With sales of approximately 9.937 billion yuan, Signify released its first quarter results for 2026

On April 24, Signify announced its first quarter financial report for 2026.

According to financial report data, in the first quarter of 2026, Signify achieved nominal sales of 1.274 billion euros (approximately RMB 9.937 billion), a nominal decrease of 12.0% from the same period last year. Excluding exchange rate changes and integration effects, comparable sales fell 5.1%.

On the profit side, net profit in the first quarter was 8 million euros, a sharp decrease from 67 million euros in the same period last year. This was mainly due to the 180 million euros cost reduction plan announced by the company in January, which resulted in 63 million euros in restructuring costs. Despite this, the company's adjusted gross profit margin remained solid at 40.6%.

In terms of business segments, the professional lighting business, as the core of Signify, achieved sales of 839 million euros in the first quarter, and comparable sales fell by 3.7%.

Although trade channels and public projects in the European and US markets remain weak, the sequential improvement in indoor projects in the European market and growth in emerging markets have largely offset the decline in some regions. It is worth noting that connected lighting solutions continued to maintain growth in this quarter, driving the adjusted EBITA profit margin of the professional lighting business to rise by 20 basis points to 7.3% against the trend.

The consumer lighting business achieved sales of 276 million euros in the first quarter, with comparable sales falling 4.6%. This is mainly due to the destocking behavior of retail channels that has affected inbound sales, but the actual sales performance on the consumer side remains strong. From a regional perspective, the continued growth of the Indian market offset the weak performance of some sub-brands. Affected by the decline in sales, the adjusted EBITA profit margin of this business segment fell to 5.7%.

After experiencing a period of pressure, the OEM business showed signs of stabilization in the current quarter, achieving sales of 82 million euros and comparable sales falling 4.8%. Although the overall market remains weak, price pressure has begun to ease, operating profit margin fell to 2.5% due to reduced sales, and part of the loss has been offset by cost reduction actions.

The traditional lighting business continued its structural downward trend, achieving sales of 71 million euros, and comparable sales fell 17.9%. It is expected that as the impact of factory consolidation subsides in the second half of the year, the profitability of this business will be repaired.

In terms of financial structure and cash flow, Signify's free cash flow increased to 47 million euros in the first quarter, an increase from 40 million euros in the same period last year. This was mainly due to excellent working capital management, especially the further optimization of accounts receivable and inventory. As of the end of the first quarter, the company's installed base of connected lighting points had increased to 171 million, further consolidating its position in the field of digital lighting.

Looking ahead to full-year 2026, Signify reiterated its financial guidance. Although market challenges are expected to persist throughout the year, based on current visibility and operating efficiency, the company confirmed its adjusted EBITA margin target for fiscal 2026 is 7.5% to 8.5%, with free cash flow accounting for approximately 6.5% to 7.5% of sales.