Signify (LIGHT) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached EUR 1,448 million, a nominal decline of 1.3% and comparable sales growth (CSG) of -2.8% year-over-year, with growth in Consumer and connected lighting, but weakness in Professional Europe and OEM segments.

• Net income increased to EUR 67 million from EUR 44 million in Q1 2024, mainly due to lower restructuring and financial expenses.

• Adjusted EBITA margin was 8.0%, down 30 bps year-over-year, as cost savings were offset by under-absorption of fixed costs and negative segment mix.

• Free cash flow was EUR 40 million, down from EUR 80 million in Q1 2024, mainly due to higher working capital outflow.

• Achieved 15th rank globally and 3rd in sector in Corporate Knights Global 100 Most Sustainable Corporations, with strong sustainability and innovation performance.

Financial highlights

• Comparable sales declined by 2.8% year-over-year to EUR 1,448 million; nominal sales decreased by 1.3% with a positive currency effect of 1.4%.

• Adjusted EBITA margin at 8.0% (Q1 2024: 8.3%), with adjusted EBITA at EUR 116 million.

• Gross margin for Q1 2025 was 40.8%, down from 41.2% in Q1 2024.

• Free cash flow at EUR 40 million (Q1 2024: EUR 80 million), representing 2.8% of sales.

• Working capital as a percentage of sales reduced to 7.2%, driven by lower inventories and receivables.

Outlook and guidance

• 2025 guidance confirmed: low single-digit comparable sales growth (excluding Conventional), stable adjusted EBITA margin, and free cash flow generation of 7-8% of sales.

• Mitigation plans in place for U.S. tariffs, with sourcing shifting away from China to other Asian countries.

• Ongoing share repurchase program up to EUR 150 million in 2025.

• Anticipates sales momentum to build through the year, with Professional, Consumer, and OEM segments offsetting Conventional drag.