Signify (LIGHT) Q2 2025 earnings summary

Executive summary

• Installed base of connected lighting points rose to 156 million, with connected and specialty lighting now over a third of total sales.

• Nominal sales declined 4.4% to EUR 1,418 million, mainly due to a 3% negative FX impact; comparable sales down 1.4%, but up 0.8% excluding Conventional.

• Adjusted EBITA margin decreased by 10 bps to 7.8%, with adjusted EBITA at EUR 110 million.

• Net income dropped to EUR 57 million, mainly due to lower operating income and higher adjusted items.

• Free cash flow was EUR 36 million, down from EUR 51 million, impacted by higher working capital outflow.

Financial highlights

• Gross margin improved by 10 bps to 40.4% year-over-year, driven by disciplined price and cost management.

• Working capital reduced to 7.5% of sales, with inventories and receivables both down.

• Share buyback program repurchased EUR 65 million in shares by June 2025.

• Net debt increased to EUR 1,198 million, with a net debt-to-EBITDA ratio of 1.7x at end of June 2025.

• Basic EPS was EUR 0.44 for Q2 2025.

Outlook and guidance

• Guidance confirmed for low single-digit comparable sales growth (excluding Conventional), EBITA margin of 9.6–9.9%, and free cash flow of 7–8% of sales for the full year.

• Operational focus remains on maintaining positive sales momentum and effective cost management in H2 2025.

• Announced share repurchase program up to EUR 150 million for 2025.

• Full EUR 200 million cost savings from restructuring program realized; ongoing reinvestment in sales and marketing to support growth.