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 strong momentum across core segments.

• Core semiconductor portfolio grew 7% year-on-year, with group revenues up 4% like-for-like despite FX and non-core exits.

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

• Major portfolio transformation underway, including divestments and the launch of the Simplify cost-saving program targeting EUR 200 million in annual savings and impacting 2,000 employees.

• Record free cash flow of EUR 144 million for FY25, with liquidity position at EUR 2.2 billion.

Financial highlights

• Q4 2025 revenues reached EUR 874 million, with adjusted EBITDA of EUR 161 million (18.4% margin), both at the upper end of guidance.

• FY25 group revenues were EUR 3,330 million, with adjusted EBITDA of EUR 575 million (18.3% margin), and free cash flow of EUR 144 million.

• Pro-forma leverage reduced to 2.5x after divestments and debt repayments; net debt at EUR 850–1,078 million.

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

• Cash on hand at year-end was EUR 1,483 million.

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, with adjusted EBITDA impacted by one-offs and higher precious metal prices.

• 2030 targets: mid- to high single-digit semiconductor revenue growth, group adjusted EBITDA margin ≥25%, CapEx up to 8% of sales, free cash flow >EUR 200 million, and leverage ratio <2.