I raise Techtronic Industries' rating to a Buy, after evaluating its interim results and outlook. Gross margin expanded 0.4 percentage points in 1H25, which was equivalent to a +10 basis points outperformance versus the consensus. The company's future is bright, considering the huge total addressable market and the intermediate-term profitability improvement target.
Techtronic Industries Company Limited (OTCQX:TTNDY) Q2 2025 Earnings Conference Call August 5, 2025 10:30 PM ET Company Participants Chi Chung Chan - Group CFO & Group Executive Director Drew Patrick - Corporate Participant Horst Julius Pudwill - Founder & Group Executive Chairman Stephan Horst Pudwill - Group Executive Vice Chairman Steven Philip Richman - CEO & Executive Director Tim Albrecht - Corporate Participant Conference Call Participants C. Fang - HSBC Global Investment Research Hyungwook Choi - Daiwa Securities Co. Ltd.
Techtronic Industries Company Limited (OTCQX:TTNDY) Q4 2024 Results Earnings Conference Call March 4, 2025 9:30 PM ET Company Participants Horst Julius Pudwill - Chairman Stephan Horst Pudwill - Vice Chairman Frank Chi Chung Chan - Group Chief Financial Officer Steven Philip Richman - Chief Executive Officer Bobby Shaw - Group President, RYOBI N.A. Shane Moll - Group President, Milwaukee Tool Conference Call Participants Eric Lau - Citigroup Karen Li - J.P.
I stay positive on Techtronic Industries after previewing its results and evaluating the implications of a US-China trade war escalation. My forecasts point to bullish expectations of a more rapid pace of sales growth and higher margins for TTNDF. The company's future financial performance shouldn't be badly affected by US tariffs on Chinese goods, contrary to investor fears.
Techtronic Industries stock continues to be a Buy due to its positive cash flow outlook and its growth potential in the EMEA region. TTNDY's free cash flow grew +69% YoY in 1H 2024, and its current free cash flow yield is higher than its historical average. The company's expansion in the EMEA region will most likely boost its future revenue and profitability in a meaningful way.
Techtronic Industries Company Limited (OTCQX:TTNDY) Q2 2024 Results Conference Call August 6, 2024 10:30 PM ET Company Participants Horst Pudwill - Chairman Stephan Pudwill - Vice Chairman Steven Richman - CEO Shane Moll - Group President of MILWAUKEE Power Tools Alex Duarte - Senior Group President of EMEA Frank Chan - CFO Conference Call Participants Karen Li - JPMorgan Jacqueline Du - Goldman Sachs John Choi - Daiwa Capital Markets Johnson Wan - Jefferies Sau Chan - CLSA Horst Pudwill Good morning, ladies and gentlemen. Thank you for coming.
My view of Techtronic Industries' leadership transition, the company's share repurchases, and the prospects of rate cuts is favorable. Techtronic Industries' P/E multiple can re-rate to a level closer to or on par with its key customer, Home Depot. I remain bullish on Techtronic Industries based on my assessment of various developments and the stock's valuations.