Philips sees ‘encouraging start’ to year 

AMSTERDAM – Philips has reported group sales of EUR 4.1 billion for the first quarter of 2025, a 2% decline, mainly due to China. 

The company reported comparable order intake increased 2%, primarily driven by strong performance in North America, offsetting a decline in China, and income from operations increased to EUR 154 million. Adjusted EBITDA margin declined to 80 bps to 8.6% of sales. 

“We remain dedicated to serving our customers, driving profitable growth and delivering better care for more people,” said Roy Jakobs, CEO of Royal Philips. “Our order intake growth continued with strong momentum particularly in the U.S., coupled with positive growth in personal health, providing an encouraging start to the year.” 

For Connected Care, which includes the Sleep & Respiratory Care business, comparable sales were broadly flat across businesses and adjusted EBITDA margin was 3.5%, mainly due to an unfavorable mix and cost phasing, partly offset by productivity measures and innovation. 

Philips updated its outlook for full year 2025 to reflect an uncertain macro environment, including the U.S.-China and rest of world tariffs. It now expects: 

• Comparable sales growth to remain unchanged at 1%-3%. 
• Adjusted EBITA margin range to be 10.8%-11.3%, including an estimated net tariff impact of EUR 250-300 million after substantial tariff mitigations, a 100 bps reduction versus previous outlook, based on the above-referenced assumptions. 
• Free cash flow to be slightly positive for the full year, after the payout of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the U.S. 

“In an uncertain macro environment that has intensified due to the potential impact of tariffs, we are focused on what we can control,” Jakobs said. “We are improving our supply chain agility, taking decisive cost actions to mitigate financial impact where possible, and ensuring we can continue to serve our customers and consumers.” 

Philips' outlook excludes ongoing Philips Respironics-related proceedings, including the investigation by the U.S. Department of Justice. 

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