Philips reiterated its full-year comparable sales growth outlook of 3% to 4.5% and updated its reported free cash flow guidance to between 1.5 billion and 1.7 billion euros, incorporating a U.S. tariff refund recognized in the second quarter. CEO Roy Jakobs said second-quarter comparable sales rose 4%, while CFO Charlotte Hanneman noted the adjusted EBITA margin increased to 16.4% including the tariff benefit, with an underlying margin of 12.2% excluding it. The company now expects a full-year adjusted EBITA margin of 13.5% to 14% including the refund, up from the underlying range of 12.5% to 13%. Order intake declined 1% as certain larger monitoring orders moved to the third quarter, but management expects solid order growth in the third quarter and highlighted a record equipment order book. For the third quarter, comparable sales growth is expected at the lower end of the full-year range due to China and Ultrasound, with adjusted EBITA margin below the prior-year level.
Koninklijke Philips NVPhilips raised free cash flow and EBITA margin guidance due to a U.S. tariff refund, and reiterated comparable sales growth outlook.