Signify (LIGHT) CMD 2026 summary

Strategic direction and portfolio focus

• The strategy aims to create a more focused, better-performing company by halting revenue decline and boosting profitability through clear build and harvest portfolio choices, with three differentiated performance playbooks for each business area.

• Build businesses, representing 72% of revenue and targeted to rise to ~80% by 2029, focus on growth in consumer, connected lighting, select professional segments, and India, while harvest businesses are managed for cash and potential divestment.

• Direct presence will be reduced from 55 to 35 countries, shifting to partner-led models in smaller markets to simplify operations and redeploy capital.

• Manufacturing exposure to commoditized products will be reduced, focusing on made-to-order and project-based solutions, with all options open for OEM and conventional businesses.

• Adjacencies beyond lighting, such as HVAC, energy efficiency, smart city, security, and health/wellbeing, are being explored for future growth but are not yet included in financial guidance.

Market trends and business segment highlights

• Market is stabilizing, with growth concentrated in connected lighting and adjacent systems, while conventional lamps continue to decline sharply in value and volume through 2029.

• Consumer: LED lamps managed for cash, while luminaires and connected lighting are targeted for growth with design-led, regionally tailored portfolios and ecosystem expansion.

• Professional: Focus on leading segments and geographies, leveraging deep partner ecosystems, and investing in connected lighting, especially in projects and specification business.

• India is identified as a high-growth, high-profit build market, leveraging brand, distribution, local innovation, and manufacturing scale, with expansion into adjacencies like fans and potential inorganic moves.

• North America: Cooper Lighting aims to amplify its #2 market position through operational excellence, portfolio focus, and digital/AI investments; Genlyte to be refocused and turned around.

Strategic execution and operational excellence

• Three playbooks guide performance: maximize operating leverage in growth/high-profit areas, turnaround EBITA-dilutive portfolios, and maintain profitability in declining/high-profit segments.

• Organization has been delayered for agility, with granular P&L accountability and a transformation office overseeing 40-50 key initiatives.

• Operational excellence initiatives include SKU rationalization, process simplification, AI-driven inventory optimization, and cost discipline targeting indirect costs at ~30% of sales.

• Digital transformation and AI are embedded in marketing, supply chain, and customer engagement to drive efficiency and growth.

• Execution will emphasize commercial excellence, supply chain, digital and AI, and cost discipline.