Philips builds strong order intake momentum and drives margin expansion in Q2
Philips (NYSE:PHG) reported strong Q2 2025 performance with 6% comparable order intake growth and sales of EUR 4.3 billion, representing a 1% comparable sales increase. The company's Adjusted EBITA margin expanded by 130 basis points to 12.4%, while free cash flow improved to EUR 230 million.
Key segment performance showed mixed results: Diagnosis & Treatment and Connected Care saw 1% sales decreases but margin improvements, while Personal Health achieved 6% comparable sales growth. The company secured significant partnerships, including a nationwide agreement with Indonesia's Ministry of Health, and received FDA clearance for its AI-powered SmartSpeed Precise MR software.
Philips increased its full-year 2025 outlook, raising its Adjusted EBITA margin range to 11.3%-11.8% and free cash flow forecast to EUR 0.2-0.4 billion, while maintaining its 1-3% comparable sales growth guidance.
Philips (NYSE:PHG) ha riportato una solida performance nel secondo trimestre 2025 con una crescita del 6% degli ordini comparabili e vendite pari a 4,3 miliardi di euro, che rappresentano un aumento dell'1% delle vendite comparabili. Il margine Adjusted EBITA dell'azienda 猫 cresciuto di 130 punti base raggiungendo il 12,4%, mentre il flusso di cassa libero 猫 migliorato a 230 milioni di euro.
Le performance chiave dei segmenti hanno mostrato risultati misti: Diagnosis & Treatment e Connected Care hanno registrato una diminuzione dell'1% delle vendite, ma con miglioramenti dei margini, mentre Personal Health ha raggiunto una crescita delle vendite comparabili del 6%. L'azienda ha siglato partnership importanti, incluso un accordo nazionale con il Ministero della Salute indonesiano, e ha ottenuto l'approvazione FDA per il suo software SmartSpeed Precise MR basato su intelligenza artificiale.
Philips ha rivisto al rialzo le previsioni per l'intero anno 2025, aumentando il range del margine Adjusted EBITA a 11,3%-11,8% e la previsione del flusso di cassa libero a 0,2-0,4 miliardi di euro, mantenendo la guida sulla crescita delle vendite comparabili tra l'1% e il 3%.
Philips (NYSE:PHG) report贸 un s贸lido desempe帽o en el segundo trimestre de 2025 con un crecimiento comparable del 6% en la entrada de pedidos y ventas por 4,3 mil millones de euros, lo que representa un aumento del 1% en ventas comparables. El margen Adjusted EBITA de la compa帽铆a se expandi贸 130 puntos b谩sicos hasta el 12,4%, mientras que el flujo de caja libre mejor贸 a 230 millones de euros.
El desempe帽o clave por segmentos mostr贸 resultados mixtos: Diagnosis & Treatment y Connected Care tuvieron una disminuci贸n del 1% en ventas pero mejoraron sus m谩rgenes, mientras que Personal Health logr贸 un crecimiento comparable de ventas del 6%. La empresa asegur贸 asociaciones significativas, incluyendo un acuerdo nacional con el Ministerio de Salud de Indonesia, y recibi贸 la aprobaci贸n de la FDA para su software SmartSpeed Precise MR impulsado por IA.
Philips elev贸 sus perspectivas para todo el a帽o 2025, aumentando el rango del margen Adjusted EBITA a 11,3%-11,8% y la previsi贸n de flujo de caja libre a 0,2-0,4 mil millones de euros, manteniendo la gu铆a de crecimiento de ventas comparables entre el 1% y el 3%.
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Philips (NYSE:PHG) a annonc茅 de solides r茅sultats au deuxi猫me trimestre 2025 avec une croissance comparable de 6% des commandes et un chiffre d'affaires de 4,3 milliards d'euros, soit une augmentation comparable des ventes de 1%. La marge EBITA ajust茅e de la soci茅t茅 s'est 茅largie de 130 points de base pour atteindre 12,4%, tandis que le flux de tr茅sorerie disponible s'est am茅lior茅 脿 230 millions d'euros.
