Milwaukee Tool saw its revenue grow 22% in 2022, but the company’s plans suggest 2023 may be the year that its run of strong growth comes to an end.
The Brookfield-based maker of cordless power tools and equipment has seen a remarkable run of growth for more than a decade. Top line sales growth has exceeded 20% in every year but one since 2010.
Milwaukee Tool’s parent company, Hong Kong-based
Techtronic Industries, is budgeting for the Milwaukee business to grow “solid teens” this year, Joe Galli, chief executive officer of TTI, said in the company’s earnings webcast.
“We always have internal plans to grow more,” Galli said, adding the company has plans to grow more than 20% for the year.
That growth in the teens would be considered a slowdown is a testament to Milwaukee Tool’s run of growth, which has taken the business from around $600 million in revenue in 2010 to $8.1 billion in revenue this past year.
The growth has come primarily through the new product introductions in cordless power tools along with expansion into new categories like battery-powered light equipment, outdoor equipment, accessories, hand tools and other products.
Galli noted that the aftermarket battery business has been a strong revenue driver for TTI overall. The parent company also owns the Ryobi brand, which is aimed at do-it-yourself tool users while Milwaukee Tool focuses on professional and trade customers.
The aftermarket battery business has grown from around $250 million in sales in 2016 to $1.3 billion this past year.
Overall, TTI reported revenue of $13.2 billion for 2022, up just 0.4% from the prior year or 2.8% in local currency. The company saw almost $320 million in foreign currency exchange impact and the Ryobi brand was hampered by increased inventory in retail channels.
Within the Milwaukee Tool business, sales were strong around the world with 22% growth in North America, 22% growth in Europe and 23% in the rest of world category.
