Signify (LIGHT) Q1 2026 earnings summary

Executive summary

• Maintained strong gross margin and cash generation despite global volatility, cost inflation, tariffs, softer demand, and manufacturing overcapacity impacting sales.

• Cost reduction program is on track, with restructuring costs impacting net income.

• Strategic focus on performance, portfolio review, and sustainability initiatives, including Brighter Lives, Better World 2030.

• Consumer business saw continued year-on-year sell-out growth, but results were impacted by retailer inventory adjustments.

Financial highlights

• Comparable sales declined by 5.1% year-over-year in Q1 2026 to EUR 1,274 million.

• Gross margin was robust at 40.6%, achieved through disciplined pricing and cost management.

• Adjusted EBITA margin decreased to 6.5% from 8.0% in Q1 2025, with adjusted EBITA at EUR 83 million.

• Net income dropped to EUR 8 million from EUR 67 million last year, mainly due to restructuring costs.

• Free cash flow improved to EUR 47 million, driven by working capital improvements.

Outlook and guidance

• 2026 outlook confirmed: adjusted EBITA margin expected at 7.5%-8.5%, free cash flow at 6.5%-7.5% of sales.

• Cost reduction program on track, with benefits expected in the second half of the year.