Signify Reports Revenue of 5.8 Billion Euros in 2025 with an Operational Profitability of 8.9%

Financial Performance and Market Challenges

Signify recorded a revenue of 5.8 billion euros for the fiscal year 2025. The adjusted operational profitability stood at 8.9%, while the free cash flow reached 440 million euros, representing 7.6% of the revenue. According to the company, the year's performance was marked by resilience in the face of several challenges: reduced demand, cascading effects of tariffs, and pricing pressures in commercial channels. The Professional business saw growth in the United States but a decline in Europe. The Consumer business demonstrated sustained growth across all regions, except for China. Connected lighting showed strong growth in both Professional and Consumer markets, but this was offset by a decline in non-connected offerings, particularly in commercial channels. Both sectors maintained a solid gross margin. The OEM business faced reduced demand and pricing pressures.

Cost Reduction Program and Future Outlook

Signify announces a cost reduction program of 180 million euros aimed at sustainably restructuring its cost base, which will impact 900 positions. The majority of savings will be realized during 2026, with full benefits achieved in 2027. The company anticipates a persistently challenging market environment throughout 2026. Lacking sufficient visibility due to divergent dynamics in its end markets, Signify does not provide guidance on annual revenue. The group expects an adjusted EBITA margin of 7.5% to 8.5% and a generation of free cash flow of 6.5% to 7.5% of revenue. Signify intends to pay an increased dividend of 1.57 euros per share and to suspend share buybacks as a capital reduction measure to preserve financial flexibility during its strategic review. A Capital Markets Day is scheduled for June 23, 2026.

Completion of the Brighter Lives, Better World 2025 Sustainability Program

Signify has finalized its Brighter Lives, Better World 2025 sustainability program. The company exceeded its 2025 target for reducing greenhouse gas emissions by 40% compared to the 2019 baseline, thus doubling the pace required by the Paris Agreement. Circular revenues reached 37% of revenue, surpassing the 2025 target of 32%, primarily driven by the service luminaires of the Professional business with strong performance in the Americas. Brighter lives revenues stood at 34% of revenue, exceeding the 2025 target of 32%, fueled by a strong contribution from specialized and consumer lighting products. The percentage of women in leadership positions remained at 27%, not reaching the 2025 target of 34%. Signify introduced its new sustainability program in the first quarter of 2026.