Signify Reports full-year 2025 Sales of EUR 5.8 Billion

“Signify's performance in 2025 highlighted the resilience of our business as we responded to reduced demand, the ripple effect of tariffs, and price pressure in our trade channels. In this context, our full-year results were mixed. Our Professional business grew in the US but declined inEurope. Our Consumer business delivered sustained growth in all regions except China. Connected lighting showed strong growth in both Professional and Consumer markets, but this was offset by a decline in non-connected, particularly in trade channels. Both businesses maintained a strong gross margin. OEM faced reduced demand and pricing pressure. Adjusted EBITA was 8.9%, and we generated strong cash flow of EUR 440 million, or 7.6% of sales.

In the fourth quarter, continued connected growth and a strong topline performance in the US and India was offset by declines in a number ofother regions. The adjusted EBITA margin for the quarter was impacted by a lower contribution from Consumer, OEM and Conventional." said As Tempelman, CEO of Signify.

“Through what will be a transitional year for Signify, our immediate priority is to outperform in a tough market by strengthening our commercial andoperational excellence, and cost competitiveness. To drive this, we are announcing a EUR 180 million program to structurally reset our cost base, which will unfortunately impact 900 roles across Signify. To focus the business for future success, we are conducting a full strategy and portfolio review and will share our conclusions at our Capital Markets Day on June 23, 2026.

We anticipate the challenging conditions to persist through 2026. Considering the diverging dynamics in our end markets, we are not providing guidance on full-year sales at this stage. We expect an adjusted EBITA margin of 7.5-8.5%, and free cash flow generation of 6.5-7.5% of sales. We intend to pay an increased dividend of EUR 1.57 per share, while pausing share buybacks for capital reduction purposes, to preserve financial flexibility during our strategic review.

I want to thank our employees for their commitment and resilience throughout the year. Their dedication is essential as we position Signify for sustainable, profitable growth.”

Brighter Lives, Better World 2025

Having completed its Brighter Lives, Better World 2025 sustainability program, Signify will introduce its new sustainability program in the first quarter of 2026. In the final quarter of the 2025 program, Signify achieved the following results:

Double the pace of the Paris Agreement

Signify surpassed its 2025 target to reduce greenhouse gas (GHG) emissions across its entire value chain by 40% against the 2019 baseline - double the pace required by the Paris Agreement.

Double Circular revenues

Circular revenues reached 37% of sales, beyond the 2025 target of 32%. The main contribution was from serviceable luminaires in the Professional business, with strong performance in the Americas.

Double Brighter lives revenues

Brighter lives revenues were at 34% of sales, surpassing the 2025 target of 32%. This included strong contribution from consumer and special lighting products.

Double the percentage of women in leadership

The percentage of women in leadership positions remained at 27%, which did not meet the 2025 target of 34%. Signify remains committed to increasing representation through focused hiring practices for diversity across all levels, and through retention and engagement actions that reduce attrition.

Cost reduction program

The company will structurally reset its cost base and establish continuous productivity improvements, while remaining committed to its operating model.

To drive this, Signify is announcing a EUR 180 million cost reduction program. The majority of savings will be delivered through 2026, with the full benefit realized in 2027.

Outlook

Signify anticipates the challenging conditions to persist through 2026. Considering the diverging dynamics in its end markets, the company is not providing guidance on full-year sales at this stage. Signify expects an adjusted EBITA margin of 7.5-8.5%, and free cash flow generation of 6.5-7.5% of sales.