Signify NV (LIGHT.AS): Q2‘26: Guidance maintained despite weaker profitability in Consumer

Research evidence excerpt

Signify NV (LIGHT.AS): Q2‘26: Guidance maintained despite weaker profitability in Consumer

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24 Jul 2026 02:20:37 ET │ 10 pages

Signify NV (LIGHT.AS)

Q2’26: Guidance maintained despite weaker profitability in Consumer

CITI'S TAKE

Buy Signify reported Q2’26 sales of €1,332m, organic growth of -3.6% and adj.

EBITA of €81m, with sales broadly in-line and organic growth slightly Price (23 Jul 26 16:30) €15.98

ahead of expectations, but adj. EBITA ~9% below expectations and Target price €25.00

margin 60bps below mainly due to weaker Consumer. In Consumer, the Expected share price return 56.4%

weaker margin is attributed to under-absorption, as sell-in to retailers Expected dividend yield 6.0%

lagged stronger sell-out as retailers destocked, as well as on price/cost. Expected total return 62.5%

The FY margin guidance has been retained at 7.5%-8.5%, although we’d

Market Cap €1,959M expect consensus (currently at 7.9%) to shift towards the lower end of the

US$2,229M guided range, potentially driving mid-single digit % EBITA downgrades for

the year. The results at Professional – the key driver of value in our view –

were “only” 3% below expectations, suggesting the valuation impact

should be more modest than the EPS dynamics, but we’d nonetheless Martin WilkieAC

expect the Consumer weakness to be a key focus for the call. +44-207-986-4077

martin.wilkie@citi.com

Inside the numbers — Sales of €1,332m were broadly in-line with consensus Avinash Mundhra

(company compiled) expectations. Organic growth of -3.6% was modestly better +44-20-7986-6230

than expected, supported by stronger-than-expected Conventional and Consumer avinash.mundhra@citi.com

trends despite continued weakness in OEM and Professional. Adj. EBITA of €81m

missed consensus expectations. Adj.