ams Osram (AMS) Q2 2026 Fixed Income earnings summary

Executive summary

• Revenue and adjusted EBITDA reached the high end of guidance, with core semiconductor portfolio revenue up 13% year-over-year like-for-like, driven by strong automotive and industrial demand and Digital Photonics innovation.

• Record design wins secured over EUR 1.6 billion in Q2 and approximately EUR 2.5 billion in H1, reinforcing long-term growth confidence.

• Strategic divestments completed or signed, including non-optical sensor and CMOS image sensor businesses, supporting deleveraging and portfolio focus.

• Digital Photonics strategy advanced, with milestones in microLED arrays for AR smart glasses and AI photonics partnerships.

• Dedicated business lines established to accelerate Digital Photonics innovation and execution.

Financial highlights

• Q2 2026 group revenue was EUR 805 million, up 4% year-on-year, with adjusted EBITDA of EUR 136 million (16.9% margin).

• Free cash flow in Q2 was negative, impacted by working capital buildup, transformation costs, and higher interest expenses.

• Adjusted net result was EUR -55 million; IFRS net result ranged from EUR -121 million to EUR -154 million, mainly due to high interest and transformation charges.

• Cash at quarter end was approximately EUR 1 billion; total liquidity including revolver at EUR 1.5 billion, rising to EUR 2.1 billion post-divestment.

• EUR 1 billion in new senior notes issued at 7.25%, reducing annual interest by approximately EUR 40 million.

Outlook and guidance

• Q3 2026 revenue expected between EUR 770 million and EUR 870 million, with adjusted EBITDA margin guidance of 16.0% ±1.5%.

• Full-year 2026 outlook broadly unchanged; revenue expected to soften slightly due to divestments and FX, with temporary margin pressure from transition effects.

• FY2027 targeted for return to positive free cash flow (excluding divestments).

• 2030 targets include over EUR 200 million free cash flow, net debt/adj. EBITDA below 2x, and at least 25% adjusted EBITDA margin.

• Positive net result expected in high double-digit million euro range, supported by divestment gains.