ams OSRAM post Q4 above mid-point of guidance, delivers EUR 144 m FCF in FY25 and launches EUR 200 m ‘Simplify’ transformation and savings program Dienstag, 10. Februar 2026 - 07:02

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ams OSRAM post Q4 above mid-point of guidance, delivers EUR 144 m FCF in FY25 and launches EUR 200 m ‘Simplify’ transformation and savings program

Key Developments Q4/25:

• Revenues EUR 874 m & 18.4 % adj. EBITDA margin, above the midpoint of guidance
• +8 % growth yoy in like-for-like semiconductor core portfolio at constant FX
• FCF of EUR 144m (excluding extraordinary inflows according to IAS 19) 
• ‘Re-establish the Base’ (RtB) savings target reached one year ahead of plan with realized run-rate savings of approx. EUR 220 m

Key Developments FY25:

• Revenue EUR 3,323 m, 18.3 % adj. EBITDA margin (+150 bps yoy)
• +7 % growth yoy in like-for-like semiconductor core portfolio at constant FX
• All-time high semiconductor design wins exceeding EUR 5bn in 2025
• FCF of EUR 144 m (adjusted for exceptional additional cash-in according to IAS 19) 

Strategy Update:

• EUR 200 m partial re-purchase of 2027 convertible bond on 16 January 2026
• Sale of non-optical sensor business for EUR 570 m in cash to Infineon on 3 February 2026 
• Pro-forma leverage cut to 2.5 x considering EUR 670 m cash-in from divestments
• Creating the leader in Digital Photonics focusing on intelligent optical semiconductor emitting & sensing technologies
• New 2030 Financial Targets: Semiconductors: mid-to-high single digit revenue CAGR, ≥ 25 % adj. EBITDA; Group: FCF EUR > 200 m, leverage ratio < 2.
• New ‘Simplify’ savings & transformation program, targeting additional EUR 200m run‑rate savings by FY28 and impacting around 2,000 employees, roughly half of them in Europe

Outlook Q1/26 and Comments on FY26

• Q1/26: revenues EUR 760 m, adj. EBITDA margin of 15 % +/- 1.5 %, at an assumed EUR/USD exchange rate of 1.19, in line with typical Q4/Q1 seasonality and expected deconsolidation effect from closing the sale of Specialty lamps to Ushio Inc.
• FY26: Given the divestments and a weaker USD, the company anticipates a modest year-over-year softening in revenue and foresees adjusted EBITDA to be negatively affected by various one-off impacts related to the divestments, stranded costs, higher precious-metal prices and other factors.

Premstaetten, Austria, and Munich, Germany (10 February 2026) – ams OSRAM posts Q4 above mid-point of guidance, delivers EUR 144 m FCF in FY25 and launches EUR 200 m ‘Simplify’ transformation and savings program

“Last year marked an important step towards creating the leader in Digital Photonics. The ‘Re-establish-the Base’ program homed in savings one year faster than planned and our profitability improved despite heavy headwinds. Furthermore, our semiconductor core grew in line with our semiconductor growth model and our technological edge secured €5billion in new design wins.” said Aldo Kamper, CEO of ams OSRAM.

“With our announced divestitures and the new ‘Simplify’ transformation and savings program, we are sharpening our competitiveness and regaining the financial freedom to invest purposefully in our growth. We fully focus on our future as the Digital Photonics Powerhouse — uniquely positioned to capture the major Digital Photonics inflection points in automotive, AR smart glasses, biosensing, robotics, AI data-center interconnects and beyond.” added Aldo Kamper.

Q4/25 Business and Earnings Summary

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.

In Q4, group revenues came in with EUR 874 million - above the midpoint of the guided range of EUR 790 to 890 million. Reported revenues increased by 2 % quarter-over-quarter due to a strong seasonal automotive-lamps aftermarket upswing. At a constant EUR/USD exchange rate, revenues would have been more than EUR 50 million higher.

Year-over-year, group revenues remained essentially flat, mainly due to the weaker US dollar and the discontinued non-core semiconductor business. Like-for-like, at a constant EUR/USD exchange rate and only considering the core portfolio, revenues would have been up by approx. 8 % both for the group and the semiconductor core portfolio.

Adj. EBITDA margin (adjusted earnings before interest, taxes, depreciation, and amortization) came in at 18.4 % above the midpoint of the guided range.

