Chervon Group grows revenue 11.9% on strength of OPE sales, Ego product line
Chervon Holdings Limited, the group behind brands including Ego power equipment and Flex and Skil power tools, reported its financial results for the six months ended June 30, 2025, against figures for the same period in 2024. The company reported its revenue increased by 11.9% to $912.4 million (USD) in the first half of 2025, up from $815.7 million for the same period in 2024. Chervon said it benefitted “from strong points-of-sales performance and customers’ pre-stocking measures in light of the China-U.S. tariff tensions, particularly in the first quarter of 2025.” Chervon’s net profits grew 54.6% during the period as compared to the same period in 2024 driven by business growth across its branded products, strong gross profit margin of its Ego OPE products, and favorable exchange rates among other things.
Revenue from its outdoor power equipment segment increased by 22.8% to $602.0 million compared to $490.4 million for the same period in 2024. Revenue from Chervon’s power tools segment decreased by 2.5%.
Chervon’s revenue from North America increased by 17.9% to $651.1 million up from $552.4 million for the same period in 2024. Revenue from Europe increased by 4.0% while revenue from China decreased by 8.4%. Revenue from the rest of the world decreased by 13.2% to $23.4 million for the reporting period from $27.0 million for the same period in 2024.
Gross Profit and Gross Profit Margin
The manufacturer said its gross profit increased by 13.1% to $303.9 million for the period up from $268.7 million for the same period in 2024. During the same periods, its overall gross profit margin increased from 32.9% to 33.3%, primarily driven, it said, by an increase in the proportion of high-margin Ego brand products, favorable raw material costs, as well as the increase in sales price.
“We continue to focus on our customers, bringing to market new power tool and OPE products to meet their diverse needs. Leveraging our research and development capability, we continued to innovate by introducing about 100 new products during the Reporting Period. Lithium-ion battery powered products accounted for over 90% of the new products,” said the company in a statement.
“Our well-diversified channel strategy has continued to make progress, achieving Point Of Sale growth in almost every channel, especially the online channel. Our expansion in Europe has also progressed steadily, including the establishment of our first Ego flagship store in Germany.”
“As the largest single OPE platform and the fastest-growing brand in the sector, Ego is well positioned to capture the shift toward lithium electrification and intelligent technologies. We have achieved breakthroughs in Internet of Things (“IoT”), AI recognition, visual positioning and multi- sensor navigation, laying a solid foundation for the future expansion of our intelligent business.
Supply Chain, Manufacturing and Tariffs
Chervon said it has “strengthened our global manufacturing capabilities. This included accelerating the relocation of part of our production capacity from Nanjing to Vietnam, further expanding our global manufacturing capabilities. Our production capacity in Vietnam is expected to increase significantly by the second half of 2025, which will significantly mitigate the impact of China-U.S. tariff tensions and enhance our overall efficiency in the long-run. At the same time, the relocation of our production from the Steinheim facility in Germany to Nanjing is expected to be completed by the end of 2025.”
A 20% tariff applies to goods directly imported from Vietnam into the United States. Goods that a manufacturer in China ships through Vietnam, sometimes called “transshipping,” are charged a 40%. Some economists say that enforcing extra levies on transshipments can be difficult. The current (as of Aug. 27) U.S. tariff rates on exports from China is 57.6% but it’s been as high as 135%.
Outlook
“External pressures remain as we move into the second half of the year, with ongoing uncertainties posed by China-U.S. tariff tensions remaining to be a key challenge to our operations and supply chain planning. This period also marks a pivotal stage in the strategic relocation of our production capacity. To address this challenge, we will spare no effort in accelerating the transfer of production to our Vietnam facilities, while refining our pricing strategies and maintaining rigorous cost discipline.”
