SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________
FORM 6-K
____________________________________________________________________________
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
July 29, 2025
____________________________________________________________________________
KONINKLIJKE PHILIPS N.V.
(Exact name of registrant as specified in its charter)
____________________________________________________________________________
Royal Philips
(Translation of registrant’s name into English)
The Netherlands
(Jurisdiction of incorporation or organization)
Prinses Irenestraat 59, 1077 WV Amsterdam, The Netherlands
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
Name and address of person authorized to receive notices and communications from the Securities and Exchange Commission:
M.J. van Ginneken
Koninklijke Philips N.V.
Prinses Irenestraat 59
1077 WV Amsterdam – The Netherlands
Koninklijke Philips N.V.
Prinses Irenestraat 59
1077 WV Amsterdam – The Netherlands
This report comprises a copy of the following report:
“Philips' Second Quarter Results 2025”, dated July 29, 2025.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized at Amsterdam, on the 29th day of July, 2025.
KONINKLIJKE PHILIPS N.V.
/s/ M.J. van Ginneken
(Chief Legal Officer)
(Chief Legal Officer)
 | Quarterly report | ||||
Q2 2025 | |||||
Philips builds strong order intake momentum and drives margin expansion in Q2
Amsterdam, July 29, 2025
Q2 2025 Group Highlights
•Comparable order intake growth 6%
•Group sales EUR 4.3 billion, reflecting 1% increase in comparable sales
•Income from operations EUR 400 million
•Adjusted EBITA margin increased 130 bps to 12.4% of sales
•Free cash flow increased to EUR 230 million
•Philips increases full year 2025 outlook for Adjusted EBITA margin and free cash flow; reiterates comparable sales growth outlook
Roy Jakobs, CEO of Royal Philips:
“We are focused on driving profitable growth and delivering better care for more people. We built order intake growth momentum, supported by our recently launched AI-powered innovations. Our multi-year agreement with the Indonesian Ministry of Health reinforces the impact for patients of our industry-leading innovations as we provide nationwide coverage for image-guided therapy, expanding access to cardiac, stroke and cancer care for millions.
Sales improved, including accelerated Personal Health sales growth, and we delivered margin expansion through innovation and productivity. We are strengthening our fundamentals through the hard work of our employees around the world. Our focus on innovation and strong execution is driving impact as we continue to put patient safety and quality as our number one priority.
We did what we said we would do in the first half of the year and remain on track. We increase our full year outlook for margin and free cash flow, including currently announced tariff levels, and we reiterate our comparable sales growth outlook as we continue to build order and sales momentum.”
Group and segment performance
Comparable order intake growth sequentially improved to 6%, fueled by innovation and strengthening fundamentals, on the back of 9% growth in Q2 2024. Group comparable sales increased 1%. Adjusted EBITA margin increased by 130 basis points to 12.4%, driven by higher gross margin from innovation, product mix and productivity measures that more than offset the initial impact of increased tariffs and currency headwinds. Free cash flow increased to EUR 230 million.
Diagnosis & Treatment comparable sales decreased by 1%. Adjusted EBITA margin improved by 130 basis points to 13.5%, mainly driven by gross margin improvement due to recently launched innovations, mix effects and productivity.
Connected Care comparable sales decreased by 1%. Adjusted EBITA margin improved by 160 basis points to 10.4%, mainly driven by innovation, and productivity measures.
Personal Health comparable sales increased 6% with growth across most geographies, more than offsetting a decline in China. Adjusted EBITA margin declined by 170 bps to 15.2%, mainly attributable to investment in advertising and promotions.
| Quarterly Report 2025 - Q2 | 3 | |||||||
Innovation highlights
•Philips signed a long-term partnership with Indonesia’s Ministry of Health to deliver nationwide coverage of its advanced Azurion image-guided therapy system, expanding access to cardiac, stroke and cancer care to more than 280 million people across all 38 provinces.
•Philips continued to strengthen its AI leadership in MR with FDA 510(k) clearance for its SmartSpeed Precise MR software with Integrated Dual AI. SmartSpeed Precise is the industry's first integrated dual AI solution, delivering up to 3x faster scans and 80% sharper images with one click.
•Philips signed large monitoring partnerships with integrated delivery networks and health systems in the US and Europe, including long-term partnerships with customers such as the Rush University System for Health in the Midwest of the US. Philips' monitoring partnerships help clinicians deliver better care through the AI-powered virtual Patient Information Center iX (PIC iX) and IntelliVue patient monitors.
•Philips delivered Spectral CT 7500 and CT 5300 systems to University Health San Antonio. These clinically proven systems offer fast, low-dose,
AI-enabled scans for one of Texas’ largest public health systems, enabling them to deliver faster, more efficient workflows.
AI-enabled scans for one of Texas’ largest public health systems, enabling them to deliver faster, more efficient workflows.
•Philips launched the Flash Ultrasound System 5100 POC, built for speed, precision, and ease of use in urgent point-of-care settings.
•Philips launched the i9000 electric shaver range, powered by AI and tailored to user preferences. During China’s 618 festival, Philips ranked No. 1 on JD.com in male grooming sales and in the electric toothbrush category.
•Philips launched the RADIQAL clinical trial across multiple hospitals. This study will test the effectiveness of its new ultra-low dose technology, SmartIQ, in reducing radiation without impacting coronary procedure performance.
Productivity
Disciplined cost management and robust productivity initiatives delivered savings of EUR 197 million in the quarter. Philips is on track to deliver on its three-year, EUR 2.5 billion productivity program, including EUR 800 million productivity savings in 2025.
Outlook
Philips updates its outlook, including currently announced tariff impact, which has evolved and continues to be dynamic:
•Comparable sales growth range reiterated at 1%-3% with sequential improvement as the year progresses.
•Adjusted EBITA margin range increased to 11.3%-11.8%, a 50 bps increase versus our previous outlook. This includes an estimated tariff impact of EUR 150-200 million after substantial mitigations, compared to EUR 250-300 million previously; Adjusted EBITA margin in Q3 expected to be lower than in 2024 primarily due to tariff impact phasing.
•Free cash flow increased to EUR 0.2 billion - EUR 0.4 billion for the full year (including the payout in the first quarter of 2025 of EUR 1,025 million Philips Respironics recall-related medical monitoring and personal injury settlements in the US).
This outlook excludes ongoing Philips Respironics-related proceedings, including the investigation by the US Department of Justice.
Capital Allocation
Philips completed its dividend distribution for 2024 in the second quarter of 2025. As approved by the Annual General Meeting of Shareholders on May 8, 2025, a dividend of EUR 0.85 per common share was paid in cash or shares at the election of the shareholder, with 41.4% paid in cash.
Conference call and video webcast
Roy Jakobs, CEO, and Charlotte Hanneman, CFO, will host a conference call for investors and analysts at 09:00 am CET today to discuss the second quarter results. A live webcast of the conference call will be available on the Philips Investor Relations website and can be accessed here.
| Quarterly Report 2025 - Q2 | 4 | |||||||
Philips performance
Key data in millions of EUR unless otherwise stated*
| Q2 2024 | Q2 2025 | |||||||
| Sales | 4,462 | 4,338 | ||||||
| Nominal sales growth | 0 | % | (3 | %) | ||||
| Comparable sales growth ¹ | 2 | % | 1 | % | ||||
| Comparable order intake ² | 9 | % | 6 | % | ||||
| Income from operations | 816 | 400 | ||||||
| as a % of sales | 18 | % | 9 | % | ||||
| Financial income (expenses), net | (68) | (57) | ||||||
| Investments in associates, net of income taxes | (93) | (6) | ||||||
| Income tax (expense) benefit | (345) | (95) | ||||||
| Income from continuing operations | 311 | 242 | ||||||
| Discontinued operations, net of income taxes | 141 | (2) | ||||||
| Net income | 452 | 240 | ||||||
| Earnings per common share (EPS) | ||||||||
| Income from continuing operations attributable to shareholders ³ (in EUR) - diluted | 0.32 | 0.25 | ||||||
| Adjusted income from continuing operations attributable to shareholders ³ (in EUR) - diluted ¹ | 0.30 | 0.36 | ||||||
| Net income attributable to shareholders ³ (in EUR) - diluted | 0.47 | 0.25 | ||||||
| EBITA ¹ | 876 | 453 | ||||||
| as a % of sales | 19.6 | % | 10.5 | % | ||||
| Adjusted EBITA ¹ | 495 | 540 | ||||||
| as a % of sales | 11.1 | % | 12.4 | % | ||||
| Adjusted EBITDA ¹ | 733 | 747 | ||||||
| as a % of sales | 16.4 | % | 17.2 | % | ||||
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
2Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter 9.10, Other Key Performance indicators, of the Annual Report 2024.
3Shareholders refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
•Comparable sales increased by 1%. The 6% growth in Personal Health was offset by a 1% decline both in Connected Care and Diagnosis & Treatment, on the back of a high comparison base in prior years driven by supply chain improvements.
•Income from operations decreased to EUR 400 million, mainly due to the comparative impact of EUR 538 million insurance income related to the Respironics product liability claims recorded in Q2 2024, partly offset by higher gross margin, operational improvements and lower restructuring charges in Q2 2025.
•Adjusted EBITA increased to EUR 540 million and the margin was 12.4%, mainly driven by improved gross margin, product mix and productivity measures.
•Restructuring, acquisition-related and other items amounted to a loss of EUR 86 million, compared with a gain of EUR 381 million in Q2 2024 that included EUR 538 million for the Respironics insurance income. Q2 2025 mainly includes EUR 46 million restructuring and acquisition-related charges, EUR 34 million Respironics field-action running costs, EUR 21 million Respironics consent decree charges, and a EUR 23 million contract settlement gain.
•Income tax expense decreased by EUR 250 million, mainly due to the de-recognition of deferred tax assets in the US and higher income in Q2 2024.
•Net income decreased due to lower income from operations as explained above, and income from discontinued operations recorded in Q2 2024. The decrease was partly offset by lower impairments in investments in associates and tax charges in Q2 2025.
Sales per geographic area in millions of EUR unless otherwise stated
| % change | ||||||||||||||
| Q2 2024 | Q2 2025 | nominal | comparable ¹ | |||||||||||
| Western Europe | 937 | 926 | (1 | %) | 0 | % | ||||||||
| North America | 1,944 | 1,867 | (4 | %) | 0 | % | ||||||||
| Other mature geographies | 376 | 367 | (2 | %) | (1 | %) | ||||||||
| Mature geographies | 3,257 | 3,160 | (3 | %) | 0 | % | ||||||||
| Growth geographies | 1,205 | 1,178 | (2 | %) | 2 | % | ||||||||
| Philips Group | 4,462 | 4,338 | (3 | %) | 1 | % | ||||||||
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
•Comparable sales in Mature geographies were flat.
•Growth geographies showed low-single-digit growth, despite a decline in China, with contributions from all segments.
Cash and cash equivalents balance in millions of EUR
| Q2 2024 | Q2 2025 | |||||||
| Beginning cash balance | 1,402 | 1,193 | ||||||
| Free cash flow ¹ | (64) | 230 | ||||||
| Net cash flows from operating activities | 89 | 387 | ||||||
| Net capital expenditures | (153) | (156) | ||||||
| Other cash flows from investing activities | (10) | (69) | ||||||
| Treasury shares transactions | (113) | 1 | ||||||
| Changes in debt | 587 | 840 | ||||||
| Dividend paid to shareholders | (1) | (295) | ||||||
| Other cash flow items | 5 | (79) | ||||||
| Ending cash balance | 1,807 | 1,822 | ||||||
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
•Net cash flows from operating activities increased, mainly driven by the comparative impact of the net Respironics related payments recorded in Q2 2024, and improved working capital in Q2 2025.
