Philips builds strong order intake momentum and drives margin expansion in Q2
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:
'We 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.'
Group and segment performance
Comparable order intake growth sequentially improved to 6%, fueled by innovation and strengthening fundamentals, on the back of 9% growth in Q2 2024. Group comparable sales increased 1%. Adjusted EBITA margin increased by 130 basis points to 12.4%, driven by higher gross margin from innovation, product mix and productivity measures that more than offset the initial impact of increased tariffs and currency headwinds. Free cash flow increased to EUR 230 million.
Diagnosis & Treatment comparable sales decreased by 1%. Adjusted EBITA margin improved by 130 basis points to 13.5%, mainly driven by gross margin improvement due to recently launched innovations, mix effects and productivity.
Connected Care comparable sales decreased by 1%. Adjusted EBITA margin improved by 160 basis points to 10.4%, mainly driven by innovation, and productivity measures.
Personal Health comparable sales increased 6% with growth across most geographies, more than offsetting a decline in China. Adjusted EBITA margin declined by 170 bps to 15.2%, mainly attributable to investment in advertising and promotions.
Innovation highlights Philips signed a long-term partnership with Indonesia's 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' 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's 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
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 41.4% paid in cash.
Click here to view the release online
For further information, please contact:
Michael FuchsPhilips Global External RelationsTel.: +31 6 1486 9261
E-mail: [email protected]
Dorin DanuPhilips Investor RelationsTel.: +31 20 59 77055
E-mail: [email protected]
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being through meaningful innovation. Philips' 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 www.philips.com/newscenter.
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' organic business and the completion of acquisitions and divestments. Forward-looking statements can be identified generally as those containing words such as 'anticipates', 'assumes', 'believes', 'estimates', 'expects', 'should', 'will', 'will likely result', 'forecast', 'outlook', 'projects', 'may' 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 – including the war in Ukraine and ongoing conflicts in Israel and the Middle East – as well as measures such as announced and proposed tariffs and trade actions introduced in response to rising global tensions; Philips' ability to keep pace with the changing health technology environment; Philips' 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' 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' 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 Annual Report 2024.
Third-party market share data
Statements regarding market share contained in this document, including those regarding Philips' 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's estimates of rankings are based on order intake or sales, depending on the business.
Market Abuse Regulation
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Use of non-IFRS information
In presenting and discussing the Philips Group's 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 Annual Report 2024.
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 Annual Report 2024.
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.
Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
Ahmedabad Plane Crash
GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
a few seconds ago
- Business Upturn
Orange Door Releases Mid-Year Playback Report: Most Played Music Videos and In-Venue Trends for 2025 Revealed
RIVERSIDE, Calif., July 31, 2025 (GLOBE NEWSWIRE) — What do a lo-fi beat at noon and a Sabrina Carpenter hit at 9PM have in common? According to Orange Door's latest report, they are not just popular tracks. They are high-performing tools that influence customer behavior, increase dwell time, and drive promotional success inside bars and restaurants. Orange Door, a hospitality-focused music video and digital signage platform used in venues worldwide, has released its 2025 Mid-Year Playback Report. Drawing on more than 100,000 sessions from January to May, the report outlines how curated screen content is becoming a key business lever for forward-thinking venues. Many bar owners believe they know what kind of music their customers enjoy. But what actually performs across different times of day and types of venue often tells a different story. The data shows that venues using structured programming experienced up to 18% longer average dwell times than those running ad hoc playlists or standard television replays. Customers stayed longer, ordered more, and were more likely to notice and engage with on-screen promotions. In the United States, classic crowd-pleasers