Financial Data and Key Metrics Changes - Order intake increased by 7% in Q4 2025, reflecting sustained improvement over the past year, with comparable sales growth also at 7% year-on-year [5][6] - Adjusted EBITDA margin improved by 160 basis points to 50.1% in Q4, and for the full year, it reached 12.3%, exceeding the outlook despite tariff impacts [5][6][21] - Net income rose to EUR 397 million in Q4, primarily due to improved operational income and lower tax charges, with adjusted diluted earnings per share increasing by 20% year-on-year [24] Business Line Data and Key Metrics Changes - In Diagnosis and Treatment (D&T), comparable sales grew by 4% in Q4, with Image-Guided Therapy achieving double-digit growth, while Precision Diagnosis remained flat [17] - Connected Care delivered 7% comparable sales growth in Q4, driven by double-digit growth in monitoring solutions [18] - Personal Health saw a 14% growth in Q4, supported by strong demand across various product categories, particularly in grooming and beauty [19] Market Data and Key Metrics Changes - North America continued to be the strongest growth driver, with sustained double-digit order intake growth [7][14] - In China, tender activity increased, but the market remains cautious due to longer processing times and tougher competition [14][15] - Europe showed stable capital spending, while select international regions increased healthcare investments, particularly in Indonesia and India [15] Company Strategy and Development Direction - The company is transitioning to a focus on profitable growth acceleration, targeting mid-single-digit sales CAGR and mid-teens margins by 2028 [6][11] - A multi-year roadmap centered on AI-enabled, patient-centric innovations is being executed, with significant product launches planned [10][19] - The company aims to enhance patient impact and quality while simplifying operations and strengthening supply chain resilience [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with strong order intake momentum and a robust innovation pipeline, despite ongoing tariff challenges [26][81] - The outlook for 2026 includes expected comparable sales growth of 3%-4.5%, with a focus on North America and international regions [16][26] - Management remains cautious about the near-term outlook for China while recognizing its long-term growth potential [14][66] Other Important Information - The company completed the sale of its emergency care business in Q4 as part of its portfolio simplification strategy [19] - A new EUR 1.5 billion productivity program is being launched for the 2026-2028 period to drive further operational improvements [29] Q&A Session Summary Question: Insights on gross margin improvement and order intake for D&T - Management noted that gross margin improvement is driven by innovation and productivity, with continued margin expansion expected despite tariff impacts [34][35] - Order intake for D&T was 5%, with strong contributions from Image-Guided Therapy and ultrasound innovations [37][38] Question: Buffers in the 2026 guidance and margin expectations - Management acknowledged the need for diligence in execution and emphasized that growth will be a significant contributor to margin improvement [41][42] Question: Performance of Precision Diagnosis and Q1 growth phasing - Precision Diagnosis saw stable sales, with expectations for improved momentum in 2026 due to new innovations [49][50] - Q1 is expected to start at the lower end of the growth range due to seasonality and tariff impacts [50][51] Question: Drivers of personal health performance and Section 232 investigation - Strong personal health performance was attributed to market share gains and healthy sell-out trends, with inventory levels now aligned with market averages [56][57] - The Section 232 investigation is ongoing, with potential implications for tariffs, but no definitive outcomes have been shared [58][59] Question: Outlook for China and margin dynamics in personal health - Management remains cautious about the health system side in China while expecting some improvement in personal health sales [66] - The strong margin in personal health is driven by innovation, commercial execution, and productivity improvements [67][68]