Adj. net result came in positive at EUR 35 million on the back of improved profitability, slightly positive foreign currency valuation and a positive deferred tax impact besides the typical, recurring quarterly adjustments of transformation cost, purchase price allocation and share-based compensation.

Q4/25 Cash Generation & Balance Sheet Update

Comparable 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 144 million, which also includes Austrian government grants under the European Chips Act, but excludes an extraordinary inflow according to IAS 19 from changing the benefit trustee. A year ago, this figure stood at EUR 188 million, when free cash flow was dominated by a significant customer prepayment of approx. EUR 225 million. Consequently, year-over-year, the underlying free cash flow from normal operations improved significantly. 

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’

The net debt position decreased significantly to EUR 1,078 million end of Q4/25 after EUR 1,581 million in the previous quarter due to the sharp increase in cash on hand. The equivalent value of the Sale-and-Lease Back (SLB) Malaysia transaction increased by EUR 18 million due to a net effect of quarterly accrued interest and MYR exchange rate changes. 

The Group held approx. 88 % of OSRAM Licht AG shares at the end of Q4/25.

Q4/25 Business Unit (BU) Results & Industry Update

Semiconductor Business

Semiconductor revenues stood at EUR 595 million in Q4/25, compared to EUR 608 million a year ago. Growth in the core portfolio, especially with new sensor products, made up for the divested or discontinued non-core portfolio. The comparable growth in semiconductors was approx. 8 %, when corrected for the EUR/USD exchange rate (approx. EUR 40 million) and the phased-out non-core portfolio (approx. EUR 20 million) - in line with the mid-term target growth corridor of the semiconductor target operating model.  

Optical Semiconductors (OS)

The typical seasonal downswing into the fourth quarter, particularly in the automotive and horticulture segments, was more pronounced this year. The automotive supply chain continued to operate with very low inventories, and short-term ordering remained the norm. Adj. EBITDA decreased to EUR 72 million compared to EUR 82 million in Q3 in line with gross profit fall-through.

CMOS Sensors & ASICs (CSA):

Revenues came in stronger than typical seasonality would indicate and did only decrease quarter-over-quarter by 2 % (from EUR 271 million to EUR 265 million). This was driven by a strong consumer business and a gradually improving industrial & medical business. Adj. EBITDA dropped to EUR 43 million in Q4/25 compared to EUR 64 million in the third quarter due to unfavorable product-mix effects. 

Semiconductors industry dynamics

Automotive:

Although inventory correction in the LED supply chain had come to an end, the supply-chain continued to operate with very lean inventory levels and no sign of restocking, which weighed on demand. At the same time, customers maintained a very short-term ordering pattern. Regionally, China remains the most competitive market, driven by the intense competition amongst the large number of local OEMs.

Industrial & Medical (I&M):

End-markets showed partial stabilization. The professional lighting business performed in line with expectations, while the horticulture segment declined in accordance with typical seasonal patterns. Industrial automation improved gradually and medical order intake stabilized. In the mass market, Europe and the Americas delivered relatively stronger performance compared with China. In medical, the market continued to show signs of stabilization.

Consumer:

Demand for new products overall remained strong, indeed stronger than typical seasonal patterns would suggest.

Lamps & Systems Business (traditional auto & industrial lamps)

Lamps & Systems represented approx. 32 % of Q4/25 group revenues. A higher than typical seasonal upswing drove the strong quarter-over-quarter increase. 

Revenues in Specialty Lamps remained at a typical level and were almost unchanged compared to the previous quarter. Adj. EBITDA increased strongly to EUR 51 million driven by the fall-through from higher revenues.

Implementation of Balance Sheet Improvement Plan

Under its accelerated and comprehensive plan to deleverage its balance sheet (announced 30 April 2025), the company has signed two agreements to divest its Entertainment & Industry (‘Specialty’) Lamps business to Ushio Inc. for approx. EUR 100 million net, signed 29 July 2025, and its non-optical mixed-signal sensor business to Infineon for EUR 570 million, signed on 3 February 2026.

As of 31 December 2025, the company held EUR 1,483million in cash.

This results in net debt of EUR 1,518million excluding the outstanding OSRAM minority put options and EUR 2,023million including them. Based on LTM adjusted EBITDA of EUR 608 million for FY25, the net‑debt‑to‑LTM‑adjusted‑EBITDA ratio stood at 2.5 and 3.3, respectively.