•Other cash flows from investing activities in Q2 2025 includes a cash payment with respect to foreign exchange derivative contracts.
•Changes in debt in Q2 2025 mainly includes the new EUR 1 billion bonds issued in May 2025, partly offset by debt repayments.
•Dividend paid to shareholders in 2025 reflects the cash portion of the dividend and related withholding tax, whereas the dividend in 2024 was fully settled in shares.
•Other cash flow items reflects the foreign currency impact on the cash balance.
Amounts may not add up due to rounding.*
| Quarterly Report 2025 - Q2 | 5 | |||||||
Performance per segment
Diagnosis & Treatment
Key data in millions of EUR unless otherwise stated*
| Q2 2024 | Q2 2025 | |||||||
| Sales | 2,174 | 2,084 | ||||||
| Nominal sales growth | 3 | % | (4 | %) | ||||
| Comparable sales growth ¹ | 4 | % | (1 | %) | ||||
| Income from operations | 211 | 226 | ||||||
| as a % of sales | 9.7 | % | 10.8 | % | ||||
| EBITA ¹ | 234 | 244 | ||||||
| as a % of sales | 10.8 | % | 11.7 | % | ||||
| Adjusted EBITA ¹ | 265 | 281 | ||||||
| as a % of sales | 12.2 | % | 13.5 | % | ||||
| Adjusted EBITDA ¹ | 314 | 325 | ||||||
| as a % of sales | 14.4 | % | 15.6 | % | ||||
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
•Comparable sales decreased by 1%, with growth in Image Guided Therapy offset by a low-single-digit decline in Precision Diagnosis, on the back of a high comparison base in prior years driven by supply chain improvements.
•Mature geographies recorded a low-single-digit decline. Growth geographies delivered low-single-digit growth.
•Adjusted EBITA increased to EUR 281 million and the margin improved to 13.5%, mainly driven by improved gross margin, productivity measures and mix effects.
•Restructuring, acquisition-related and other items amounted to EUR 36 million, compared with EUR 31 million in Q2 2024.
Connected Care
Key data in millions of EUR unless otherwise stated
| Q2 2024 | Q2 2025 | |||||||
| Sales | 1,332 | 1,272 | ||||||
| Nominal sales growth | 0 | % | (5 | %) | ||||
| Comparable sales growth ¹ | 2 | % | (1 | %) | ||||
| Income from operations | 558 | 67 | ||||||
| as a % of sales | 41.9 | % | 5.2 | % | ||||
| EBITA ¹ | 589 | 95 | ||||||
| as a % of sales | 44.2 | % | 7.5 | % | ||||
| Adjusted EBITA ¹ | 117 | 132 | ||||||
| as a % of sales | 8.8 | % | 10.4 | % | ||||
| Adjusted EBITDA ¹ | 190 | 192 | ||||||
| as a % of sales | 14.3 | % | 15.1 | % | ||||
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
•Comparable sales decreased by 1%, mainly due to a low-single-digit decline in Monitoring.
•Comparable sales in Growth geographies were flat. Mature geographies recorded a low-single-digit decline.
•Income from operations decreased by EUR 491 million, mainly due to the comparative impact of EUR 538 million insurance income related to Respironics product liability claims recorded in Q2 2024.
•Adjusted EBITA increased to EUR 132 million and the margin increased to 10.4%, mainly driven by productivity measures.
•Restructuring, acquisition-related and other items amounted to a loss of EUR 37 million, compared with a net gain of EUR 472 million in Q2 2024, which included EUR 538 million insurance income related to the Respironics product liability claims. Q2 2025 mainly includes EUR 34 million in Respironics field-action running costs, EUR 21 million of Respironics consent decree charges, and a EUR 23 million contract settlement gain.
Personal Health
Key data in millions of EUR unless otherwise stated
| Q2 2024 | Q2 2025 | |||||||
| Sales | 834 | 862 | ||||||
| Nominal sales growth | 0 | % | 3 | % | ||||
| Comparable sales growth ¹ | 2 | % | 6 | % | ||||
| Income from operations | 120 | 122 | ||||||
| as a % of sales | 14.4 | % | 14.2 | % | ||||
| EBITA ¹ | 124 | 126 | ||||||
| as a % of sales | 14.9 | % | 14.6 | % | ||||
| Adjusted EBITA ¹ | 141 | 131 | ||||||
| as a % of sales | 16.9 | % | 15.2 | % | ||||
| Adjusted EBITDA ¹ | 163 | 154 | ||||||
| as a % of sales | 19.5 | % | 17.8 | % | ||||
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
•Comparable sales increased by 6%, driven by strong growth in all geographies, except China.
•Adjusted EBITA decreased to EUR 131 million and the margin was 15.2%, mainly due to advertising and promotion spend.
•Restructuring, acquisition-related and other items amounted to EUR 5 million in Q2 2025, compared with EUR 17 million in Q2 2024.
Other
Key data in millions of EUR unless otherwise stated
| Q2 2024 | Q2 2025 | |||||||
| Sales | 121 | 120 | ||||||
| Income from operations | (73) | (15) | ||||||
| EBITA ¹ | (70) | (12) | ||||||
| Adjusted EBITA ¹ of: | (28) | (4) | ||||||
| IP Royalties | 56 | 63 | ||||||
| Innovation | (26) | (15) | ||||||
| Central costs | (53) | (50) | ||||||
| Other | (5) | (2) | ||||||
| Adjusted EBITDA ¹ | 67 | 75 | ||||||
1Non-IFRS financial measure. Refer to Reconciliation of non-IFRS information
•Sales were in line with the previous year.
•Adjusted EBITA increased by 24 million, mainly driven by higher royalty income and lower costs.
•Restructuring, acquisition-related and other items totaled EUR 8 million, compared with EUR 42 million in Q2 2024.
Amounts may not add up due to rounding.*
| Quarterly Report 2025 - Q2 | 6 | |||||||
Philips semi-annual report 2025
Introduction
This report contains the semi-annual report of Koninklijke Philips N.V. (‘the Company’ or ‘Philips’), a company with limited liability, headquartered in Amsterdam, the Netherlands. The principal activities of the Company and its group companies (‘the Group’) are described in the Annual Report 2024. The semi-annual report for the six months ended June 30, 2025, consists of the semi-annual condensed consolidated financial statements, the semi-annual management report and the responsibility statement by the Company’s Board of Management. The information in this semi-annual report is unaudited.
Responsibility statement
The Board of Management of the Company hereby declares that to the best of their knowledge, the semi-annual condensed consolidated financial statements for the six-month period ended June 30, 2025, which have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and as endorsed by the European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole, and that the semi-annual management report for the six-month period ended June 30, 2025, gives a fair view of the information required pursuant to article 5:25d paragraph 8 and 9 of the Dutch Financial Markets Supervision Act (Wet op het Financieel toezicht).
Amsterdam, July 29, 2025
Board of Management
Roy Jakobs
Charlotte Hanneman
Marnix van Ginneken
| Semi-annual report 2025 | 7 | |||||||
Management report Philips performance
Key data in millions of EUR unless otherwise stated
| January to June | ||||||||
| 2024 | 2025 | |||||||
| Sales | 8,600 | 8,434 | ||||||
| Nominal sales growth | 0 | % | (2 | %) | ||||
| Comparable sales growth ¹ | 2 | % | (1 | %) | ||||
| Comparable order intake ² | 3 | % | 4 | % | ||||
| Income from operations | (8) | 554 | ||||||
| as a % of sales | 0 | % | 7 | % | ||||
| Financial income (expenses), net | (137) | (105) | ||||||
| Investments in associates, net of income taxes | (94) | (7) | ||||||
| Income tax (expense) benefit | (449) | (122) | ||||||
| Income from continuing operations | (688) | 320 | ||||||
| Discontinued operations, net of income taxes | 142 | (8) | ||||||
| Net income | (546) | 312 | ||||||
| Earnings per common share (EPS) | ||||||||
| Income from continuing operations attributable to shareholders ³ (in EUR) - diluted | (0.72) | 0.34 | ||||||
| Adjusted income from continuing operations attributable to shareholders ³ (in EUR) - diluted ¹ | 0.55 | 0.61 | ||||||
| Net income attributable to shareholders ³ (in EUR) - diluted | (0.57) | 0.33 | ||||||
| EBITA ¹ | 125 | 665 | ||||||
| as a % of sales | 1.5 | % | 7.9 | % | ||||
| Adjusted EBITA ¹ | 882 | 894 | ||||||
| as a % of sales | 10.3 | % | 10.6 | % | ||||
| Adjusted EBITDA ¹ | 1,342 | 1,317 | ||||||
| as a % of sales | 15.6 | % | 15.6 | % | ||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
2Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter 9.10, Other Key Performance indicators, of the Annual Report 2024.
3Shareholders refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
•Comparable sales decreased by 1%, including a decline in China. Mid-single-digit growth in Personal Health was offset by low-single-digit declines in Diagnosis & Treatment and Connected Care.
•Income from operations increased by EUR 562 million, mainly driven by the comparative impact of EUR 982 million for the Respironics litigation provision, which was partly offset by EUR 538 million insurance income related to the Respironics product liability claims recorded in the first half of 2024, as well as higher gross margin, and lower charges in restructuring, acquisition-related and other items.
•Adjusted EBITA increased to EUR 894 million and the margin was 10.6%.
•Restructuring, acquisition-related and other items amounted to EUR 229 million, compared with EUR 757 million in 2024. 2025 includes EUR 112 million restructuring and acquisition-related charges, EUR 71 million Respironics field-action running costs, EUR 48 million Respironics consent decree charges, EUR 18 million charges in relation to quality actions, and a EUR 23 million contract settlement gain.
•Income tax expense decreased by EUR 327 million, mainly due to the de-recognition of deferred tax assets in the US in the first half of 2024, partly offset by the tax impact on higher income in the first half of 2025.
•Net income increased, mainly driven by the higher income from operations as explained above, lower income tax charges and lower impairments in investments in associates. The increase was partly offset by the lower income from discontinued operations.
Sales per geographic area in millions of EUR unless otherwise stated
| January to June | % change | |||||||||||||
| 2024 | 2025 | nominal | comparable1 | |||||||||||
| Western Europe | 1,790 | 1,758 | (2 | %) | (1 | %) | ||||||||
| North America | 3,689 | 3,659 | (1 | %) | 0 | % | ||||||||
| Other mature geographies | 774 | 744 | (4 | %) | (3 | %) | ||||||||
| Mature geographies | 6,253 | 6,162 | (1 | %) | (1 | %) | ||||||||
| Growth geographies | 2,347 | 2,273 | (3 | %) | (1 | %) | ||||||||
| Philips Group | 8,600 | 8,434 | (2 | %) | (1 | %) | ||||||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
•Comparable sales in Mature geographies declined, mainly due to a high comparison base in Diagnosis & Treatment.
•Growth geographies declined mainly due to China, partly offset by strong growth in other Growth geographies.
