Latest news with #AldoKamper
Business Wire
31-07-2025
- Business
- Business Wire
ams OSRAM Posts Solid Q2 Results at the Midpoint of the Guidance Despite Currency Headwinds and Executes First Steps of Its Accelerated Deleveraging Plan
PREMSTAETTEN, Austria & MUNICH--(BUSINESS WIRE)-- 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 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. Expand 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 1) contingent liability part of 'other financial liabilities' Expand 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) 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. Semiconductor Business 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. CMOS Sensors & ASICs (CSA): Revenues remained essentially flat quarter-over-quarter. Demand for components for consumer handheld devices was slightly stronger than the typical seasonal trend and sales into industrial & medical applications improved. Adjusted EBITDA improved by EUR 10 million in Q2/25 compared to the previous quarter driven by an improved factory loading in anticipation of product ramp-ups in H2/25. The adjusted EBITDA Margin came in almost twice as high than a year ago thanks again to the structural savings from the 'Re-establish the Base' program. Semiconductors industry dynamics Automotive: Business improved quarter-over-quarter against the backdrop of an inventory correction in the LED semiconductor supply. During the quarter, book-to-bill ratio remained above 1. Year-over-year, auto revenues came in 9 % lower, showing the inventory adjustments in opto-electronic products due to demand uncertainties seen by Tier-1 and OEM customers. Industrial & Medical (I&M): End-markets started to show some momentum resulting in 21 % quarter-over-quarter improvement in the I&M business, led by typical seasonal upswings in various verticals, such as horticulture. The professional lighting end-market was also resilient helped by consolidation trends that allow the company to win market share. Industrial automation is still on a low level and the mass market showed a regionally differing performance with Europe and Americas improving. In medical first signs of a gradually improving ordering pattern are visible. Consumer: Demand for new products and for consumer portable devices in general remained resilient in view of the typical seasonal decline in every second calendar quarter of a year. Year-over-year, revenues increased by a strong 15 % due to a strong contribution of new products, despite a lower double-digit million contribution from non-core products a year ago that were phased-out by December 2024. Lamps & Systems Business (traditional auto & industrial lamps) Lamps & Systems represented approx. 24 % of Q2/25 revenues. The significant quarter-over-quarter and year-over-year step down was primarily driven by an inventory adjustment at US aftermarket retail chains. Some weakness in the European market and the weaker US dollar against the Euro also contributed. Revenues in Specialty Lamps slightly declined quarter-over-quarter in line with normal seasonal trends. Adj. EBITDA dropped in line with factory utilization and product mix with the backdrop of an elevated figure in the first quarter as a result of one-time effects. Guidance for the third quarter 2025 The company expects for its semiconductor business: Automotive: improved demand on the back of market normalization (likely end of the LED inventory correction) and new business ramp-ups. Industrial and medical: modest development as green shoots seen at end-customer's business needs to translate into normalized inventory levels. Consumer: typical strong upswing in the seasonally strongest quarter. Combined, the semiconductor business is expected to follow its typical pattern with a strong third quarter slightly weaker than a year ago due to the weaker USD. The company expects for its traditional auto lamps business that the sales into the aftermarket channel will improve with the annual 'lighting season' beginning end of the summer. As a result, the Group expects third quarter revenues to land in a range of EUR 790 – 890 million assuming a EUR/USD exchange rate of 1.16. The impact of the weaker USD on revenues compared to the start of the year is of the order of mid-double digit million Euro. Quarter-over-quarter the impact is approx. EUR 15 million. 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. FY 2025 commentary The company expects a stronger second half mainly due to product ramp-ups and seasonality. Uncertainties persist in view of potential impacts to global car production, smartphone sales, or other impact to GDP, following the recent introduction or announcement of elevated tariffs in the US and in particular changes in the EUR/USD exchange rate. The company expects improving profitability driven by its 'Re-establish the Base' program even in case of lower predictability of its topline. CAPEX is expected to land below 8 % of sales(including capitalized R&D and expected investment grants, e.g. from the European Chips Act). The company expects positive free cash flow (incl. net interest paid) exceeding EUR 100 million. Additional Information Additional financial information for the second quarter 2025 is available on the company website. The second quarter 2025 investor presentation incl. detailed information is also available on the company website. ams OSRAM will host a press call as well as a conference call for analysts and investors on the second quarter 2025 results on Thursday, 31 July 2025. The conference call for analysts and investors will start at 9.45 am CET and can be joined via webcast. The conference call for journalists will take place at 11.00 am CET.
