Second quarter 20251
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s second quarter 2025 results.
"The momentum in our business continued through the second quarter, with comparable sales growth in both the Professional and Consumer businesses. The comparable sales decline of 1.4% reflects a topline growth of 0.8%, excluding the Conventional business. The return to growth in the Professional business was led by strong performance in North America and connected lighting sales. The Consumer business delivered its third consecutive quarter of growth, driven by robust demand for our connected home products. Connected and specialty lighting now represent over a third of our total sales, underscoring the importance and impact of our strategy.
Our gross margin remained strong, supported by disciplined price and cost management, as our teams continued to demonstrate their agility in navigating a volatile external environment. While we are encouraged by these developments, our adjusted EBITA performance was impacted by higher cost absorption in some parts of the business with stronger headwinds, and re-investments to drive growth.
With a robust plan in place to secure an operational performance that maintains our positive sales momentum and effectively manages cost through the second half, we confirm our guidance of low single digit growth excluding the Conventional business and a free cash flow of 7 - 8% of sales, and add a range to our EBITA margin guidance of 9.6 - 9.9%." said Željko Kosanović, CFO and interim CEO of Signify.
Brighter Lives, Better World 2025
In the second quarter of the year, Signify continued to advance its Brighter Lives, Better World 2025 sustainability program which commits to doubling its positive impact on the environment and society.
Signify is ahead of schedule to achieve its 2025 target to reduce greenhouse gas emissions across its entire value chain by 40% against the 2019 baseline - double the pace required by the Paris Agreement.
Circular revenues increased to 37%, up 1% over last quarter and surpassing the 2025 target of 32%. The main contribution was from serviceable luminaires in the professional business in all regions.
Brighter lives revenues remained at 33% and beyond the 2025 target of 32%. This includes strong contribution from tunable professional products and special lighting that support health and well-being.
The percentage of women in leadership positions remained at 27% this quarter, which is not aligned with our 2025 ambitions. Signify continues its actions to increase representation through focused hiring practices for diversity across all levels, and through retention and engagement actions to reduce attrition.
In the second quarter, Signify received several external recognitions for its leadership in Sustainability. The company has been named in the Corporate Knights Europe 50 most sustainable corporations and has been recognized in CDPs Supplier Engagement Assessment (SEA) A-list for its 2024 disclosure.
Outlook
With a robust plan in place to secure an operational performance that maintains the positive sales momentum and effectively manages cost through the second half, Signify confirms its guidance low single digit comparable sales and a free cash flow generation of 7 - 8% of sales, and adds a range to its EBITA margin guidance of 9.6 - 9.9%.
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Conference call and audio webcast
Željko Kosanović (Signify CFO and interim CEO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss the second quarter 2025 results. A live audio webcast of the conference call will be available via the Investor Relations website.
Financial calendar 2025
October 24, 2025: Third quarter results 2025
Forward-Looking Statements and Risks & Uncertainties
This document and the related oral presentation contain, and responses to questions following the presentation may contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify N.V. (the “Company”, and together with its subsidiaries, the “Group”), including statements regarding strategy, estimates of sales growth and future operational results.
By their nature, these statements involve risks and uncertainties facing the Company and its Group companies, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement as a result of risks and uncertainties. Such risks, uncertainties and other important factors include but are not limited to: adverse economic and geopolitical developments including the potential impact of trade tariffs, the impact of the increasing conflicts globally, volatility in interest rates, inflation and currency fluctuations, changes in international tax laws, economic downturns in key geographies to the company, supply chain disruptions, new technological disruptions, cybersecurity risk, competition in the general lighting market, reputational and adverse effects on business due to activities in Environment, Health & Safety, compliance risks, ability to attract and retain talented personnel, pension liabilities.
Additional risks currently not known to the Group or that the Group has not considered material as of the date of this document could also prove to be important and may have a material adverse effect on the business, results of operations, financial condition and prospects of the Group or could cause the forward-looking events discussed in this document not to occur. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.
Market and Industry Information
All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group’s own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.
Non-IFRS Financial Measures
Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin and indirect costs, EBITA, adjusted EBITA, free cash flow, Net debt, Working capital, Brighter lives revenues, Circular revenues and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group’s business and operations. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of a number of non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in appendix B, Reconciliation of non-IFRS financial measures, of this document. For further information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS measures” in the Annual Report 2024.
Presentation
All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided. All reported information is unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2024.
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Signify Investor Relations
Thelke Gerdes
Tel: +31 6 1801 7131
E-mail: thelke.gerdes@signify.com
Signify Corporate Communications
Tom Lodge
Tel: +31 6 5252 5416
E-mail: tom.lodge@signify.com
Signify (Euronext: LIGHT) ist der weltweit führende Anbieter für Licht- und Beleuchtungslösungen für professionelle Anwender, Endkonsumenten und Beleuchtung im Internet der Dinge. Mit unseren Philips Produkten, den vernetzten Interact Lichtsystemen und datengestützten Services, bieten wir einen Mehrwert für Unternehmen und verändern das Leben zu Hause, in Gebäuden sowie in urbanen Räumen.
Mit einem Umsatz von 6,1 Milliarden Euro im Jahr 2024, rund 29.000 Mitarbeitern und einer Präsenz in über 70 Ländern, erschließen wir das außergewöhnliche Potenzial von Licht für ein angenehmeres Leben und eine bessere Welt. Wir sind seit unserem Börsengang vor acht Jahren durchgehend im Dow Jones Sustainability World Index vertreten und haben im fünften Jahr in Folge die Platin-Auszeichnung von EcoVadis erhalten, womit Signify zum besten Prozent der bewerteten Unternehmen gehört. Neuigkeiten rund um Signify sind im Newsroom, auf X, LinkedIn und Instagram zu finden. Informationen für Investoren gibt es auf der Seite für Investor Relations.
