Signify reports full-year 2025 sales of EUR 5.8 billion, operational profitability of 8.9% and a free cash flow of EUR 440 million
Press Release
January 30, 2026
Signify reports full-year 2025 sales of EUR 5.8 billion, operational profitability of 8.9% and a free cash flow of EUR 440 million
Highlights 1
- Signify’s installed base of connected light points increased to 167 million at the end of 2025
- FY 25 sales of EUR 5,765 million with a CSG of -3.4%; Q4 25 sales of EUR 1,492 million with a CSG of -5.2%
- Adj. EBITA margin of 8.9% in FY 25 (FY 24: 9.9%) and 10% in Q4 25 (Q4 24: 12.4%)
- Net income of EUR 259 million (FY 24: EUR 334 million) and EUR 60 million in Q4 25 (Q4 24: 119 million)
- Free cash flow of EUR 440 million (FY 24: EUR 438 million) and of EUR 291 million in Q4 25 (Q4 24: 188 million) driven by disciplined working capital management
- Repurchased shares for a total consideration of EUR 150 million; 5.8 million shares cancelled
- Proposal for cash dividend of EUR 1.57 per share over 2025 (FY24: EUR 1.56)
- Signify initiates a cost reduction program of EUR 180 million
- Signify to pause share repurchases for cancellation during portfolio and strategy review
Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s fourth quarter & full year results 2025.
“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 in Europe. 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 of other 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 and operational 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.
Conference call and audio webcast
As Tempelman (CEO) and Željko Kosanović (CFO) will host a conference call for analysts and institutional investors at 9:00 a.m. CET to discuss the fourth quarter and full year 2025 results. A live audio webcast of the conference call will be available via the Investor Relations Website
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 releas
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