With sales of 11.483 billion yuan, Signify releases Q3 results for 2025
On October 24, Signify announced its third quarter financial report for 2025. The CEO of Signify said that European demand is weak and price pressure continues, the U.S. market recovery is slower than expected, and the overall market environment is full of challenges.
Specifically, in the third quarter, Signify achieved sales of 1.407 billion euros (approximately RMB 11.483 billion), down 8.4% from the same period last year, comparable sales fell 3.9%, and dropped 2.7% if the traditional lighting business was excluded; net profit was 76 million euros, down 30.2% year-on-year; adjusted profit margin before interest, tax, and amortization (EBITA) fell to 9.7% year-on-year; free cash flow decreased to 71 million euros.
In the first three quarters, Signify’s cumulative sales were 4.273 billion euros (approximately RMB 35.047 billion), a year-on-year decrease of 4.8%; net profit was 199 million euros (approximately RMB 1.632 billion), a year-on-year decrease of 7.5%.
In terms of business, Signify said that in the third quarter, the company's development strategy in the field of connected lighting and professional lighting continued to work, driving related businesses to maintain growth.
The consumer business continued to achieve steady growth with its brand influence and the expansion of the Hue smart lighting product line; the professional lighting business performed well in areas such as project lighting, connected lighting and agricultural lighting. Both business segments have maintained solid profitability.
In contrast, the OEM business is under pressure due to declining demand from two major customers and intensified price competition, while the traditional lighting business continues to experience structural decline and is affected by the adjustment of production bases.
In the third quarter, Signify's professional lighting achieved sales of 928 million euros, a year-on-year decrease of 6.8%, and comparable sales fell 2.1%; the consumer lighting business achieved sales of 301 million euros, with comparable sales increasing 3.7% year-on-year, and EBITA profit The rate rose to 9.1%; the OEM business achieved sales of 93 million euros, comparable sales fell 23% year-on-year, and the EBITA profit margin dropped to 4.7%; the traditional lighting business achieved sales of 76 million euros, and comparable sales fell 21.5% year-on-year.
Based on market changes, Signify adjusted its fiscal year 2025 guidance to comparable sales growth of -2.5% to -3.0%, or -1.0% to -1.5% after excluding the traditional lighting business; adjusted EBITA profit margin is 9.1% to 9.6%; free cash flow accounts for approximately 7% of sales.
ANNA