Abstract:

This report details ams OSRAM's financial results for the second quarter and first half of 2025, highlighting solid performance that met guidance despite currency headwinds and challenging macroeconomic conditions. The company reported Q2 revenues of EUR 775 million and an adjusted EBITDA of EUR 145 million. A key focus is the successful implementation of its strategic initiatives. The 'Re-establish the Base' efficiency program is six months ahead of schedule, having already achieved EUR 160 million in run-rate savings. Furthermore, the company has begun executing its accelerated deleveraging plan with several key steps, including a credit facility extension, a private placement of senior notes, and the sale of its Entertainment & Industrial Lamps business. Despite inventory corrections in the automotive sector, the company secured approximately EUR 2.5 billion in new semiconductor design-wins, signaling a strong future business pipeline.

ams OSRAM H1 2025 Report: Key Financials and Strategic Progress

• Q2 & H1 2025 Financial Performance: The company posted solid results, meeting the midpoint of its guidance.

  • Q2 2025: Revenues of EUR 775 million and an adjusted EBITDA of EUR 145 million (18.8% margin).
  • H1 2025: Revenues of EUR 1,595 million and an adjusted EBITDA of EUR 280 million (17.6% margin).
  • Performance was achieved despite currency headwinds and ongoing inventory correction in the automotive LED supply chain.

• Accelerated Deleveraging Plan: On April 30, 2025, the company announced a plan to reduce its leverage ratio (net-debt / adj. EBITDA) to below 2. Key first steps have been implemented:

  • July 3, 2025: The EUR 800m Revolving Credit Facility (RCF) was extended by another year to September 2027.
  • July 23, 2025: A private placement of senior notes (EUR 200m and USD 350m) was completed to prefinance liabilities and buy back bonds.
  • July 29, 2025: The Entertainment & Industrial Lamps business was sold for EUR 114 million.

• 'Re-establish the Base' Program Ahead of Schedule: The strategic efficiency program is delivering results faster than anticipated.

  • By June 2025, the company realized approximately EUR 160 million in savings, hitting its end-of-2025 target six months early.
  • The company is on track to achieve its upsized target of EUR 225 million in run-rate savings by the end of 2026.

• Strong Future Business Pipeline: The company demonstrated strong momentum in securing future business, with approximately EUR 2.5 billion in new semiconductor design-wins during the first half of 2025.

• Business Segment Performance (Q2 2025):

  • Semiconductors (76% of revenue): Revenues were EUR 582 million. The consumer segment performed well, while automotive and industrial/medical faced cyclical lows and inventory corrections.
  • Lamps & Systems (24% of revenue): Revenues saw a significant decline to EUR 192 million, primarily driven by a major inventory adjustment at US aftermarket retail chains.

• Q3 2025 Guidance: The company expects a strong third quarter with revenues projected between EUR 790 – 890 million and an adjusted EBITDA margin of 19.5% (+/-1.5%). This is based on an expected upswing in the consumer market and normalization in the automotive sector.

• Full-Year 2025 Outlook: For the full year, ams OSRAM anticipates a stronger second half, positive free cash flow exceeding EUR 100 million, and CAPEX below 8% of sales, while acknowledging persistent macroeconomic uncertainties.