Cash and cash equivalents balance in millions of EUR
| January to June | ||||||||
| 2024 | 2025 | |||||||
| Beginning cash balance | 1,869 | 2,401 | ||||||
| Free cash flow ¹ | (400) | (860) | ||||||
| Net cash flows from operating activities | (82) | (546) | ||||||
| Net capital expenditures | (318) | (315) | ||||||
| Other cash flows from investing activities | (19) | (68) | ||||||
| Treasury shares transactions | (208) | 1 | ||||||
| Changes in debt | 560 | 792 | ||||||
| Dividend paid to shareholders | (1) | (295) | ||||||
| Other cash flow items | 23 | (140) | ||||||
| Net cash flows from discontinued operations | (17) | (10) | ||||||
| Ending cash balance | 1,807 | 1,822 | ||||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
•Net cash flows from operating activities decreased, mainly due to the cash payment of EUR 1,025 million for Philips Respironics recall-related medical monitoring and personal injury settlements, partly offset by improved working capital.
•Other cash flows from investing activities in 2025 mainly includes a cash payment with respect to foreign exchange derivative contracts.
•Changes in debt in the first half of 2025 mainly includes the new EUR 1 billion bonds issued in May 2025, partly offset by debt repayments.
•Dividend paid to shareholders in 2025 reflects the cash portion of the dividend and related withholding tax, whereas the dividend in 2024 was fully settled in shares.
•Other cash flow items reflects the foreign currency impact on the cash balance.
| Semi-annual report 2025 | 8 | |||||||
Performance per segment
Diagnosis & Treatment
Key data in millions of EUR unless otherwise stated
| January to June | ||||||||
| 2024 | 2025 | |||||||
| Sales | 4,200 | 4,048 | ||||||
| Sales growth | ||||||||
| Nominal sales growth | 2 | % | (4 | %) | ||||
| Comparable sales growth ¹ | 4 | % | (3 | %) | ||||
| Income from operations | 357 | 379 | ||||||
| as a % of sales | 8.5 | % | 9.4 | % | ||||
| EBITA ¹ | 402 | 417 | ||||||
| as a % of sales | 9.6 | % | 10.3 | % | ||||
| Adjusted EBITA ¹ | 452 | 468 | ||||||
| as a % of sales | 10.8 | % | 11.6 | % | ||||
| Adjusted EBITDA ¹ | 549 | 560 | ||||||
| as a % of sales | 13.1 | % | 13.8 | % | ||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
•Comparable sales decreased by 3% on the back of mid-single-digit growth in the first half of 2024. Growth in Image Guided Therapy was more than offset by a decline in Precision Diagnosis.
•Comparable sales in Mature geographies showed a low-single-digit decline. Growth geographies showed a mid-single-digit decline, mainly due to China.
•Adjusted EBITA increased to EUR 468 million and the margin improved to 11.6%, mainly driven by improved gross margin, productivity measures and mix effects.
•Restructuring, acquisition-related and other items amounted to EUR 51 million, compared with EUR 50 million in 2024. 2025 includes EUR 30 million in restructuring and acquisition-related charges and EUR 21 million for charges in relation to quality actions.
Connected Care
Key data in millions of EUR unless otherwise stated
| January to June | ||||||||
| 2024 | 2025 | |||||||
| Sales | 2,497 | 2,454 | ||||||
| Sales growth | ||||||||
| Nominal sales growth | (2 | %) | (2 | %) | ||||
| Comparable sales growth ¹ | 0 | % | (1 | %) | ||||
| Income from operations | (507) | (15) | ||||||
| as a % of sales | (20.3 | %) | (0.6 | %) | ||||
| EBITA ¹ | (433) | 44 | ||||||
| as a % of sales | (17.3 | %) | 1.8 | % | ||||
| Adjusted EBITA ¹ | 191 | 173 | ||||||
| as a % of sales | 7.6 | % | 7.0 | % | ||||
| Adjusted EBITDA ¹ | 324 | 296 | ||||||
| as a % of sales | 13.0 | % | 12.1 | % | ||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
•Comparable sales decreased by 1%, mainly due to a low-single-digit decline in Monitoring.
•Mature geographies showed a low-single-digit decline. Growth geographies showed low-single-digit growth despite a decline in China.
•Income from operations increased by EUR 492 million, mainly driven by the comparative impact of the EUR 982 million Respironics litigation provision, which was partly offset by EUR 538 million insurance income related to Respironics product liability claims recorded in the first half of 2024.
•Adjusted EBITA decreased to EUR 173 million and the margin was 7.0%, mainly due to the impact of an unfavorable mix, partly offset by productivity measures.
•Restructuring, acquisition-related and other items were EUR 128 million, compared with EUR 624 million in 2024, which included Respironics litigation provision charges of EUR 982 million and EUR 538 million insurance income related to the Respironics product liability claims. 2025 includes EUR 32 million restructuring and acquisition-related charges, EUR 71 million Respironics field-action running costs, EUR 48 million Respironics consent decree charges, and a EUR 23 million contract settlement gain.
Personal Health
Key data in millions of EUR unless otherwise stated
| January to June | ||||||||
| 2024 | 2025 | |||||||
| Sales | 1,624 | 1,672 | ||||||
| Sales growth | ||||||||
| Nominal sales growth | (1 | %) | 3 | % | ||||
| Comparable sales growth ¹ | 3 | % | 4 | % | ||||
| Income from operations | 236 | 238 | ||||||
| as a % of sales | 14.5 | % | 14.2 | % | ||||
| EBITA ¹ | 243 | 245 | ||||||
| as a % of sales | 15.0 | % | 14.7 | % | ||||
| Adjusted EBITA ¹ | 261 | 254 | ||||||
| as a % of sales | 16.1 | % | 15.2 | % | ||||
| Adjusted EBITDA ¹ | 308 | 300 | ||||||
| as a % of sales | 19.0 | % | 18.0 | % | ||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
•Comparable sales increased by 4%, with mid-single-digit growth in Mature geographies. Growth geographies showed low-single-digit growth with strong growth across the International Region, partly offset a decline in China.
•Adjusted EBITA was EUR 254 million and the margin decreased to 15.2%, mainly due to advertising and promotion spend.
•Restructuring, acquisition-related and other items amounted to EUR 9 million, compared with EUR 18 million in 2024.
| Semi-annual report 2025 | 9 | |||||||
Other
Key data in millions of EUR unless otherwise stated
| January to June | ||||||||
| 2024 | 2025 | |||||||
| Sales | 279 | 260 | ||||||
| Income from operations | (94) | (48) | ||||||
| EBITA ¹ | (88) | (42) | ||||||
| Adjusted EBITA ¹ of: | (21) | - | ||||||
| IP Royalties | 145 | 153 | ||||||
| Innovation | (47) | (36) | ||||||
| Central costs | (114) | (110) | ||||||
| Other | (4) | (8) | ||||||
| Adjusted EBITDA ¹ | 162 | 161 | ||||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
•Sales decreased by EUR 19 million, mainly driven by lower royalty income.
•Adjusted EBITA increased by EUR 21 million, mainly driven by lower costs.
•Restructuring, acquisition-related and other items amounted to EUR 42 million, compared with EUR 67 million in 2024.
| Semi-annual report 2025 | 10 | |||||||
Forward-looking statements
and other information
and other information
Forward-looking statements
This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about our strategy, estimates of sales growth, future Adjusted EBITA*, future restructuring and acquisition-related charges and other costs, future developments in Philips’ organic business and the completion of acquisitions and divestments. Forward-looking statements can be identified generally as those containing words such as “anticipates”, “assumes”, “believes”, “estimates”, “expects”, “should”, “will”, “will likely result”, “forecast”, “outlook”, “projects”, “may” or similar expressions. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
These factors include, but are not limited to, macro-economic and geopolitical changes – including the war in Ukraine and ongoing conflicts in Israel and the Middle East – as well as measures such as announced and proposed tariffs and trade actions introduced in response to rising global tensions; Philips’ ability to keep pace with the changing health technology environment; Philips’ ability to gain leadership in health informatics and artificial intelligence in response to developments in the health technology industry; integration of acquisitions and their delivery on business plans and value creation expectations; ability to meet expectations with respect to ESG-related matters; securing and maintaining Philips’ intellectual property rights, and unauthorized use of third-party intellectual property rights; failure of products and services to meet quality or security standards, adversely affecting patient safety and customer operations; the resilience of our supply chain; challenges in simplifying our organization and our ways of working; attracting and retaining personnel; breach of cybersecurity; challenges in driving operational excellence and speed in bringing innovations to market; treasury and financing risks; tax risks; reliability of internal controls; compliance with regulations and standards involving quality, product safety, (cyber) security and artificial intelligence; and compliance with business conduct rules and regulations including privacy, existing and upcoming ESG disclosure and due diligence requirements. As a result, Philips’ actual future results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see also the Further information chapter included in the Annual Report 2024.
Third-party market share data
Statements regarding market share contained in this document, including those regarding Philips’ competitive position, are based on outside sources such as specialized research institutes, as well as industry and dealer panels, in combination with management estimates. Where information is not yet available to Philips, market share statements may also be based on estimates and projections prepared by management and/or based on outside sources of information. Management’s estimates of rankings are based on order intake or sales, depending on the business.
Market Abuse Regulation
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Use of non-IFRS information
In presenting and discussing the Philips Group’s financial position, operating results and cash flows, management uses certain non-IFRS financial measures. These non-IFRS financial measures should not be viewed in isolation as alternatives to the equivalent IFRS measure and should be used in conjunction with the most directly comparable IFRS measures. Non-IFRS financial measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. A reconciliation of these non-IFRS measures to the most directly comparable IFRS measures is contained in this document. Further information on non-IFRS measures can be found in the Annual Report 2024.
Presentation
All amounts are in millions of euros unless otherwise stated. Due to rounding, amounts may not add up precisely to totals provided. All reported data is unaudited. Financial reporting is in accordance with the accounting policies as stated in the Annual Report 2024.
Per share calculations for all periods presented have been retrospectively adjusted to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
* Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
| Semi-annual report 2025 | 11 | |||||||
Condensed consolidated statements of income
In millions of EUR unless otherwise stated*
| Q2 | January to June | |||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||
| Sales | 4,462 | 4,338 | 8,600 | 8,434 | ||||||||||
| Cost of sales | (2,473) | (2,327) | (4,796) | (4,575) | ||||||||||
| Gross margin | 1,989 | 2,011 | 3,804 | 3,859 | ||||||||||
| Selling expenses | (1,127) | (1,084) | (2,223) | (2,171) | ||||||||||
| General and administrative expenses | (158) | (155) | (294) | (316) | ||||||||||
| Research and development expenses | (424) | (402) | (843) | (859) | ||||||||||
| Other business income | 539 | 35 | 549 | 54 | ||||||||||
| Other business expenses | (3) | (4) | (1,000) | (12) | ||||||||||
| Income from operations | 816 | 400 | (8) | 554 | ||||||||||
| Financial income | 20 | 23 | 45 | 55 | ||||||||||
| Financial expenses | (88) | (80) | (182) | (160) | ||||||||||
| Investments in associates, net of income taxes | (93) | (6) | (94) | (7) | ||||||||||
| Income before taxes | 656 | 337 | (239) | 441 | ||||||||||
| Income tax (expense) benefit | (345) | (95) | (449) | (122) | ||||||||||
| Income from continuing operations | 311 | 242 | (688) | 320 | ||||||||||
| Discontinued operations, net of income taxes | 141 | (2) | 142 | (8) | ||||||||||
| Net income | 452 | 240 | (546) | 312 | ||||||||||
| Attribution of net income | ||||||||||||||
| Net income attributable to shareholders ¹ | 451 | 240 | (548) | 316 | ||||||||||
| Net income attributable to non-controlling interests | 2 | 1 | 2 | (3) | ||||||||||
1Shareholders refers to shareholders of Koninklijke Philips N.V.
