Press Release
July 25, 2025
Signify reports second quarter sales of EUR 1.4 billion, operational profitability of 7.8% and a free cash flow of EUR 36 million
Second quarter 20251
- Signify's installed base of connected light points increased to 156 million in Q2 25
- Signify ranks 6th among Europe's most sustainable corporations in Corporate Knights Europe 50
- Sales of EUR 1,418 million; nominal sales of -4.4%
- Comparable Sales Growth of -1.4%; 0.8% growth excluding the Conventional business
- Adj. EBITA margin of 7.8% (Q2 24: 7.9%)
- Net income of EUR 57 million (Q2 24: EUR 63 million)
- Free cash flow of EUR 36 million (Q2 24: EUR 51 million)
- Share repurchase program on track; EUR 65.2 million of shares repurchased until June 30, 2025
Eindhoven, the Netherlands - Signify (Euronext: LIGHT), the world leader in lighting, today announced the company's second quarter 2025 results.
"The momentum in our business continued through the second quarter, with comparable sales growth in both the Professional and Consumer businesses. The comparable sales decline of 1.4% reflects a topline growth of 0.8%, excluding the Conventional business. The return to growth in the Professional business was led by strong performance in North America and connected lighting sales. The Consumer business delivered its third consecutive quarter of growth, driven by robust demand for our connected home products. Connected and specialty lighting now represent over a third of our total sales, underscoring the importance and impact of our strategy.
Our gross margin remained strong, supported by disciplined price and cost management, as our teams continued to demonstrate their agility in navigating a volatile external environment. While we are encouraged by these developments, our adjusted EBITA performance was impacted by higher cost absorption in some parts of the business with stronger headwinds, and re-investments to drive growth.
With a robust plan in place to secure an operational performance that maintains our positive sales momentum and effectively manages cost through the second half, we confirm our guidance of low single digit growth excluding the Conventional business and a free cash flow of 7 - 8% of sales, and add a range to our EBITA margin guidance of 9.6 - 9.9%." said Željko Kosanovic, CFO and interim CEO of Signify.
Brighter Lives, Better World 2025
In the second quarter of the year, Signify continued to advance its Brighter Lives, Better World 2025 sustainability programwhich commits to doubling its positive impact on the environment and society.
Reduce greenhouse gas emissions
Signify is ahead of schedule to achieve its 2025 target to reduce greenhouse gas emissions across its entire value chain by 40% against the 2019 baseline - double the pace required by the Paris Agreement.
Circular revenues
Circular revenues increased to 37%, up 1% over last quarter and surpassing the 2025 target of 32%. The main contribution was from serviceable luminaires in the professional business in all regions.
Brighter lives revenues
Brighter lives revenues remained at 33% and beyond the 2025 target of 32%. This includes strong contribution from tunable professional products and special lighting that support health and well-being.
Percentage of women in leadership
The percentage of women in leadership positions remained at 27% this quarter, which is not aligned with our 2025 ambitions. Signify continues its actions to increase representation through focused hiring practices for diversity across all levels, and through retention and engagement actions to reduce attrition.
In the second quarter, Signify received several external recognitions for its leadership in Sustainability. The company has been named in the Corporate Knights Europe 50 most sustainable corporations and has been recognized in CDPs Supplier Engagement Assessment (SEA) A-list for its 2024 disclosure.
Outlook
With a robust plan in place to secure an operational performance that maintains the positive sales momentum and effectively manages cost through the second half, Signify confirms its guidance low single digit comparable sales and a free cash flow generation of 7 - 8% of sales, and adds a range to its EBITA margin guidance of 9.6 - 9.9%.
Conference call and audio webcast
Željko Kosanovic
The analyst presentation is available via this link
¹ This press release contains certain non-IFRS financial measures and ratios, which are not recognized measures of financial performance or liquidity under IFRS. For further details, refer to "Non-IFRS Financial Measures" in "Important information" of this press release
Attachment
- Signify Press Release - Q2 2025 (https://ml-eu.globenewswire.com/Resource/Download/701d3ee1-c819-488e-a65d-b4a7562a2545)
