Dyson has reported a £440m drop in annual sales after it was hit by US trade tariffs, although the group managed to boost profits through cost-cutting measures and operational efficiency improvements.
The company said sales fell from 6.57 billion pounds to 6.13 billion pounds in 2025, marking the second consecutive year of decline after more than two decades of uninterrupted growth. The decline was attributed to a combination of weaker consumer confidence in key markets, currency fluctuations and the impact of tariffs imposed under Donald Trump.
The U.S. tariffs targeted imports from countries like Malaysia and the Philippines, where Dyson makes a significant portion of its products. The tariffs initially reached as high as 24 percent before being reduced, but still had a significant impact on the company’s ability to compete on price in one of its most important markets.
Dyson responded by increasing prices in the US, citing broader global economic pressures that in turn contributed to weaker demand.
Chief Executive Hanno Kirner called the tariffs “particularly damaging,” noting that they had disrupted sales momentum at a time when consumer sentiment in major economies such as the United States, Germany and China was already fragile.
Despite the decline in sales, Dyson’s profitability improved significantly. Operating profit rose from £520m to £600m, while earnings before interest, tax, depreciation and amortization (EBITDA) rose from £940m to £1.1bn.
The improvement was largely driven by a cost-cutting program, including job cuts in 2024 when the company reduced its UK workforce by around 1,000 jobs.
The results highlight Dyson’s ability to protect margins even in difficult trading conditions, driven by a disciplined approach to cost management and pricing.
The company continued to focus heavily on product development, investing £400 million in research and development and launching a record number of new products during the year.
James Dyson said the company remained committed to innovation as a key differentiator in increasingly competitive markets.
Dyson has expanded beyond its core vacuum cleaner business into categories such as hair care, air purification and robotics, where it competes with both established brands and lower-priced entrants.
The company is also integrating artificial intelligence into its product range, including new robotic cleaning systems that can detect and remove stains, to maintain its technological edge.
Dyson is now headquartered in Singapore and continues to operate in more than 80 markets worldwide, with growth in the UK partly offsetting declines elsewhere.
Kirner said the company plans to continue to expand its product offerings and introduce devices in a wider price range to reach more consumers.
The findings highlight the challenges global manufacturers face in an increasingly fragmented trading environment, where tariffs and geopolitical tensions can have a direct impact on supply chains and prices.
For Dyson, the combination of strong profitability and continued investment suggests resilience, but the decline in sales underscores pressure on consumer demand and the risks associated with global trade disputes.
As the company navigates these headwinds, its ability to balance innovation, cost control and market expansion will be critical to whether it can return to sustainable revenue growth.
