Philips lighting spin-off Signify reports sharp profit drop on weak demand

Signify, the lighting manufacturer from Eindhoven, is expecting difficult market conditions to continue through the rest of the year as it grapples with weaker demand and the impact of U.S. import tariffs. The company has already announced a global restructuring plan that includes 900 job cuts worldwide, with 150 positions eliminated in the Netherlands, as part of broader cost-saving efforts following several years of major reorganizations.

In the first quarter, Signify’s revenue fell 12 percent to just over 1.27 billion euros. Chief Executive As Tempelman said the decline reflects “the ongoing weakness in the markets.” He added, “We are taking measures to outperform the market while at the same time completing our strategic portfolio review to position the company for future success.”

The company said it began a strategic review of its operations and product portfolio in January. The outcome of that review is expected to be presented at an investor day in June.

Currency effects also weighed on performance. The weakening U.S. dollar reduced revenue by 7 percent. On a comparable basis, revenue declined 5.1 percent, driven by weaker results in both the professional and consumer markets. The OEM segment, which supplies components and parts, showed what the company described as “early signs of stabilization.”

Signify said it is currently not providing a full-year revenue outlook for 2026 due to continuing uncertainty in market conditions.

Net profit dropped sharply to 8 million euros from 67 million euros a year earlier. The company attributed the decline mainly to higher restructuring costs, including 63 million euros related to the January-announced reorganization.

Employment also fell significantly. The number of full-time employees decreased to 26,008 from 29,697 at the end of the first quarter of 2025. Signify said the reduction was primarily driven by lower factory staffing needs due to reduced production volumes.