Financial Data and Key Metrics Changes - Order intake increased by 7% in Q4 2025, reflecting sustained improvement over the past year, with comparable sales growth also at 7% year-on-year [5][6] - Adjusted EBITDA margin improved by 160 basis points to 50.1% in Q4, and for the full year, it reached 12.3%, exceeding the outlook despite tariff impacts [5][6][21] - Net income for Q4 increased to EUR 397 million, with adjusted diluted earnings per share from continuing operations at EUR 0.60, a 20% year-on-year increase [24][25] Business Line Data and Key Metrics Changes - In Diagnosis and Treatment (D&T), comparable sales grew by 4% in Q4, with Image-Guided Therapy achieving double-digit growth [17] - Connected Care delivered 7% comparable sales growth in Q4, driven by strong demand in monitoring and enterprise informatics [18] - Personal Health saw a 14% growth in Q4, with significant contributions from grooming and beauty products [19][20] Market Data and Key Metrics Changes - North America remained the strongest growth driver, with double-digit growth in order intake across various segments [7][14] - In China, tender activity increased but faced challenges due to centralized procurement and longer processing times, leading to a cautious outlook [14][15] - Europe showed stable capital spending, while select international regions increased healthcare investments, particularly in Indonesia and India [15] Company Strategy and Development Direction - The company is transitioning to a focus on profitable growth acceleration, targeting mid-single-digit sales CAGR and mid-teens margins by 2028 [6][11] - Continued emphasis on innovation, particularly AI-enabled and patient-centric solutions, is expected to drive future growth [9][10] - The company aims to enhance patient impact and quality while simplifying operations and strengthening supply chain resilience [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with strong order intake momentum and a robust innovation pipeline [26][81] - The outlook for 2026 includes expected comparable sales growth of 3%-4.5%, with a focus on North America and international regions [16][26] - Management remains cautious about the near-term outlook for China while recognizing its long-term growth potential [14][66] Other Important Information - The company completed the sale of its emergency care business as part of its portfolio simplification strategy [19] - A new EUR 1.5 billion productivity program is set to launch for the 2026-2028 period, building on previous productivity initiatives [29] Q&A Session Summary Question: Inquiry about gross margin improvement and order intake by modality - Management confirmed ongoing gross margin improvement across the board, with expectations for continued strength in 2026 despite tariff impacts [33][34] - Order intake for D&T was 5%, with strong contributions from Image-Guided Therapy and ultrasound, indicating a positive outlook for 2026 [37][38] Question: Clarification on 2026 guidance and margin buffers - Management acknowledged the dynamic environment and emphasized the importance of productivity and innovation for margin improvement [40][41] Question: Performance of Precision Diagnosis and Q1 phasing - Management indicated that Precision Diagnosis returned to growth, with expectations for stronger performance in 2026 driven by new innovations [48][49] - Q1 is expected to start at the lower end of the growth range due to seasonality and tariff impacts [50][51] Question: Update on personal health performance and Section 232 investigation - Strong performance in personal health was attributed to market share gains and healthy sell-out trends, with inventory levels now aligned with market averages [56][57] - The Section 232 investigation remains ongoing, with potential implications for tariffs but no definitive outcomes yet [58][59] Question: Insights on the China market and personal health margins - Management expects stabilization in China, with cautious optimism for personal health sales, while remaining cautious about health system orders [64][66] - The strong margin in personal health was driven by innovation, commercial execution, and productivity improvements [67][68]

