PREMSTAETTEN, Austria and MUNICH, Germany — ams OSRAM’s strategic focus pays off with strong FCF of EUR 43 m in Q3 and 9% comparable growth in its core semiconductor business.
“Our core semiconductor business grew again like-for-like in line with our target operating model. As promised, we are delivering a stronger second half in terms of top-line, bottom-line and cash flow, despite the weaker US Dollar and higher raw material prices. At the same time, we are continuously winning new business and are preparing for future growth by launching new technology platforms,” said Aldo Kamper, CEO of ams OSRAM.
Group revenues came in above the midpoint of the guided range of EUR 790 – 890 million. Reported revenues increased by 10 % quarter-over-quarter due to the typical seasonal automotive-lamps aftermarket upswing and a strong quarter-over-quarter increase in semiconductor revenues. At a constant EUR/USD exchange rate, revenues would have been approx. EUR 20 million higher.
Year-over-year, group revenues declined by 3% mainly driven by 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 (incl. L&S), revenues would have been up by approx. 6 % and looking at the semiconductor core portfolio, up by approx. 9 %.
Adj. EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) came in at the midpoint of the guided range of 19.5 % +/-1.5 %. A profit from the sale of manufacturing assets in the group’s Singapore production site contributed positively.
Adj. net result came in positive at EUR 27 million on the back of improved profitability, including the typical, recurring quarterly adjustments of transformation cost, purchase price allocation and share-based compensation.
Continuous investments in differentiating technology platforms
The company invests both in improving its cost-position by developing cost-performance optimized technology platforms as well as cutting-edge technologies for enabling new markets and new applications. Examples are latest advances in its AlGaAs emitter technology platform for near-infrared applications – the company claims industry leading wall-plug efficiency and output power with a multitude of industrial applications, including automotive, material treatment and defense.
A decisive element in differentiating technology is IP safety for its customers. For this, the company expanded its long-standing collaboration with Nichia in the field of intellectual property (IP) on 16 October 2025 by signing a comprehensive cross-license agreement covering thousands of patent-protected innovations in LED and laser technologies. With the new patent cross-license agreement, both companies offer customers enhanced IP safety when using products based on their patented technologies.
When it comes to optical sensing technologies, the company recently launched an industry leading 2d direct time-of-flight sensing platform that allows for Edge AI sensing, e.g. in smartphones for maintaining focus on moving objects in dynamic video scenes or in logistics robots for distinguishing between nearly identical packages amongst many other potential applications.
Implementation of balance sheet improvement plan
On 30 April 2025, the company announced its accelerated, comprehensive plan to de-leverage its balance sheet. On top of operational improvements driven through its ‘Re-establish the Base’ (RtB) program, this plan also includes assessing the sale of business assets for well above EUR 500 million.
The company is well on track with implementing the RtB program and its efforts on the sale of certain business assets.
Upon completion of the full plan (including a solution for the Kulim-2 Sale-and-Lease back), 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.
Q3/25 Cash generation & balance sheet update
Free cash flow – defined as operating cash flow including net interest paid minus cash flow from CAPEX plus proceeds from divestments – came in positive with EUR 43 million. A year ago, the 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.
On top, the company continues to expect meaningful cash inflows later in the year from subsidies by the Austrian government under the European Chips Act already notified by the European Commission.
The net debt position slightly increased to EUR 1,581 million quarter-over-quarter after EUR 1,570 million in the previous quarter, mainly due to the quarterly accrued compound interests of the convertible bond. The equivalent value of the Sale-and-Lease Back (SLB) Malaysia transaction increased by EUR 2 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 Q3/25. The company has an EUR 800 million Revolving Credit Facility (RCF) in place. 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 shareholders’ put options. It can also be drawn for general corporate and working capital purposes.
See the full report and a breakdown of business segments here.
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