Signify Reports Solid Q1 2025 Results with Strong Growth in Connected Lighting and Sustainability Milestones
Signify reported first-quarter 2025 results that reflect continued operational strength and progress in sustainability, despite market volatility and macroeconomic headwinds. The company posted sales of €1.448 billion, a slight nominal decline of 1.3%, and a comparable sales decline (CSG) of 2.8%, compared to Q1 2024.
Despite these declines, profitability remained solid, with an Adjusted EBITA margin of 8.0%, only slightly below last year’s 8.3%. Net income rose significantly to €67 million, up from €44 million in Q1 2024, indicating stronger earnings quality and cost discipline. Free cash flow came in at €40 million, compared to €80 million in the same quarter last year.
CEO Eric Rondolat: Confident Outlook for 2025
CEO Eric Rondolat expressed confidence in Signify’s ability to navigate short-term challenges while executing its long-term strategy:
“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. Based on our visibility of the market and the measures we are taking across the business, we confirm our guidance for the year.”
The company highlighted continued growth in its connected lighting segment, which now represents over one-third of total business. The installed base of connected light points grew to 153 million in Q1. Signify’s consumer segment expanded across all regions, contributing to both top-line and bottom-line gains. Meanwhile, the professional lighting business maintained its profitability despite continued softness in Europe, which was offset by a faster-than-expected rebound in China.
Market and Structural Adjustments Ahead
While acknowledging the impact of new tariffs in Q2, Rondolat emphasized Signify’s active approach to mitigation. The company is rolling out near-term actions and implementing structural measures to protect margins and support full-year targets.
The guidance for 2025 remains unchanged:
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Low single-digit comparable sales growth, excluding the conventional lighting business
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Stable Adjusted EBITA margin compared to 2024
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Free cash flow targeted at 7–8% of sales
Brighter Lives, Better World 2025: Final Year, Strong Progress
Q1 2025 marks the final year of Signify’s ambitious Brighter Lives, Better World 2025 program. The company is on track—or ahead—on three of its four major sustainability goals:
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Circular revenues rose to 36%, well above the 2025 target of 32%, driven by serviceable luminaires and growth in horticulture lighting
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Brighter lives revenues remained strong at 33%, led by EyeComfort technology across both professional and consumer portfolios
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Climate action is on pace, with emissions reductions across the value chain tracking ahead of the 40% target, which is double the pace required under the Paris Agreement
However, the company acknowledged a setback in gender diversity, with women in leadership roles decreasing to 27%, down 1% from the previous quarter and short of its 2025 goal. Signify reaffirmed its commitment to improving gender equity through targeted hiring and retention initiatives.
Sustainability Recognitions
Signify received several external accolades in Q1 for its environmental leadership:
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Named to the Corporate Knights Global 100 Most Sustainable Corporations, ranking 15th overall
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Included in the Clean200 list, which highlights companies leading the transition to clean energy and sustainable business models
Shareholder Initiatives
Signify completed share repurchases related to share-based remuneration and continues to execute a separate capital reduction share buyback program, further demonstrating confidence in its long-term financial health and cash flow generation.
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