TTI Delivers Record First-Half 2026 Results with Strong Profit Growth, Higher Margins, and Robust Cash Flow
Techtronic Industries Co. Ltd. (TTI), one of the world’s leading manufacturers of cordless power tools, outdoor power equipment, floorcare products, and cleaning solutions, reported record financial results for the first half of 2026, demonstrating the company’s continued ability to deliver profitable growth despite a competitive global business environment. Supported by strong demand for its flagship brands, operational efficiency improvements, and disciplined financial management, TTI achieved higher revenue, expanded margins, increased profitability, and generated significant free cash flow during the six months ended June 30, 2026.
The company reported first-half revenue of US$8.3 billion, representing a 5.9% increase compared with the same period in 2025. Net profit attributable to shareholders climbed 17.5% to US$738 million, while earnings per share increased 17.8%, highlighting the effectiveness of the company’s long-term growth strategy. At the same time, TTI continued investing in innovation, manufacturing optimization, supply chain improvements, and shareholder returns through an automatic share repurchase program.
Revenue Growth Driven by Leading Brands
TTI’s growth during the first half of 2026 was primarily fueled by the continued success of its two largest brands—MILWAUKEE and RYOBI. Together, these brands delivered a combined underlying local currency growth rate of 8.2%, reinforcing their strong market positions across professional and consumer segments.
The company’s professional tool business remained its strongest growth engine. MILWAUKEE, which serves professional tradespeople and industrial users worldwide, achieved an impressive 10.5% underlying growth in local currency after adjusting for the timing impact associated with the planned ERP system conversion in the Americas during 2025.
Management noted that the ERP transition had temporarily affected shipment timing during the previous year, making the current performance an even stronger indication of healthy customer demand and market share gains. Continued investments in cordless technology, jobsite productivity solutions, and product innovation helped strengthen MILWAUKEE’s position across construction, electrical, plumbing, and industrial applications.
RYOBI, recognized as the world’s leading consumer cordless tool and outdoor products brand, also contributed positively to overall growth. The brand generated US$1.9 billion in first-half sales, representing 1.7% growth in local currency. While consumer spending remained more cautious in certain markets, the brand continued benefiting from its broad portfolio of cordless DIY tools and outdoor equipment.
Strong Margin Expansion Reflects Operational Excellence
Beyond revenue growth, TTI achieved significant improvements in profitability through disciplined operational execution and manufacturing efficiencies.
The company’s gross profit margin increased to a record 42.9%, compared with 40.3% in the first half of 2025, representing an improvement of 258 basis points.
Management attributed the margin expansion to several strategic initiatives implemented over recent years, including:
- Manufacturing optimization across global production facilities.
- Improved productivity and operational efficiency.
- Strong supplier partnerships.
- Successful tariff mitigation strategies.
- Better sourcing and procurement practices.
Approximately 163 basis points of the gross margin improvement resulted from the annualization of initiatives introduced to reduce tariff-related costs and strengthen supply chain resilience.
These improvements enabled the company to offset inflationary pressures while continuing to invest heavily in research and development, product launches, and customer support.
EBIT and Profit Reach New Highs
The improvement in gross margin translated into record operating profitability.
Earnings before interest and taxes (EBIT) increased 15.9% year over year to US$822 million, compared with US$709 million during the first half of 2025.
Even more notable was the improvement in operating efficiency, with EBIT margin reaching a record 9.9%, up from 9.1% a year earlier. The 86-basis-point increase places TTI very close to its long-term internal objective of achieving a 10% EBIT margin by 2027.
Net profit attributable to shareholders rose even faster than operating income, climbing 17.5% to US$738 million. Lower finance costs, combined with stronger operating performance, contributed to the improved bottom-line results.
Basic earnings per share increased from 34.37 US cents to 40.50 US cents, reflecting both higher profitability and disciplined capital management.
Excellent Cash Generation Strengthens Balance Sheet
TTI also delivered another outstanding performance in cash generation.
The company produced US$753 million in positive free cash flow during the first six months of 2026, a substantial improvement from US$468 million generated during the same period last year.
The increase of US$285 million reflects stronger earnings, improved working capital management, and continued operational discipline.
