ams Osram (AMS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues ranged from €881 million to €904 million, up 8% sequentially but down 2–3% year-over-year, driven by strong consumer semiconductors and NRE payments, offsetting automotive and industrial weakness.

• Adjusted EBITDA margin improved to 18.8% (up 23% quarter-over-quarter), supported by higher revenues, NREs, and cost savings.

• Free cash flow was strong at €188 million, aided by customer prepayments and NREs, with a cash position exceeding €1 billion.

• The 'Re-establish the Base' efficiency program achieved €85 million run-rate savings ahead of schedule, upsized to €225 million by end of 2026, impacting over 500 roles.

• Design-win momentum continued, with €3.5 billion lifetime value year-to-date.

Financial highlights

• Q3 group revenue: €881–904 million, up 8% sequentially, down 2–3% year-over-year.

• Adjusted EBITDA: €166 million (19% margin) to 18.8% margin, up from Q2.

• Adjusted net result: €37 million; IFRS net result: €24 million; adjusted EPS: €0.37.

• Operating cash flow: €246 million, supported by prepayments and NREs.

• Cash on hand at Q3 end: €1.1 billion; available liquidity: €1.87 billion; net debt reduced to €1.4 billion.

Outlook and guidance

• Q4 2024 revenues expected between €810–910 million; adjusted EBITDA margin forecast at 15–18%.

• FY24 CAPEX expected at €500–550 million; positive free cash flow before net interest targeted.

• 2025: Weak Q1 expected, especially in automotive, but core semiconductor portfolio targeted to grow 6–10% for the full year.

• Mid-term (to 2027): Core semiconductor business targeted for 6–10% CAGR; group EBITDA margin expected at 20–24%.