Business update:

   --  Q2/25: revenues EUR 775 m, 18.8 % adj. EBITDA margin, at the midpoint 
      of guidance 
 
   --  Q2/25: realized run-rate savings of approx. EUR 160 m from 
      'Re-establish the Base' (RtB) program 
 
   --  Q2/25: FCF (incl. net interest paid) at EUR -14 m 
 
   --  Q3/25: revenue EUR 790 m -- 890 m, 19.5 % +/-1.5 % adj. EBITDA, at 
      EUR/USD 1.16 expected 
 
   --  Strong design-win momentum in H1/2025 with approx. EUR 2.5 bn in new 
      semi business 
 
   --  FY25: FCF outlook of above EUR 100 m confirmed 

Deleveraging plan and refinancing:

   --  Revolving Credit Facility (RCF) extended by another year 
 
   --  Private placement of equivalent EUR 500 m principal amount of EUR and 
      USD senior notes due in 2029 to pre-finance approx. EUR 350 m of 
      potential OSRAM minority put option bulk exercises and buy back approx. 
      EUR 150 m 2027 convertible notes (subject to market conditions) 
 
   --  Sale of Entertainment & Industrial Lamps business for EUR 114 m 
      announced, first asset sale under the deleveraging plan 
PREMSTAETTEN, Austria & MUNICH--(BUSINESS WIRE)--July 31, 2025-- 

ams OSRAM delivers 18.8 % adj. EBITDA at revenues of EUR 775 m in Q2, confirms 2025 FCF outlook above EUR 100 m and executes first steps of its accelerated deleveraging plan

"We showed a solid performance in Q2 in a still difficult market with good profitability on the back of rapid implementation of 'Re-establish-the Base' and preproduction for the second half, as well as a very good design-win momentum securing future semiconductor business. We continue to expect a stronger second half although the weaker US Dollar weighs on topline results and tariffs discussions instigate continuously uncertainty." said Aldo Kamper, CEO of ams OSRAM.

"Our plan to accelerate our balance sheet deleveraging is unfolding. The extension of the Revolving Credit Facility, the private placements of additional 2029 senior notes to prefinance long-term any bulk exercises of OSRAM minority put options and to re-purchase 2027 convertible bonds, but especially the first disposal for reducing leverage show that we keep track in executing our finance milestones as well." said Rainer Irle, CFO of ams OSRAM.

Q2/25 business and earnings summary

 
EUR millions (except 
  per share data)      Q2 2025  Q1 2025    QoQ     Q2 2024    YoY 
Revenues                   775      820      -5 %      819      -5 % 
EBITDA margin adj. % 
 (1)                    18.8 %   16.4 %  +240 bps    16.5%  +230 bps 
EBITDA adj. (1)            145      135      +7 %      135      +7 % 
Net result adj. (1)         18      -23       n/a       -1       n/a 
Diluted EPS (adj., in 
 EUR) (2)                 0.18    -0.23       n/a      0.0       n/a 
 
 
(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) Basic and diluted earnings per share for the comparative period were 
adjusted following the reverse share split on 30 September 2024. 
 

Group revenues came in exactly at the midpoint of the guided range of EUR 725 -- 825 million. Reported revenues declined by 5 % quarter-over-quarter due to a meaningful automotive-lamps aftermarket inventory correction at US retail chains on top of normal seasonality and a significantly weaker USD. At a constant EUR/USD exchange rate, revenues would have been approx. EUR 35 million higher.

Year-over-year, group revenues declined by 5% mainly driven by the weaker US dollar, the discontinued non-core semiconductor business and the inventory correction in automotive LEDs. Like-for-like, at a constant EUR/USD exchange rate and only considering the core portfolio, revenues would have been up by approx. 2 %.

Adj. EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) came in slightly higher than the midpoint of the guided range of 18.5 % +/-1.5 %. Some one-offs (part of the Q2 guidance), such as government and customer funding catch-up, contributed positively.

Adj. net result came in positive at EUR 18 million. The typical, recurring quarterly adjustments of transformation cost, purchase price allocation and share based compensations were reduced by a one-time positive effect from the settlement of a decades long lawsuit regarding the misappropriation of trade secrets by a counterparty.

IFRS net result came in slightly positive at EUR 1 million.

Implementation of balance sheet improvement plan

On 30 April 2025, the company announced its accelerated, comprehensive plan to de-leverage its balance sheet including assessing the sale of business assets for well above EUR 500 million.