Philips Group
Earnings per common share attributable to shareholders of Koninklijke Philips N.V.
Earnings per common share attributable to shareholders of Koninklijke Philips N.V.
| Q2 | January to June | |||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||
| Weighted average number of common shares outstanding (after deduction of treasury shares) during the period (in thousands) ¹: | ||||||||||||||
| Basic | 953,626 | 946,332 | 955,069 | 945,501 | ||||||||||
| Diluted | 961,396 | 956,676 | 955,069 | 957,111 | ||||||||||
| Basic earnings per common share attributable to shareholders of Koninklijke Philips N.V (in EUR) ¹ | ||||||||||||||
| Income from continuing operations | 0.32 | 0.26 | (0.72) | 0.34 | ||||||||||
| Income from discontinued operations | 0.15 | - | 0.15 | (0.01) | ||||||||||
| Net income | 0.47 | 0.25 | (0.57) | 0.33 | ||||||||||
| Diluted earnings per common share attributable to shareholders of Koninklijke Philips N.V. (in EUR) ¹ | ||||||||||||||
| Income from continuing operations | 0.32 | 0.25 | (0.72) | 0.34 | ||||||||||
| Income from discontinued operations | 0.15 | - | 0.15 | (0.01) | ||||||||||
| Net income | 0.47 | 0.25 | (0.57) | 0.33 | ||||||||||
1Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
Amounts may not add up due to rounding.*
| Semi-annual report 2025 | 12 | |||||||
Condensed consolidated statements of comprehensive income
in millions of EUR*
| Q2 | January to June | |||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||
| Net income for the period | 452 | 240 | (546) | 312 | ||||||||||
| Pensions and other post-employment plans: | ||||||||||||||
| Remeasurement, before tax | - | - | - | 1 | ||||||||||
| Income tax effect on remeasurements | 1 | 1 | 4 | 3 | ||||||||||
| Financial assets fair value through OCI: | ||||||||||||||
| Net current-period change, before tax | 2 | (22) | (3) | (25) | ||||||||||
| Income tax effect on net current-period change | 4 | 4 | 4 | 4 | ||||||||||
| Total of items that will not be reclassified to Income statement | 8 | (17) | 6 | (18) | ||||||||||
| Currency translation differences: | ||||||||||||||
| Net current-period change, before tax | 91 | (1,146) | 389 | (1,585) | ||||||||||
| Income tax effect on net current-period change | (5) | 1 | (5) | 1 | ||||||||||
| Reclassification adjustment for (gain) loss realized | (1) | (1) | - | |||||||||||
| Cash flow hedges: | ||||||||||||||
| Net current-period change, before tax | 6 | 29 | 26 | 37 | ||||||||||
| Income tax effect on net current-period change | 1 | (7) | (2) | (10) | ||||||||||
| Reclassification adjustment for (gain) loss realized | (11) | (3) | (19) | (3) | ||||||||||
| Total of items that are or may be reclassified to Income statement | 82 | (1,126) | 389 | (1,560) | ||||||||||
| Other comprehensive income for the period | 90 | (1,143) | 395 | (1,578) | ||||||||||
| Total comprehensive income for the period | 542 | (903) | (151) | (1,265) | ||||||||||
| Total comprehensive income attributable to: | ||||||||||||||
| Shareholders of Koninklijke Philips N.V. | 540 | (901) | (154) | (1,259) | ||||||||||
| Non-controlling interests | 2 | (2) | 3 | (7) | ||||||||||
Amounts may not add up due to rounding.*
| Semi-annual report 2025 | 13 | |||||||
Condensed consolidated balance sheets
in millions of EUR*
| December 31, 2024 | June 30, 2025 | |||||||
| Non-current assets: | ||||||||
| Property, plant and equipment | 2,452 | 2,260 | ||||||
| Goodwill | 10,383 | 9,363 | ||||||
| Intangible assets excluding goodwill | 2,982 | 2,712 | ||||||
| Non-current receivables | 208 | 250 | ||||||
| Investments in associates | 257 | 224 | ||||||
| Other non-current financial assets | 631 | 556 | ||||||
| Non-current derivative financial assets | 8 | 18 | ||||||
| Deferred tax assets | 1,916 | 1,798 | ||||||
| Other non-current assets | 118 | 133 | ||||||
| Total non-current assets | 18,955 | 17,316 | ||||||
| Current assets: | ||||||||
| Inventories | 3,198 | 3,232 | ||||||
| Other current financial assets | 2 | 2 | ||||||
| Other current assets | 586 | 581 | ||||||
| Current derivative financial assets | 69 | 99 | ||||||
| Income tax receivable | 94 | 73 | ||||||
| Current receivables | 3,672 | 3,254 | ||||||
| Cash and cash equivalents | 2,401 | 1,822 | ||||||
| Total current assets | 10,022 | 9,063 | ||||||
| Total assets | 28,976 | 26,379 | ||||||
| Equity: | ||||||||
| Shareholders’ equity | 12,006 | 10,379 | ||||||
| Non-controlling interests | 37 | 29 | ||||||
| Group equity | 12,043 | 10,408 | ||||||
| Non-current liabilities: | ||||||||
| Long-term debt | 7,113 | 7,182 | ||||||
| Non-current derivative financial liabilities | 4 | 7 | ||||||
| Long-term provisions | 996 | 957 | ||||||
| Deferred tax liabilities | 81 | 76 | ||||||
| Non-current contract liabilities | 431 | 412 | ||||||
| Non-current tax liabilities | 119 | 110 | ||||||
| Other non-current liabilities | 45 | 26 | ||||||
| Total non-current liabilities | 8,787 | 8,770 | ||||||
| Current liabilities: | ||||||||
| Short-term debt | 526 | 1,244 | ||||||
| Current derivative financial liabilities | 59 | 61 | ||||||
| Income tax payable | 71 | 58 | ||||||
| Accounts payable | 1,830 | 1,752 | ||||||
| Accrued liabilities | 1,630 | 1,422 | ||||||
| Current contract liabilities | 1,699 | 1,575 | ||||||
| Short-term provisions | 1,977 | 758 | ||||||
| Dividend payable | 33 | |||||||
| Other current liabilities | 354 | 298 | ||||||
| Total current liabilities | 8,146 | 7,201 | ||||||
| Total liabilities | 16,933 | 15,971 | ||||||
| Total liabilities and group equity | 28,976 | 26,379 | ||||||
Amounts may not add up due to rounding.*
| Semi-annual report 2025 | 14 | |||||||
Condensed consolidated statements of cash flows
in millions of EUR*
| Q2 | January to June | |||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income (loss) | 452 | 240 | (546) | 312 | ||||||||||
| Results of discontinued operations - net of income tax | (141) | 2 | (142) | 8 | ||||||||||
| Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||||||||
| Depreciation, amortization and impairment of assets | 343 | 266 | 638 | 543 | ||||||||||
| Share-based compensation | 12 | 32 | 38 | 79 | ||||||||||
| Net loss (gain) on sale of assets | (1) | 1 | (2) | (1) | ||||||||||
| Interest income | (15) | (16) | (36) | (44) | ||||||||||
| Interest expense on debt, borrowings and other liabilities | 65 | 67 | 130 | 132 | ||||||||||
| Investments in associates, net of income taxes | 93 | 6 | 94 | 7 | ||||||||||
| Income tax expense | 339 | 95 | 449 | 122 | ||||||||||
| Decrease (increase) in working capital: | (457) | (121) | (983) | (337) | ||||||||||
| Decrease (increase) in receivables and other current assets | (329) | 17 | (241) | 214 | ||||||||||
| Decrease (increase) in inventories | 27 | (120) | (141) | (368) | ||||||||||
| Increase (decrease) in accounts payable, accrued and other current liabilities | (154) | (17) | (601) | (183) | ||||||||||
| Decrease (increase) in non-current receivables and other assets | 18 | (50) | 42 | (88) | ||||||||||
| Increase (decrease) in other liabilities | (23) | 18 | (34) | (8) | ||||||||||
| Increase (decrease) in provisions | (509) | (73) | 353 | (1,140) | ||||||||||
| Other items | 6 | 27 | 57 | 85 | ||||||||||
| Interest received | 14 | 13 | 35 | 43 | ||||||||||
| Interest paid | (67) | (89) | (138) | (150) | ||||||||||
| Dividends received from investments in associates | 5 | 3 | 7 | 11 | ||||||||||
| Income taxes received/ (paid) | (45) | (35) | (45) | (121) | ||||||||||
| Net cash provided by (used for) operating activities | 89 | 387 | (82) | (546) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Net capital expenditures | (153) | (156) | (318) | (315) | ||||||||||
| Purchase of intangible assets | (28) | (24) | (64) | (70) | ||||||||||
| Expenditures on development assets | (55) | (72) | (108) | (131) | ||||||||||
| Capital expenditures on property, plant and equipment | (76) | (63) | (158) | (118) | ||||||||||
| Proceeds from sales of property, plant and equipment | 6 | 2 | 12 | 4 | ||||||||||
| Net proceeds from (cash used for) derivatives and current financial assets | 6 | (68) | 16 | (71) | ||||||||||
| Purchase of other non-current financial assets | (22) | (12) | (61) | (26) | ||||||||||
| Proceeds from other non-current financial assets | 8 | 11 | 23 | 39 | ||||||||||
| Purchase of businesses, net of cash acquired | (1) | - | (1) | (1) | ||||||||||
| Net proceeds from sale of interests in businesses, net of cash disposed of | - | - | 3 | (9) | ||||||||||
| Net cash provided by (used for) investing activities | (163) | (225) | (338) | (382) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from issuance of (payments on) short-term debt | (57) | 9 | (34) | 16 | ||||||||||
| Principal payments on short-term portion of long-term debt | (46) | (179) | (105) | (242) | ||||||||||
| Proceeds from issuance of long-term debt | 690 | 1,010 | 699 | 1,019 | ||||||||||
| Re-issuance of treasury shares | 1 | 1 | ||||||||||||
| Purchase of treasury shares | (113) | (208) | ||||||||||||
| Dividends paid to shareholders of Koninklijke Philips N.V. | (1) | (295) | (1) | (295) | ||||||||||
| Dividends paid to shareholders of non-controlling interests | - | - | (1) | (1) | ||||||||||
| Net cash provided by (used for) financing activities | 473 | 546 | 350 | 497 | ||||||||||
| Net cash provided by (used for) continuing operations | 399 | 707 | (70) | (431) | ||||||||||
| Net cash provided by (used for) discontinued operations | - | (17) | (10) | |||||||||||
| Net cash provided by (used for) continuing and discontinued operations | 400 | 707 | (86) | (441) | ||||||||||
| Effect of change in exchange rates on cash and cash equivalents | 6 | (79) | 24 | (138) | ||||||||||
| Cash and cash equivalents at the beginning of the period | 1,402 | 1,193 | 1,869 | 2,401 | ||||||||||
| Cash and cash equivalents at the end of the period | 1,807 | 1,822 | 1,807 | 1,822 | ||||||||||
Amounts may not add up due to rounding.*
| Semi-annual report 2025 | 15 | |||||||
Condensed consolidated statements of
changes in equity
changes in equity
in millions of EUR*
| Common shares | Capital in excess of par value | Fair value through OCI | Cash flow hedges | Currency translation differences | Retained earnings | Treasury shares at cost | Total shareholders’ equity | Non-controlling interests | Group equity | ||||||||||||||||||||||||||||||||
| reserves | other | ||||||||||||||||||||||||||||||||||||||||
| Balance as of December 31, 2023 | 183 | 5,827 | (390) | 6 | 1,263 | 5,402 | (262) | 12,028 | 33 | 12,061 | |||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | 2 | 6 | 382 | (544) | (154) | 3 | (151) | ||||||||||||||||||||||||||||||||||
| Dividend distributed | 6 | 762 | (799) | (31) | (1) | (32) | |||||||||||||||||||||||||||||||||||
| Transfer of reserve for equity investments at FVTOCI to retained earnings | 311 | 1 | (311) | - | - | ||||||||||||||||||||||||||||||||||||
| Re-issuance of treasury shares | (32) | (17) | 49 | - | - | ||||||||||||||||||||||||||||||||||||
| Forward contracts | 167 | (167) | - | - | |||||||||||||||||||||||||||||||||||||
| Cancellation of treasury shares | (1) | (166) | 167 | ||||||||||||||||||||||||||||||||||||||
| Share-based compensation plans | 38 | 38 | 38 | ||||||||||||||||||||||||||||||||||||||
| Income tax share-based compensation plans | 2 | 2 | 2 | ||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2024 | 188 | 6,597 | (78) | 12 | 1,646 | 3,732 | (213) | 11,884 | 35 | 11,919 | |||||||||||||||||||||||||||||||
| Balance as of December 31, 2024 | 188 | 6,654 | (90) | 1 | 2,014 | 3,650 | (411) | 12,006 | 37 | 12,043 | |||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | (22) | 24 | (1,580) | 319 | (1,259) | (7) | (1,265) | ||||||||||||||||||||||||||||||||||
| Dividend distributed | 5 | 457 | (789) | (328) | (1) | (329) | |||||||||||||||||||||||||||||||||||
| Re-issuance of treasury shares | (55) | (25) | 82 | 2 | 2 | ||||||||||||||||||||||||||||||||||||
| Forward contracts | (121) | (121) | (121) | ||||||||||||||||||||||||||||||||||||||
| Share-based compensation plans | 79 | 79 | 79 | ||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2025 | 193 | 7,135 | (112) | 25 | 434 | 3,034 | (329) | 10,379 | 29 | 10,408 | |||||||||||||||||||||||||||||||
Amounts may not add up due to rounding.*
| Semi-annual report 2025 | 16 | |||||||
Notes to the unaudited semi-annual condensed consolidated financial statements
Basis of preparation
These condensed consolidated financial statements for the six-month period ended June 30, 2025, have been prepared in accordance with IAS 34 ’Interim Financial Reporting’ as issued by the International Accounting Standards Board (IASB) and as endorsed by the European Union.
