Dutch consumer electronics giant Koninklijke Philips N.V. (PHGFF.PK,PHG) reported Tuesday a profit in its fourth quarter, compared to prior year's loss, driven by higher comparable sales. Further, the company issued fiscal 2026 and fiscal 2028 outlook, expecting growth.
In the fourth quarter, net income was 397 million euros, compared to prior year's loss of 333 million euros. Earnings per share were 0.41 euro, compared to loss of 0.35 euro a year ago.
Adjusted income from continuing operations was 0.60 euro per share, compared to 0.50 euro per share a year ago.
Adjusted EBITA was 770 million euros, higher than 679 million euros a year ago. Adjusted EBITA margin was 15.1 percent, compared to prior year's 13.5 percent.
Adjusted EBITDA grew to 991 million euros from 905 million euros last year, and adjusted EBITDA margin improved to 19.4 percent from prior year's 17.9 percent.
Sales for the quarter grew 1 percent to 5.097 billion euros from 5.044 billion euros a year ago.
Comparable sales growth was 7 percent, driven by growth across all segments.
Comparable order intake grew 7 percent in the quarter, supported by growth in both Diagnosis & Treatment and Connected Care and continued strong performance in North America.
Further, Philips said it intends to submit to the 2026 Annual General Meeting of Shareholders a proposal to declare a dividend of 0.85 euro per common share, in shares or cash at the option of the shareholder.
Looking ahead for fiscal 2026, Philips expects adjusted EBITA margin of 12.5 percent to 13.0 percent, and comparable sales growth of 3 percent to 4.5 percent.
The outlook includes currently known tariffs, and excludes ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.
In fiscal 2025, adjusted EBITA margin was 12.3 percent and comparable sales growth was 2 percent.
Further, Philips published 2026-2028 financial targets, including mid-single-digit comparable sales growth CAGR over the period and mid-teens Adjusted EBITA margin in 2028.
In order to drive profitable growth, the company also announced new, integrated 2030 Impact Ambitions.
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