Philips reached a preliminary agreement with the U.S. Department of Justice over investigations linked to its 2021 device recall and booked a €288 million provision, with payment expected in Q1 2027. Third-quarter adjusted EBITA rose 7.2% to €569 million, while comparable sales increased 3% to €4.39 billion.
Philips said its Respironics unit reached an agreement in principle with the U.S. Department of Justice to resolve previously disclosed investigations linked to the 2021 recall of sleep and respiratory-care devices. The company booked a €288 million provision in the third quarter for the proposed settlement, which remains subject to final documentation and is expected to be paid in the first quarter of 2027.
Philips did not say whether the agreement would include an admission of wrongdoing. CEO Roy Jakobs said the agreement in principle was reached in the last few days. Discussions with U.S. state attorneys general are ongoing, and Philips said it was too early to provide details or book a provision for those proceedings.
Third-quarter adjusted EBITA rose 7.2% to €569 million, above analysts’ €522 million estimate, while comparable sales increased 3% to €4.39 billion, slightly below the €4.41 billion forecast. Philips said higher sales, improved gross margin and productivity measures more than offset cost inflation.