The condensed consolidated financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, these statements are to be read in conjunction with the Annual Report for the year ended December 31, 2024.
The condensed financial statements are presented in euros, which is the presentation currency. Due to rounding, amounts may not add up precisely to the totals provided. Certain comparative-period amounts have been reclassified to conform to the current-period presentation.
Material accounting policies
The material accounting policies applied in these condensed consolidated financial statements are consistent with those applied in the Annual Report 2024, except for the adoption of amendments to standards which are also expected to be reflected in the company’s consolidated financial statements for the year ending December 31, 2025. The amended standards did not have a material impact on the company’s condensed consolidated financial statements. The company has not early-adopted any standard, interpretation or amendment that has been issued but is not yet effective and endorsed.
Estimates
The preparation of the condensed consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting principles and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates under different assumptions or conditions. In preparing these condensed financial statements, unless otherwise disclosed, the significant estimates and judgments made by management in applying the company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended December 31, 2024.
Risk management
The Annual Report 2024 describes certain risk categories and risks (including risk appetite) which could have a material adverse effect on Philips’ financial position and results. Those descriptions remain valid and should be read in conjunction with this semi-annual report.
Looking ahead to the second half of 2025, Philips expects global market conditions to remain highly uncertain and volatile due to geopolitical and macroeconomic factors, whether or not they are related to or caused by the Russia-Ukraine war and/or the current situation in Israel and the larger Middle East region. Philips observes a trend of geopolitical tensions and de-globalization that intensifies protectionism. Examples of protectionism measures are trade policies, tariffs, sanctions, local value creation and production requirements to obtain market access, custom duties, taxation, technology and data restrictions, cyberattacks, import or export controls, talent mobility restrictions, nationalization of assets, and restrictions on repatriation of returns from foreign investments. In addition, there is general uncertainty on the development of local
regulations and compliance thereto. Philips observes this trend in the major markets in which it operates and has a particular concern on the development of the US-China relationship and China’s drive to expand its global political footprint and become self-sufficient in critical technologies, including health-related ones. Examples of general factors are an overall modest economic growth outlook and uncertainty around outlook on inflation, interest rates, government spending and consumer confidence and spending, and the emergence of economic impacts related to the climate crisis. Examples of healthcare-specific potential factors include rising uncertainty over the future direction of public healthcare policy and the risk of declining public investment in healthcare ecosystems.The One Big Beautiful Bill Act (OBBBA) was enacted in the United States on July 4, 2025, and Philips is actively assessing the impact of the OBBBA tax changes.
Philips operates in a highly regulated product safety and quality environment and its products and services, including parts or materials from suppliers, are subject to regulation by various government and regulatory agencies (e.g., FDA (US), EMA (Europe), NMPA (China), MHRA (UK), ASNM (France), BfArM (Germany), IGZ (Netherlands)).
The relevant rules and regulations continue to evolve, which may impose significant additional pre-market and post-market requirements. Philips is undertaking considerable efforts to improve quality and management systems in all of its operations, and to keep strengthening the quality and continuous improvement culture we have built up.
The improvement actions in these areas will continue to affect the company’s results.
The relevant rules and regulations continue to evolve, which may impose significant additional pre-market and post-market requirements. Philips is undertaking considerable efforts to improve quality and management systems in all of its operations, and to keep strengthening the quality and continuous improvement culture we have built up.
The improvement actions in these areas will continue to affect the company’s results.
Furthermore, the scope of Environmental, Social and Governance (ESG) disclosure requirements is significantly increasing in various jurisdictions, such as the new reporting on the scrapping of unsold products, the EU Deforestation Regulation, in addition to the EU Corporate Sustainability Reporting Directive (CSRD) where we expect to report the same scope in financial year 2025 as in 2024. Failure to (timely) meet these requirements could also trigger the additional risk of exposure to inquiries from supervisory bodies and adversely affect Philips’ reputation and brand or could adversely impact Philips’ financial condition or operating results.
For more information on uncertain future events, factors and circumstances see also Provisions and Contingencies.
Additional risks not known to Philips, or currently believed not to be material, could later turn out to have a material impact on Philips’ business, objectives, revenues, income, assets, liquidity, or capital resources.
Seasonality
Under normal economic conditions, the Philips Group’s sales are impacted by seasonal fluctuations, typically resulting in higher revenues and earnings in the second half-year. For the Diagnosis & Treatment and Connected Care segments, sales are generally higher in the second half-year, largely due to the timing of new product availability and customers attempting to spend their annual budgeted allowances before the end of the year. For the Personal Health segment, sales are generally higher in the second half-year due to holiday sales and events. The segment Other is generally not materially affected by seasonality; however, the timing of intellectual property transactions may cause variation over the year.
| Semi-annual report 2025 | 17 | |||||||
Segment information
Philips’ operating segments are Diagnosis & Treatment, Connected Care and Personal Health, each being responsible for the management of its business worldwide.
Sales and Adjusted EBITA 1 in millions of EUR unless otherwise stated
| January to June | ||||||||||||||||||||||||||
| 2024 | 2025 | |||||||||||||||||||||||||
| Sales | Sales incl. intercompany | Adjusted EBITA ¹ | Sales | Sales incl. intercompany | Adjusted EBITA ¹ | |||||||||||||||||||||
| as a % of sales | as a % of sales | |||||||||||||||||||||||||
| Diagnosis & Treatment | 4,200 | 4,465 | 452 | 10.8% | 4,048 | 4,271 | 468 | 11.6% | ||||||||||||||||||
| Connected Care | 2,497 | 2,518 | 191 | 7.6% | 2,454 | 2,466 | 173 | 7.0% | ||||||||||||||||||
| Personal Health | 1,624 | 1,660 | 261 | 16.1% | 1,672 | 1,722 | 254 | 15.2% | ||||||||||||||||||
| Other | 279 | 20 | (21) | 260 | 335 | - | ||||||||||||||||||||
| Inter-segment eliminations | (63) | (360) | ||||||||||||||||||||||||
| Philips Group | 8,600 | 8,600 | 882 | 10.3% | 8,434 | 8,434 | 894 | 10.6% | ||||||||||||||||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
Sales composition and disaggregation
Sales composition in millions of EUR
| January to June | ||||||||
| 2024 | 2025 | |||||||
| Goods | 5,768 | 5,611 | ||||||
| Services | 2,450 | 2,420 | ||||||
| Royalties | 212 | 209 | ||||||
| Total sales from contracts with customers | 8,430 | 8,240 | ||||||
| Sales from other sources | 170 | 194 | ||||||
| Total sales | 8,600 | 8,434 | ||||||
Disaggregation of Sales per segment in millions of EUR
| January to June 2025 | |||||||||||||||||
| Sales at a point in time | Sales over time | Total sales from contracts with customers | Sales from other sources | Total sales | |||||||||||||
| Diagnosis & Treatment | 2,456 | 1,546 | 4,003 | 46 | 4,048 | ||||||||||||
| Connected Care | 1,447 | 860 | 2,307 | 147 | 2,454 | ||||||||||||
| Personal Health | 1,665 | 6 | 1,671 | 1 | 1,672 | ||||||||||||
| Other | 91 | 169 | 260 | - | 260 | ||||||||||||
| Philips Group | 5,660 | 2,580 | 8,240 | 194 | 8,434 | ||||||||||||
Disaggregation of Sales per segment in millions of EUR
| January to June 2024 | |||||||||||||||||
| Sales at a point in time | Sales over time | Total sales from contracts with customers | Sales from other sources | Total sales | |||||||||||||
| Diagnosis & Treatment | 2,686 | 1,489 | 4,175 | 25 | 4,200 | ||||||||||||
| Connected Care | 1,414 | 938 | 2,352 | 145 | 2,497 | ||||||||||||
| Personal Health | 1,618 | 7 | 1,624 | 1,624 | |||||||||||||
| Other | 127 | 152 | 279 | 279 | |||||||||||||
| Philips Group | 5,845 | 2,586 | 8,430 | 170 | 8,600 | ||||||||||||
| Semi-annual report 2025 | 18 | |||||||
Sales and tangible and intangible assets in millions of EUR
| Sales | Tangible and intangible assets ¹ | |||||||||||||
| January to June | December 31, | June 30, | ||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||
| Netherlands | 1,103 | 1,126 | 1,662 | 1,605 | ||||||||||
| United States | 3,479 | 3,476 | 11,607 | 10,282 | ||||||||||
| China | 651 | 579 | 250 | 216 | ||||||||||
| Japan | 465 | 469 | 396 | 388 | ||||||||||
| Germany | 303 | 297 | 392 | 415 | ||||||||||
| Other countries | 2,599 | 2,487 | 1,509 | 1,430 | ||||||||||
| Philips Group | 8,600 | 8,434 | 15,816 | 14,336 | ||||||||||
1Consists of Property plant and equipment, Intangible assets excluding goodwill and Goodwill.
