ams Osram (AMS) Q4 2025 earnings summary

Executive summary

• Achieved No. 1 global LED market position with over EUR 5 billion in new design-win lifetime value and 7% year-over-year growth in the semiconductor core portfolio.

• Adjusted EBITDA margin improved by 1.5 percentage points year-over-year, supported by accelerated cost savings from transformation programs.

• Delivered EUR 144 million free cash flow and advanced deleveraging, with two major divestments totaling EUR 670 million in proceeds.

• Launched the Simplify transformation program targeting EUR 200 million in annual cost savings, impacting around 2,000 employees.

• The 'Re-establish the Base' program achieved EUR 220 million in run-rate savings, one year ahead of plan.

Financial highlights

• Q4 2025 revenues reached EUR 874 million, with adjusted EBITDA of EUR 161 million (18.4% margin), and free cash flow of EUR 144 million.

• FY25 group revenues were EUR 3,330 million, with adjusted EBITDA of EUR 575–608 million (18.3% margin), and adjusted net result of EUR 57 million.

• Pro-forma leverage reduced to 2.5x after divestitures and debt repayments; net debt at year-end was EUR 1,078 million.

• CapEx remained disciplined, well below the 8% target.

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

Outlook and guidance

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

• FY26 revenues expected to soften due to divestments and FX; adjusted EBITDA to be negatively impacted by one-offs, stranded costs, and higher precious metal prices.

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