Philips

Sales totalled €4.3bn, marking a 0.6% increase on a comparable basis, beating consensus by 1%. 

Comparable order intake rose by 6%, driven by double-digit growth in North America and strong performance in growth geographies.

EBITA came in at €540m, 26% better than consensus (€428m). 

For 2025, management maintained its sales growth guidance of 1-3% but upgraded the adjusted EBITA guidance by 50bp to 11.3%-11.8%, reflecting a reduced tariff impact. The estimated net tariff impact is now projected at €150-200m, down from the earlier €250-300m. Additionally, free cash flow is revised upwards to a €0.2-0.4bn range, compared to previous expectations of slightly positive.

Strong numbers for Philips this morning. Interestingly, the company mentions that sales are picking up in China with order intake improving. Furthermore, the company indicates that it has expanded its supply chain locally. In China, for example, 90% of its sales are produced locally. Our expert expects a strong performance. The valuation is still attractive, and he sees positive momentum going forward. Not too late to jump in the name.

Before we revise our estimates upwards, Philips trades on PE of 20.5x for 2025, 15.4x for 2026 and 13.6x for 2027. 

The X read is positive for companies in healthcare with significant presence in China, notably Elekta, Carl Zeiss Meditec or Siemens Healthineers.