More segment information can be found in the Information by segment and main country in the Annual Report 2024.
Other business income and expenses
For the six months ended June 30, 2025, no material amounts were recognized in the income statement.
In Q1 2024, Philips recorded a provision of EUR 982 million as part of other business expenses in connection with the settlement of the Respironics personal injury litigation and the medical monitoring class action in the US (refer to Provisions).
In Q2 2024, Philips Respironics recorded insurance income of EUR 538 million in connection with the agreement with insurers to partially reimburse the Respironics recall-related product liability claims.
Income taxes
For the six months ended June 30, 2025, income tax expense decreased by EUR 327 million year-on-year, from EUR 449 million to EUR 122 million. This decrease is mainly due to the de-recognition of deferred tax assets in the US in the first half of 2024, partly offset by the tax impact on higher income in the first half of 2025.
Goodwill
Goodwill decreased by EUR 1,020 million due to negative currency translation in the six months ended June 30, 2025. Goodwill is allocated to groups of cash-generating units (CGUs) and tested for impairment at the lowest level at which goodwill is monitored for internal management purposes. Goodwill is tested for impairment annually in the fourth quarter and whenever impairment indicators require. During the first half of 2025 no such indicators were identified and thus no impairment tests were performed.
Equity
As of June 30, 2025, the issued and fully-paid share capital consists of 962,920,132 common shares, each share having a par value of EUR 0.20, and the total number of treasury shares amounted to 12,345,653, which were purchased at an average price of EUR 26.66 per share.
On May 8, 2025, the General Meeting of Shareholders approved a dividend of EUR 0.85 per common share in the form of common shares or cash (subject to a maximum of 50% that will be available for payment in cash), at the option of the shareholder, against the retained earnings of the company. In June 2025, Philips settled a dividend of EUR 0.85 per common share, representing a total value of EUR 789 million (including costs). Approximately 58.56% of shareholders elected for a share dividend, resulting in the issuance of 22,980,748 new common shares. The cash dividend involved an amount of EUR 328 million (including costs). Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares for 50% of the dividend in respect of 2024, representing the bonus issue.
The following table shows the movements in the outstanding number of shares:
Philips Group
Outstanding number of shares
Outstanding number of shares
| 2024 | 2025 | |||||||
| Balance as of January 1 | 906,403,156 | 925,009,074 | ||||||
| Dividend distributed | 30,860,582 | 22,980,748 | ||||||
| Purchase of treasury shares | (4,437,164) | |||||||
| Re-issuance of treasury shares | 1,290,490 | 2,584,656 | ||||||
| Balance as of June 30 | 934,117,064 | 950,574,479 | ||||||
On June 3, 2025, Royal Philips announced that it will repurchase up to 6 million shares to cover certain of its obligations arising from its long-term incentive plans. Subsequently, Philips entered into three forward contracts with a financial institution to acquire shares. The first contract is for an amount of EUR 40 million to acquire 2 million shares with a settlement date in February 2027 and a weighted average forward price of EUR 20.06. The second contract is for an amount of EUR 39 million to acquire 2 million shares with a settlement date in November 2027 and a weighted average forward price of EUR 19.59. The third contract is for an amount of EUR 39 million to acquire 2 million shares with a settlement date in December 2027 and a weighted average forward price of EUR 19.61.
The decrease in the currency translation reserve by EUR 1,580 million mainly relates to the movements of USD versus EUR in the six months ended June 30, 2025.
Debt
As of June 30, 2025, Philips had total debt of EUR 8,425 million. The majority of the debt consisted of EUR 7,050 million of public EUR and USD bonds with a weighted average coupon rate of 3.1%, EUR 271 million of forward contracts for share repurchases, and EUR 1,007 million of lease liabilities. The debt position includes the issuance of new bonds of EUR 1,000 million in May 2025, which will be used for general corporate purposes and the repayment of 2026 debt maturities.
Long-term debt was EUR 7,182 million, an increase of EUR 69 million, and short-term debt was EUR 1,244 million, an increase of EUR 718 million compared to December 31, 2024. The increase in total debt of EUR 787 million is mainly due to the issuance of new bonds in Q2 2025, partially offset by the maturity of USD bonds.
Provisions
Long-term provisions decreased by EUR 39 million and short-term provisions decreased by EUR 1,219 million respectively, during the six months ended June 30, 2025. The decrease in short-term provisions was mainly due to the EUR 1,025 million payment for the Philips Respironics recall-related medical monitoring and personal injury settlements in the US.
| Semi-annual report 2025 | 19 | |||||||
Respironics field action provision
On June 14, 2021, Philips’ subsidiary Philips RS North America LLC (Philips Respironics) issued a voluntary recall notification in the United States and field safety notice outside the United States for specific Philips Respironics CPAP, Bi-Level PAP, and mechanical ventilator devices (the “Respironics Recall”). The remediation is progressing globally.
Philips has recognized a provision based on Philips’ best estimate of remediation costs. As of June 30, 2025, the remaining provision amounted to EUR 65 million (December 31, 2024: EUR 130 million), reflecting utilizations during the six month period of EUR 57 million (2024: EUR 104 million).
The completion of the field action continues to be subject to uncertainty, which requires management to make estimates and assumptions about the costs of remediation activities.
Further to the above, field-action running costs during the six months ended June 30, 2025 of EUR 71 million (2024: EUR 72 million), such as testing, external advisory and regulatory response have been incurred.
Legal provisions
Philips is a defendant in a number of consumer class-action lawsuits from users of the affected devices and a number of individual personal injury and other compensation claims related to the Respironics Recall.
On May 9, 2024, Philips Respironics reached agreement on a class action settlement in relation to the pending US medical monitoring class action complaint and a private settlement in relation to US personal injury claims for an aggregate amount of USD 1.1 billion. Both agreements became final in January 2025 following a successful registration process for the personal injury settlement and subsequently the settlement amounts have been fully paid in the first half of 2025.
For legal matters including claims refer to Contingencies.
Contingencies
Legal proceedings
The company and certain of its group companies and former group companies are involved as a party in legal proceedings, regulatory and other governmental proceedings, including discussions on potential remedial actions, relating to such matters as competition issues, intellectual property, commercial transactions, product liability, participation and environmental pollution.
While it is not feasible to predict or determine the ultimate outcome of all pending or threatened legal proceedings, regulatory and governmental proceedings, Philips is of the opinion that the cases included in this note may have, or have had in the recent past, a significant impact on its consolidated financial position, results of operations and cash flows.
Significant developments regarding legal proceedings that have occurred since the publication of the Annual Report 2024 are described below. For more information on these matters including the company’s assessment of each matter, reference is made to the Annual Report 2024.
Respironics recall
Following the Respironics Recall, a number of civil complaints have been filed in several jurisdictions against Philips Respironics and certain of its affiliates (including the company) generally alleging personal injury and/or the potential for personal injury allegedly caused by devices subject to the recall.
On May 9, 2024, Philips Respironics reached agreement on a class action settlement in relation to the pending US medical monitoring class action complaint and a private settlement in relation to US personal injury claims for an aggregate amount of USD 1.1 billion. Both agreements became final in January 2025 following a successful registration process
for the personal injury settlement and subsequently the settlement amounts have been fully paid in the first half of 2025.
On June 2, 2025, the Australian Therapeutic Goods Administration commenced enforcement proceedings against Philips Electronics Australia, Ltd., in the Federal Court of Australia for alleged violations of the ‘essential principles’ of the Therapeutic Goods Act in connection with the recall. It is the company’s assessment that it is possible but not probable that this matter could lead to a certain outflow of economic resources. The company is not able to reliably estimate the financial impact, if any.
Divestment
On January 28, 2025, Philips announced that it has signed an agreement to sell its Emergency Care Business Unit, which is part of the Connected Care segment, to Bridgefield Capital. The process of separating the activities and establishing a stand-alone business is still in progress. The transaction is subject to the satisfaction of certain closing conditions and receipt of regulatory approval, and is expected to be completed in the second half of 2025.
Subsequent events
In 2024 Philips announced the intent to fully terminate the US qualified defined pension plans in 2025. On July 24, 2025, Philips agreed with an insurance carrier an annuity purchase deal, which results in a final settlement of the pension liabilities. The settlement is expected to be completed during Q3 2025 with no material impact on the company's results or cash flows.
Fair value of financial assets and liabilities
The estimated fair value of financial instruments has been determined by the company using available market information and appropriate valuation methods. The estimates presented are not necessarily indicative of the amounts that will ultimately be realized by the company upon maturity or disposal. The use of different market assumptions and/or estimation methods may have a material effect on the estimated fair value amounts.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not carried at fair value is not included if the carrying amount is a reasonable approximation of fair value.
| Semi-annual report 2025 | 20 | |||||||
Fair value of financial assets and liabilities in millions of EUR
| December 31, 2024 | June 30, 2025 | ||||||||||||||||||||||
| Carrying amount | Estimated fair value ¹ | Carrying amount | Estimated fair value ¹ | Level 1 | Level 2 | Level 3 | |||||||||||||||||
| Financial assets | |||||||||||||||||||||||
| Carried at fair value: | |||||||||||||||||||||||
| Debt instruments | 231 | 231 | 218 | 218 | 218 | ||||||||||||||||||
| Equity instruments | 3 | 3 | 2 | 2 | - | 2 | |||||||||||||||||
| Other financial assets | 54 | 54 | 48 | 48 | 48 | - | |||||||||||||||||
| Financial assets carried at FVTPL | 288 | 288 | 268 | 268 | - | 48 | 220 | ||||||||||||||||
| Debt instruments | 21 | 21 | 8 | 8 | 7 | - | |||||||||||||||||
| Equity instruments | 222 | 222 | 187 | 187 | 4 | 183 | |||||||||||||||||
| Current financial assets | 2 | 2 | 2 | 2 | - | 2 | |||||||||||||||||
| Receivables - current | 22 | 22 | 22 | ||||||||||||||||||||
| Receivables - non-current | 26 | 26 | 26 | ||||||||||||||||||||
| Financial assets carried at FVTOCI | 244 | 244 | 243 | 243 | 4 | 55 | 185 | ||||||||||||||||
| Derivative financial instruments | 77 | 77 | 118 | 118 | 108 | 9 | |||||||||||||||||
| Financial assets carried at fair value | 609 | 609 | 629 | 629 | 4 | 211 | 414 | ||||||||||||||||
| Carried at (amortized) cost: | |||||||||||||||||||||||
| Cash and cash equivalents | 2,401 | 1,822 | |||||||||||||||||||||
| Loans and receivables: | |||||||||||||||||||||||
| Other non-current loans and receivables | 102 | 94 | |||||||||||||||||||||
| Receivables - current | 3,672 | 3,232 | |||||||||||||||||||||
| Receivables - non-current | 208 | 224 | |||||||||||||||||||||
| Financial assets carried at (amortized) cost | 6,382 | 5,373 | |||||||||||||||||||||
| Total financial assets | 6,992 | 6,002 | |||||||||||||||||||||
| Financial liabilities | |||||||||||||||||||||||
| Carried at fair value: | |||||||||||||||||||||||
| Contingent consideration | (113) | (113) | (108) | (108) | (108) | ||||||||||||||||||
| Financial liabilities carried at FVTPL | (113) | (113) | (108) | (108) | (108) | ||||||||||||||||||
| Derivative financial instruments | (63) | (63) | (68) | (68) | (68) | ||||||||||||||||||
| Financial liabilities carried at fair value | (176) | (176) | (176) | (176) | (68) | (108) | |||||||||||||||||
| Carried at (amortized) cost: | |||||||||||||||||||||||
| Accounts payable | (1,830) | (1,752) | |||||||||||||||||||||
| Interest accrual | (83) | (61) | |||||||||||||||||||||
| Debt (corporate bonds and leases) | (7,397) | (7,363) | (8,057) | (8,092) | (7,084) | (1,007) | |||||||||||||||||
| Debt (excluding corporate bonds and leases) | (241) | (368) | |||||||||||||||||||||
| Financial liabilities carried at (amortized) cost | (9,551) | (10,238) | |||||||||||||||||||||
| Total financial liabilities | (9,728) | (10,414) | |||||||||||||||||||||
1For Cash and cash equivalents, Loans and receivables, Accounts payable, interest accrual and Debt (excluding corporate bonds and leases), the carrying amounts approximate fair value because of the nature of these instruments (including maturity and interest conditions) and therefore fair value information is not included in the table above.
