ams Osram (AMS) Q4 2024 earnings summary

Executive summary

• Q4 and FY24 revenues and adjusted EBITDA exceeded guidance midpoints, with positive free cash flow and significant cost savings from the 'Re-establish the Base' program, which delivered €110 million in run-rate savings by year-end, ahead of target.

• Core semiconductor portfolio grew approximately 7% year-over-year, driven by new sensor launches and resilient automotive and consumer demand, offsetting declines from non-core exits.

• Nearly €5 billion in new business wins were secured in 2024, with strong traction in automotive and consumer segments.

• Profitability stabilized with an adjusted EBITDA margin of 16.8–17% for FY24, supported by cost savings and non-refundable engineering payments.

• Full-year 2024 saw positive free cash flow of €12 million, a significant improvement from negative €332 million the prior year.

Financial highlights

• FY24 group revenues were €3.43 billion, down 1–5% like-for-like, with lamps business declining 14% and core semis up 7%.

• Adjusted EBITDA margin for FY24 at 16.8–17%, with adjusted EBIT margin at 7.0%.

• FY24 net result (IFRS) improved by €828 million but remained negative at -€785 million, mainly due to lower microLED-related charges.

• FY24 operating cash flow was €435 million; CAPEX reduced by 52% year-over-year to €502 million.

• Net debt at year-end was €1.85 billion; cash on hand €1.1 billion; available liquidity €1.76 billion.

Outlook and guidance

• Q1 2025 revenues expected between €750–850 million, with adjusted EBITDA margin guided at 16% ± 1.5%.

• FY2025 expected to show pronounced H1/H2 seasonality, with recovery in H2 driven by project ramps and cyclical recovery.

• Free cash flow for 2025 expected to exceed €100 million, with strict CapEx discipline (<8% of sales).

• Profitability expected to improve further with additional cost savings and margin expansion.