OSRAM's Q2 earnings prove resilient, aligning with anticipated figures, in spite of financial challenges posed by currency fluctuations. The company has also initiated the early stages of its debt reduction strategy.

ams OSRAM Reports Q2 2025 Results

ams OSRAM, a leading provider of optical solutions, has released its financial results for Q2 2025. The company reported a 9% decrease in auto revenues year-over-year, reflecting inventory adjustments in opto-electronic products due to demand uncertainties experienced by Tier-1 and OEM customers.

The free cash flow for Q2 2025 came in slightly negative, primarily due to preproduction of inventory and payment of recurring items. However, the company reported a positive note with Q2 2025 adjusted EBITDA margin at 18.8%, an improvement of EUR 10 million compared to the previous quarter, driven by an improved factory loading in anticipation of product ramp-ups in H2 2025.

Lamps & Systems, representing approximately 24% of Q2 2025 revenues, saw a significant step down both quarter-over-quarter and year-over-year, primarily due to an inventory adjustment at US aftermarket retail chains. In contrast, the I&M business improved by 21% quarter-over-quarter, led by typical seasonal upswings in various verticals such as horticulture.

Demand for new products and consumer portable devices remained resilient, with year-over-year revenues increasing by a strong 15%. The company announced the sale of its Entertainment & Industrial Lamps business for EUR 114 million and a private placement of equivalent EUR 500 million principal amount of EUR and USD senior notes due in 2029.

ams OSRAM carried out a corporate restructuring as a stock corporation (Aktiengesellschaft, AG) in 2025, issuing bonds worth 500 million euros and planning the sale of corporate assets exceeding 500 million euros. The company expects its semiconductor business to have improved demand on the back of market normalization and new business ramp-ups in Q3 2025.

The company expects adj. EBITDA to come in at 19.5% +/-1.5% on the back of seamless execution ahead of plan of its Re-establish the Base strategic efficiency program in Q3 2025. The Revolving Credit Facility (RCF) was extended by another year, and the company anticipates positive free cash flow (incl. net interest paid) exceeding EUR 100 million for the full year 2025.

Q3 2025 revenue is expected to be between EUR 790 million and EUR 890 million, with Q3 2025 adjusted EBITDA expected to be between 19.5% and 18.5%. The company also expects sales into the aftermarket channel for its traditional auto lamps business to improve with the annual 'lighting season' beginning end of the summer.

The realized run-rate savings from the 'Re-establish the Base' program were approximately EUR 160 million, and the adjusted EBITDA margin came in almost twice as high in Q2 2025 compared to a year ago, thanks to the structural savings from the program. Q2 2025 revenues were EUR 775 million.