Signify – Signify’s third quarter results 2026

Signify reports third quarter results highlighting progress on strategy execution with sequential strengthening of profitability

 

Highlights¹

• Sales of EUR 1,367 million with comparable sales growth of -3.4% (Q3 25: -3.9%)
• Adjusted EBITA of EUR 145 million (Q3 25: EUR 136 million), with a margin of 10.6% (Q3 25: 9.7%), including a EUR 28 million or 2.1 % net benefit from the US tariff refund
• Net income of EUR 88 million (Q3 25: EUR 76 million)
• Free cash flow of EUR 118 million (Q3 25: EUR 71 million)
• Received a Platinum EcoVadis sustainability rating for the seventh consecutive year, with a record score of 88/100 and a top 1% ranking globally.

 

Eindhoven, the Netherlands – Signify (Euronext: LIGHT), the world leader in lighting, today announced the company’s third quarter results of 2026.

“Our third-quarter results show that we are making progress in executing our strategy to build a more focused, better performing Signify. Despite continuing market weakness, we sequentially strengthened our profitability, reflecting disciplined pricing and strong cost management.

In our Harvest portfolio, our turnaround plans are on track, with OEM and Genlyte delivering improved profitability. We are following through on our portfolio choices in the Build portfolio: accelerating growth in and beyond lighting in India, taking decisive action in our Professional Europe business, and investing in customer acquisition in Consumer, while taking steps to improve productivity. In parallel, we are focusing our R&D investments on the areas where innovation can deliver the greatest returns.

Our teams continue to execute with great agility, mitigating higher input costs and supply constraints, while advancing the changes we have set out in our strategy. Our EcoVadis Platinum rating for the seventh consecutive year, with our highest-ever score, is further recognition of the strength of our approach. We remain focused on the actions within our control: making clear portfolio choices, improving performance and maintaining resilient margins as we build a stronger Signify.” said As Tempelman, CEO of Signify.

 

 

Outlook

Signify confirms its full-year adjusted EBITA margin guidance at the higher end of the 7.5–8.5% range including US tariff refunds received through the third quarter, and at the lower end excluding these refunds. Free cash flow guidance remains unchanged at 6.5–7.5% of sales.

Signify expects challenging market conditions to persist, with continued pressure in Professional Europe and softening of US project demand. Combined with a strong prior-year comparable in Consumer, fourth-quarter comparable sales growth is expected to be in line with or slightly below the third quarter.

 

 

US tariff refund 

Signify completed a large part of the IEEPA tariff refund process and recognized the tariff refund received during the third quarter. These refunds are related to import duties previously paid on products imported into the United States. After associated supplier settlements, customer credits and related employee incentive accruals, the US tariff refund resulted in a net benefit of EUR 28 million to Adjusted EBITA.

 

 

Financial review

 

Third quarter 

Nominal sales decreased by 2.9% to EUR 1,367 million, including a positive currency effect of 0.4%. Comparable sales declined by 3.4%.

The adjusted gross margin increased by 300 bps to 42.5%, including the contribution from US tariff refund. Excluding this benefit, the underlying gross margin improved slightly compared with the previous year, supported by positive pricing across all businesses and disciplined COGS management, which more than offset increased input cost pressure.

Signify’s cost reduction program is on track and measures have delivered gross savings of EUR 37 million in the third quarter. These savings were offset by an unfavorable year-on-year employee incentive accrual comparison, salary inflation and higher variable costs including commissions and advertising and promotion spend. As a result, adjusted indirect costs

Adjusted EBITA increased to EUR 145 million, including a net benefit of EUR 28 million from US tariff refund. The Adjusted EBITA margin increased by 90 bps to 10.6%, including a 210 bps contribution from tariff refund. Excluding this benefit, the underlying Adjusted EBITA margin was 8.5%, reflecting softer sales and margin pressure in the Consumer business, while ongoing cost reductions and a strong gross margin helped stabilize profitability.

Net income increased to EUR 88 million, also reflecting the benefit from the US tariff refund and adjusted items of EUR -2 million. Signify’s continuing net income for the nine-month period ending 30 September 2026 was EUR 179 million.

The number of employees (FTE) decreased from 28,064 at the end of Q3 25 to 24,961 at the end of Q3 26. The year-on-year decrease is related to lower factory headcount due to reduced production volumes, as well as workforce reductions resulting from the cost reduction program announced in January 2026. In general, the number of FTEs is affected by fluctuations in volume and seasonality.

