ams Osram (AMS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues were €775 million, at the midpoint of guidance, with adjusted EBITDA margin at 18.8%, supported by cost savings and portfolio optimization despite a 5% revenue decline year-over-year due to inventory corrections and currency headwinds.

• The 'Re-establish the Base' efficiency program achieved €160 million run-rate savings by Q2, six months ahead of schedule, with a new target of €225 million by end-2026.

• Deleveraging advanced with asset disposals, refinancing actions, and extension of the €800 million revolving credit facility to September 2027.

• Strong design-win momentum in H1 2025, securing approximately €2.5 billion in new semiconductor business across 2,000+ projects.

• Macroeconomic volatility, US tariffs, and inventory corrections impacted automotive and industrial segments, while consumer business remained resilient.

Financial highlights

• Q2 2025 group revenue was €775 million, down 5% year-over-year and quarter-over-quarter, mainly due to FX headwinds and inventory corrections; core portfolio revenue up ~2% year-over-year at constant currency.

• Adjusted EBITDA margin improved to 18.8% in Q2 2025, up from 16.4% in Q1 2025 and 16.5% in Q2 2024.

• Adjusted net result was €18 million, with diluted EPS at €0.18; IFRS net result slightly positive at €1 million.

• Free cash flow for Q2 was slightly negative, impacted by inventory build-up and annual payouts, but full-year FCF guidance remains above €100 million.

• CapEx for Q2 was €40 million, with full-year expected below 8% of revenues.

Outlook and guidance

• Q3 2025 revenue guidance: €790–€890 million, with adjusted EBITDA margin expected at 19.5% ±1.5 percentage points.

• H2 2025 expected to be stronger than H1, with positive free cash flow above €100 million and continued profitability improvements.

• FY 2025 CapEx to remain below 8% of sales, with further cost savings from the efficiency program.

• Tariff impacts are being mitigated through customer renegotiations and local production; global car and smartphone production remain stable.