To date, the company has implemented the first elements of the plan, namely

   --  03 July 2025, extension of the EUR 800 m Revolving Credit Facility 
      (RCF) by another year until September 2027 
 
   --  23 July 2025, private placement above par of principal amount of EUR 
      200 m 10.5 % and USD 350m 12.25 % senior notes due in 2029 to prefinance 
      long-term OSRAM minority put option bulk exercises (approx. EUR 350m) and 
      buy back 2027 convertible bonds (approx. EUR 150m) 
 
   --  29 July 2025, sale of Entertainment & Industrial Lamps business for EUR 
      114 m (on a cash-and-debt-free basis) as first disposal under the 
      deleveraging plan, closing expected in Q1/2026 

Upon completion, the plan will reduce the net-debt / adj. EBITDA leverage ratio below 2, minimize the amount to be refinanced, reduce the interest expenses to below EUR 100 million annually and thereby strengthen the operating cash flow further.

Q2/25 Cash generation & balance sheet update

 
EUR millions                 Q2 2025  Q1 2025   QoQ   Q2 2024   YoY 
FCF (incl. net interest 
 paid)                           -14      -28  -50 %     -119  -88 % 
Cash on hand                     511      573  -11 %      900  -43 % 
Net debt                       1,570    1,484   +6 %    1,576   -0 % 
Kulim-2 $(SLB)$, EUR equiv.        420      429   -2 %      401   +5 % 
Net debt (incl. SLB)           1,990    1,913   +4 %    1,977   +1 % 
OSRAM minority put options 
 (1)                             528      570   -7 %      605  -13 % 
 
 
(1) contingent liability part of 'other financial liabilities' 
 

Free cash flow -- defined as operating cash flow including net interest paid minus cash flow from CAPEX plus proceeds from divestments -- came in slightly negative as the company preproduced inventory for the scheduled business ramp-up in H2 and also paid out annually recurring items. However, the company expects meaningful cash inflows from subsidies by the Austrian government under the European Chips Act already notified by the European Commission later in the year.

The net debt position slightly increased to EUR 1,570 million quarter-over-quarter after EUR 1,484 million in the previous quarter, mainly due to a change in the cash-on-hand position. In view of approx. EUR 60 million exercised put options of OSRAM minority shares in H1, the company drew EUR 50 m of the RCF (that is in place for larger put option exercises) in order to keep an adequate cash balance. By now, the drawn RCF portion has already been paid back using some proceeds of the private placement of additional senior notes on 23 July 2025.

The equivalent value of the Sale-and-Lease Back $(SLB.AU)$ Malaysia transaction decreased by EUR 9 million due to a net effect of quarterly accrued interest and MYR exchange rate swings.

The Group held approx. 88 % of OSRAM Licht AG shares end of Q2/25. The company has an EUR 800 million Revolving Credit Facility (RCF) in place that was just extended by another year until September 2027. The RCF is primarily in place to cover any further significant exercises under the 'domination and profit and loss transfer agreement (DPLTA)' put option and the undrawn part would be sufficient to fully cover all outstanding minority shareholder's put options. It can also be drawn for general corporate and working capital purposes.

Q2/25 Business Unit (BU) results & industry update

Semiconductor Business

 
EUR millions           Q2 2025  Q1 2025    QoQ     Q2 2024    YoY 
Opto Semiconductors 
(OS) 
    Revenue                344      336      +2 %      372      -8 % 
    EBITDA margin 
     adj. %             22.9 %   14.7 %  +820 bps    22.7%   +20 bps 
    EBITDA adj.             79       49     +61 %       84      -6 % 
CMOS Sensors & ASICs 
$(CSA)$ 
    Revenue                239      236      +1 %      224      +7 % 
    EBITDA margin 
     adj. %              18.0%    13.8%  +420 bps    9.4 %  +860 bps 
    EBITDA adj.             43       32     +34 %       21    +105 % 
Semiconductors by 
industry vertical 
    Automotive             229      225      +2 %      251      -9 % 
    I&M                    171      141     +21 %      185      -8 % 
    Consumer               183      206     -11 %      159     +15 % 
 

Semis were approx. 76 % of Q2/25 group revenue or EUR 582 million, compared to EUR 596 million a year ago, mainly driven by inventory correction in the automotive LED supply chain and the phase-out of non-core businesses in conjunction with 'Re-establish the Base' contributing with a close to mid double-digit million EUR a year ago. Growth in the core portfolio, especially with new sensor products, made up for the divested or discontinued non-core portfolio. Like-for-like, at a constant EUR/USD exchange rate and only considering the core portfolio, revenues would have been up by approx. 7 % - in line with the mid-term target growth corridor of the semiconductor target operating model.

Optical Semiconductors (OS)

A seasonal upswing in horticulture and slightly increased sales in Automotive led the quarter-over-quarter improvement.

Adj. EBITDA increased to EUR 79 million compared to Q1 on the back of gross profit fall through, EUR/USD exchange rate effects and catch-up from government and customer fundings.

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July 31, 2025 03:49 ET (07:49 GMT)