 

 

Professional

 

Third quarter 

Nominal sales decreased by 0.7% to EUR 921 million, while comparable sales declined by 1.5%. The project business remained resilient in the US and Rest of the World, while softness continued in the stock-and-flow business across most geographies. Agriculture lighting delivered a strong performance during its high season.

The Adjusted EBITA margin increased to 12.5%, including a 2.0% net benefit from US tariff refund. Excluding this benefit, the underlying Adjusted EBITA margin was stable year-on -year, as gross margin expansion and fixed cost reductions were offset by lower sales volumes.

 

 

Consumer

 

Third quarter 

Nominal sales decreased by 6.1% to EUR 283 million, while comparable sales declined by 5.3%, mainly reflecting weaker Connected sales. Within Hue, sell-in remained affected by retailer destocking, resulting in a continued disconnect between retailer orders and underlying consumer demand. This was partly offset by growth of luminaires and in India.

The Adjusted EBITA margin decreased to 6.8% including a 2.3% net benefit from US tariff refund. Underlying profitability was impacted by lower sales volumes and under-absorption of fixed costs, particularly in Connected Consumer, with actions underway to address productivity and fixed costs.

 

 

OEM

 

Third quarter 

Nominal sales decreased by 5.5% to EUR 88 million, while comparable sales declined by 6.7%, reflecting continued market softness. Pricing trends improved across regions, resulting in positive pricing during the quarter.

The Adjusted EBITA margin increased by 120 bps to 5.9%, driven by gross margin expansion and continued savings from the cost reduction program. These benefits more than compensated for the impact of lower sales volumes, demonstrating the growing resilience of the business model despite a challenging demand environment.

 

 

Conventional

 

Third quarter 

Nominal sales decreased by 11.5% to EUR 67 million, while comparable sales declined by 12.2%. Growth in Specialty Lighting continued during the quarter, partly offsetting lower sales in General Lighting, consistent with the structural decline of the business.

The Adjusted EBITA margin increased to 21.3%, including a 5.5% net benefit from US tariff refund.

 

 

Other

Third Quarter 

‘Other’ reflects the P&L of Signify’s venture businesses, in addition to centrally incurred costs not assigned to individual businesses, predominantly those related to exploratory research initiatives and audit activities.

Nominal sales decreased to EUR 8 million (Q3 2025: EUR 9 million). Adjusted EBITA was at EUR -9 million (Q3 2025: EUR -5 million).

 

 

Working capital

 

Third quarter 

Working capital decreased from EUR 348 million at the end of June 2026 to EUR 331 million at the end of September 2026. The decrease is driven by higher payables, partly offset by higher receivables and inventories. As a percentage of last twelve-months sales, working capital decreased by 20 bps to 6.1%.

Compared with end of September 2025, working capital decreased by EUR 169 million. This decrease is explained by lower receivables and lower inventories. As a percentage of last twelve-months sales, working capital decreased by 230 bps.

 

 

Cash flow analysis

 

Third quarter 

Free cash flow increased to EUR 118 million, primarily due to improved working capital management and US tariff refund. Free cash flow included a restructuring payout of EUR 22 million (Q3 25: EUR 11 million).

 

 

Net debt and total equity

 

Third quarter 

Compared with the end of June 2026, the cash position increased by EUR 105 million to EUR 601 million, mainly reflecting the positive free cashflow generation, while gross debt remained broadly stable at EUR 1,587 million. As a result, net debt decreased by EUR 104 million to EUR 986 million. Total equity increased from EUR 2,724 million at the end of June 2026, to EUR 2,828 million.

Compared with the end of September 2025, the cash position increased by EUR 202 million, primarily due to the free cash flow generation partially offset by the dividend payment and share buy back. Gross debt remained largely unchanged over the same period. As a result, the net debt decreased by EUR 205 million year on year. At the end of September 2026, the net debt/EBITDA ratio was 1.9x (Q3 25: 1.7x).

 

 

Brighter Lives, Better World 2030

In the third quarter of 2026, Signify made progress in advancing its Brighter Lives, Better World 2030 program, to expand the reach of energy- and resource-efficient lighting solutions that improve lives, save energy and preserve resources. Performance against program commitments progressed with all targets on track.

Benefits beyond illumination 

Signify aims to expand the role of lighting that improves quality of life: supporting well-being, safety and security in homes, buildings and cities, enabling more efficient food production, and increasing access to solar lighting. 

