December 3, 2025
Signify Cancels 5.8 Million Shares After Buyback Blitz
Company repurchased 7.1 million shares in 43 weeks, retiring 80% of them
On December 1, Signify formally closed the book on its year-long share repurchase program — a €150 million ($175 million USD), open-market initiative that saw the company buy back 7.1 million shares and permanently cancel most of them. The effort played out across 43 weekly regulatory disclosures, each tracking the company’s steady march toward completion. Here’s what it actually means.
The Anatomy of a Year-Long Buyback
The structure was simple: over the course of 43 weeks, starting February 4, 2025, the world's largest lighting company methodically repurchased shares on the open market. The program was split into two parts:
- 1.35 million shares were retained for employee compensation plans (long-term incentive payouts, stock-based bonuses, and similar obligations).
- 5.76 million shares were permanently canceled, reducing the company’s outstanding share count and boosting future earnings per share (EPS).
The full dataset, including weekly transactions, volume, and price, tells a story of consistency. Repurchases ranged from under 50,000 shares in quiet weeks to over 300,000 during peaks. In total, the company spent €149.5 million, with an average price of €21.11 per share.
Why This Program Matters … Especially Now
This wasn’t just routine capital allocation. It was financial maneuvering during a turbulent year.
Throughout 2025, Signify’s sales dropped quarter-over-quarter. The North American market, historically a backbone, sagged under delayed infrastructure projects and price erosion. Leadership shuffled. Cost-cutting returned. And yet, amid that, the buybacks continued — sending a steady signal to markets: we still believe our stock is undervalued.
Canceling nearly 6 million shares reduces dilution and signals confidence. It’s a standard, shareholder-friendly play. But in this context — in a year of CEO turnover, earnings misses, and macroeconomic drag — it becomes a strategic lifeline, a way to manage market optics and reward shareholders without initiating major strategy pivots or pursuing risky M&A.
And it wasn’t just optics. The buyback equaled about 5.5% of Signify’s outstanding shares. That’s a material reduction, not a rounding error.
New CEO, New Era?
The planned cancellation comes just three months into the tenure of CEO As Tempelman, who took the reins in September. Unlike his predecessors with industrial manufacturing pedigrees from Schneider Electric, Tempelman comes from the energy sector — a fact that some see as symbolic of a deeper strategy shift.
In his first Signify earnings call in late October, he emphasized simplification, focus, and market-based strategy — and he’s hinted at tough decisions ahead for the underperforming OEM business. A 2026 Capital Markets Day is expected to clarify how Signify intends to reposition itself. Until then, this buyback — and its quiet conclusion — may be one of the few concrete signals of capital allocation priorities under his leadership.
What’s Left
After canceling 5.76 million shares, Signify’s total outstanding stock now stands at 122.6 million shares, including 3 million held in treasury — mostly for future stock-based compensation.
For those watching from across the lighting and electrical industry, this isn’t just corporate housekeeping. It’s a company recalibrating: trimming costs, rewarding investors, and signaling belief in its future — even if that future remains foggy in parts.
