Techtronic Industries Company Limited (TTI) reported another record first half, with revenue rising 5.90% year on year to USD 8.29 billion and net profit increasing 17.50% to USD 738.41 million.

Gross profit margin expanded 258 basis points to 42.90%, driven by tariff-mitigation measures, a richer mix from higher-margin Milwaukee products and continued improvement in non-core businesses. EBIT reached USD 822.21 million, lifting EBIT margin 86 basis points to 9.90%.

Segment performance: • Professional division revenue advanced 9.70% to USD 5.89 billion; EBIT margin improved 57 bps to 10.50%. • Consumer division revenue slipped 2.50% to USD 2.40 billion, but EBIT margin widened 133 bps to 8.50% as the HART exit and cost controls boosted profitability.

Key brands maintained growth momentum. Milwaukee sales rose 10.50% in local currencies, while Ryobi grew 1.70% to about USD 1.90 billion despite a softer outdoor season. Combined, the two core brands delivered 8.20% underlying growth. Non-core businesses, now 6.60% of group revenue, contracted 19.40% following the planned HART wind-down.

By geography, first-half sales in local currency increased 4.30% in the Americas (6.80% on an underlying basis), 2.80% in EMEA and 3.70% in Rest of World.

Cash generation strengthened. Free cash flow reached USD 753.00 million versus USD 468.00 million a year earlier, moving TTI to a net cash position of USD 1.07 billion. Capex remained stable at USD 92.00 million (1.10% of sales). Working-capital intensity eased slightly to 16.60% of sales; inventory days fell to 100.

The board declared an interim dividend of HKD 1.50 (approx. USD 0.1931) per share, up 20.00% year on year. In June, management launched a USD 500.00 million automatic share-repurchase program, buying back USD 42.00 million of stock by end-July.

Balance-sheet metrics stayed strong: shareholders’ funds grew 7.00% to USD 7.40 billion and book value per share rose to USD 4.07. Net gearing remained in a net-cash position.

Outlook: Management reaffirmed mid-to-high single-digit revenue growth for Milwaukee and Ryobi in 2026, reiterated the 10.00% EBIT-margin target for 2027, and lifted the 2026 free-cash-flow goal to more than USD 1.30 billion.