Considering the combined EUR 670 million proceeds from the two agreed transactions, net debt will decline to EUR 1,353 million (incl. 100% of the OSRAM Licht AG minority put options). Adjusted for the divested businesses, LTM adj. EBITDA amounts to approx. EUR 533 million.

This results in a pro-forma leverage ratio of net-debt-to-adjusted-EBITDA of roughly 2.5, down from 3.3 previously.

Balance sheet & leverage

1) Leverage definition: net debt / LTM adj. EBITDA

2) Leverage definition: pro forma net debt / LTM adj. EBITDA, assuming approx. EUR 533 m adj. EBITDA (‘2025 less divested adj. EBITDA’).

3)  Assuming 100% tendering of outstanding OSRAM Put Options upon final verdict.

4) Incl. € 199.9m buyback of convertible in January 2026.

5) Total deal proceeds of € 670m = € 570 m from selling non-optical mixed-signal business + approx. € 100 m from selling specialty lamps business.

Upon completion of the full plan — including a solution for the Kulim‑2 Sale‑and‑Lease‑Back — the company expects to reduce its net‑debt‑to‑adjusted‑EBITDA leverage ratio to below 2. In total, this will materially lower the amount requiring refinancing, bring annual interest expenses below EUR 150million, and further strengthen operating cash flow. 

Creating the Leader in Digital Photonics

Upon closing, ams OSRAM will emerge as a focused semiconductor photonics powerhouse – the pure-play leader in Digital Photonics. The company brings together the industry’s broadest portfolio of cutting‑edge optical emitter and sensor technologies, complemented by advanced driver and power‑management IC capabilities. Across many segments, customers benefit from geopolitically resilient, vertically integrated supply chains.

Following a transition phase to align the organization, infrastructure and cost base with this new focus within the framework of its new transformation and savings program ‘Simplify’, the company sees significant mid‑ and long‑term growth and margin expansion opportunities driven by the global Digital Photonics megatrend.

The presentation and a replay of the conference call from 4 February 2026 can be found here:

• Presentation: ams OSRAM creating the leader in digital photonics
• Conference call script: ams-osram-creating-the-leader-in-digital-photonics-call-script
• Conference call replay: Analysts & Investors Conference

2030 – Over-the-Cycle Financial Targets

Following the transition - including the implementation of the ‘Simplify’ savings and transformation program, the reduction of annual interest expenses below EUR 150 million, and the realization of growth vectors across the Digital Photonics megatrend - the company aims to achieve the following Over-the-Cycle Financial Targets for 2030:

1) net debt = (long-term debt + short-term debt + Kulim-II Sale-and-Lease-Back + OSRAM minority shares) less cash-on-hand

2) Group includes traditional auto lamps business (flat revenues and 13 % to 15% adj. EBITDA expected)

Digital Photonics Driving Future Growth

Digital Photonics is the core engine of our future growth — the digitalization of light emission and optical sensing by combining advanced emitters, sensors and electronics. This technology enhances how physical environments interact with light, enabling dynamic lighting, light-based design, projection as a display, light enabled sensing, treatment, directed energy and high-speed data communication. These capabilities underpin major global megatrends including ADAS, autonomous driving, AR/VR, AI, robotics, smart health and smart devices.

ams OSRAM’s proprietary ‘Digital Light’ technology — awarded the German Future Award in 2024 — marks a breakthrough after a decade of development. Its first commercial adoption came through high pixel automotive forward lighting under the EVIYOS™ brand. With more than EUR 500million in design wins already secured, this technology has a clear growth trajectory. As pixel sizes shrink and the color range expands, ‘Digital Light’ becomes a compelling projection engine for everyday AR glasses. Looking ahead, optimized micro emitter arrays could make it a relevant solution for high bandwidth, low power, low-cost optical interconnects in AI data centers. ‘Digital Light’ thus offers significant mid- and long-term growth potential.

ams OSRAM has also built a differentiated leadership position in digitalized optical sensors that already contributes triple-digit-million Euro revenues, today. Its comprehensive portfolio — spanning ambient light, proximity, flicker, time of flight, bio, spectral, ultra-violet (UV), infra-red (IR), temperature and force touch sensors — sets industry benchmarks across display management, camera enhancement and numerous adjacent applications. This business carries substantial medium and long-term growth opportunities.

