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OSRAM, a notable lighting company, announced robust Q2 earnings, falling within their previously specified range, despite encountering negative currency impacts. Additionally, the company initiated initial measures of its ambitious deleveraging strategy.

In a recent financial report, ams OSRAM announces an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of 18.8% at revenue of €775 million in the second quarter of 202x. The company also reaffirms its free cash flow (FCF) outlook for 2025, stating it will surpass...

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Results for Q2 by ams OSRAM demonstrate resilience, aligning with the midpoint of their guidance,...
Results for Q2 by ams OSRAM demonstrate resilience, aligning with the midpoint of their guidance, amidst currency challenges. The company also implemented the initial phases of its fast-track deleveraging strategy.

OSRAM, a notable lighting company, announced robust Q2 earnings, falling within their previously specified range, despite encountering negative currency impacts. Additionally, the company initiated initial measures of its ambitious deleveraging strategy.

ams OSRAM, a leading global supplier of optical solutions, has released its Q2 financial results for 2025, and provided an outlook for Q3. Here's a breakdown of the key points:

Financial Highlights for Q2 2025

  • The company's revenues for Q2 2025 stood at EUR 775 million, a 5% decrease from Q1 2025.
  • The adjusted EBITDA margin for Q2 2025 was 18.8%.
  • The company realized run-rate savings from its 'Re-establish the Base' (RtB) program were approximately EUR 160 million.
  • The Consumer business experienced a 15% year-over-year increase in revenues, driven by a strong contribution of new products.
  • The Industrial & Medical (I&M) business improved by 21% quarter-over-quarter, driven by seasonal upswings in various verticals.
  • However, the auto revenues showed a 9% decrease year-over-year, reflecting inventory adjustments in opto-electronic products. The Lamps & Systems business experienced a significant quarter-over-quarter and year-over-year step down, primarily due to an inventory adjustment at US aftermarket retail chains.
  • The Q2 2025 free cash flow (FCF) was EUR -14 million, including net interest paid.

Financial Actions and Expectations for Q3 2025 and Beyond

  • A EUR 500 million private placement of senior notes due in 2029 was announced to pre-finance potential OSRAM minority put option bulk exercises and buy back 2027 convertible notes.
  • The Revolving Credit Facility (RCF) was extended by another year.
  • The company anticipates adj. EBITDA to come in at 19.5% +/-1.5% in Q3 2025, on the back of seamless execution ahead of plan of its Re-establish the Base strategic efficiency program.
  • The net debt / adjusted EBITDA leverage ratio is expected to be below 2 upon completion of the balance sheet improvement plan.
  • The company expects its traditional auto lamps business to improve sales into the aftermarket channel with the annual 'lighting season' beginning end of the summer.
  • The company expects the Consumer business to show a typical strong upswing in the seasonally strongest quarter of Q3 2025.
  • The semiconductor business is expected to have improved demand in Q3 2025, driven by market normalization and new business ramp-ups.
  • The company anticipates third quarter revenues to land in a range of EUR 790 - 890 million, with a mid-double digit million Euro impact from the weaker USD compared to the start of the year.

Asset Sales and Refocusing the Portfolio

  • The Entertainment & Industrial Lamps business was sold for EUR 114 million, marking the first asset sale under the deleveraging plan. The transaction, which took place on July 29, 2025, was likely aimed at refocusing the company's portfolio and optimizing its business structure.

ams OSRAM continues to navigate the market challenges, with a focus on optimizing its business structure and driving growth in its key segments. The company's Q2 results and Q3 outlook provide a glimpse into its strategic efforts and financial performance.

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