billion, up 23% year-over-year, with 142% net profit conversion.

• Maintained a strong balance sheet, reducing net debt by 95% to $44–45 million and net gearing to 0.7%.

• Dividend payout increased, with a proposed total dividend up 17.1% to US29.09 cents per share and a final dividend up 20.4% to 118 HK cents.

Financial highlights

• Sales reached $14.6 billion, with organic growth of 6.5% (6.8% in local currencies); gross profit rose to $5.9 billion, gross margin at 40.3%.

• EBIT increased 11.9% to $1.27 billion; net profit hit $1.12 billion, net margin at 7.7% (+60 bps).

• EPS grew 15.1% to $61.43; free cash flow of $1.6 billion, capex reduced 41.9% to $292 million.

• Net finance cost decreased 31.9% to $54 million; effective tax rate at 7.8%.

• Working capital as % of sales improved to 14.4%; inventory days reduced by 7 to 102.

Outlook and guidance

• 2025 sales growth expected in mid- to high-single digits, with RYOBI in single digits and Milwaukee in double digits.

• Targeting 10% EBIT margin as a medium-term goal and annual free cash flow over $1 billion.

• Continued investment in innovation, cordless technology, and market expansion.