Financial Data and Key Metrics Changes - Order intake increased by 7% in Q4 2025, reflecting sustained improvement over the past year [5] - Comparable sales growth was 7% year-on-year, broad-based across all businesses and geographies [5] - Adjusted EBITDA margin improved by 160 basis points to 50.1% in Q4 2025, despite tariff impacts [5] - For the full year, adjusted EBITDA margin was 12.3%, exceeding the outlook [6][24] Business Line Data and Key Metrics Changes - Diagnosis and Treatment (D&T) saw comparable sales growth of 4% in Q4, with strong performance in Image-Guided Therapy [20] - Connected Care delivered 7% comparable sales growth in Q4, driven by double-digit growth in monitoring solutions [21] - Personal Health achieved 14% comparable sales growth in Q4, with all three businesses contributing [22] Market Data and Key Metrics Changes - North America remained the strongest growth driver, with sustained double-digit order intake growth [7][15] - In China, tender activity increased but faced challenges due to centralized procurement, leading to cautious near-term outlook [16][19] - Europe showed stable capital spending, while select international regions increased healthcare investments [17] Company Strategy and Development Direction - The company is focused on profitable growth acceleration, targeting mid-single-digit sales CAGR and mid-teens margins by 2028 [6][12] - Continued emphasis on innovation, particularly AI-enabled and patient-centric solutions, to drive future growth [10][12] - The company is enhancing patient impact and quality while simplifying operations and strengthening supply chain resilience [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with strong order intake momentum and improved execution [29] - The company expects comparable sales growth of 3%-4.5% in 2026, led by North America and international regions [19][30] - Management remains cautious about the near-term outlook for China but sees long-term growth potential [16][19] Other Important Information - The company generated EUR 1.2 billion in free cash flow in Q4 2025, despite a tougher comparison base [27] - Adjusting items decreased to EUR 179 million in Q4, reflecting a strong commitment to reducing these over time [26] - The company ended the quarter with approximately EUR 2.8 billion in cash and a leverage ratio improved to 1.7 times [28][29] Q&A Session Summary Question: Insights on gross margin improvement and order intake for D&T - Management confirmed gross margin improvement across Philips, driven by innovation and productivity, with continued margin expansion expected in 2026 despite tariff impacts [36][38] - Order intake for D&T was 5%, with strong contributions from Image-Guided Therapy and ultrasound innovations [39][40] Question: Clarification on 2026 guidance and margin buffers - Management acknowledged the dynamic environment and emphasized the importance of productivity and innovation for margin growth [43][44] Question: Performance of Precision Diagnosis and Q1 phasing - Management indicated that Precision Diagnosis returned to growth, with expectations for stronger performance in 2026 driven by new innovations [50][51] - Q1 is expected to start at the lower end of the growth range due to seasonality and tariff impacts [52][53] Question: Drivers behind strong personal health performance - Management highlighted market share gains and strong demand across geographies, with inventory levels now aligned with market averages [58][60] Question: Update on Section 232 investigation - Management stated that the investigation is ongoing, with potential measures that could replace tariffs but refrained from speculation on outcomes [61][62] Question: Outlook for China and margin dynamics - Management expects stable growth in China, with cautious optimism for personal health but uncertainty in health systems due to tender processes [67] - The strong margin in personal health was attributed to innovation, commercial execution, and productivity improvements [70][71]

| Fourth quarter and full-year 2025 performance | 4 | | --- | --- | | 2026 outlook | 18 | | Financial appendix | 23 | Fourth quarter and full-year 2025 results Roy Jakobs, Chief Executive Officer Charlotte Hanneman, Chief Financial Officer February 10, 2026 Table of contents Important information Forward-looking statements and other important information This document and the related oral presentation, including responses to questions following the presentation, contain certain forward-looking statements wi ...

Group 1 - Koninklijke Philips NV (NYSE:PHG) reported positive results for the fourth quarter, with shares increasing by 0.5% to close at $29.62 on Monday [1] - Ford Motor Co. (NYSE:F) is expected to announce quarterly earnings of 19 cents per share on revenue of $41.83 billion after the market closes, with shares rising by 0.2% to $13.62 in after-hours trading [1]

Core Viewpoint - Roy Jakobs has been leading Philips since October 2022, and the company plans to present his re-appointment to shareholders later this year [1]

Core Insights - Philips has demonstrated strong order growth and sales in 2025, with a robust balance sheet and margin expansion despite external challenges [2][6][7] Financial Performance - For the full year 2025, comparable order intake increased by 6%, while comparable sales growth was 2%. In Q4, comparable order intake rose by 7%, and group sales reached EUR 5.1 billion, reflecting a 7% increase [6][7] - Adjusted EBITA margin improved by 80 basis points to 12.3% for the full year and by 160 basis points to 15.1% in Q4, driven by higher sales and productivity [6][7] - Free cash flow for 2025 was EUR 512 million, with Q4 free cash flow at EUR 1,200 million [6][8] Segment Performance - Diagnosis & Treatment segment saw a 4% increase in comparable sales in Q4, with an adjusted EBITA margin of 11.8% [9] - Connected Care segment experienced a 7% increase in comparable sales in Q4, with an adjusted EBITA margin of 16.5% [10] - Personal Health segment reported a 14% increase in comparable sales in Q4, with an adjusted EBITA margin of 23.0% [11] Innovation and Strategic Initiatives - Philips launched several innovations, including the Azurion neuro biplane platform and a helium-free 3.0T MR system, enhancing its product offerings in healthcare [3][15] - The company has entered a five-year strategic partnership with AdventHealth to upgrade patient monitoring systems across its network [15] - Philips aims to drive profitable growth through segment-specific strategies, innovation, and disciplined execution, with a focus on integrating AI and data into healthcare solutions [19][20][21] Future Outlook - For 2026, Philips anticipates mid-single-digit comparable sales growth CAGR and a mid-teens adjusted EBITA margin by 2028 [24][23] - The company plans to achieve cumulative free cash flow of EUR 4.5-5.0 billion over the 2026-2028 period and EUR 1.5 billion in productivity savings [24]

