This document is an ad hoc announcement from ams OSRAM detailing its Q2 2025 financial results and strategic updates. The company reports solid performance, meeting the midpoint of its guidance with revenues of EUR 775 million and an adjusted EBITDA margin of 18.8%, achieved despite currency headwinds. Key strategic developments include the execution of an accelerated deleveraging plan, highlighted by the extension of its Revolving Credit Facility, a private placement of senior notes to pre-finance liabilities, and the announced sale of its Entertainment & Industrial Lamps business for EUR 114 million. The "Re-establish the Base" efficiency program is delivering significant savings, and the company has secured approximately EUR 2.5 billion in new semiconductor business in H1 2025. ams OSRAM confirms its full-year outlook for a free cash flow exceeding EUR 100 million and provides Q3 guidance for revenues between EUR 790-890 million.
ams OSRAM Q2 2025 Financial Report and Strategic Update
Q2 2025 Financial Performance: ams OSRAM delivered solid results with revenues of EUR 775 million and an adjusted EBITDA margin of 18.8%. This performance was at the midpoint of guidance despite negative impacts from a weaker US Dollar. The adjusted net result was positive at EUR 18 million.
Deleveraging Plan in Action: The company is actively executing a plan to strengthen its balance sheet. Key first steps include extending its EUR 800 million Revolving Credit Facility (RCF) until 2027, placing EUR 500 million in senior notes to pre-finance minority put options and buy back convertible bonds, and announcing the sale of its Entertainment & Industrial Lamps business for EUR 114 million.
Business Segment Breakdown:
Semiconductors (76% of revenue) saw growth in its core portfolio, driven by new sensor products. The automotive segment faced inventory correction but showed signs of improvement, while the consumer segment grew 15% year-over-year.
Lamps & Systems (24% of revenue) experienced a significant revenue decline, primarily due to an inventory adjustment at US aftermarket retail chains.
Operational Efficiency: The ‘Re-establish the Base’ (RtB) program has successfully realized run-rate savings of approximately EUR 160 million, contributing positively to profitability.
Strong Business Momentum: The company reported strong design-win momentum in the first half of 2025, securing approximately EUR 2.5 billion in new semiconductor business, which underpins future growth.
Q3 2025 Guidance: For the third quarter, ams OSRAM expects revenues in the range of EUR 790 million to EUR 890 million, with an adjusted EBITDA margin of 19.5% (+/- 1.5%). This forecast anticipates a strong seasonal upswing in the consumer business and the end of the LED inventory correction in the automotive sector.
Full-Year 2025 Outlook: The company confirms its expectation to generate a positive free cash flow (FCF) of over EUR 100 million for the full year. It anticipates a stronger second half driven by seasonality and product ramp-ups, while acknowledging uncertainties related to global tariffs and currency exchange rates.