AMSTERDAM (dpa-AFX) - Dutch consumer electronics giant Koninklijke Philips N.V. (PHGFF.PK, PHG) reported Tuesday a rise in its sales for the third quarter, with a growth in adjusted EBITDA. Comparable order intake was higher than last year. Further, the firm maintained fiscal 2026 outlook.
However, net income for the quarter dropped mainly due to Respironics DOJ settlement provision.
In the third quarter, net income plunged to 28 million euros or 0.03 euro per share from last year's 187 million euros or 0.19 euro per share.
Income from operations fell to 165 million euros from 330 million euros last year, mainly due to a 288 million euros Respironics DOJ settlement provision, partly offset by higher sales and lower cost of sales.
Adjusted EBITA, however, climbed to 569 million euros from last year's 531 million euros, and adjusted EBITA margin increased 70 basis points to 13.0 percent, with expansion across all business segments.
Adjusted EBITDA grew to 772 million euros from 738 million euros a year ago. Adjusted EBITDA margin improved to 17.6 percent from 17.2 percent a year ago.
The margin growth mainly was driven by higher sales, higher gross margin and productivity measures, partly offset by cost inflation.
Group sales were 4.39 billion euros, 2 percent higher than 4.30 billion euros a year ago. Comparable sales growth was 3 percent, mainly driven by mid-single-digit growth in Connected Care and high-single-digit growth in Personal Health.
In Diagnosis & Treatment, comparable sales growth was flat.
Comparable order intake grew 8 percent, driven by strong growth in Diagnosis & Treatment.
The company further said it remains on track to deliver 1.5 billion euros in savings under its 2026-2028 productivity program.
Looking ahead for fiscal 2026, Philips continues to expect comparable sales growth of 3 percent to 4.5 percent, adjusted EBITA margin guidance of 13.5 percent to 14.0 percent, including a US tariff refund benefit of approximately 1 percent.
Free cash flow is still expected at 1.5 billion euros to 1.7 billion euros, including a US tariff refund benefit of approximately 200 million euro.
(Note: Emphasis given more on sales, as the drop in Net income was one-off driven)
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