The following table shows the reconciliation from the beginning balance to the ending balance for Level 3 fair value measurements.
Reconciliation of Level 3 fair value measurements in millions of EUR
| Financial assets | Financial liabilities | |||||||
| Balance as of December 31, 2024 | 460 | 113 | ||||||
| Purchase | 28 | |||||||
| Sales | (23) | |||||||
| Financial income and expenses | (1) | - | ||||||
| Recognized in other comprehensive income ¹ | (52) | (5) | ||||||
| Reclassification | 2 | |||||||
| Balance as of June 30, 2025 | 414 | 108 | ||||||
1Includes translation differences
| Semi-annual report 2025 | 21 | |||||||
Reconciliation of non-IFRS information
Certain non-IFRS financial measures are presented when discussing the Philips Group’s performance:
•Comparable sales growth
•Adjusted income from continuing operations attributable to shareholders
•Adjusted income from continuing operations attributable to shareholders per common share (in EUR) - diluted (Adjusted EPS)
•EBITA
•Adjusted EBITA
•Adjusted EBITDA
•Free cash flow
•Net debt : group equity ratio
For the definitions of the non-IFRS financial measures listed above, refer to chapter 9.9, Reconciliation of non-IFRS information, of the Annual Report 2024 and to the Forward-looking statements and other information.
Comparable order intake is not a financial measure, but is presented when discussing the Philips Group’s performance. Refer to Forward-looking statements and other information.
Sales growth composition in %
| Q2 2025 | January to June | |||||||||||||||||||||||||
| nominal growth | consolidation changes | currency effects | comparable growth | nominal growth | consolidation changes | currency effects | comparable growth | |||||||||||||||||||
| 2025 versus 2024 | ||||||||||||||||||||||||||
| Diagnosis & Treatment | (4.1 | %) | 0.5 | % | 2.6 | % | (1.0 | %) | (3.6 | %) | 0.5 | % | 0.5 | % | (2.6 | %) | ||||||||||
| Connected Care | (4.5 | %) | 0.8 | % | 2.7 | % | (1.0 | %) | (1.7 | %) | 0.9 | % | 0.3 | % | (0.6 | %) | ||||||||||
| Personal Health | 3.3 | % | 0.0 | % | 3.1 | % | 6.3 | % | 3.0 | % | 0.0 | % | 0.9 | % | 3.8 | % | ||||||||||
| Philips Group | (2.8 | %) | 0.7 | % | 2.7 | % | 0.6 | % | (1.9 | %) | 0.6 | % | 0.5 | % | (0.8 | %) | ||||||||||
Adjusted income from continuing operations attributable to shareholders 1 in millions of EUR unless otherwise stated
| Q2 | January to June | |||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||
| Net income | 452 | 240 | (546) | 312 | ||||||||||
| Discontinued operations, net of income taxes | (141) | 2 | (142) | 8 | ||||||||||
| Income from continuing operations | 311 | 242 | (688) | 320 | ||||||||||
| Income from continuing operations attributable to non-controlling interests | (2) | (1) | (2) | 3 | ||||||||||
| Income from continuing operations attributable to shareholders ¹ | 309 | 242 | (690) | 323 | ||||||||||
| Adjustments for: | ||||||||||||||
| Amortization and impairment of acquired intangible assets | 60 | 53 | 133 | 111 | ||||||||||
| Restructuring and acquisition-related charges | 101 | 46 | 152 | 112 | ||||||||||
| Other items: | (483) | 41 | 606 | 117 | ||||||||||
| Respironics litigation provision | 982 | |||||||||||||
| Respironics insurance income | (538) | (538) | ||||||||||||
| Respironics field-action running costs | 31 | 34 | 72 | 71 | ||||||||||
| Respironics consent decree charges | 26 | 21 | 47 | 48 | ||||||||||
| Quality actions | (1) | 11 | 33 | 18 | ||||||||||
| Contract settlement gain | (23) | (23) | ||||||||||||
| Remaining items | (1) | (1) | 10 | 2 | ||||||||||
| Net finance expenses | 10 | (2) | 19 | 4 | ||||||||||
| Tax impact on adjusting items | 289 | (34) | 303 | (84) | ||||||||||
| Adjusted income from continuing operations attributable to shareholders ¹ | 287 | 346 | 522 | 583 | ||||||||||
| Earnings per common share ²: | ||||||||||||||
| Income from continuing operations attributable to shareholders ¹ per common share (in EUR) - diluted | 0.32 | 0.25 | (0.72) | 0.34 | ||||||||||
| Adjusted income from continuing operations attributable to shareholders ¹ per common share (in EUR) - diluted | 0.30 | 0.36 | 0.55 | 0.61 | ||||||||||
1Shareholders refers to shareholders of Koninklijke Philips N.V.
2Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
| Quarterly Report 2025 - Q2 | 22 | |||||||
Reconciliation of Net income to Adjusted EBITA and Adjusted EBITDA in millions of EUR
| Philips Group | Diagnosis & Treatment | Connected Care | Personal Health | Other | |||||||||||||
| Q2 2025 | |||||||||||||||||
| Net income | 240 | ||||||||||||||||
| Discontinued operations, net of income taxes | 2 | ||||||||||||||||
| Income tax expense (benefit) | 95 | ||||||||||||||||
| Investments in associates, net of income taxes | 6 | ||||||||||||||||
| Financial expenses | 80 | ||||||||||||||||
| Financial income | (23) | ||||||||||||||||
| Income from operations | 400 | 226 | 67 | 122 | (15) | ||||||||||||
| Amortization and impairment of acquired intangible assets | 53 | 18 | 29 | 4 | 3 | ||||||||||||
| EBITA | 453 | 244 | 95 | 126 | (12) | ||||||||||||
| Restructuring and acquisition-related charges | 46 | 15 | 17 | 5 | 8 | ||||||||||||
| Other items: | 41 | 21 | 20 | ||||||||||||||
| Respironics field-action running costs | 34 | 34 | |||||||||||||||
| Respironics consent decree charges | 21 | 21 | |||||||||||||||
| Quality actions | 11 | 21 | (10) | ||||||||||||||
| Contract settlement gain | (23) | (23) | |||||||||||||||
| Remaining items | (1) | - | (1) | ||||||||||||||
| Adjusted EBITA | 540 | 281 | 132 | 131 | (4) | ||||||||||||
| Depreciation, amortization and impairment of fixed assets and other intangible assets | 213 | 44 | 61 | 28 | 80 | ||||||||||||
| Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items | (6) | - | (6) | - | |||||||||||||
| Adjusted EBITDA | 747 | 325 | 192 | 154 | 75 | ||||||||||||
| January to June 2025 | |||||||||||||||||
| Net income | 312 | ||||||||||||||||
| Discontinued operations, net of income taxes | 8 | ||||||||||||||||
| Income tax expense (benefit) | 122 | ||||||||||||||||
| Investments in associates, net of income taxes | 7 | ||||||||||||||||
| Financial expenses | 160 | ||||||||||||||||
| Financial income | (55) | ||||||||||||||||
| Income from operations | 554 | 379 | (15) | 238 | (48) | ||||||||||||
| Amortization and impairment of acquired intangible assets | 111 | 38 | 59 | 7 | 6 | ||||||||||||
| EBITA | 665 | 417 | 44 | 245 | (42) | ||||||||||||
| Restructuring and acquisition-related charges | 112 | 30 | 32 | 9 | 42 | ||||||||||||
| Other items: | 117 | 21 | 96 | ||||||||||||||
| Respironics field-action running costs | 71 | 71 | |||||||||||||||
| Respironics consent decree charges | 48 | 48 | |||||||||||||||
| Quality actions | 18 | 21 | (3) | ||||||||||||||
| Contract settlement gain | (23) | (23) | |||||||||||||||
| Remaining items | 2 | - | 2 | ||||||||||||||
| Adjusted EBITA | 894 | 468 | 173 | 254 | - | ||||||||||||
| Depreciation, amortization and impairment of fixed assets and other intangible assets | 432 | 93 | 124 | 54 | 161 | ||||||||||||
| Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items | (9) | (1) | - | (8) | - | ||||||||||||
| Adjusted EBITDA | 1,317 | 560 | 296 | 300 | 161 | ||||||||||||
| Quarterly Report 2025 - Q2 | 23 | |||||||
| Philips Group | Diagnosis & Treatment | Connected Care | Personal Health | Other | |||||||||||||
| Q2 2024 | |||||||||||||||||
| Net income | 452 | ||||||||||||||||
| Discontinued operations, net of income taxes | (141) | ||||||||||||||||
| Income tax expense (benefit) | 345 | ||||||||||||||||
| Investments in associates, net of income taxes | 93 | ||||||||||||||||
| Financial expenses | 88 | ||||||||||||||||
| Financial income | (20) | ||||||||||||||||
| Income from operations | 816 | 211 | 558 | 120 | (73) | ||||||||||||
| Amortization and impairment of acquired intangible assets | 60 | 23 | 31 | 4 | 3 | ||||||||||||
| EBITA | 876 | 234 | 589 | 124 | (70) | ||||||||||||
| Restructuring and acquisition-related charges | 101 | 25 | 18 | 17 | 41 | ||||||||||||
| Other items: | (483) | 6 | (489) | 1 | |||||||||||||
| Respironics insurance income | (538) | (538) | |||||||||||||||
| Respironics field-action running costs | 31 | 31 | |||||||||||||||
| Respironics consent decree charges | 26 | 26 | |||||||||||||||
| Quality actions | (1) | 6 | (7) | ||||||||||||||
| Remaining items | (1) | (2) | 1 | ||||||||||||||
| Adjusted EBITA | 495 | 265 | 117 | 141 | (28) | ||||||||||||
| Depreciation, amortization and impairment of fixed assets and other intangible assets | 282 | 52 | 72 | 25 | 132 | ||||||||||||
| Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items | (44) | (3) | - | (4) | (38) | ||||||||||||
| Adjusted EBITDA | 733 | 314 | 190 | 163 | 67 | ||||||||||||
| January to June 2024 | |||||||||||||||||
| Net income | (546) | ||||||||||||||||
| Discontinued operations, net of income taxes | (142) | ||||||||||||||||
