【669 Blue Chip Performance】Chuang Ke Industrial's profit last year increased by 6.8% to a record high of $1.2 billion, with a final dividend up nearly 12% to $1.32

Techtronics Industries (00669)
Despite facing significant tariff pressures, the company’s net profit attributable to shareholders reached a record high of $1.198 billion last year, up 6.8% year-on-year. Basic earnings per share were 65.61 cents, with a final dividend of HKD 1.32, an increase of 11.9%. The board plans to consider executing share buybacks of up to $500 million within the next 18 months.

During the period, Techtronics Industries’ revenue rose 4.4% year-on-year to a record high of $15.26 billion, with a gross profit margin of 41.2%, an increase of 91 basis points. This reflects the positive impact of the high-margin MILWAUKEE business, productivity improvements, and operational efficiencies gained from RYOBI and other consumer businesses. As tariff relief measures are gradually implemented in the second half of the year, profit margin expansion is expected to accelerate further.

During the period, sales of power tools reached $14.4 billion, with growth of 5.3% in reported currency and 5% in local currency. On a reported basis, MILWAUKEE sales increased by 8.1%, and in local currency, by 7.9%. RYOBI sales grew by 5.4% in local currency. Sales of flooring care and cleaning products declined by 9.7%, mainly due to weak performance from brands such as HOOVER, DIRT DEVIL, ORECK, and VAX.

MILWAUKEE and RYOBI business revenues are expected to grow in the mid to high single digits this year

Looking ahead, Techtronics Industries expects core revenues from MILWAUKEE and RYOBI to grow in the mid to high single digits, although some of this growth will offset the group’s strategic withdrawal from the HART business and ongoing rationalization of the flooring care segment.

The company also expressed confidence in making good progress toward its internal goal of achieving a 10% EBITDA margin by 2027. Additionally, it anticipates recording over $1 billion in annual free cash flow for the fourth consecutive year. This outlook does not include the impact of the U.S. Supreme Court’s February 20 ruling to abolish tariffs under the International Emergency Economic Powers Act (IEEPA) and the subsequent implementation of a unified minimum tariff on U.S. trade partners.

Source: Techtronics Industries Announcement

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