EINDHOVEN, the Netherlands – Signify today announced the company’s first quarter 2025 results.
CEO COMMENTARY
“Our performance in the first quarter landed in line with expectations, showing sequential improvements across most of our businesses, with a strong contribution from our connected offerings. The Consumer business grew in all regions, improving both top and bottom-line performance. The Professional business maintained a resilient profit margin as improvements in other markets compensated for continued headwinds in Europe. In China, we saw a faster-than-expected return to growth in both professional and consumer segments.
We are now focused on executing our plan to mitigate the short-term impact of tariffs in Q2, while implementing more structural measures to address the second half of the year. Based on our visibility of the market and the measures we are taking across the business, we confirm our guidance for the year.
Our connected and specialty lighting offerings now represent more than a third of our business. We are pleased to see these continue to perform and gain market share, despite the current market volatility. Our strategy to further strengthen these businesses will ensure we are well positioned to capture share as the market develops,” said Eric Rondolat, CEO of Signify.
Brighter Lives, Better World 2025
The first quarter 2025 marked the start of Signify’s fifth and final year of its Brighter Lives, Better World 2025 sustainability program commitments that contribute to doubling its positive impact on the environment and society.
Double the pace of the Paris Agreement
Signify is tracking ahead of its 2025 target to reduce emissions across the entire value chain by 40% against the 2019 baseline – double the pace required to achieve the Paris Agreement’s climate ambitions.
Double Circular revenues
Circular revenues increased to 36%, up 1% versus the previous quarter and surpassing the 2025 target of 32%. The main contribution was from serviceable luminaires in the professional business, with a strong performance from horticulture lighting.
Double Brighter lives revenues
Brighter lives revenues remained at 33%, ahead of the 2025 target of 32%. This includes a strong contribution from both consumer and professional products with EyeComfort that support health and well-being.
Double the percentage of women in leadership
The percentage of women in leadership positions decreased by 1% to 27%, which is not in line 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 first quarter, Signify received several external recognitions for its leadership in Sustainability. Signify has been named in the Global 100 most sustainable corporations by Corporate Knight and is recognized in the Clean200, a list of companies putting sustainable investments at the heart of their strategy.
Outlook
Signify is focused on executing its plan to mitigate the short-term impact of tariffs in Q2, while implementing structural measures to address the second half of the year. Based on the current visibility of the market and the measures being taken across the business, Signify confirms the guidance for the year.
Signify continues to expect sales momentum to build throughout the year, leading to low single digit comparable sales growth excluding Conventional. Signify also expects a stable Adjusted EBITA margin vs. 2024 with the Professional, Consumer and OEM combined compensating the drag of the Conventional business. Signify targets a free cash flow generation of 7-8% of sales.
Signify also delivered an update on its CEO succession process.
CEO Eric Rondolat stepped down after today’s Annual General Meeting of Shareholders (AGM). The Supervisory Board stated that it is on track to complete its review of internal and external candidates and expects to conclude the process next month.
Željko Kosanović has been appointed as interim CEO of Signify in addition to continuing his role as CFO.
“We are pleased that Željko Kosanović has agreed to serve as interim CEO. With his extensive experience and knowledge of the business, Željko is well suited to lead the company through this transition period,” said Gerard van de Aast, Chair of the Supervisory Board, Signify. “We look forward to continue working with Željko and the leadership team as we execute our strategy and position the company for long-term growth.”
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