| Income tax expense (benefit) | 449 | ||||||||||||||||
| Investments in associates, net of income taxes | 94 | ||||||||||||||||
| Financial expenses | 182 | ||||||||||||||||
| Financial income | (45) | ||||||||||||||||
| Income from operations | (8) | 357 | (507) | 236 | (94) | ||||||||||||
| Amortization and impairment of acquired intangible assets | 133 | 45 | 74 | 7 | 6 | ||||||||||||
| EBITA | 125 | 402 | (433) | 243 | (88) | ||||||||||||
| Restructuring and acquisition-related charges | 152 | 44 | 35 | 18 | 55 | ||||||||||||
| Other items: | 606 | 6 | 589 | 11 | |||||||||||||
| Respironics litigation provision | 982 | 982 | |||||||||||||||
| Respironics insurance income | (538) | (538) | |||||||||||||||
| Respironics field-action running costs | 72 | 72 | |||||||||||||||
| Respironics consent decree charges | 47 | 47 | |||||||||||||||
| Quality actions | 33 | 6 | 27 | ||||||||||||||
| Remaining items | 10 | (1) | 11 | ||||||||||||||
| Adjusted EBITA | 882 | 452 | 191 | 261 | (21) | ||||||||||||
| Depreciation, amortization and impairment of fixed assets and other intangible assets | 505 | 100 | 133 | 51 | 221 | ||||||||||||
| Adding back impairment of fixed assets included in Restructuring and acquisition-related charges and Other items | (45) | (3) | - | (4) | (38) | ||||||||||||
| Adjusted EBITDA | 1,342 | 549 | 324 | 308 | 162 | ||||||||||||
| Quarterly Report 2025 - Q2 | 24 | |||||||
Composition of free cash flow in millions of EUR
| Q2 | January to June | |||||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||||
| Net cash flows from operating activities | 89 | 387 | (82) | (546) | ||||||||||
| Net capital expenditures | (153) | (156) | (318) | (315) | ||||||||||
| Purchase of intangible assets | (28) | (24) | (64) | (70) | ||||||||||
| Expenditures on development assets | (55) | (72) | (108) | (131) | ||||||||||
| Capital expenditures on property, plant and equipment | (76) | (63) | (158) | (118) | ||||||||||
| Proceeds from sales of property, plant and equipment | 6 | 2 | 12 | 4 | ||||||||||
| Free cash flow | (64) | 230 | (400) | (860) | ||||||||||
Composition of net debt to group equity in millions of EUR unless otherwise stated
| March 31, 2025 | June 30, 2025 | |||||||
| Long-term debt | 7,056 | 7,182 | ||||||
| Short-term debt | 513 | 1,244 | ||||||
| Total debt | 7,568 | 8,425 | ||||||
| Cash and cash equivalents | 1,193 | 1,822 | ||||||
| Net debt | 6,375 | 6,603 | ||||||
| Shareholders’ equity | 11,697 | 10,379 | ||||||
| Non-controlling interests | 31 | 29 | ||||||
| Group equity | 11,728 | 10,408 | ||||||
Net debt : group equity ratio | 35:65 | 39:61 | ||||||
| Quarterly Report 2025 - Q2 | 25 | |||||||
Philips statistics
Quarterly statistics in millions of EUR unless otherwise stated
| 2024 | 2025 | |||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||
| Sales | 4,138 | 4,462 | 4,377 | 5,044 | 4,097 | 4,338 | ||||||||||||||||||||
| Nominal sales growth | (1 | %) | 0 | % | (2 | %) | 0 | % | (1 | %) | (3 | %) | ||||||||||||||
| Comparable sales growth ¹ | 2 | % | 2 | % | 0 | % | 1 | % | (2 | %) | 1 | % | ||||||||||||||
| Comparable order intake ² | (4 | %) | 9 | % | (2 | %) | 2 | % | 2 | % | 6 | % | ||||||||||||||
| Gross margin | 1,815 | 1,989 | 2,006 | 1,963 | 1,849 | 2,011 | ||||||||||||||||||||
| as a % of sales | 44 | % | 45 | % | 46 | % | 39 | % | 45 | % | 46 | % | ||||||||||||||
| Selling expenses | (1,096) | (1,127) | (1,075) | (1,188) | (1,087) | (1,084) | ||||||||||||||||||||
| as a % of sales | (26 | %) | (25 | %) | (25 | %) | (24 | %) | (27 | %) | (25 | %) | ||||||||||||||
| G&A expenses | (136) | (158) | (151) | (137) | (161) | (155) | ||||||||||||||||||||
| as a % of sales | (3 | %) | (4 | %) | (3 | %) | (3 | %) | (4 | %) | (4 | %) | ||||||||||||||
| R&D expenses | (419) | (424) | (433) | (472) | (457) | (402) | ||||||||||||||||||||
| as a % of sales | (10 | %) | (9 | %) | (10 | %) | (9 | %) | (11 | %) | (9 | %) | ||||||||||||||
| Income from operations | (824) | 816 | 337 | 199 | 154 | 400 | ||||||||||||||||||||
| as a % of sales | (20 | %) | 18 | % | 8 | % | 4 | % | 4 | % | 9 | % | ||||||||||||||
| Net income | (998) | 452 | 181 | (333) | 72 | 240 | ||||||||||||||||||||
| Income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted | (1.05) | 0.32 | 0.19 | (0.35) | 0.09 | 0.25 | ||||||||||||||||||||
| Adjusted income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted ¹ | 0.25 | 0.30 | 0.32 | 0.50 | 0.25 | 0.36 | ||||||||||||||||||||
| EBITA ¹ | (751) | 876 | 404 | 393 | 211 | 453 | ||||||||||||||||||||
| as a % of sales | (18.1 | %) | 19.6 | % | 9.2 | % | 7.8 | % | 5.2 | % | 10.5 | % | ||||||||||||||
| Adjusted EBITA ¹ | 388 | 495 | 516 | 679 | 354 | 540 | ||||||||||||||||||||
| as a % of sales | 9.4 | % | 11.1 | % | 11.8 | % | 13.5 | % | 8.6 | % | 12.4 | % | ||||||||||||||
| Adjusted EBITDA ¹ | 609 | 733 | 735 | 905 | 571 | 747 | ||||||||||||||||||||
| as a % of sales | 14.7 | % | 16.4 | % | 16.8 | % | 17.9 | % | 13.9 | % | 17.2 | % | ||||||||||||||
| At the end of period: | ||||||||||||||||||||||||||
| Number of common shares outstanding (after deduction of treasury shares) in thousands | 904,257 | 934,117 | 931,986 | 925,009 | 925,084 | 950,574 | ||||||||||||||||||||
| Shareholders’ equity per common share in EUR | 12.56 | 12.72 | 12.27 | 12.98 | 12.64 | 10.92 | ||||||||||||||||||||
| Net debt : group equity ratio ¹ | 36:64 | 35:65 | 36:64 | 30:70 | 35:65 | 39:61 | ||||||||||||||||||||
| Total employees | 69,062 | 68,701 | 69,282 | 67,823 | 67,247 | 67,263 | ||||||||||||||||||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
2Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter 9.10, Other key performance indicators, of the Annual Report 2024.
3Shareholders refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
| Quarterly Report 2025 - Q2 | 26 | |||||||
Year-to-date statistics in millions of EUR unless otherwise stated
| 2024 | 2025 | |||||||||||||||||||||||||
| January-March | January-June | January-September | January-December | January-March | January-June | January-September | January-December | |||||||||||||||||||
| Sales | 4,138 | 8,600 | 12,977 | 18,021 | 4,097 | 8,434 | ||||||||||||||||||||
| Nominal sales growth | (1 | %) | 0 | % | (1 | %) | (1 | %) | (1 | %) | (2 | %) | ||||||||||||||
| Comparable sales growth ¹ | 2 | % | 2 | % | 1 | % | 1 | % | (2 | %) | (1 | %) | ||||||||||||||
| Comparable order intake ² | (4 | %) | 3 | % | 1 | % | 1 | % | 2 | % | 4 | % | ||||||||||||||
| Gross margin | 1,815 | 3,804 | 5,810 | 7,773 | 1,849 | 3,859 | ||||||||||||||||||||
| as a % of sales | 44 | % | 44 | % | 45 | % | 43 | % | 45 | % | 46 | % | ||||||||||||||
| Selling expenses | (1,096) | (2,223) | (3,298) | (4,486) | (1,087) | (2,171) | ||||||||||||||||||||
| as a % of sales | (26 | %) | (26 | %) | (25 | %) | (25 | %) | (27 | %) | (26 | %) | ||||||||||||||
| G&A expenses | (136) | (294) | (445) | (582) | (161) | (316) | ||||||||||||||||||||
| as a % of sales | (3 | %) | (3 | %) | (3 | %) | (3 | %) | (4 | %) | (4 | %) | ||||||||||||||
| R&D expenses | (419) | (843) | (1,275) | (1,747) | (457) | (859) | ||||||||||||||||||||
| as a % of sales | (10 | %) | (10 | %) | (10 | %) | (10 | %) | (11 | %) | (10 | %) | ||||||||||||||
| Income from operations | (824) | (8) | 329 | 529 | 154 | 554 | ||||||||||||||||||||
| as a % of sales | (20 | %) | 0 | % | 3 | % | 3 | % | 4 | % | 7 | % | ||||||||||||||
| Net income | (998) | (546) | (365) | (698) | 72 | 312 | ||||||||||||||||||||
| Income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted | (1.05) | (0.72) | (0.53) | (0.88) | 0.09 | 0.34 | ||||||||||||||||||||
| Adjusted income from continuing operations attributable to shareholders ³ per common share (in EUR) - diluted ¹ | 0.25 | 0.55 | 0.87 | 1.36 | 0.25 | 0.61 | ||||||||||||||||||||
| EBITA ¹ | (751) | 125 | 528 | 921 | 211 | 665 | ||||||||||||||||||||
| as a % of sales | (18.1 | %) | 1.5 | % | 4.1 | % | 5.1 | % | 5.2 | % | 7.9 | % | ||||||||||||||
| Adjusted EBITA ¹ | 388 | 882 | 1,399 | 2,077 | 354 | 894 | ||||||||||||||||||||
| as a % of sales | 9.4 | % | 10.3 | % | 10.8 | % | 11.5 | % | 8.6 | % | 10.6 | % | ||||||||||||||
| Adjusted EBITDA ¹ | 609 | 1,342 | 2,077 | 2,982 | 571 | 1,317 | ||||||||||||||||||||
| as a % of sales | 14.7 | % | 15.6 | % | 16.0 | % | 16.5 | % | 13.9 | % | 15.6 | % | ||||||||||||||
1Non-IFRS financial measure. Refer to the Reconciliation of non-IFRS information
2Comparable order intake is presented when discussing the Philips Group's performance. For the definition of this measure, refer to chapter 9.10, Other key performance indicators, of the Annual Report 2024.
3Shareholders refers to shareholders of Koninklijke Philips N.V. Per share calculations have been adjusted retrospectively for all periods presented to reflect the issuance of shares in 2025 with respect to the share dividend for 2024.
| Quarterly Report 2025 - Q2 | 27 | |||||||
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