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Mar 31
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Philips Q1 2025 Earnings Report
Philips returned to profitability in Q1 2025 with improved order intake despite a revenue decline driven by China.
Key Takeaways
Philips reported a positive Q1 2025 with a return to net income of €72M, supported by strong personal health performance and North American demand. However, overall revenue declined slightly due to significant sales drops in China.
Net income turned positive at €72M after a large loss last year.
Revenue declined by 1% nominally, mainly due to weak performance in China.
Adjusted EBITA margin dropped to 8.6% from 9.4% YoY.
Free cash outflow of over €1 billion driven by settlement payments for Respironics.
Philips
Philips
Philips Revenue by Segment
Revenue by Segment
Diagnosis & Treatment Revenue
CapyFin.comConnected Care Revenue
CapyFin.comPersonal Health Revenue
CapyFin.com Forward Guidance
Philips maintained its sales outlook for FY2025 but adjusted margin and cash flow expectations to reflect expected tariff impacts.
Positive Outlook
- Order intake showed growth with strong performance in North America.
- Personal Health segment maintained margin and grew revenue.
- Philips remains on track to deliver €800M in productivity savings in 2025.
- Positive momentum in Image-Guided Therapy segment.
- AI and cloud innovations launched in imaging and monitoring.
Challenges Ahead
- Adjusted EBITA margin outlook reduced by 100 bps due to tariffs.
- Free cash flow expected to be only slightly positive for full year.
- Sales declined in China across all business segments.
- Connected Care margin weakened due to unfavorable mix and cost phasing.
- Ongoing impact from Respironics-related legal and field action costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income