La performance des segments cl茅s a 茅t茅 contrast茅e : Diagnosis & Treatment et Connected Care ont enregistr茅 une baisse des ventes de 1% mais une am茅lioration des marges, tandis que Personal Health a r茅alis茅 une croissance comparable des ventes de 6%. L'entreprise a conclu des partenariats importants, notamment un accord national avec le minist猫re de la Sant茅 indon茅sien, et a obtenu l'autorisation de la FDA pour son logiciel SmartSpeed Precise MR aliment茅 par l'IA.
Philips a relev茅 ses perspectives pour l'ann茅e compl猫te 2025, augmentant la fourchette de sa marge EBITA ajust茅e 脿 11,3%-11,8% et ses pr茅visions de flux de tr茅sorerie disponible 脿 0,2-0,4 milliard d'euros, tout en maintenant ses objectifs de croissance comparable des ventes entre 1% et 3%.
Philips (NYSE:PHG) meldete eine starke Leistung im zweiten Quartal 2025 mit einem vergleichbaren Auftragswachstum von 6% und einem Umsatz von 4,3 Milliarden Euro, was einem vergleichbaren Umsatzanstieg von 1% entspricht. Die bereinigte EBITA-Marge des Unternehmens stieg um 130 Basispunkte auf 12,4%, w盲hrend der freie Cashflow sich auf 230 Millionen Euro verbesserte.
Die Leistung der wichtigsten Segmente zeigte gemischte Ergebnisse: Diagnosis & Treatment sowie Connected Care verzeichneten einen Umsatzr眉ckgang von 1%, konnten jedoch die Margen verbessern, w盲hrend Personal Health ein vergleichbares Umsatzwachstum von 6% erzielte. Das Unternehmen sicherte sich bedeutende Partnerschaften, darunter eine landesweite Vereinbarung mit dem indonesischen Gesundheitsministerium, und erhielt die FDA-Zulassung f眉r seine KI-gest眉tzte SmartSpeed Precise MR-Software.
Philips erh枚hte seine Prognose f眉r das Gesamtjahr 2025, hob die Spanne der bereinigten EBITA-Marge auf 11,3%-11,8% an und die Prognose f眉r den freien Cashflow auf 0,2-0,4 Milliarden Euro, w盲hrend die Prognose f眉r das vergleichbare Umsatzwachstum von 1-3% beibehalten wurde.
- Comparable order intake growth increased to 6%
- Adjusted EBITA margin expanded 130 basis points to 12.4%
- Free cash flow improved to EUR 230 million
- Personal Health segment achieved 6% comparable sales growth
- Productivity savings of EUR 197 million achieved in Q2
- Reduced estimated tariff impact to EUR 150-200 million from EUR 250-300 million previously
- Increased full-year outlook for margin and free cash flow
- Diagnosis & Treatment segment sales decreased 1%
- Connected Care segment sales declined 1%
- Personal Health segment Adjusted EBITA margin declined 170 basis points to 15.2%
- Q3 Adjusted EBITA margin expected to be lower than 2024 due to tariff impact
- Ongoing Philips Respironics-related proceedings and DOJ investigation remain as risks
Insights
Philips shows promising recovery with order growth, margin expansion, and raised guidance despite tariff challenges.
Philips' Q2 results demonstrate a company gaining momentum after previous challenges. The 6% comparable order intake growth signals building demand for their products, particularly their AI-powered innovations. This follows 9% growth in Q2 2024, indicating sustained improvement in their market position.
The modest 1% comparable sales growth shows the company is translating orders into revenue, albeit with some lag. More impressive is the 130 basis point improvement in Adjusted EBITA margin to 12.4%, which exceeds typical quarterly progressions and reflects successful execution of their productivity initiatives that delivered 鈧�197 million in savings this quarter.
Segment performance reveals interesting dynamics: Personal Health delivered strong 6% comparable sales growth, offsetting slight declines in Diagnosis & Treatment and Connected Care (both down 1%). This diversification provides stability while healthcare segments build momentum.
