By Aimee Look

Ams-Osram's stock slumped after the Austrian electronics company swung to a wider-than-expected net loss for the third quarter and issued weaker guidance than analysts had been anticipating.

Shares were down 14% in European midday trading Tuesday at around 8.47 Swiss francs, but are still up 42% since the start of the year.

Ams-Osram posted a net loss of 28 million euros ($32.5 million) for the third quarter compared with a net profit of 24 million euros for the same period the year before. Analysts had expected a net loss of 9.3 million euros, according to estimates compiled by Visible Alpha.

Revenue fell 3% to 853 million euros.

The company said it expects fourth-quarter revenue to come in at between 790 million and 890 million euros, or 840 million euros at the midpoint of the range. Analysts had anticipated 879.3 million euros in revenue for the fourth quarter, according to estimates compiled by Visible Alpha.

Ams-Osram expects adjusted earnings before interest, taxes, depreciation and amortization margin to range from 16% to 19%, or 17.5% at the midpoint, it said.

The company confirmed its full-year outlook of free cash flow above 100 million euros, but said this assumes timely arrival of funds from the European Chips Act that are expected to result in meaningful inflows later in the year.

The results show the company is recovering more slowly than expected from demand weakness that weighed on its top line, while its fourth-quarter guidance looks weak and the caveat on the cash-flow outlook leaves the door open for a miss, analysts at UBS wrote in a note to clients.

Vontobel analyst Mark Diethelm said fourth-quarter margin guidance 15% below consensus forecasts could put pressure on estimates.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

November 18, 2025 06:37 ET (11:37 GMT)

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