Techtronic Industries Company (0669) H2 2025 earnings summary

Executive summary

• Achieved record 2025 sales of $15.3 billion, up 4.4% year-over-year, with net profit rising 6.8% to $1.2 billion, driven by strong performance from core brands Milwaukee and Ryobi despite macroeconomic and tariff headwinds.

• Free cash flow reached nearly $1.4 billion, marking the third consecutive year above $1 billion, ending with a net cash position of $700 million.

• Milwaukee and Ryobi accounted for over 90% of sales, with Milwaukee up 7.9% (10.3% underlying) and Ryobi up 5.4% in local currency.

• Exited HART business and rationalized Floorcare, focusing on core brands and operational efficiency.

• Announced a discretionary share buyback plan of up to $500 million over 18 months.

Financial highlights

• Gross profit rose 6.7% to $6.3 billion; gross margin improved by 91 bps to 41.2%.

• EBIT grew 5.2% to $1.34 billion; normalized EBIT margin reached 9.3%, up 57 bps.

• EPS increased 6.8% to $0.656; final dividend proposed at HKD 1.32 per share, total 2025 dividend HKD 2.57 per share (+13.7% YoY), payout ratio 50.5%.

• Net finance costs reduced by 37.6% to $33.6 million; shareholders’ equity up 9.3% to nearly $7 billion.

• SG&A expenses rose 7.0% to $4.97 billion (32.5% of sales); R&D expenses were $757 million (5.0% of turnover).

Outlook and guidance

• Targeting mid- to high-single-digit overall sales growth, double-digit growth for Milwaukee, and single-digit for Ryobi in 2026.

• Internal plan to reach 10% EBIT margin by 2027; confident in sustaining high single-digit effective tax rate.

• Expect continued strong free cash flow generation above $1 billion in 2026.

• Plans to further increase shareholder returns through dividends and share repurchases.

• Guidance excludes potential impacts from recent US tariff policy changes.