Philips to repurchase up to 6 million shares to cover long-term incentive plans

Rhea-AI Summary

Royal Philips (NYSE: PHG) has announced a share repurchase program to acquire up to 6 million shares, valued at approximately EUR 125 million at current prices. The buyback is specifically intended to cover obligations arising from the company's long-term incentive plans. The repurchases will be executed through forward transactions during Q2 and Q3 2025, complying with Market Abuse Regulation and shareholder authorization from May 8, 2025. The company expects to receive the shares in 2027.

Positive

• Share repurchase program of up to 6 million shares demonstrates company's commitment to employee incentive plans
• Forward transaction structure allows for efficient capital allocation and planned delivery in 2027
• Program complies with regulatory requirements and shareholder authorization

Negative

• Buyback limited to covering incentive plans rather than returning capital to shareholders
• EUR 125 million capital allocation for employee compensation could impact other investment opportunities

June 4, 2025 

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA) today announced that it will repurchase up to 6 million shares to cover certain of its obligations arising from its long-term incentive plans. At the current share price, the shares represent an amount of up to approximately EUR 125 million.

The repurchases will be executed through one or more individual forward transactions, to be entered into in the course of the second and third quarter of 2025, in accordance with the Market Abuse Regulation and within the limits of the authorization granted by the company’s General Meeting of Shareholders on May 8, 2025. Philips expects to take delivery of the shares in 2027. Further details will be available via this link.

For further information, please contact:
Michael Fuchs
Philips Global External Relations
Tel.: +31 6 1486 9261
E-mail: michael.fuchs@philips.com

Dorin Danu
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: dorin.danu@philips.com

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and well-being through meaningful innovation. Philips’ patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring and enterprise informatics, as well as in personal health. Philips generated 2024 sales of EUR 18 billion and employs approximately 67,200 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

Forward-looking statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.

FAQ

What is the size of Philips' (PHG) 2025 share repurchase program?

Philips will repurchase up to 6 million shares, valued at approximately EUR 125 million at current share prices.

What is the purpose of Philips' (PHG) 2025 share buyback?

The share repurchase is specifically intended to cover obligations arising from the company's long-term incentive plans.

When will Philips (PHG) execute its 2025 share repurchase program?

The repurchases will be executed through forward transactions during the second and third quarters of 2025, with delivery expected in 2027.

Has Philips (PHG) received shareholder approval for the 2025 buyback?

Yes, the repurchase program was authorized by the company's General Meeting of Shareholders on May 8, 2025.

When will Philips (PHG) take delivery of the repurchased shares?

Philips expects to take delivery of the repurchased shares in 2027.