Techtronic Industries Company (0669) H2 2025 earnings summary

Executive summary

• Achieved record sales of $15.3 billion in 2025, 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 $1.2 billion, and ended 2025 with a net cash position of $700 million.

• Gross margin expanded by 91 bps to 41.2%, supported by higher-margin business growth and regional outperformance.

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

• Announced a $500 million share buyback over 18 months and increased annual dividend to HKD 2.57 per share, up 13.7% year-over-year.

Financial highlights

• EBIT grew 5.2% to $1.34 billion; normalized EBIT margin (excluding HART exit) at 9.3%, reported EBIT margin at 8.8%.

• Net profit margin at 7.9%; EPS up 6.8% to $0.656.

• SG&A as % of sales at 32.5%, up 80 bps; admin expenses at 9.8% of sales.

• Net finance costs reduced 37.6% to $33.6 million.

• Free cash flow near $1.4 billion; ended 2025 with net cash position of $700 million.

Outlook and guidance

• Confident in delivering another $1 billion+ free cash flow in 2026, with core Milwaukee and Ryobi businesses expected to grow mid- to high-single digits.

• Targeting EBIT margin expansion to 10% by 2027.

• Guidance excludes major interest rate cuts and potential impacts from recent US tariff policy changes.