The company’s unique expertise in spectral sensing was further recognized in 2024, when the Austrian government awarded EUR 225million under the European Chips Act to establish a first-of-a-kind manufacturing facility combining CMOS, TSV (Through-Silicon-Via) and advanced optical filters.

Traditional Automotive Lamps business for funding growth in semis and internal financing

The traditional automotive lamps and after-market business will remain part of the Group’s portfolio. This segment is intended to stay revenue‑stable and optimized for profitability, typically delivering 13 % to
15 % adjusted EBITDA per year. Generating around EUR 90million of steady annual cash flow, it serves as a reliable internal funding source — supporting the transition and growth of the semiconductor business, while contributing to debt service and further deleveraging.

FY25 Summary Review

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.

Group revenues softened by 3 % from EUR 3.43 billion in FY24 to EUR 3.32 billion in FY25, primarily due to the weaker USD (approx. EUR 80 million) and the phasing out of non-core semi portfolio (more than EUR 100 million) besides a reduction in traditional OEM lamps revenues in line with fewer and fewer new cars being equipped with traditional lamps.  

The semiconductor core portfolio (excluding exited non-core activities within the Re-establish-the-Base framework) at constant exchange rate, grew by 7 % in FY2025 compared to the previous Calendar Year.

The company continues to win meaningfully new business across a wide customer base underpinning its

structural growth targets in its core semiconductor business. 2025 semiconductor design wins surpassed EUR5billion, marking a record level and reflecting strong traction across all core segments, led by automotive.

Group profitability improved to 18.3 % adj. EBITDA margin in FY25 from 16.8 % in FY24, due to the accelerated implementation of its ‘Re-establish the Base’ program, with approx. EUR 220 million realized run-rate savings. With that, the implemented run-rate savings are one year ahead of plan.

Free Cash Flow significantly increased year-over-year. Free Cash Flow – excluding an extraordinary inflow according to IAS 19 - came in with EUR 144 million in FY25, after EUR 12 million in FY24.

Guidance for the first quarter 2026

Business guidance

For its traditional automotive lamps business, the company expects a quarter‑over‑quarter decline in line with the typical seasonal pattern of the lighting season. In addition, the planned early‑March 2026 closing of the sale of the Entertainment and Specialty Lamps business to Ushio Inc. will lead to the deconsolidation of roughly EUR10million in revenue in Q1/26. As a result, Q1 guidance reflects only two months of Specialty Lamps revenue and adjusted EBITDA, implying an additional sequential revenue impact of around 1 % from Q4 to Q1 on group level.

For its semiconductor business, the company expects:

• Automotive: seasonally declining demand and continued muted, short‑term order patterns.

• Industrial & Medical: development in line with a gradual market recovery.

• Consumer: typical seasonal downturn.

Overall, the semiconductor business is expected to follow its usual seasonal pattern with a softer first quarter.

As a result, the Group expects first quarter revenues to land in a range of EUR 710 to 810 million assuming a EUR/USD exchange rate of 1.19. The impact of the weaker USD on revenues compared to a year ago is of the order of EUR 50 million.

The company expects adj. EBITDA to come in at 15.0 % +/-1.5 % in line with revenue.

Comments on FY26

Given the divestments and a weaker USD, the company anticipates a modest year-over-year softening in revenue and foresees adjusted EBITDA to be negatively affected by various one-off impacts related to the divestments, stranded costs, higher precious-metal prices and other factors.

Additional Information

Additional financial information as well as a comprehensive investor presentation for the fourth quarter and full year 2025 is available on the company website.

ams OSRAM will host a press call as well as a conference call for analysts and investors on the fourth quarter and full year 2025 results on Tuesday, 10 February 2026. The conference call for analysts and investors will start at 9:45 a.m. CET and can be joined via webcast. The conference call for journalists will take place at 11:00 a.m. CET.

About ams OSRAM

The ams OSRAM Group (SIX: AMS) is a global leader in innovative light and sensor solutions. As a specialist in Digital Photonics, we combine engineering excellence with cutting-edge global manufacturing to offer our customers the broadest portfolio of digital light and sensing technologies.