Working capital as a percentage of annual sales improved slightly to 16.6%, representing an 11-basis-point improvement from the prior year.
As a result of strong cash generation, TTI ended the first half with a net cash position of US$1.066 billion, providing significant financial flexibility to support future investments, acquisitions, product development, and shareholder returns.
Management expressed confidence that free cash flow will remain strong during the second half of 2026.
Share Repurchase Program Enhances Shareholder Value
In June 2026, TTI launched an automatic US$500 million share repurchase program after receiving authorization and approval from the Board.
The buyback program will be executed over approximately 18 months and represents another demonstration of management’s confidence in the company’s long-term growth prospects and financial strength.
By the end of July 2026, TTI had already repurchased approximately US$42 million worth of its shares under the new program.
Alongside share repurchases, the Board approved a higher interim dividend, continuing the company’s history of rewarding shareholders.
Increased Interim Dividend
Reflecting confidence in the business outlook and stronger financial performance, the Board declared an interim dividend of HK150.00 cents per share, equivalent to approximately US19.31 cents.
The dividend represents a 20% increase compared with the previous interim dividend of HK125.00 cents per share paid for the first half of 2025.
Shareholders recorded on the company’s register as of September 4, 2026, will receive the dividend, with payment expected on or around September 18, 2026.
New Business Segment Reporting
During the first half of 2026, TTI introduced a revised reporting structure to better reflect how the company manages its operations.
Instead of reporting under the previous business segments of Power Equipment and Floorcare & Cleaning, the company now reports results under two strategic operating segments:
- Professional
- Consumer
The Professional segment generated US$5.9 billion in revenue during the first half, representing 9.7% reported growth. The performance was driven primarily by continued strength in MILWAUKEE’s professional cordless tool portfolio and expanding adoption across multiple industrial and construction markets.
Meanwhile, the Consumer segment recorded revenue of approximately US$2.4 billion, reflecting a 2.5% decline compared with the previous year. Although consumer demand remained softer in certain regions, management remains optimistic about long-term opportunities supported by innovation within the RYOBI product portfolio.
Leadership Highlights Future Growth
Executive Chairman Horst Pudwill emphasized that TTI’s long-term competitive advantages continue to strengthen.
He stated that the company benefits from an exceptional workforce, a strong corporate culture, close relationships with professional trades and customers, an industry-leading innovation pipeline, and the strongest balance sheet in its history. These strengths position TTI to maintain its leadership in cordless technology and continue expanding across global markets.
Chief Executive Officer Steven P. Richman expressed confidence that the company is well positioned to meet—or even exceed—its internal target of achieving a 10% EBIT margin by 2027.
Following the strong first-half results, management believes additional margin expansion opportunities remain available through continued operational improvements, manufacturing efficiencies, and ongoing investments in high-growth product categories.
The company also expects further earnings improvement in 2028 and beyond as these initiatives mature.
Innovation Remains at the Center of Growth
TTI continues to invest heavily in research and development, which remains one of its primary competitive advantages.
Its flagship MILWAUKEE brand continues developing advanced cordless systems, professional-grade tools, safety solutions, and productivity-enhancing technologies for skilled trades.
Meanwhile, RYOBI continues expanding its ecosystem of DIY cordless products, serving homeowners and consumers seeking versatile battery-powered tools and outdoor equipment.
The company’s broader portfolio also includes established brands such as AEG, EMPIRE, HOMELITE, HOOVER, ORECK, VAX, and DIRT DEVIL, enabling TTI to serve professional, industrial, and consumer customers across multiple global markets.
Positive Outlook for the Remainder of 2026
Looking ahead, TTI expects continued business momentum during the second half of the year. Management believes that strong customer demand, ongoing product innovation, improved manufacturing efficiency, healthy cash generation, and disciplined capital allocation will support another year of record performance.
With expanding profitability, a strengthened balance sheet, growing shareholder returns, and continued leadership in cordless technology, the company remains well positioned to capitalize on long-term opportunities across professional power tools, outdoor equipment, and consumer products. As TTI continues executing its strategic growth initiatives, it expects to build on the record achievements of the first half and deliver another outstanding financial performance for the full year 2026.
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