• Achieved Beyond illumination revenues of 36.3%, up from the 31% baseline and on target to reach 41% by the end of 2030. This performance was driven by strong growth in Professional emergency lighting solutions to support safety and security, alongside continued momentum in connected lighting systems.

Energy efficiency 

Through continuous advances in LED and connected lighting, Signify aims to help customers reduce energy use, costs, and resulting emissions. 

• Delivered 12 TWh of cumulative energy savings for our customers, on target to reach 60TWh of energy saving for customers by the end of 2030. Primary contribution from Professional connected, LED lamps and luminaires.
• 11.1% reduction in portfolio CO2e emission intensity annualized and on track to reach a 35% reduction by the end of 2030. This performance was primarily supported by the continued transition to LED technologies across the portfolio.

Resource efficiency and circular value 

Signify scales circular products and services that aim to reduce the consumption of virgin materials and energy while delivering long-term customer value. 

• Achieved 21.8% Signify Circle revenues in Professional Europe, up from the 10% baseline and on target to reach 27.5% by the end of 2030. Performance was primarily supported by Signify Circle designed outdoor lighting solutions, including road, sport and recreational lighting.

In the third quarter, Signify was awarded an EcoVadis Platinum Medal, reaffirming its position among the top 1% of companies assessed worldwide and underscoring its leadership in sustainability, climate action and responsible business practices.

 

 

Other information 

• Appendix A – Selection of financial statements
• Appendix B – Reconciliation of non-IFRS financial measures
• Appendix C – Financial glossary

 

 

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 third quarter 2026 results. A live audio webcast of the conference call will be available via the Investor Relations website.

 

 

Financial calendar 2026

• February 5, 2027: Fourth quarter and full-year results 2026
• February 23, 2027: Annual Report 2026

 

¹This 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 release.

 

 

Important information

Forward-Looking Statements and Risks & Uncertainties

This document and the related oral presentation contain, and responses to questions following the presentation may contain, forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Signify N.V. (the “Company”, and together with its subsidiaries, the “Group”), including statements regarding strategy, estimates of sales growth and future operational results.

By their nature, these statements involve risks and uncertainties, and there may be many factors that could cause actual results or outcomes to differ materially from those expressed in or implied by these statements. These risks, uncertainties and other factors include macroeconomic developments, geopolitical volatility and related regulatory developments (including trade tariffs), supply shortages, commoditization, AI and digital disruption, execution risks in our enterprise resource planning transformation, insufficient talent and organizational capabilities currency risks, changes in international tax laws, cybersecurity risk, and increasing export controls, sanctions and trade restrictions.

The above risks may not include all factors that ultimately affect the Group. Additional risks and uncertainties that are currently not known to the Group or not considered material may have a material adverse effect on the business, strategy, results of operations, financial condition and prospects of the Group, or prevent the forward-looking events discussed from occurring. The Group undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law.

 

 

Market and Industry Information

All references to market share, market data, industry statistics and industry forecasts in this document consist of estimates compiled by industry professionals, competitors, organizations or analysts, of publicly available information or of the Group’s own assessment of its sales and markets. Rankings are based on sales unless otherwise stated.

 

 

Non-IFRS Financial Measures

Certain parts of this document contain non-IFRS financial measures and ratios, such as comparable sales growth, adjusted gross margin and indirect costs, EBITA, adjusted EBITA, continuing net income, free cash flow, net debt, working capital, Brighter lives revenues, Circular revenues and other related ratios, which are not recognized measures of financial performance or liquidity under IFRS. The non-IFRS financial measures presented are measures used by management to monitor the underlying performance of the Group’s business and operations. Not all companies calculate non-IFRS financial measures in the same manner or on a consistent basis and these measures and ratios may not be comparable to measures used by other companies under the same or similar names. A reconciliation of a number of non-IFRS financial measures to the most directly comparable IFRS financial measures is contained in appendix B, Reconciliation of non-IFRS financial measures, of this document. For further information on non-IFRS financial measures, see “Chapter 18 Reconciliation of non-IFRS measures” in the Annual Report 2025. Presentation All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up to totals provided. All reported data is unaudited. Unless otherwise indicated, financial information has been prepared in accordance with the accounting policies as stated in the Annual Report 2025, and the Semi-Annual Report 2026.