Core Insights - Siemens Healthineers AG is a leading global medical technology company specializing in imaging, diagnostics, and advanced therapies, competing with major players like GE Healthcare and Philips [1] Financial Performance - On February 5, 2026, Siemens Healthineers reported earnings per share of $0.28, surpassing the estimated $0.27, and revenue of approximately $6.37 billion, exceeding the estimated $5.29 billion [2][6] - The strong financial performance is attributed to robust margin performance in its core imaging and cancer-care units [2] Market Valuation - The company's price-to-earnings (P/E) ratio is approximately 43.17, indicating high investor confidence in future growth prospects [3][6] - The price-to-sales ratio stands at about 3.97, suggesting the market values the company at nearly four times its annual sales [4] - The enterprise value to sales ratio is approximately 4.61, reflecting the company's total valuation relative to its sales [4] Operational Metrics - The enterprise value to operating cash flow ratio is around 34.71, indicating the company's valuation in relation to its cash flow from operations [5] - The earnings yield is approximately 2.32%, providing insight into the return on investment [5] - Siemens Healthineers has a debt-to-equity ratio of about 0.83 and a current ratio of approximately 1.11, demonstrating a moderate level of debt and good short-term financial health [5]

Financial Data and Key Metrics Changes - Net sales for Q2 were $341 million, a 5% decline year-over-year, with a 2% favorable impact from foreign exchange [6][11] - The gross margin rate improved to 8.2%, a 160 basis point increase from 6.6% in the same period last year [11] - Adjusted operating income was $15.3 million, or 4.5% of net sales, compared to $13.3 million, or 3.7% of net sales last year [12] Business Line Data and Key Metrics Changes - Medical sales were $96 million, up 15% year-over-year, representing 28% of total company sales [6][10] - Automotive sales totaled $162 million, down 13% year-over-year, accounting for 48% of total sales [8][10] - Industrial sales were $83 million, a 5% decrease year-over-year, making up 24% of total sales [10] Market Data and Key Metrics Changes - Medical vertical growth was driven by increases in Poland and Thailand, while North America remained flat [6][7] - Automotive sales declined primarily in North America due to the transfer of an electronic braking program and tariff pressures [8][9] - Industrial business saw a decline in North America, offset by higher sales in Europe due to a rebound in the smart meter business [10] Company Strategy and Development Direction - The company is focusing on the medical vertical as a key growth area, leveraging its capabilities in a highly regulated industry [5][7] - A rebranding to Kimball Solutions reflects the company's evolution beyond traditional manufacturing services, expanding into design, engineering, and supply chain management [18] - The grand opening of a new medical manufacturing facility in Indianapolis is part of the strategy to enhance capabilities and capacity [5][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medical vertical's growth potential, driven by megatrends such as an aging population and increasing healthcare access [7] - The company is monitoring the outlook for FY27, particularly in North American automotive and industrial sectors, due to economic concerns and tariff impacts [17] - Management raised guidance for fiscal 2026, expecting net sales to be in the range of $1.4-$1.46 billion, driven by strength in the medical vertical [15][16] Other Important Information - Cash and cash equivalents at the end of Q2 were $77.9 million, with positive cash flow for the eighth consecutive quarter [14] - The company invested $4.3 million in share repurchases during Q2, with a total of $109.5 million returned to shareholders since October 2015 [15] Q&A Session Summary Question: What percentage was Nexteer in December? - Nexteer accounted for 20% of sales in December [23][24] Question: What is the capacity and ramp expectations for the new facility in Indianapolis? - The new facility is 300,000 sq ft, significantly larger than the current footprint, with significant growth opportunities anticipated [26] Question: How should we think about growth in the automotive piece for Q3 and Q4? - Q3 automotive is expected to be flat to slightly up as the company anniversaries the end of the EB100 program [34] Question: What are the win rates and sizes of new programs? - Win rates remain consistent, with larger programs expected from lift and shift opportunities and CMO discussions [36][39] Question: How will the new facility impact margins? - In the near term, the new facility will drag margins due to depreciation and additional expenses, but long-term margins are expected to improve [42][43] Question: How do you see cash cycle days play out in the coming quarters? - Cash conversion days are expected to decrease in Q3 from elevated levels in Q2 [46]

