Signify, the Netherlands-based lighting manufacturer, said on Tuesday that it does not plan to restart the share repurchase program first announced in 2025, outlining instead a set of medium-term financial targets extending to 2029 during its Capital Markets Day presentation.
The company said additional repurchases would be considered only in light of its financial results, capital requirements and prevailing market conditions. Alongside that decision, Signify published explicit targets for comparable sales growth, profitability and cash generation for the 2029 horizon.
Concretely, Signify is aiming for comparable sales growth of 0-1%, an adjusted EBITA margin of about 10% and free cash flow generation equivalent to 7-8% of sales by 2029. The company also revised its dividend policy, committing to pay an annual cash dividend with a pay-out ratio of 40-50% of continuing net income. Signify added that it will propose a rebalanced dividend per share for the 2026 financial year.
Management attributed expected margin expansion to several internal levers. These include lower indirect costs, a resilient gross margin and enhanced performance management structured around newly defined performance areas. The company said free cash flow should be supported by targeted profitability improvements, stricter working capital discipline and sustained attention to cash conversion.
Signify set out a portfolio strategy under a "Build or Harvest" framework, identifying six portfolio choices. Areas designated for Build investment include connected lighting, the Consumer segment, selected Professional segments and a more concentrated geographic focus. Activities placed in the Harvest category encompass non-connected LED lamps, Conventional lighting and other more commoditized parts of the business; these will be optimized for performance and revenue.
Across the defined performance areas, the company plans to apply three playbooks: maximizing operating leverage where growth is strong, turning around areas that are EBITA-dilutive, and preserving high profitability in businesses that are low-growth or in decline. Signify said its capital allocation framework will also prioritize maintaining a capital structure supportive of an investment grade credit rating while continuing to direct resources toward both organic and inorganic growth opportunities.
The company did not provide additional numerical detail beyond the 2029 targets announced at the Capital Markets Day. It emphasized that any future share repurchases would be a function of financial performance, capital needs and market conditions rather than an automatic continuation of the 2025 program.
Impacted sectors: Industrials, Technology-enabled lighting, Consumer durables and related commercial construction and infrastructure spending.