 

 

Market Abuse Regulation

This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

 

 

 

Appendix A – Financial statement information 

A. Condensed consolidated statement of income

 

 

B. Condensed consolidated statement of comprehensive income

 

 

C. Condensed consolidated statement of financial position

 

 

D. Condensed consolidated statement of cash flows

 

 

 

Appendix B – Reconciliation of non-IFRS financial measures

Sales growth composition per business in %

 

 

Adjusted EBITA to Income from operations (or EBIT) in millions of EUR

 

 

Income from operations to Adjusted EBITA in millions of EUR

 

 

 

 

Continuing net income to Net income attributable to shareholders of Signify N.V.

 

 

 

Appendix C – Financial glossary

Acquisition-related results 

Results that are directly triggered by the acquisition of a company, such as transaction costs, purchase accounting related costs, integration related expenses, and releases of acquisition related provisions.

Adjusted EBITA 

EBITA excluding restructuring costs, acquisition related results, and other incidental items.

Adjusted EBITA margin 

Adjusted EBITA divided by sales to third parties (excluding intersegment). ‘Operational profitability’ also refers to this metric.

Adjusted gross margin 

Gross margin, excluding restructuring costs, acquisition-related results, and other incidental items attributable to cost of sales.

Adjusted indirect costs 

Indirect costs, excluding restructuring costs, acquisition-related results, and other incidental items attributable to indirect costs.

Adjusted R&D expenses 

Research and development expenses, excluding restructuring costs, acquisition-related results, and other incidental items attributable to research and development expenses.

Adjusted SG&A expenses 

Selling, general and administrative expenses, excluding restructuring costs, acquisition-related results, and other incidental items attributable to selling, general and administrative expenses.

Beyond illumination revenues 

Percentage of total revenues coming from all products, systems and services contributing to Food availability, Safety & security, Health & well-being, and Solar solutions.

Comparable sales growth (CSG) 

The period-on-period growth in sales excluding the effects of currency movements and changes in consolidation.

Consolidation effects 

In the event a business is acquired (or divested), the impact of the consolidation (or deconsolidation) on the Group’s figures is included (or excluded) in the calculation of the comparable sales growth figures.

Continuing net income 

Net income attributable to shareholders of Signify N.V. excluding restructuring costs, acquisitionrelated results, other incidental items, and discontinued operations.

Cumulative energy savings 

Cumulative energy savings by our customers from sold LED products as replacement of conventional products.

Currency effects 

Calculated by translating the foreign currency financials of the previous period and the current period into euros at the same average exchange rates.

EBIT

Income from operations.

EBITA

Income from operations excluding amortization and impairment of acquisition-related intangible assets and goodwill.

EBITDA 

Income from operations excluding depreciation, amortization, and impairment of nonfinancial assets

Employees 

Employees of Signify at the end of the period, expressed on a full-time equivalent (FTE) basis.

Free cash flow 

Net cash provided by operating activities minus net capital expenditures. Free cash flow includes interest paid and income taxes paid.

Gross margin 

Sales minus cost of sales.

Incidental items 

Any item with an income statement impact (loss or gain) that is deemed to be both significant and not part of normal business activity. Other incidental items may extend over several quarters within the same financial year.

Indirect costs 

The sum of selling, general and administrative expenses and R&D expenses.

Net capital expenditures 

Additions of intangible assets, capital expenditures on property, plant and equipment and proceeds from disposal of property, plant and equipment.

Net debt 

Short-term debt, long-term debt minus cash and cash equivalents.

Net leverage ratio 

The ratio of consolidated reported net debt to consolidated reported EBITDA for the purpose of calculating the financial covenant.

Portfolio CO2 e emissions intensity reduction 

Portfolio CO2 e emissions intensity reduction is measured as the annualized decrease in emissions intensity relative to the 2024 baseline year.

R&D expenses 

Research and development expenses.

Restructuring costs 

The estimated costs of initiated reorganizations which have been approved by the company and generally involve the realignment of certain parts of the organization. Restructuring costs include costs for employee termination benefits for affected employees and other costs directly attributable to the restructuring, such as impairment of assets and inventories.

SG&A expenses 

Selling, general and administrative expenses.

Signify Circle Professional Europe revenues 

Percentage of Professional Europe revenues coming from products classified as Signify Circle products, Light-as-a-service and remanufactured products, spare parts and upgrade kits.

Working capital 

The sum of inventories, trade and other receivables (excluding insurance receivables for which a legal provision is recognized for the same amount), other current assets, derivative financial assets minus the sum of trade and other payables, derivative financial liabilities and other current liabilities (excluding share repurchase related payables and non-operating liabilities).