Financial Data and Key Metrics Changes - Net sales for Q2 were $341 million, a 5% decline compared to Q2 last year [6][12] - Gross margin rate improved to 8.2%, a 160 basis point increase from 6.6% in the same period last year [12] - Adjusted operating income was $15.3 million, or 4.5% of net sales, compared to $13.3 million, or 3.7% of net sales last year [13] - Adjusted net income was $6.9 million, or $0.28 per diluted share, compared to $7.4 million, or $0.29 per diluted share last year [15] Business Line Data and Key Metrics Changes - Medical sales were $96 million, up 15% year-over-year, representing 28% of total company sales [6][8] - Automotive sales totaled $162 million, down 13% year-over-year, accounting for 48% of total sales [9] - Industrial sales were $83 million, a 5% decrease compared to Q2 last year, representing 24% of total sales [11] Market Data and Key Metrics Changes - Medical vertical growth was driven by increases in Poland and Thailand, while North America remained flat [7][8] - Automotive sales decline was primarily due to lower sales in North America and China, with some offset from growth in Poland and Romania [9][10] - Industrial business decline was concentrated in North America, with some recovery in Europe [11] Company Strategy and Development Direction - The company is focusing on the medical vertical as a key growth area, leveraging its capabilities in a highly regulated industry [5][8] - A rebranding to Kimball Solutions reflects the company's evolution beyond traditional manufacturing services, expanding into design, engineering, and supply chain management [20] - The grand opening of a new medical manufacturing facility in Indianapolis is part of the strategy to enhance capabilities and capacity [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medical vertical's growth potential, driven by megatrends such as an aging population and increasing healthcare access [8] - The company raised its guidance for fiscal 2026, expecting net sales between $1.4 billion and $1.46 billion, driven by strength in the medical vertical and automotive programs [17][18] - Management is monitoring the outlook for FY27, particularly in North America automotive and industrial sectors, due to economic concerns and tariff impacts [19] Other Important Information - Cash and cash equivalents at the end of Q2 were $77.9 million, with cash generated from operations at $6.9 million [15][16] - The company invested $4.3 million in share repurchases during Q2, with a total of $109.5 million returned to shareholders since October 2015 [17] - The effective tax rate for Q2 was 47.9%, significantly higher than the previous year due to adjustments related to the sale of the Tampa facility [15] Q&A Session Summary Question: What percentage was Nexteer in December? - Nexteer accounted for 20% of sales in December [25][26] Question: What is the capacity and ramp expectations for the new facility in Indianapolis? - The new facility is 300,000 sq ft, significantly larger than the current footprint, with substantial growth opportunities [28] Question: How should we think about growth in the automotive piece for Q3 and Q4? - Q3 automotive is expected to be flat to slightly up as the company anniversaries the end of the EB100 program [37] Question: What are the win rates and sizes of new programs? - Win rates remain consistent, with larger programs expected from lift and shift opportunities and CMO discussions [39][40] Question: How will the new facility impact margins? - The new facility is expected to drag margins in the near term due to depreciation and additional expenses, but long-term margins are expected to improve [44][45] Question: How do you see cash cycle days play out in the coming quarters? - Cash conversion days are expected to decrease in Q3 from elevated levels in Q2 [49] Question: What are the opportunities in the medical space for acquisitions? - The company is interested in in vitro diagnostics and cardiology as potential areas for expansion [58]