Philips tops profit estimates, reaches agreement in principle with DOJ on Respironics
PHG•Philips reported third-quarter adjusted EBITDA of €569 million, up 7.2% and above the €522 million consensus estimate. Its Respironics unit reached an agreement in principle with the DOJ, and Philips booked a €288 million provision for the proposed settlement.
1. Profit beats estimates
Philips reported third-quarter adjusted earnings before interest, taxes and amortisation of €569 million, up 7.2% and above the €522 million consensus estimate. The company said higher sales and gross margin, alongside productivity measures, drove the increase.
2. DOJ agreement in principle
Philips said its Respironics unit reached an agreement in principle with the U.S. Department of Justice to resolve investigations linked to the global sleep and respiratory-care device recall. Philips booked a €288 million provision for the proposed settlement, which remains subject to final documentation and is expected to be paid in the first quarter of 2027. CEO Roy Jakobs said the company could not provide qualitative details, including whether the agreement would include an admission of wrongdoing.
