Signify (LIGHT) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales were EUR 1,332 million, with comparable sales growth (CSG) of -3.6% year-over-year and adjusted EBITA margin at 6.1%, mainly impacted by lower profitability in the Consumer business and market softness.

• Net income dropped to EUR 17 million, primarily due to EUR 31 million in restructuring costs related to a EUR 180 million cost reduction program.

• Free cash flow remained stable at EUR 35 million, supported by improved working capital management.

• Strategy execution and sustainability initiatives (Brighter Lives, Better World 2030) are progressing, with all targets on track.

• Pricing pressure eased, but topline was impacted by retailer de-stocking and market softness in several segments.

Financial highlights

• Q2 2026 sales: EUR 1,332 million (down 6% year-over-year); comparable sales declined 3.6%.

• Adjusted EBITA: EUR 81 million in Q2 (margin 6.1%, down 170 bps year-over-year); net income EUR 17 million (down from EUR 57 million in Q2 2025).

• Free cash flow stable at EUR 35 million; working capital improved by EUR 107 million year-over-year, now 6.3% of sales.

• Adjusted gross margin fell to 39.3% in Q2 (down 110 bps); adjusted indirect costs as % of sales rose to 34.4%.

• Basic EPS: EUR 0.15 in Q2 (down from EUR 0.44); net debt/EBITDA ratio at 2.1x.

Outlook and guidance

• Full-year guidance confirmed: adjusted EBITA margin of 7.5–8.5% and free cash flow of 6.5–7.5% of sales.

• Management expects improved profitability in H2 2026, driven by price increases, cost initiatives, and turnaround actions.

• Cost savings program (EUR 180 million target) is on track, with most benefits expected in H2 and full run-rate by 2027.

• Medium-term ambitions (by 2029): comparable sales growth of 0–1%, adjusted EBITA margin ~10%, free cash flow 7–8% of sales.

• Second half EBIT expected to be stronger, with Q4 more weighted than usual due to timing of cost and price actions.