Signify (LIGHT) Q3 2026 earnings summary

Executive summary

• Q3 sales were €1,367m, down 3.4% comparably; adjusted EBITA was €145m and margin was 10.6%, including a €28m net U.S. tariff-refund benefit.

• Sequential profitability improved through pricing, cost actions and portfolio measures despite weak end markets; adjusted EBITA margin excluding the tariff refund was 8.5%.

Financial highlights

• Sales were €1,367m versus €1,407m in Q3 2025; nominal sales declined 2.9%, comparable sales fell 3.4%, and currency contributed 0.4%.

• Adjusted EBITA rose to €145m from €136m; reported margin was 10.6%, or 8.5% excluding the €28m net U.S. tariff-refund benefit, versus 9.7% in Q3 2025.

• Adjusted gross margin increased 300 bps YoY to 42.5%; excluding the tariff-refund benefit, underlying gross margin improved slightly.

• Net income rose to €88m from €76m; income from operations was €130m versus €118m.

• Free cash flow was €118m versus €71m, or 8.6% of sales versus 5.1%; it benefited from working-capital management and tariff refunds and included €22m of restructuring payouts.

Outlook and guidance

• FY 2026 adjusted EBITA margin guidance remains 7.5%–8.5%, at the higher end including tariff refunds received through Q3 and the lower end excluding refunds.

• FY free cash flow guidance remains 6.5%–7.5% of sales and assumes no further Q4 tariff refunds.

• Q4 comparable sales growth is expected in line with or slightly below Q3, reflecting weak markets and a strong prior-year Consumer comparison.

• Cost reductions and Q4 seasonality are expected to support sequential profitability; margin resilience is expected despite quarter-to-quarter variability.