How Signify Balances Financial Growth with Sustainability
Signify, the global leader in lighting systems, software and services, has released its fourth quarter and full-year 2024 results.
The company is reporting sales of €6.1b (more than US$6.4bn) and an adjusted EBITA margin (profitability margin) of 9.9%.
The company also announced a new share repurchase programme of up to €150m (more than US$157m) for 2025 – part of a wider plan to buy back €350-450m (US$367-472m) worth of shares by the end of 2027.
Signify’s financial highlights
Signify’s installation of connected light points increased to 144 million by the end of 2024, further reinforcing its leadership in smart and energy-efficient lighting solutions.
The company also maintained its inclusion in the Dow Jones Sustainability World Index for the eighth consecutive year.
- The DJSI World is based on the largest 2,500 companies in the Dow Jones Global Total Stock Market Index (DJGTSMI).
- The DJSI World helps investors identify companies that are leaders in sustainability as well as encourages companies to improve their sustainability practices.
Key financial figures for 2024 include:
- Sales of €6.143m (US$6.452m), with a comparable sales decline of -6.6%
- LED-based sales accounting for 93% of total sales (up from 85% in 2023)
- Net income of €334m (US$350m) – up from €215m in 2023
- Free cash flow of €438m (US$460m), representing 7.1% of sales.
Eric Rondolat, CEO of Signify, says: “Today’s results show the continued momentum of our business. Despite headwinds in China and in the Professional business in Europe, we achieved further sequential improvements in the fourth quarter, with a particularly strong performance from the Consumer business.
“We successfully managed the decline of the Conventional business, as the rest of the business performed in line with our markets. We continue to see growth in our connected and specialty lighting businesses, driven by underlying demand for energy-efficient and innovative solutions.”
Signify made progress in reducing its financial liabilities, successfully cutting €440m (US$462m) of gross debt.
This strengthened the company’s balance sheet and reduced future interest charges.
Brighter lives, better world
Signify continues its commitment to sustainability through its Brighter Lives, Better World 2025 programme.
The company remains on track to achieve its ESG goals, with notable progress in:
- Reducing emissions: Signify is on pace to cut value chain emissions by 40% compared to its 2019 baseline – double the pace required by the Paris Agreement
- Circular revenues: While circular revenues dropped slightly to 35% in Q4, Signify remains above the 2025 target of 32%
- Brighter lives revenues: Increased to 33%, exceeding the 2025 goal of 32%.
- Diversity in leadership: The percentage of women in leadership positions fell to 28%, falling short of the 2024 target – the company is implementing focused hiring and retention strategies to address this gap.
“There has never been a more urgent need for efficient solutions that reduce the amount of energy we consume,” says Maurice Loosschilder, Head of Sustainability at Signify.
“If we want to live in a carbon neutral world in 2050, at least half of the change we need to make will come from reducing our energy consumption.”
Signify’s continued commitment
Looking ahead, Signify expects sales momentum to strengthen throughout 2025, with low single-digit growth in its core businesses, excluding conventional lighting.
The company aims to maintain a stable Adjusted EBITA margin and generate free cash flow in the range of 7-8% of sales.
Signify reaffirmed its capital allocation policy, which prioritises:
- Maintaining a robust capital structure and investment-grade credit rating
- Paying an increasing annual cash dividend per share
- Investing in organic and inorganic growth opportunities aligned with strategic goals
- Returning additional capital to shareholders with residual cash.
The proposed dividend increase and share repurchase programme show Signify’s commitment to delivering value to shareholders while maintaining financial flexibility for growth.
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