Dyson reported a £440 million drop in sales for the year after being hit by US trade tariffs, although the group was able to boost profits through cost-cutting measures and operational efficiencies.
The company said revenue fell from £6.57 billion to £6.13 billion in 2025, marking the second consecutive year of decline following more than two decades of uninterrupted growth. The drop in prices was caused by a combination of weak consumer confidence in key markets, currency fluctuations and the impact of tariffs introduced under Donald Trump.
The US tariffs target imports from countries including Malaysia and the Philippines, where Dyson makes most of its products. Tariffs initially reached as high as 24 percent before being reduced, but they still had a significant impact on the company’s ability to compete on price in one of its most important markets.
Dyson responded by raising prices in the US, citing global economic pressures, which contributed to soft demand.
Chief executive Hanno Kirner described the tariffs as “particularly dangerous”, noting that they hampered sales momentum at a time when consumer sentiment was already weak across major economies including the US, Germany and China.
Despite the decline in sales, Dyson’s profits have improved significantly. Operating profits rose from £520 million to £600 million, while earnings before interest, tax, depreciation and amortization (EBITDA) increased from £940 million to £1.1 billion.
This development is largely driven by a cost-cutting programme, including job cuts implemented in 2024, when the company cuts its UK workforce by around 1,000 roles.
The results underline Dyson’s ability to protect margins even in challenging trading conditions, demonstrating a proactive approach to cost and pricing management.
The company has continued to focus 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 business remains committed to innovation as a key differentiator in 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 low-end entrants.
The company is also incorporating artificial intelligence into its product line, including new robotic cleaning systems that can identify and remove stains, as it seeks to maintain the technological edge.
Now headquartered in Singapore, Dyson continues to operate in more than 80 markets around the world, with growth in the UK partly slowing elsewhere.
Kirner said the company plans to expand its product offering further, introducing devices at a wider range of prices to reach more consumers.
The results highlight the challenges facing global producers in an increasingly fragmented trading environment, where tariffs and political tensions can have a direct impact on supply chains and prices.
For Dyson, the combination of strong profits and continued investment suggests resilience, but declining sales underscore the pressure on consumer demand and the risks associated with global trade conflicts.
As the company navigates these storms, its ability to balance innovation, cost control and market expansion will be critical in determining whether it can return to sustained revenue growth.
