ams Osram (AMS) Q4 2025 Fixed Income earnings summary

Executive summary

• Achieved #1 global position in the LED market and No.1 in packaged LEDs and automotive emitters, marking a strategic milestone.

• Core semiconductor portfolio grew 7% year-over-year in FY25, with 8% like-for-like growth in Q4 2025 and over EUR 5 billion in new design wins.

• Delivered EUR 144 million free cash flow in FY25, supported by divestment proceeds and operational improvements.

• Launched the Simplify program, targeting EUR 200 million in run-rate savings by FY28 and impacting ~2,000 employees.

• Strategic divestments and transformation programs accelerated deleveraging and sharpened focus on digital photonics.

Financial highlights

• Q4 2025 group revenues reached EUR 775–874 million, with adjusted EBITDA margin at 18.4%, up 7% YoY.

• FY25 group revenues were EUR 3,323–3,330 million, with adjusted EBITDA of EUR 608 million (18.3% margin), and adjusted net result of EUR 57 million.

• Free cash flow in FY25 was EUR 144 million, up from EUR 12 million in FY24, excluding extraordinary items.

• Gross margin improved to 29.1% in FY25, with OPEX reduced by 8% YoY.

• Cash on hand at year-end was EUR 1,483 million; total liquidity at EUR 2.2 billion.

Outlook and guidance

• Q1 2026 revenues expected between EUR 710–810 million, with adjusted EBITDA margin around 15% ±1.5pp.

• FY26 group revenues expected to soften due to divestments and weaker USD; adjusted EBITDA to be negatively impacted by one-offs and higher precious metal prices.

• 2030 targets: mid to high single-digit semiconductor revenue growth, ≥25% adjusted EBITDA margin, group free cash flow well above EUR 200 million, net debt/EBITDA below 2.