ams OSRAM reported solid financial performance for Q2 2025, landing at the midpoint of its revenue guidance (EUR 775 million) with a robust adjusted EBITDA margin of 18.8%. This profitability was achieved despite significant currency headwinds and an inventory correction in the US automotive lamps aftermarket, offset by rapid execution of the 'Re-establish the Base' (RtB) cost savings program. The company confirmed a strong outlook for the second half of 2025, backed by EUR 2.5 billion in new semiconductor design wins and a confirmed Free Cash Flow (FCF) target of above EUR 100 million for the full year. Crucially, ams OSRAM initiated the first key steps of its accelerated deleveraging plan, including extending its Revolving Credit Facility (RCF), executing a EUR 500 million senior note private placement for future financial obligations, and announcing the sale of its Entertainment & Industrial Lamps business for EUR 114 million.
ams OSRAM Q2 2025 Results and Accelerated Deleveraging Plan
Q2 Financial Performance (p. 1): Q2 2025 revenues were EUR 775 million, placing results at the midpoint of guidance. Adjusted EBITDA margin was 18.8%.
Cost Efficiency (p. 1): The 'Re-establish the Base' (RtB) program achieved run-rate savings of approximately EUR 160 million.
Net Result and Lawsuit (p. 2): Adjusted net result was positive at EUR 18 million, boosted by a one-time positive effect from the settlement of a decades-long lawsuit regarding trade secret misappropriation.
Cash Flow and Outlook (p. 1, p. 5): Q2 Free Cash Flow (including net interest paid) was EUR -14 million, partially due to preproduction inventory build-up for H2 ramp-ups. The full-year 2025 FCF outlook is confirmed to be above EUR 100 million.
Future Business Momentum (p. 1): The company secured approximately EUR 2.5 billion in new semiconductor design wins during H1 2025.
Q3 2025 Guidance (p. 1, p. 5): Q3 revenue is expected between EUR 790 million and EUR 890 million, with an adjusted EBITDA margin target of 19.5% (+/-1.5%).
Semiconductor Business Strength (p. 3): Semiconductors accounted for 76% of Q2 revenue. The CMOS Sensors & ASICs (CSA) segment saw its adjusted EBITDA margin jump to 18.0%, nearly doubling compared to Q2 2024 (9.4%).
Market Adjustments (p. 2, p. 4): Group revenues declined 5% QoQ and YoY due primarily to a significantly weaker USD (approx. EUR 35 million impact) and a meaningful inventory correction in the US retail aftermarket for automotive lamps.
Strategic Deleveraging Executed (p. 2): The accelerated balance sheet improvement plan commenced with three major steps:
Extension of the EUR 800m Revolving Credit Facility (RCF) until September 2027.
Private placement of EUR 500 million equivalent in senior notes to pre-finance potential OSRAM minority put options and repurchase 2027 convertible notes.
Announcement of the sale of the non-core Entertainment & Industrial Lamps business for EUR 114 million (expected closing Q1/2026).
Deleveraging Goal (p. 2): Upon completion, the deleveraging plan aims to reduce the net-debt / adj. EBITDA leverage ratio below 2.