Q3 2025 Group Highlights
- Comparable order consumption development 8%
- Group gross sales amounted to EUR 4.3 billion, reflecting 3% improve in comparable gross sales
- Earnings from operations was EUR 330 million
- Adjusted EBITA margin elevated by 50 foundation factors to 12.3% of gross sales
- Working money stream of EUR 327 million, with a free money stream of EUR 172 million
- Philips reiterates full-year 2025 outlook, with margin now anticipated on the higher finish of the vary
Roy Jakobs, CEO of Royal Philips:
“On this quarter we maintained our momentum, with AI-powered improvements and long-term partnerships making an actual distinction for sufferers and shoppers. We drove robust order consumption and accelerated gross sales development, with sustained energy in North America. We expanded margin via innovation, targeted execution and value self-discipline, remaining firmly on-track as we navigate an unsure macro surroundings together with tariffs.
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We’re taking disciplined motion to realize the very best requirements in affected person security and high quality, which stays our primary precedence.
Following our landmark settlement with Indonesia’s Ministry of Well being, the primary Azurion system is being put in this week in East Java. This milestone marks the beginning of expanded entry to superior, minimally invasive care throughout Indonesia and demonstrates progress on our fundamentals, together with provide chain agility and simplification.
Our passionate crew stays totally targeted on driving efficiency and sustaining momentum via the tip of the yr.”
Group and section efficiency
Comparable order consumption grew 8% within the third quarter, supported by continued robust efficiency in North America. Comparable gross sales grew 3.3% with development in all segments. Margin growth was pushed by elevated gross sales, favorable combine results and productiveness that greater than offset the influence of elevated tariffs. Free money stream elevated to EUR 172 million.
Analysis & Therapy comparable gross sales grew 1.3%. Adjusted EBITA margin was 11.8%, down 80 bps, primarily because of tariffs and partly offset by gross margin from not too long ago launched improvements and productiveness.
Linked Care comparable gross sales grew 5.1%. Adjusted EBITA margin improved 410 bps to 11.4%, pushed by elevated gross sales and productiveness, partly offset by tariffs. Adjusted EBITA features a non-recurring achieve associated to a minority funding.
Private Well being comparable gross sales grew 10.9%. Adjusted EBITA margin elevated 60 bps to 17.1%, pushed by elevated gross sales and productiveness, partly offset by tariffs.
Innovation highlights
- Philips launched Lumea IPL within the US, bringing the world’s No. 1 Intense Pulsed Mild hair removing model to the market. The launch has seen an encouraging begin with robust client curiosity.
- Philips unveiled radiation remedy (RT) breakthroughs, together with the superior Rembra RT and Areta RT CT scanners, delivering clearer and extra constant pictures, supported by the launch of helium-free BlueSeal RT MR in North America.
- Philips launched Transcend Plus, the subsequent technology EPIQ CVx and Affiniti CVx cardiovascular ultrasound techniques, together with 26 FDA-cleared cardiovascular ultrasound AI purposes, probably the most within the business.
- Philips signed long-term Enterprise Monitoring as a Service (EMaaS) partnerships with main US well being techniques in California, together with Hoag in Orange County and Rady Kids’s Hospital in San Diego. Philips’ EMaaS options assist hospitals improve scientific effectivity and affected person security via superior monitoring, strengthened cybersecurity, and scalable digital capabilities.
- Three-year outcomes of iMODERN, a randomized, managed scientific research involving 1,146 sufferers, present proof to widen minimally invasive therapy choices for sufferers with acute myocardial infarctions. Philips sponsored the trial and enabled each the invasive and non-invasive approaches evaluated inside it.
- Philips’ net-zero science-based goal by 2045 has been formally validated by the Science Based mostly Targets initiative (SBTi). This underlines the corporate’s dedication to healthcare decarbonization, sustainable healthcare management and long-term worth creation.
Productiveness
Disciplined value administration and strong productiveness initiatives delivered financial savings of EUR 222 million within the quarter. Philips will ship its three-year, EUR 2.5 billion productiveness program, together with EUR 800 million of productiveness financial savings in 2025.
Outlook
Philips reiterates its confidence in delivering the full-year 2025 outlook:
- Comparable gross sales development: 1%-3%
- Adjusted EBITA margin: 11.3%-11.8%, now anticipated towards the higher finish of the vary.
- Free money stream: EUR 0.2-0.4 billion (together with the payout within the first quarter of 2025 of EUR 1,025 million Philips Respironics recall-related medical monitoring and private damage settlements within the US.)
This outlook excludes ongoing Philips Respironics-related proceedings, together with the investigation by the US Division of Justice.
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