Koninklijke Philips N.V. NY Registry Shares (PHG) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone. I'm here with our CEO, Roy Jakobs, and our CFO, Charlotte Hanneman. Before we begin, I would like to acknowledge that due to an administrative error, Philips' second quarter 2026 results were inadvertently published last evening ahead of our scheduled release. As a result, we brought this webcast forward by two hours. We apologize for any inconvenience this may have caused and thank you for joining us on short notice. Our results press release and presentation are available on our investor relations website. The replay and full transcript of this webcast will be available on our website after this call concludes. I want to draw your attention to our safe harbor statement on the screen and in the presentation. I will now hand over to Roy. Good morning, everyone. Thank you for joining us. I will start with an overview of our Q2 results and outlook for the balance of the year. We delivered in line with our expectations in a dynamic external environment. We grew comparable sales by 4%, driven by growth across all segments. Adjusted EBITDA margin increased to 16.4%, including a tariff refund benefit, which Charlotte will discuss in detail. Excluding that benefit, our underlying margin was 12.2%. This reflects the expected pressure from higher tariffs and cost inflation, with productivity offsetting part of the impact. Free cash flow was €220 million, including a tariff refund benefit. Against this backdrop, we reiterate our fully comparable sales growth outlook range of 3% to 4.5% and our underlying adjusted EBITDA margin outlook also remains unchanged. Excluding the tariff refund benefit, we continue to expect a full year adjusted EBITDA margin of 12.5 to 13%. At the halfway point, we remain solidly on track for the full year. On a rolling 12 month...