Yahoo
01-05-2025
- Business
- Yahoo
ams-OSRAM AG (AUKUF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Optimism
Revenue: EUR820 million, a sequential decline of 7%, down 3% year over year. Adjusted EBITDA Margin: Improved by almost 2 percentage points to 60.4%. Adjusted EBITDA: EUR135 million, 9% improvement quarter over quarter. Halogen Lamp Business Revenue: Down 9% quarter over quarter. Semiconductor Business Revenue: EUR336 million, down 4% quarter over quarter. Sensors and ASICs Revenue: EUR236 million, down 9% quarter over quarter. Operating Cash Flow: EUR10 million, down from EUR79 million in the previous quarter. CapEx: EUR52 million, 6% of sales. Free Cash Flow: Minus EUR28 million. Adjusted Net Result: Improved from minus EUR35 million to minus EUR23 million year over year. Net Debt: Slightly increased to EUR1.9 billion. Cash on Hand: EUR573 million at the end of March. Book-to-Bill Ratio: Improved to above 1 across all businesses. Warning! GuruFocus has detected 6 Warning Signs with AUKUF. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenues for the first quarter came in at EUR820 million, above the midpoint of the guidance. Adjusted EBITDA margin improved year-over-year by almost 2 percentage points to 60.4%. The company continues to win share at top OEMs, demonstrating strength in the automotive sector. Book to bill ratio improved across all businesses to above 1, indicating strong future demand. The Re-establish the Base program has been pivotal in improving and structurally stabilizing the bottom line, with implemented run rate savings at EUR135 million by the end of the first quarter. First quarter operating cash flow was just EUR10 million, significantly lower than the previous quarter. The adjusted net result remained negative at EUR23 million, despite improvements. The company faces uncertainties due to potential tariff impacts on global car production and smartphone sales. Free cash flow for the first quarter was negative at EUR28 million. The company is considering strategic options for asset sales to generate cash, indicating potential structural changes to the business. Q: Are you seeing any cyclical upturn in the automotive and industrial segments, given that some peers have noted improvements? A: Aldo Kamper, CEO: We have observed a significant improvement in the book-to-bill ratio, which has risen to about 1 and continues to improve. This suggests an uptick in order intake across automotive and non-automotive sectors, except for a slight weakness in America. While not massive, the direction is positive, indicating a potential cyclical upturn. Q: Is the guidance for a low double-digit increase in the second half conservative, considering the tariff uncertainties? A: Aldo Kamper, CEO: The guidance is realistic, based on a combination of design wins and market normalization. The improvement in book-to-bill ratios supports this outlook, making the second-half expectations reasonable. Q: Can you elaborate on the strategic options for generating over EUR500 million through disposals? A: Rainer Irle, CFO: We are exploring several options and are in discussions with potential buyers. The proceeds will be well above EUR500 million, depending on the assets sold. This will significantly improve our net debt to EBITDA ratio. Q: What are the key elements driving free cash flow to over EUR100 million for the full year? A: Rainer Irle, CFO: The improvement will come from normalizing negative effects seen in Q1, government subsidies from the Austrian Chips Act, and improved business performance in upcoming quarters. Q: Are there any supply chain issues related to tariffs that could impact margins? A: Aldo Kamper, CEO: So far, tariffs have not significantly impacted our supply chain, as we have multi-sourced pre-materials and alternatives outside China. However, the high gold price is a concern, impacting financials more than supply chain issues. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Wire
30-04-2025
- Business
- Business Wire
ams OSRAM Delivers 16.4% adj. EBITDA at Revenues of EUR 820m in Q1 Above Guidance Mid-point, Confirms 2025 FCF Outlook Above
PREMSTAETTEN, Austria & MUNICH--(BUSINESS WIRE)-- ams OSRAM delivers 16.4% adj. EBITDA at revenues of EUR 820m in Q1 above guidance mid-point, confirms 2025 FCF outlook above EUR 100m and considers strategic options for certain assets for deleveraging 'Even though economic uncertainties are increasing, our structural profitability is continuously improving thanks to the seamless implementation of our 'Re-establish the Base' (RtB) strategic efficiency program, which is ahead of plan. Our global footprint and customer base enables us to deal with the volatilities of the new tariff regime.' said Aldo Kamper, CEO of ams OSRAM. ' We plan to accelerate our balance sheet deleveraging. To this end, we are considering strategic options for some of our assets for reaching the target leverage ratio below 2 faster and thereby reducing our mid-term interest cost significantly.' said Rainer Irle, CFO of ams OSRAM. Balance sheet improvement plan In view of current