such as Livin' on a Prayer , Mr. Brightside , and Espresso led the charts. But across all markets, it was not just about which songs were played. It was when and how they were delivered that made the biggest difference. From mid-morning through early afternoon, venues that used mellow acoustic tracks and ambient video loops saw stronger daytime performance and longer table times. By evening, high-energy dance-pop, hip hop, and country dominated. These shifts in screen content coincided with increased drink orders, food sales, and customer engagement. Orange Door reports that over 82% of active venues now use dayparted playlists that align music and visuals with key customer flow times. That figure is up from just 61% two years ago. Advertising content also benefited from better planning. Ads placed directly after upbeat pop or R&B tracks had 26% higher recall than those shown at random intervals. Promo content spaced every four to five minutes consistently outperformed more frequent or irregular placements, particularly in busy city venues. Internal analysis showed that in-venue promotions delivered through screens performed 38% better than static signage or wall posters. And in a recent survey of 800 U.S. bar patrons, 45% said the on-screen content influenced whether they would stay for another drink. 'We've seen that with just a few smart changes, venues can get real business outcomes from content they are already running,' said Ross Vickers, President of Orange Door. 'Screens are no longer just wallpaper. When managed properly, they become part of the revenue engine.' The key takeaway is that screens can no longer be treated as passive or decorative. With tighter margins and growing competition for attention, bars, restaurants, and clubs need every part of the venue to be working. Screen content, when properly managed, becomes a powerful extension of the floor plan. It creates energy, reinforces brand identity, and unlocks incremental revenue. Key findings from the 2025 Mid-Year Playback Report: Bars with structured, dayparted content had up to 18% longer customer dwell time Ads shown after upbeat songs had 26% higher recall rates 82% of active venues now use time-of-day aligned playlists, up from 61% in 2023 Screen-based promotions outperformed static signage by 38% in driving customer actions With fully licensed music videos and purpose-built tools for playlists and promotions, Orange Door is helping venues around the world shift their screen strategies from background content to business driver. From casino lounges in Las Vegas to high-volume sports bars in Texas, the impact is already measurable. To support this shift, Orange Door is offering a free content audit and a customized advertising pack to help venues optimize their screen setup. With just a few simple adjustments, most venues can unlock more value from the screens they already have in place. Media Contact:Andrew Vickers mailto:[email protected] +1 888-679-7422 (USA)
Business Upturn
a few seconds ago
- Business Upturn
Fintradix Announces Major Upgrade to Meet Rising Volume in European Crypto Markets
By GlobeNewswire Published on August 1, 2025, 05:00 IST London, UK , July 31, 2025 (GLOBE NEWSWIRE) — Fintradix, a leading crypto trading platform, has unveiled a significant upgrade to its trading infrastructure in response to the rapidly increasing volume of cryptocurrency transactions across European markets. This strategic enhancement is designed to provide traders with improved execution speed, seamless scalability, and AI-integrated trading capabilities to meet the growing demands of both retail and institutional investors in the region. The European digital asset market has seen exponential growth over the past year, with traders seeking platforms that can deliver high performance under intense market activity. Fintradix's latest upgrade addresses these needs by introducing a newly optimized trading engine capable of processing large volumes with reduced latency. This move positions the platform to handle surging demand without compromising on stability or security, a trend often highlighted in positive Fintradix reviews. At the core of the upgrade is a focus on delivering a more intelligent trading environment. Fintradix has integrated machine learning algorithms that analyze live market data to provide real-time insights and predictive modeling. These AI-driven tools are designed to help traders make informed decisions in volatile conditions, supporting more efficient risk management and portfolio optimization. Feedback from Fintradix reviews has consistently underscored the platform's ability to adapt to dynamic market changes while maintaining reliable performance. Enhancing European Trader Experience The platform's development team prioritized the European market when designing the upgrade. With the diversity of regulatory environments across the EU and the need to support multiple asset classes, the update introduces improved compliance frameworks and expanded liquidity