PREMSTÃ,,TTEN, Austria and MUNICH--(BUSINESS WIRE)--May 07, 2026--
ams OSRAM (SWX:AMS):
Key Performance Figures Q1/26:
-- Revenues EUR 796 m, 16.5 % adj. EBITDA margin, in/at the upper half/end
of guidance range
-- +9 % year-on-year like-for-like growth in the semiconductor core
portfolio at constant FX
-- Free cash flow of EUR 37 m (including disposal proceeds)
-- 'Simplify' efficiency & transformation program delivered first savings
Digital Photonics Strategy Progress:
-- Augmented Reality smart glasses: full portfolio value proposition
outlined, with up to approx. EUR 50 to 100 content per device subject to
volume and product lifecycle
-- AI Photonics: development agreement signed with a leading AI
data--center infrastructure partner to advance commercialization of our
Digital-Photonics technologies for optical interconnects;
product-development initiated
-- Divestment: sale of Entertainment & Industrial lamps business to Ushio
Inc. successfully closed; closing of sale of non-optical sensor business
to Infineon expected mid-year (unchanged)
Outlook Q2/26
-- Q2/26: Revenues expected EUR 725 m to 825 m; adj. EBITDA margin of 15.5
% +/- 1.5 %, at an assumed EUR/USD exchange rate of 1.17, reflecting a
stronger-than-normal seasonal uplift in the semiconductor business,
together with the full deconsolidation of the Specialty Lamps business.
Comments on FY26
-- FY26: Outlook unchanged; revenue slightly lower due to divestments and
FX; temporary pressure on adjusted EBITDA impacted by transition year
2026 one--offs; Free Cash Flow above EUR 300 m incl. divestment proceeds,
repayment of customer prepayments and a strong reduction of factoring.
-- FY27: a path to positive Free Cash Flow in sight (including net
interest and excluding divestments).
"We delivered a strong start into the year. Securing a development agreement with a leading commercialization partner for AI photonics solutions for AI data centers marks another important milestone, clearly demonstrating that our transformation to create the leader in Digital Photonics is gaining momentum. At the same time, we are rapidly completing our portfolio to become the decisive enabler for next generation, AI powered augmented reality smart glasses," said Aldo Kamper, CEO of ams OSRAM.
Q1/26 Business and Earnings Summary
EUR millions (except per share
data) Q1 2026 Q4 2025 QoQ Q1 2025 YoY
Revenues 796 874 -9 % 820 -3 %
EBITDA margin adj. %(1) 16.5 % 18.4 % -190 bps 16.4 % +10 bps
EBITDA adj.(1) 131 161 -19 % 135 -3 %
Net result adj.(1) -72 35 n.m.(2) -23 n.m.
Diluted EPS (adj., in EUR) -0.74 0.35 n.m. -0.23 n.m.
1) Adjusted for microLED strategy adaption expenses, M&A-related, other
transformation and share-based compensation costs, results from
investments in associates and sale of businesses.
2) n.m. = not meaningful due to sign change.
In Q1, group revenues reached EUR 796 million, coming in well within the upper half of the guided range. Revenues declined 9 % quarter-on-quarter, reflecting normal seasonality and the partial deconsolidation of the Specialty Lamps business following its sale to Ushio Inc.
Year-on-year, group revenues decreased slightly due to FX headwinds, the exit of non-core semiconductor activities ("Re-Establish the Base") and the divestment of the Specialty Lamps business. At a constant EUR/USD exchange rate and on a like-for-like basis, revenues from the core portfolio increased by approximately 8 %.
Adj. EBITDA margin was 16.5 % at the upper end of the guided range, with adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) of EUR 131 million.
The Adj. net result amounted to EUR minus 72 million, reflecting higher net financing cost that are strongly driven by a negative valuation change of the call premium embedded in the outstanding Senior Notes besides recurring quarterly transformation-related charges, purchase price allocation and share-based compensation.
Q1/26 - Digital Photonics: Progress Update
Digital Photonics is the core driver of the Company's long--term growth strategy, combining advanced, pixelated emitters, sensors and electronics to digitally controlled light emission and optical sensing. This technology enables dynamic lighting, light--based sensing, projection, directed energy and high--speed data communication.
