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Third quarter 20251
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s third quarter 2025 results.
As Tempelman, CEO of Signify, comments:
"The market conditions today are challenging, with subdued demand and price pressure in Europe, and a slower than expected US market. While the trade channel and public sector were soft, our strategy to outperform in connected lighting and specialty offerings is delivering sustained growth.
The Consumer business continues to grow, boosted by our strong brand and the successful expansion of the Hue portfolio. In Professional, we continued to perform well in the project business, connected and specialty lighting such as agricultural lighting. The Professional and Consumer businesses both delivered robust margins.
Our OEM business has faced reduced demand and price pressure, as well as the anticipated impact of two major customers. The Conventional business declined as anticipated, with an additional impact from a manufacturing site rationalization.
Based on a softer than expected US market and further demand compression in the OEM business, we expect a comparable sales growth of -2.5 to -3.0%, or -1.0 to -1.5% excluding Conventional, an adjusted EBITA margin of 9.1-9.6%, and free cash flow generation around 7% of sales.
Looking ahead, we will focus on commercial and supply chain excellence, continuing to invest and leverage the full potential of our digital and AI capabilities, while maintaining our established cost and capital discipline. We are planning a Capital Markets Day next year where we will provide clarity on our portfolio, growth strategy and capital allocation.
I am impressed by the passion of our people and the strong culture of innovation. We will build on this and continue the shift in our culture to deliver the full potential of our operating model, with empowered and accountable market-led teams, focused R&D, accelerated digitalization and AI adoption, both in our customer offerings and in how we operate."
Brighter Lives, Better World 2025
In the third quarter of the year, Signify continued to progress on its Brighter Lives, Better World 2025 sustainability program commitments that contribute to doubling its positive impact on environment and society.
Signify is ahead of schedule to achieve its 2025 target to reduce greenhouse gas (GHG) 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% this quarter and beyond the 2025 target of 32%. The main contribution was from serviceable luminaires in the Professional business in all regions.
Brighter lives revenues increased to 34%, up 1% over last quarter, ahead of the 2025 target of 32%. This includes a strong contribution from Professional and Consumer products that support food availability and 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.
Outlook
Based on a softer than expected US market and further demand compression in the OEM business, Signify is adapting its guidance for FY 2025 as follows:
For the full and original version of the press release click here
Conference call and audio webcast
As Tempelman (CEO) and Željko Kosanović (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss the third quarter 2025 results. A live audio webcast of the conference call will be available via the Investor Relations website.
Financial calendar 2026
January 30, 2026 Fourth quarter and full-year results 2025
February 24, 2026 Annual Report 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 risk, 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 data is unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2024 and the Semi-Annual Report 2025.
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) est le leader mondial de l'éclairage pour les professionnels, les particuliers et l'Internet des objets. Nos produits Philips, nos systèmes Interact et les services basés sur les données apportent une valeur commerciale et transforment la vie dans les maisons, les bâtiments et les espaces publics. En 2024, nous avons réalisé un chiffre d'affaires de 6,1 milliards d'euros, avec environ 29 000 employés et une présence dans plus de 70 pays. Nous libérons le potentiel extraordinaire de la lumière pour des vies plus lumineuses et un monde meilleur. Depuis notre introduction en bourse, nous avons fait partie de l'indice mondial de durabilité Dow Jones Sustainability World Index pendant huit années consécutives et nous avons obtenu la note EcoVadis Platinum pour la cinquième année consécutive, ce qui place Signify dans le premier pour cent des entreprises évaluées. Les actualités de Signify sont disponibles dans notre Newsroom, sur X, LinkedIn and Instagram. Les informations destinées aux investisseurs se trouvent sur la page Relation avec les investisseurs.
