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 down 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 growth (CSG) was -2.8% year-over-year; sales at EUR 1,448 million, with a positive currency effect of 1.4%.

• Adjusted EBITA margin at 8.0%, down 30 bps from 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 improved from 7.3% to 7.2%, driven by lower inventories and receivables.

• Adjusted gross margin was 40.8% (Q1 2024: 41.2%).

Outlook and guidance

• 2025 guidance confirmed: low single-digit comparable sales growth (excluding Conventional), stable adjusted EBITA margin versus 2024, and free cash flow at 7-8% of sales.

• Mitigation plans for tariffs in Q2 and structural supply chain measures for H2 are in place.

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