The China Mail - Back to black: Philips posts first annual profit since 2021

Philips posted a profit of 897 million euros last year, after three straight years of losses.

"We strengthened our company while navigating a dynamic macro environment. We ended the year with strong, robust margin expansion despite tariffs," chief executive Roy Jakobs said in a statement.

The profit came in above the consensus forecast of analysts polled by the company of 775 million euros.

Once famous for making lightbulbs and televisions among other products, Amsterdam-based Philips in recent years has sold off subsidiaries to focus on medical care technology.

It posted overall sales of 17.8 billion euros in 2025, compared to the 18.0 billion euros it banked in 2024.

Analysts' consensus forecast was for sales of 17.7 billion euros.

Looking ahead, the firm said it expected sales growth of between 3.0 and 4.5 percent for 2026.

This outlook includes the impact of "currently known tariffs" but excludes potential costs from the ongoing saga of its sleep apnoea machines, Philips said.

Since 2021, the company has been battling a series of crises over its DreamStation machines for sleep apnoea, a disorder in which breathing stops and starts during sleep.

Millions of devices were recalled over concerns that users were at risk of inhaling pieces of noise-cancelling foams and fears it could potentially cause cancer.

In April, it announced it had reached a $1.1 billion deal to settle US lawsuits from the faulty machines.

Turning to the fourth quarter, Philips posted a profit of 397 million euros, above the forecast of 276 million euros.

In the third quarter of last year, the firm banked profits of 187 million euros on sales of 4.3 billion euros.

The firm has continued to shed jobs. It employed 64,817 people at the end of 2025, compared to 67,823 at the end of 2024.

Philips also announced a proposal to reappoint Jakobs as CEO.

"(This) reflects the Supervisory Board's recognition of the progress made since 2022 and its confidence in his leadership as Philips enters the next phase of driving profitable growth," the firm said.

S.Wilson--ThChM