Signify (LIGHT) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw challenging market conditions, with price pressure from redirected Chinese overcapacity and softness in key European and U.S. professional markets, especially in public sector projects.

• Growth in connected and specialty lighting, particularly in consumer and agricultural segments, helped offset declines in commoditized and OEM products.

• New product launches, especially in the Philips Hue line, and expansion in India drove strong consumer demand.

• Q3 2025 sales reached EUR 1,407 million, down 8.4% year-over-year, with comparable sales growth (CSG) at -3.9% and -2.7% excluding the Conventional business.

• Installed base of connected light points increased to 160 million; sustainability targets remain on track.

Financial highlights

• Nominal sales declined 8.4% year-over-year to EUR 1,407 million, with a 4.5% negative currency effect.

• Comparable sales fell 3.9%; excluding conventional, the decline was 2.7%.

• Adjusted EBITA margin was 9.7%, down 80 bps year-over-year.

• Net income dropped to EUR 76 million due to lower operating income and higher tax expense.

• Free cash flow was EUR 71 million for the quarter, down from EUR 119 million a year earlier.

Outlook and guidance

• Full-year 2025 guidance updated: comparable sales growth expected at -2.5% to -3% (or -1% to -1.5% excluding conventional).

• Adjusted EBITA margin guidance revised to 9.1%-9.6%.

• Free cash flow expected around 7% of sales.

• Priorities include commercial and supply chain execution, efficiency, digital and AI investments, and a strategic review with a Capital Markets Day planned for mid-2026.

• Share repurchase program of up to EUR 150 million planned for 2025.