ams Osram (AMS) Q4 2025 Fixed Income earnings summary

Executive summary

• Achieved #1 global position in the LED market, with core semiconductor portfolio growing 7% year-over-year and record €5bn in new design wins, driving strong profitability and free cash flow of €144m.

• Strategic divestments totaling €670m accelerated deleveraging and sharpened focus on digital photonics.

• Launched €200m 'Simplify' transformation program, targeting €200m run-rate savings by FY28 and impacting ~2,000 employees.

• Achieved 'Re-establish the Base' savings target one year ahead of plan, with €220m realized run-rate savings.

• FY25 adjusted EBITDA margin improved by 1.5 percentage points year-over-year, reaching 18.3%.

Financial highlights

• Q4 2025 revenues reached €874m, with adjusted EBITDA margin at 18.4% and free cash flow of €144m.

• FY25 group revenues were €3,330m, adjusted EBITDA €608m (18.3% margin), and adjusted net result €57m.

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

• IFRS net result for FY25 was -€129m, a significant improvement from -€785m in FY24.

• Cash on hand at year-end was €1,483m; net debt reduced to €1,078m.

Outlook and guidance

• Q1 2026 revenues expected between €710–810m, with adjusted EBITDA margin around 15% ±1.5 percentage points.

• FY26 group revenues expected to soften due to divestments and weaker USD; adjusted EBITDA to be impacted by one-off items including stranded costs and higher precious metal prices.

• 2030 targets: mid- to high single-digit semiconductor revenue CAGR, ≥25% adjusted EBITDA margin, group free cash flow >€200m, and leverage ratio <2.