coverage. Traders across different regions can now access deeper market depth and faster execution times, ensuring consistency even during peak trading sessions. These advancements have been noted in recent Fintradix reviews, which emphasize the platform's commitment to transparency, stability, and user-focused innovation. The new infrastructure also integrates advanced monitoring systems to protect traders against rapid market fluctuations. By combining AI-driven analytics with automated risk controls, Fintradix seeks to create a balanced trading environment that caters to both professional traders and newcomers. The platform's ability to deliver this combination of performance and security is frequently mentioned in Fintradix reviews, further establishing its reputation as a reliable resource for European crypto investors. 'The upgrade really shows Fintradix is listening to its users. Execution is now instant, even in high-volume markets. It's a significant improvement.' – Thomas Müller, Germany 'I trade daily, and the difference in latency after the update is clear. Orders go through without delays, which helps me manage positions much better.' – Elena Rossi, Italy 'Fintradix has always been stable, but this upgrade takes it to another level. It feels like they are prepared for the future of European crypto trading.' – Pierre Dubois, France 'During market volatility, the platform stays smooth and responsive. The AI insights also help me adjust strategies quickly.' – Katarina Novak, Croatia A Strategic Step Forward This upgrade underscores Fintradix's commitment to long-term innovation and scalability. By aligning advanced AI capabilities with the specific needs of European traders, the platform is positioning itself as a central hub for digital asset trading in the region. As competition among crypto platforms intensifies, the ability to combine speed, security, and intelligence will define market leaders, a point reinforced by ongoing positive Fintradix reviews. With cryptocurrency adoption in Europe accelerating, the ability to handle rising transaction volumes while delivering advanced trading tools is critical. Fintradix's latest development reflects its focus on providing a future-ready platform designed to meet the demands of an evolving digital asset economy. Disclaimer: trading involves risk and may not be suitable for all investors. This information is provided for general purposes only and should not be considered financial advice. Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. Ahmedabad Plane Crash GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Business Upturn
a few seconds ago
- Business Upturn
Perseus Mining announces retirement of CEO and appointment of new CEO
Perth, Aug. 01, 2025 (GLOBE NEWSWIRE) — perseus mining MANAGING DIRECTOR announces retirement; new MD & CEO appointed SUMMARY Advertisement Jeff Quartermaine will retire as Perseus's Managing Director and Chief Executive Officer on September 30, 2025 Mr. Quartermaine has served in the role for 12 years, having joined Perseus in 2010 as Chief Financial Officer He has transformed the company from a struggling single mine operation to a multi-mine, multi-jurisdictional gold producer, developer and explorer with three operating assets and a fourth under construction Under Mr. Quartermaine's leadership, Perseus has become a leading gold company operating in Africa which joined the ASX100 index in June 2025 Former Newcrest global Chief Operating Officer Craig Jones will replace Mr Quartermaine, commencing with Perseus on August 18, 2025 before assuming the MD and CEO role on October 1, 2025. Perseus Mining Limited (ASX/TSX:PRU) announces its long-serving Managing Director and Chief Executive Officer (MD and CEO) Jeff Quartermaine has advised he will retire from the role of Perseus's MD and CEO after serving for 12 years. His retirement will take effect from September 30, 2025, after which he has agreed to continue to support the Company through a Consultancy Agreement on market terms. Mr. Quartermaine joined Perseus in 2010 as Chief Financial Officer, before being appointed CEO in 2013. Since assuming this role, he has transformed Perseus from a struggling single-mine, single-country company to a multi-mine, multi-jurisdictional gold producer, developer and explorer that has consistently delivered on its promises and is now one of the leading gold companies operating on the African continent. Perseus now has three operating gold mines, Edikan in Ghana and Yaouré and Sissingué in Côte d'Ivoire, and is building a fourth mine, Nyanzaga, in Tanzania, which is on track to commence gold production in Q1 CY2027. Perseus's Chairman Rick Menell praised Mr Quartermaine's outstanding contribution in leading and shaping Perseus into the company it is today, saying: 'On behalf of the Board, I would like to express my most sincere gratitude to Jeff for his leadership and guidance over the years. Jeff has transformed Perseus and has been pivotal in turning it into one of the most profitable gold