EINDHOVEN: Signify (Euronext: LIGHT), the global leader in lighting solutions, posted second-quarter revenue of €1.418 billion, navigating persistent market headwinds with robust consumer demand and growing sustainability credentials.
The company’s comparable sales declined 1.4%, dragged by its Conventional lighting business. Excluding that segment, topline growth reached 0.8%, driven by momentum in the Professional and Consumer divisions. Operational profitability remained firm, with an adjusted EBITA margin of 7.8%, slightly lower than 7.9% in Q2 2024. Net income totaled €57 million, down from €63 million a year earlier, while free cash flow stood at €36 million.
“With strong contributions from connected and specialty lighting, we’ve entered the second half with a clear plan to sustain growth and manage costs,” said Željko Kosanović, interim CEO and CFO.
Connected lighting continues to be a strategic growth lever, now accounting for over one-third of total sales. Signify’s installed base of connected light points surged to 156 million in the quarter. The Consumer business marked its third consecutive quarter of growth, buoyed by demand for smart home products.
Restructuring and Share Buybacks
The company reiterated its full-year guidance of low single-digit comparable sales growth (excluding Conventional lighting), free cash flow generation of 7–8% of sales, and newly added EBITA margin guidance of 9.6–9.9%. A share repurchase program remains on track, with €65.2 million in shares bought back as of June 30.
Under its Brighter Lives, Better World 2025 roadmap, Signify continues to outperform on its sustainability metrics:
- Circular revenues rose to 37%, surpassing the 2025 target of 32%.
- The company is ahead of schedule in cutting greenhouse gas emissions by 40% across its value chain.
- Brighter lives revenues held steady at 33%, supporting wellness-focused lighting.
- However, female leadership representation remained flat at 27%, short of internal targets.
Signify ranked sixth in the Corporate Knights Europe 50 index of sustainable corporations and earned a spot on CDP’s Supplier Engagement A-list for its 2024 climate disclosures.