Philips' Hidden Weakness: Tariff Refund and Order Slump

Philips reported €4.4 billion in sales and 16.4% EBITDA margin for Q2, but a €186 million U.S. tariff refund inflated its true margin by 4.2 points. Orders declined 1%, offset by double-digit growth in Europe. Management excluded Respironics issues and raised margin guidance to 13.5-14%. Markets criticized the tariff dependency and order weakness. Kaptan Rıza Deniz: "This signals Philips' struggle with supply chain cost pressures. Without the refund, core margins drop by 2.3 points. Order slump could weaken next quarter's sales."