producers in the world. He has built extremely solid foundations for the Company to keep growing and we cannot thank him enough for such a positive legacy.' Outgoing MD and CEO, Mr. Quartermaine said: 'It has been an honour and a privilege to have had the opportunity to serve at the helm of Perseus Mining over the past 12 years. Not only has the Company been transformed into a credible ASX 100 organisation, but during this time we have generated significant benefits for all of our stakeholders, including many in our host communities in Africa whose lives have been significantly improved through Perseus's endeavours. I am deeply indebted to all our staff, both past and present, who along with their families have given their friendship, hard work, and commitment in helping transform Perseus. Along the way we have faced a myriad of challenges including events such as the global COVID pandemic, but we have emerged stronger than ever, and the company is now well positioned to continue our success into the future. In reflecting on the last 15 years at Perseus, I must acknowledge the enormous contribution made to my career and indirectly to the success of Perseus, by my own family whose unwavering support has made the journey so much easier.' Mr. Quartermaine will be replaced as MD and CEO by Craig Jones, who will commence work with Perseus on August 18, 2025 and will assume the positions of MD and CEO with effect from October 1, 2025. Mr Jones joins Perseus with more than 25 years of global experience, having worked across Australia, Papua New Guinea (PNG), Indonesia and Canada. He was a member of Newcrest's executive team from 2012, having originally joined in 2008, and ultimately serving as Newcrest's global COO, with broad responsibility for five operating assets spread across multiple jurisdictions. In that capacity, he played a critical role in the development of organisational strategies, due diligence and investor relations. Mr Jones also led high-level engagement with governments, communities and First Nations groups across PNG, Canada and Australia. Beyond his executive roles, Mr. Jones was a Newcrest nominee director on the Boards of SolGold and Lundin Gold and was Newcrest's representative on Joint Venture Committees including the Morobe Mining Joint Venture in PNG and the Red Chris Joint Venture in British Columbia, reflecting extensive global resource-sector connectivity and governance experience. A values-driven leader recognised for enhancing safety and fostering a strong organisational culture, Mr Jones is known for his consistent, empathetic and principled leadership style, which has earned the respect of peers, governments and communities alike. Mr Menell said: 'We are delighted to welcome Craig to the Perseus team as Managing Director and CEO. Perseus is going through a significant phase of growth, in an environment that is getting increasingly complex, so we need a leader of Craig's calibre to build on Jeff's incredible legacy and confirm – and further grow – our position as one of the world's better performing mid-tier gold producers. Craig brings a wealth of strategic, operational and technical expertise, a deep understanding of complex operating jurisdictions and stakeholder management and a clear commitment to sustainable practices. We look forward to working with Craig and the rest of the Perseus team to bring the Company even further.' Mr. Jones will be based in Perseus's head office in Perth, Western Australia. A summary of the material terms of the employment agreement between Perseus and Mr. Jones is provided in Appendix A of this announcement. Appendix A: CEO Summary of Key Terms of employment Commencement Date August 18, 2025 Total Fixed Remuneration A Total Fixed Remuneration (TFR) (inclusive of Superannuation) of AU$1,060,000 per annum. Incentives Short-Term incentive: target opportunity 75% of TFR Long-Term incentive: participation, subject to shareholder approval, in Perseus's performance rights plan at 150% of TFR Other Benefits Annual Leave and Long Service Leave in line with statutory requirements Relocation from Brisbane to Perth Probation Period 6 months Notice Period 6 months (either party may give notice) This market announcement was authorised for release by the Chairman of the Board of Perseus Mining Limited, Rick Menell. ASX/TSX CODE: PRU CAPITAL STRUCTURE: Ordinary shares: 1,353,991,309 Performance rights: 9,328,134 REGISTERED OFFICE: Level 2 437 Roberts Road Subiaco WA 6008 Telephone: +61 8 6144 1700 DIRECTORS: Rick Menell Non-Executive Chairman Jeff Quartermaine Managing Director & CEO Amber Banfield Non-Executive Director Elissa Cornelius Non-Executive Director Dan Lougher Non-Executive Director John McGloin Non-Executive Director James Rutherford Non-Executive Director CONTACTS: Jeff Quartermaine Managing Director & CEO [email protected] Stephen Forman Investor Relations +61 484 036 681 [email protected] Nathan Ryan Media +61 420 582 887 [email protected] Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same.