In Q1 2026, the Company made further progress in executing its Digital Photonics strategy:
-- In AI Photonics, advanced highly parallel micro--emitter array--based
optical interconnects represent a promising growth opportunity for AI
data centers. The Company recently demonstrated a prototype and entered
into a development agreement with a leading AI photonics industry partner
to advance commercialization. These so--called "slow and wide" optical
interconnects offer attractive advantages in power efficiency, thermal
management, reliability and system scalability.
-- In Augmented Reality, AI--enabled smart glasses constitute a major
growth opportunity. The Company aims to provide critical system
components that enable advanced use cases while improving everyday
usability. The Company estimates a total content opportunity of
approximately EUR 50 to 100 per smart glass subject to volume and product
life cycle. The company is already supplying various portfolio components
into smart glasses currently in the market.
Q1/26 Cash Generation & Balance Sheet Update
Free cash flow -- defined as operating cash flow including net interest paid minus cash flow from CAPEX after grants plus proceeds from divestments -- came in positive with EUR 37 million, driven by the cash proceeds from divesting the Specialty Lamps business. A year ago, this figure stood at minus EUR 28 million.
Under its accelerated and comprehensive plan to deleverage its balance sheet (announced 30 April 2025), the company has entered into multiple/various divestment agreements. These include the sale of its Entertainment & Industry ('Specialty') Lamps business to Ushio Inc., signed on 29 July 2025, and the divestment of its non-optical mixed-signal sensor business to Infineon, signed on 3 February 2026.
In total, the company expects therefore approx. EUR 670 million proceeds, of which around EUR 90 million were received in early March 2026 following the closing of the Specialty Lamps transaction to Ushio Inc.
EUR millions Q1 2026 Q4 2025 QoQ Q1 2025 YoY
FCF (incl. net interest paid,
adj.)(1) 37 144(1) -74 % -28 n.m.(3)
Cash on hand 1,317 1,483 -11 % 573 +130 %
Net debt 1,071 1,078 -1 % 1,484 -28 %
Kulim-2 SLB (Sale-and-Lease-Back) 454 440 +3 % 430 +6 %
Net debt (incl. SLB) 1,525 1,518 +1 % 1,914 -20 %
OSRAM minority put options(2) 495 505 -2 % 570 -13 %
1) In Q4 2025, IFRS reported FCF stood at EUR 535 million containing an
extraordinary inflow from changing the pension trustee according to
IAS19
2) Liability as part of 'other financial liabilities'
3) n.m. = not meaningful due to sign change.
As of 31 March 2026, the company held cash and cash equivalents of EUR 1,317 million.
The net debt position remained broadly stable at EUR 1,071 million at the end of Q1/26, compared to EUR 1,078 million at the end of Q4/25. The equivalent value of the Malaysia sale-and-leaseback $(SLB)$ Malaysia transaction increased by EUR 14 million, reflecting the net effect of quarterly accrued interest and movements in the MYR exchange rate.
At the end of Q1/26, the Group held approx. 88 % of the shares of OSRAM Licht AG.
Q1/26 Business Unit $(BU)$ Results & Industry Update
Semiconductor Business
Semiconductor revenues amounted to EUR 551 million in Q1 2026, compared to EUR 571 million a year ago. The core portfolio continued to grow, supported by custom sensor products that were introduced two years ago, which largely offset the impact from divested or discontinued non--core activities. On a comparable basis, semiconductor growth was approx. 9 %, adjusting for the EUR/USD headwind (approx. EUR 46 million) and the phased--out non--core portfolio.
EUR millions Q1 2026 Q4 2025 QoQ Q1 2025 YoY Opto Semiconductors (OS) Revenue 327 330 -1 % 336 -3 % EBITDA margin adj. % 16.8 % 21.9 % -510 bps 14.7 % +210 bps EBITDA adj. 55 72 -24 % 49 +12 % CMOS Sensors & ASICs $(CSA)$ Revenue 224 265 -16 % 236 -5 % EBITDA margin adj. % 10.9 % 16.1 % -520 bps 13.8 % -290 bps EBITDA adj. 24 42 -43 % 32 -25 % Semiconductors by industry Automotive 217 219 -1 % 225 -4 % I&M 156 175 -11 % 141 +11 % Consumer 178 202 -12 % 206 -14 % Total Semiconductors (sum) 551 595 -7 % 571 -4 %
Optical Semiconductors (OS)
(MORE TO FOLLOW) Dow Jones Newswires
May 07, 2026 02:33 ET (06:33 GMT)