TTI Hits Record $15.3B Sales, Defying Tariffs and Market Headwinds

HONG KONG – March 03, 2026 – Techtronic Industries Co. Ltd. (TTI) announced a robust financial performance for 2025, achieving record-breaking results despite facing significant economic and trade-related challenges. The global power tool giant reported sales of US$15.3 billion, a 4.4% increase over the previous year, while net profit climbed 6.8% to reach US$1.2 billion.

The results, released from the company's Hong Kong headquarters, underscore a year of strategic resilience where the strength of its flagship brands and operational efficiencies successfully counteracted market-wide pressures, including what the company termed "significant tariff headwinds."

Powering Through Economic Pressure

In a market where competitors have struggled, TTI's performance stands out. While rival Stanley Black & Decker reported a 2% sales decline for 2025, TTI grew its revenue and expanded its profitability. The company's gross profit margin improved by an impressive 91 basis points to 41.2%. TTI attributed this margin expansion to a favorable product mix, driven by its high-margin MILWAUKEE business, alongside productivity enhancements and successful tariff mitigation efforts that gained traction in the second half of the year.

Tariffs, particularly those related to US-China trade, have been a persistent challenge for the industry. Many manufacturers faced disruptions and cost pressures throughout 2025. TTI's ability not only to weather this storm but to increase profitability demonstrates a sophisticated supply chain and pricing strategy that has allowed it to outmaneuver market-wide obstacles. The company's reported EBIT grew 5.2% to US$1.3 billion, reinforcing its effective management in a complex global trade environment.

The Dual Engines of Growth: MILWAUKEE and RYOBI

The primary drivers of TTI's success remain its two powerhouse brands: MILWAUKEE and RYOBI. Together, the TTI Power Equipment segment delivered US$14.4 billion in sales, an increase of 5.3%.

MILWAUKEE, the company's professional tool brand, continued its impressive growth trajectory, with sales rising 7.9% in local currency. This performance further solidifies its position as the world's leading professional power tool brand, favored by tradespeople for its innovation and durability. The underlying sales growth was even stronger at 10.3% when excluding the impact of a discretionary suspension of some promotions due to tariffs, signaling powerful organic demand.

On the consumer side, RYOBI also delivered a strong performance, growing 5.4% in local currency. As the top global brand for DIY and consumer cordless tools, RYOBI's continued growth marks a successful navigation of the post-pandemic market adjustments. Its exclusive partnership with The Home Depot in North America remains a cornerstone of its strategy, giving it a dominant channel for reaching its core DIY audience.

Underscoring its focus on these high-performing core assets, TTI made the strategic decision to discontinue its HART tool business at the end of 2025. While TTI will retain the brand, the move to exit the business, which was sold exclusively through Walmart, is seen as a disciplined step to shed a less profitable line and concentrate resources on the more dominant MILWAUKEE and RYOBI ecosystems.

A Strategic Cleanup in Floorcare

While the power tool division thrived, TTI's results revealed a significant weak spot in its portfolio. The Floorcare and Cleaning segment, which includes legacy brands like HOOVER, DIRT DEVIL, ORECK, and VAX, saw sales fall by 9.7% in 2025. This decline was attributed to broad weakness across these brands and a slowdown in consumer discretionary spending.

In response, TTI has initiated a significant overhaul of the division. The company has reorganized the segment into a single global team and is consolidating its North American footprint to improve efficiency and profitability. A key part of the turnaround strategy is to accelerate the conversion from corded to cordless cleaning products, leveraging TTI's core competency in battery technology.

Interestingly, while the established floorcare brands faltered, TTI's own RYOBI-branded cleaning products performed exceptionally well, achieving double-digit sales growth. This internal contrast suggests that the company's path forward in the cleaning space may rely more on its successful power tool branding and innovation ecosystem rather than its legacy floorcare names.

Strong Balance Sheet Fuels Shareholder Returns

TTI's operational success translated into a remarkably strong financial position. The company generated nearly US$1.4 billion in free cash flow, marking the third consecutive year of generating over US$1.2 billion. This robust cash generation allowed TTI to end 2025 in a net cash position of US$700 million, a stark indicator of its financial health.

This powerful financial foundation is enabling the company to significantly increase returns to its shareholders. The Board recommended a final dividend that brings the full-year dividend to approximately US33.08 cents per share, a 13.7% increase over the prior year. Furthermore, TTI announced its intention to implement a discretionary share buyback plan of up to US$500 million over the next 18 months—a move that signals management's confidence in the company's valuation and future prospects.

Executive Chairman Horst Pudwill highlighted this strength, stating, "With the healthiest balance sheet in the Company's history, a diversified global manufacturing footprint, and stable capital spending requirements, we anticipate our ability to further increase returns to shareholders in the years to come."

Looking ahead, the company remains optimistic. CEO Steven P. Richman commented, "With the #1 Professional and Consumer brands in the World, TTI is off to a strong start in 2026 and we look forward to another year of strong results. On a blended basis, we expect the core MILWAUKEE and RYOBI businesses to grow revenue mid-to-high single digits."