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Netherlands' Signify Q3 margin rises on pricing and cost management

By Reuters News


Overview

  • Netherlands lighting firm's Q3 sales fell 3.4% yr/yr amid continued market weakness

  • Adjusted EBITA margin rose to 10.6%, aided by EUR 28 mln US tariff refund

  • Company sees persistent challenging market conditions and confirms full-yr EBITA margin guidance


Outlook

  • Signify confirms full-year adj EBITA margin at higher end of 7.5–8.5% range including US tariff refunds

  • Company maintains free cash flow guidance at 6.5–7.5% of sales

  • Signify expects challenging market conditions to persist, with continued pressure in Professional Europe


Result Drivers

  • DISCIPLINED PRICING AND COST MANAGEMENT - Co said profitability improved due to disciplined pricing and strong cost management

  • TURNAROUND PLANS - Co said Harvest portfolio turnaround plans, including OEM and Genlyte, delivered improved profitability

  • SUPPLY CHAIN MITIGATION - Co said teams mitigated higher input costs and supply constraints


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

EUR 1.37 bln

Q3 Adjusted Sales Growth

-3.40%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 5 "sell" or "strong sell"

  • The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

  • Wall Street's median 12-month price target for Signify N.V. is €16.65, about 17.8% above its October 22 closing price of €14.14

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 20 - Switzerland's ABB Q3 revenue rises 14%, to form joint venture with Mitsubishi Electric

  • Oct 22 - Sweden's Atlas Copco Q3 revenue slightly beats estimates, orders up 29%

  • Oct 22 - Bottling equipment maker Krones lowers FY revenue growth outlook to 1-2%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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