The increased full-year outlook is particularly noteworthy - management has raised Adjusted EBITA margin guidance to 11.3%-11.8% (a 50 bps increase) and improved free cash flow projections to 鈧�0.2-0.4 billion. This confidence comes despite ongoing tariff headwinds, which they've partially mitigated, reducing the expected impact from 鈧�250-300 million to 鈧�150-200 million.
The company's focus on AI-driven innovations across imaging, monitoring and consumer products positions them well in high-growth healthcare technology segments. Their productivity program targeting 鈧�2.5 billion over three years (鈧�800 million in 2025) provides further margin expansion potential, assuming continued successful execution.
July 29, 2025
Q2 2025 Group Highlights
- Comparable order intake growth
6% - Group sales EUR 4.3 billion, reflecting
1% increase in comparable sales - Income from operations EUR 400 million
- Adjusted EBITA margin increased 130 bps to
12.4% of sales - Free cash flow increased to EUR 230 million
- Philips increases full year 2025 outlook for Adjusted EBITA margin and free cash flow; reiterates comparable sales growth outlook
Roy Jakobs, CEO of Royal Philips:
鈥淲e are focused on driving profitable growth and delivering better care for more people. We built order intake growth momentum, supported by our recently launched AI-powered innovations. Our multi-year agreement with the Indonesian Ministry of Health reinforces the impact for patients of our industry-leading innovations as we provide nationwide coverage for image-guided therapy, expanding access to cardiac, stroke and cancer care for millions.
Sales improved, including accelerated Personal Health sales growth, and we delivered margin expansion through innovation and productivity. We are strengthening our fundamentals through the hard work of our employees around the world. Our focus on innovation and strong execution is driving impact as we continue to put patient safety and quality as our number one priority.
We did what we said we would do in the first half of the year and remain on track. We increase our full year outlook for margin and free cash flow, including currently announced tariff levels, and we reiterate our comparable sales growth outlook as we continue to build order and sales momentum.鈥�
Group and segment performance
Comparable order intake growth sequentially improved to
Diagnosis & Treatment comparable sales decreased by
Connected Care comparable sales decreased by
Personal Health comparable sales increased
Innovation highlights
- Philips signed a long-term partnership with Indonesia鈥檚 Ministry of Health to deliver nationwide coverage of its advanced Azurion image-guided therapy system, expanding access to cardiac, stroke and cancer care to more than 280 million people across all 38 provinces.
- Philips continued to strengthen its AI leadership in MR with FDA 510(k) clearance for its SmartSpeed Precise MR software with Integrated Dual AI. SmartSpeed Precise is the industry's first integrated dual AI solution, delivering up to 3x faster scans and
80% sharper images with one click. - Philips signed large monitoring partnerships with integrated delivery networks and health systems in the US and Europe, including long-term partnerships with customers such as the Rush University System for Health in the Midwest of the US. Philips' monitoring partnerships help clinicians deliver better care through the AI-powered virtual Patient Information Center iX (PIC iX) and IntelliVue patient monitors.
- Philips delivered Spectral CT 7500 and CT 5300 systems to University Health San Antonio. These clinically proven systems offer fast, low-dose, AI-enabled scans for one of Texas鈥� largest public health systems, enabling them to deliver faster, more efficient workflows.
- Philips launched the Flash Ultrasound System 5100 POC, built for speed, precision, and ease of use in urgent point-of-care settings.
- Philips launched the i9000 electric shaver range, powered by AI and tailored to user preferences. During China鈥檚 618 festival, Philips ranked No. 1 on JD.com in male grooming sales and in the electric toothbrush category.
- Philips launched the RADIQAL clinical trial across multiple hospitals. This study will test the effectiveness of its new ultra-low dose technology, SmartIQ, in reducing radiation without impacting coronary procedure performance.
Productivity
Disciplined cost management and robust productivity initiatives delivered savings of EUR 197 million in the quarter. Philips is on track to deliver on its three-year, EUR 2.5 billion productivity program, including EUR 800 million productivity savings in 2025.