“Sense the power of light” — our success has ever since been based on a deep understanding of the potential of light. For 120 years, we have been developing innovations that move markets: from automotive applications and industrial manufacturing to medical and consumer electronics. In the anniversary year of the OSRAM brand, around 19,000 employees worldwide are working on pioneering solutions alongside societal megatrends such as smart mobility, artificial intelligence, augmented reality, smart health, and robotics. This is reflected in over 12,000 patents granted and applied for. Headquartered in Premstaetten/Graz (Austria) with co-headquarters in Munich (Germany), the group achieved EUR 3.3 billion revenues in 2025 and is listed as ams-OSRAM AG on the SIX Swiss Exchange (ISIN: AT0000A3EPA4). 

Find out more about us on https://ams-osram.com   

ams and OSRAM are registered trademarks of ams-OSRAM AG. In addition, many of our products and services are registered or filed trademarks of ams OSRAM Group. All other company or product names mentioned herein may be trademarks or registered trademarks of their respective owners.  

Join ams OSRAM social media channels: >LinkedIn >YouTube 

Consolidated Statement of Income in accordance with IFRS (unaudited)

1)  microLED adaption result reflects net charges (impairments and reversals of impairments on assets as well as additions to and reversals of provisions) due to the cancellation of the microLED project on February 28, 2024.

Consolidated Statement of Comprehensive Income in accord. with IFRS (unaudited)

Consolidated Balance Sheet in accordance with IFRS (unaudited)

Consolidated Statement of Cash Flows in accordance with IFRS (unaudited)

Consolidated Statement of Cash Flows in accordance with IFRS (unaudited) – Cont’d

Consolidated Statement of Changes in Equity in accordance with IFRS (unaudited)

1. The figures for the prior year have been adjusted to reflect the gross amounts of share-based payment expenses and the value of shares issued for share-based payments.
2. The figures for the prior year have been adjusted to reflect the annual cash compensation paid to shareholders of OSRAM Licht AG separately from the dividend payments to other shareholders.

Segment reporting

Operating segments are the business units (BUs) based on their independent operating activities and the internal reporting structure. The operating segments also represent the reporting segments in accordance with IFRS 8. Group activities are managed through the following business units:

1. BU Opto Semiconductors (OS) with a focus on emitters
2. BU CMOS Sensors and ASICs (CSA) with a focus on sensor technology and analog mixed-signal chips. Following the announced disposal of non-optical sensor business, the BU CSA will be renamed to BU Light Sensors & Power Solutions (LSP) effective on 1 March 2026.
3. BU Lamps & Systems (L&S) specializing in traditional lamps and lighting products with a focus on the automotive, industrial and medical end markets.

Costs of corporate functions that are not directly allocated to the BUs and functions shared in the Semiconductor business are centrally accumulated and presented as ‘Corporate Items’.

The segment indicator “segment result” includes gross profit, research and development expenses, selling, general and administrative expenses, microLED adaption result, other operating income and expenses as well as the result from investments in associates. Depreciation, amortization and impairment losses and reversals of impairments are not included in the segment result.

Business Segments

in EUR million

1 Including impairments and reversals of impairments on microLED-related assets

Reconciliation of the Segment Result to Earnings before Income Tax

in EUR million

Segment assets include only those assets that are directly attributable to the segment, such as segment-specific property, plant, and equipment, intangible assets, right-of-use assets under leases and inventories.

Segment Assets

in EUR million

1. Segment assets as of December 31, 2024 were reallocated between BUs CSA and L&S

In terms of geographical regions, the Group is broken down into the following three regions: EMEA (Europe, Middle East, and Africa), Americas (North and South America), and Asia/Pacific. Revenue is allocated to these regions based on customers’ geographical location (billing address). The highest amount of revenue came from a customer in the OS and CSA segments and accounted for more than 10% and less than 20% of revenue (2024: more than 10% and less than 20% of revenue).

Revenue by Region

in EUR million

1) The Greater China line combines China, Hong Kong and Taiwan.

Non-current Assets by Region

in EUR million

Reconciliation from adjusted figures to reported figures in accordance with IFRS

1) Acquisition-related expenses include amortization, depreciation and impairment of purchase price allocated assets, integration, carve-out and acquisition related costs. The amount for the fiscal year 2025 contains the gain from the court ruling on trade secret and patent infringement suit.

2) microLED adaption result reflects net charges (impairments and reversals of impairments on assets as well as additions to and reversals of provisions) due to the cancellation of the microLED project on February 28, 2024.