Signify, the world’s largest lighting solutions company, has revised its 2025 outlook amid weak demand for professional lighting in the U.S. In the third quarter, the company’s sales fell 8.4% to €1.4 billion, below analysts’ consensus estimate of €1.46 billion. NewsTrackerToday observes a sharper-than-expected decline in orders from commercial and government clients in the U.S., prompting a downward revision of the full-year forecast and highlighting Signify’s cautious approach amid current economic uncertainty.
The company’s core segment-professional lighting-saw sales decline 7% to €928 million. According to tech sector analyst Sophie Leclerc of NewsTrackerToday, the drop in U.S. demand reflects broader trends of reduced corporate infrastructure investments and cautious procurement by government agencies for new lighting solutions in commercial and public facilities.
Sales of traditional luminaires fell 25% to €76 million, in line with the global trend of older technologies being gradually replaced by more energy-efficient solutions. In the OEM segment, where Signify supplies LED components and connected systems to equipment manufacturers, sales decreased 26% to €93 million. The company notes that the drop in order volumes is linked to the activity of two major clients and does not reflect the overall U.S. economic dynamics.
Meanwhile, the consumer segment, with brands Philips Hue and WiZ, showed relative stability, with sales of €301 million, down only 1% amid a weaker U.S. dollar. Growth in India and successful new product launches helped balance the results, demonstrating that Signify remains competitive in emerging markets. The focus on smart and energy-efficient lighting continues to be a key driver of the company’s growth.
At the end of the third quarter, Signify’s workforce totaled 28,064 employees, 7% lower than the previous year. This reflects ongoing cost optimization and a focus on the efficient allocation of resources.
Analysts emphasize that the decline in U.S. professional lighting demand requires Signify to closely monitor the market and adapt its business model to the current economic environment. At the same time, stability in the consumer segment and growth in markets like India provide opportunities to shift focus to promising regions and technologies.
News Tracker Today observes that investments in energy-efficient and smart solutions remain key growth drivers, and it is crucial for the company to maintain leadership in these segments while optimizing operations in volatile markets. Investors are advised to monitor further developments in U.S. professional lighting, assess growth potential in emerging markets, and consider how Signify adapts its product strategy to changing demand conditions.