Outlook
听Philips updates its outlook, including currently announced tariff impact, which has evolved and continues to be dynamic:
- Comparable sales growth range reiterated at
1% -3% with sequential improvement as the year progresses. - Adjusted EBITA margin range increased to
11.3% -11.8% , a 50 bps increase versus our previous outlook. This includes an estimated tariff impact of EUR 150-200 million after substantial mitigations, compared to EUR 250-300 million previously; Adjusted EBITA margin in Q3 expected to be lower than in 2024 primarily due to tariff impact phasing. - Free cash flow increased to EUR 0.2 billion - EUR 0.4 billion for the full year (including the payout in the first quarter of 2025 of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the US).
This outlook excludes ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.
Capital Allocation
Philips completed its dividend distribution for 2024 in the second quarter of 2025. As approved by the Annual General Meeting of Shareholders on May 8, 2025, a dividend of EUR 0.85 per common share was paid in cash or shares at the election of the shareholder, with
For further information, please contact:
Michael Fuchs
Philips Global External Relations
Tel.: +31 6 1486 9261
E-mail:
Dorin Danu
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail:
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people鈥檚 health and well-being through meaningful innovation. Philips鈥� patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home.
Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring and enterprise informatics, as well as in personal health. Philips generated 2024 sales of EUR 18 billion and employs approximately 67,300 employees with sales and services in more than 100 countries. News about Philips can be found at .
Forward-looking statements and other important information
Forward-looking statements
This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about our strategy, estimates of sales growth, future Adjusted EBITA*, future restructuring and acquisition-related charges and other costs, future developments in Philips鈥� organic business and the completion of acquisitions and divestments. Forward-looking statements can be identified generally as those containing words such as 鈥渁nticipates鈥�, 鈥渁ssumes鈥�, 鈥渂elieves鈥�, 鈥渆stimates鈥�, 鈥渆xpects鈥�, 鈥渟hould鈥�, 鈥渨ill鈥�, 鈥渨ill likely result鈥�, 鈥渇orecast鈥�, 鈥渙utlook鈥�, 鈥減rojects鈥�, 鈥渕ay鈥� or similar expressions. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
These factors include, but are not limited to, macro-economic and geopolitical changes 鈥� including the war in Ukraine and ongoing conflicts in Israel and the Middle East 鈥� as well as measures such as announced and proposed tariffs and trade actions introduced in response to rising global tensions; Philips鈥� ability to keep pace with the changing health technology environment; Philips鈥� ability to gain leadership in health informatics and artificial intelligence in response to developments in the health technology industry; integration of acquisitions and their delivery on business plans and value creation expectations; ability to meet expectations with respect to ESG-related matters; securing and maintaining Philips鈥� intellectual property rights, and unauthorized use of third-party intellectual property rights; failure of products and services to meet quality or security standards, adversely affecting patient safety and customer operations; the resilience of our supply chain; challenges in simplifying our organization and our ways of working; attracting and retaining personnel; breach of cybersecurity; challenges in driving operational excellence and speed in bringing innovations to market; treasury and financing risks; tax risks; reliability of internal controls; compliance with regulations and standards involving quality, product safety, (cyber) security and artificial intelligence; and compliance with business conduct rules and regulations including privacy, existing and upcoming ESG disclosure and due diligence requirements. As a result, Philips鈥� actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Further information chapter included in the .
Third-party market share data
Statements regarding market share contained in this document, including those regarding Philips鈥� competitive position, are based on outside sources such as specialized research institutes, as well as industry and dealer panels, in combination with management estimates. Where information is not yet available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on outside sources of information. Management鈥檚 estimates of rankings are based on order intake or sales, depending on the business.
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Use of non-IFRS information
In presenting and discussing the Philips Group鈥檚 financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the .
Presentation
All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the .
Per share calculations for all periods presented have been retrospectively adjusted to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
*) Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information.
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FAQ
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How is Philips progressing with its productivity program?
