Signify, the world’s largest lighting manufacturer, surpassed third-quarter core profit expectations on Friday, bolstered by an extraordinary US tariff refund and reduced costs of sales. The financial performance prompted the company to adjust its full-year outlook toward the higher end of its projected range.
For the quarter, the group posted an adjusted earnings before interest, taxes, and amortisation (EBITA) of €145 million, which translates to approximately $163 million based on the reported exchange rate of $1 to 0.8921 euros. This figure outpaced the average analyst forecast of €113 million compiled in a company poll.
A significant driver of the earnings beat was an extraordinary US tariff refund that yielded a financial benefit of €28 million for the company. Alongside the tariff reimbursement, Signify benefited from reduced costs of sales during the period.
Despite the positive earnings outcome, the group reported that quarterly sales declined to €1.37 billion, though the figure remained in line with market expectations. Leadership cautioned that the company continues to anticipate persistent challenging market conditions across both its European and US operations.
Following the financial boost from the tariff refund, Signify announced it now expects to reach the top end of its annual guidance for its adjusted EBITA margin range, which is targeted between 7.5% and 8.5%.
Signify originally spun off from consumer electronics giant Philips in 2016. Earlier in the year, the lighting maker unveiled a new dividend policy alongside updated medium-term targets. However, those announcements initially failed to convince investors that an immediate turnaround was underway. The company’s ongoing restructuring strategy has included a comprehensive portfolio review designed to reduce its in-house manufacturing of standard lighting products as it contends with competitive pressures from Chinese overcapacity.
