Signify, the world leader in lighting, today introduces an updated strategy, portfolio priorities and medium-term financial objectives at its Capital Markets Day 2026.

“Today, we are setting out a strategy to build a more focused, better-performing Signify. We are making deliberate portfolio choices and applying differentiated playbooks to drive a step-up in performance, while organizing the business for greater speed, accountability, and customer focus. Our ambition is to return to a stable topline, improve profitability, and create sustainable value for all stakeholders.”

As Tempelman,
CEO, Signify

“For customers, that means a market-leading experience. For employees, it means a company where people grow, perform and build meaningful careers. For investors, it means a stronger and more compelling investment case. And for society, it means continuing to unlock the extraordinary potential of light for brighter lives and a better world.

This is not about reinventing Signify. It is about becoming a better version of the company we already are. More focused, better performing, more customer-led, and well positioned to capture the opportunities ahead.”

During the event, to be held at the company’s headquarters in Eindhoven, CEO As Tempelman, CFO Željko Kosanović and members of the leadership team will outline how Signify will sharpen its focus, improve performance and create sustainable value for stakeholders.

The strategy outlines six clear portfolio choices, defined by a Build or Harvest mandate. Signify will invest in Build areas where Signify has a strong right to win, including connected lighting, Consumer, selected Professional segments and a more focused geographic presence. Harvest areas, which include non-connected LED lamps, Conventional and more commoditized activities will be optimized for performance and revenue.

Addressing a more granular view of performance in the business, the company will apply three differentiated playbooks to each performance area: maximizing operating leverage in growth areas, turning around EBITA-dilutive performance areas and maintaining high profitability in low-growth and declining businesses.

Execution will be supported by a performance focus on commercial excellence, supply chain, digital and AI, and continued cost discipline.

Medium-term objectives for 2029
Signify aims to deliver a comparable sales growth of 0-1%, Adjusted EBITA margin of circa 10%, and free cash flow generation of 7-8% of sales by 2029. These objectives are to be supported by operational improvements and a disciplined financial framework. The company expects margin expansion to be driven by reduced indirect costs, a resilient gross margin and improved performance management across newly defined performance areas. Free cash flow is to be supported by targeted profitability improvements, working capital discipline and a continued focus on cash conversion.

Capital allocation
Signify is setting out a balanced capital allocation framework with four priorities:

• Maintain a robust capital structure to support its commitment to an investment grade credit rating.
• Pay an annual cash dividend with a pay-out ratio of 40-50% of continuing net income*
• Continue to invest in organic and inorganic growth opportunities aligned with the company’s strategic priorities.
• Provide additional capital return to shareholders with residual available cash.

The revised framework, including the updated dividend policy, provides greater flexibility to invest in growth opportunities, while maintaining a robust capital structure. Shareholders can expect the company to propose a rebalanced dividend per share for the 2026 financial year.

Signify does not intend to resume the share repurchase program announced in 2025. Further share repurchases will be subject to the company’s financial performance, capital requirements, and market conditions.

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