ams Osram (AMS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached EUR 805 million, at the high end of guidance, with 13% like-for-like growth in the semiconductor core portfolio, driven by automotive and industrial demand.

• Record design wins in semiconductors totaled over EUR 2.5 billion in H1, with EUR 1.6 billion in Q2 alone.

• Digital Photonics advanced with milestones in MicroLED light engines for AR smart glasses and expanded AI photonics roadmap.

• Major divestments, including sales to Infineon and Indie Semiconductors, supported balance sheet deleveraging.

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

Financial highlights

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

• Free cash flow was negative EUR 119 million in Q2, impacted by working capital build-up, transformation costs, and higher interest.

• Cash and cash equivalents at quarter-end were EUR 994 million; net debt stood at EUR 1,288 million.

• CapEx remained in line with guidance at approximately 8% of revenue.

• Adjusted net result for Q2 was EUR -55 million; reported net result was EUR -121 million.

Outlook and guidance

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

• FY26 outlook unchanged; revenue modestly lower due to divestments and FX, adjusted EBITDA temporarily pressured by transition effects.

• Path to positive free cash flow (excluding divestments) in sight for FY27.