uncertainties in the economic boundary conditions, the company has formulated a comprehensive plan to reach its target leverage ratio of net-debt / adj. EBITDA below 2 in an accelerated manner. The plan consists of various, complementary elements: Further improving the free-cash-flow performance on the back of a seamless execution of its strategic efficiency program 'Re-establish the Base' and structural growth in its core semiconductor business the disposal of its 8'-Kulim facility thereby eliminating the SLB the extension of the RCF the consideration of strategic options for various additional assets with the goal to generate proceeds well above EUR 500 million. The plan will reduce the leverage ratio below 2, minimize the amount to be refinanced, reduce the interest expense to below EUR 100 million annually and thereby strengthen the operating cash flow further. Q1/25 financial update The Group recorded revenues of EUR 820 million in Q1/25, above the midpoint of the guided range of EUR 750 – 850 million. The revenues declined by 7% quarter-over-quarter, a typical seasonal decline by magnitude despite the cyclical weakness in automotive and industrial semiconductor business. Automotive lamps aftermarket business declined seasonally. In the semiconductor business the quarter-over-quarter decline had different dynamics per industry. In automotive, the ramp up of new sensor products partially balanced seasonal decline whilst the auto LED business was still in an inventory correction cycle, industrial & medical (I&M) hit its cyclical low point and consumer was nearly flat due to strength in old and new products. The temporarily stronger USD FX-Rate during the quarter and the currently recurring non-refundable engineering payments (so called 'NRE') for the development of LED technologies from certain customers also contributed to revenues landing above the midpoint of the guided range. Key reported figures 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. 3) Cash flow from investments in property, plant, and equipment and intangibles (such as capitalized R&D), incl. investment grants. 4) Excl. financial investments. 5) Incl. EUR 429 m equivalent as of end of March 2025 from SLB Malaysia transaction. Expand Year-over-year, group revenues declined by 3% due to cyclical weakness in automotive and I&M semiconductor businesses, the discontinued non-core semiconductor business, and some end-of-life of OEM modules business in Lamps & Systems. At a constant USD/EUR exchange rate and excluding business divestments, revenues would have declined by 4%. Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) came in at EUR 135 million, i.e. at 16.4% adj. EBITDA margin, slightly above the midpoint of the guided range of 16% +/-1.5%. Adjusted EBIT (adjusted earnings before interest and taxes) margin for the group improved slightly to 7.1% compared to the previous quarter. Adjusted EBIT came in at EUR 58 million. Semiconductor business update Opto Semiconductors segment (OS) Revenues for opto-electronic semiconductors decreased by EUR 14 million to EUR 336 million in Q1/25 compared to EUR 350 million in Q4/24. Main contributor to this development was automotive with a seasonal decline and no further reduction of backlog orders that contributed in Q4/24. On top, the company continues to receive non-refundable engineering payments (so called 'NRE') for the development of LED technologies from certain customers on a currently recurring basis, exemplifying its leading technology position. Adjusted EBITDA stayed essentially flat at EUR 49 million, representing an adjusted EBITDA margin of 14.7%. CMOS sensors and ASICs segment (CSA) Revenues for CMOS sensors and ASICs decreased by EUR 22 million to EUR 236 million in Q1/25 compared to EUR 258 million in Q4/24 in line with its typical seasonal decline in demand for components for consumer handheld devices. Adjusted EBITDA dropped to EUR 32 million in Q1/25 from an elevated figure in Q4/24 of EUR 55 million that was partially driven by positive one-off effects. The adjusted EBITDA Margin stood at 13.8%, more than 5 times higher than a year ago thanks to the structural savings from the 'Re-establish the Base' program. Semiconductors industry dynamics Revenues from the two semiconductor business units represented approx. 70% of Q1/25 revenues, or EUR 571 million, compared to EUR 578 million a year ago, essentially flat with a small cyclical decline of 1% driven by automotive and I&M. Like in the previous quarter, end-markets continued to show different cyclicality in the first quarter. Growth in the core portfolio compensated the phased-out non-core portfolio that still contributed meaningfully a year ago. Automotive: The automotive business came in slightly better than expected against the backdrop of an inventory correction in the opto-electronic semiconductor supply chain and the revenue tailwind in Q4 from order backlog. Customers continue to order on very short notice, reflecting a high level of uncertainty at the carmakers. The company benefited from ramping up of new sensor products and some tailwinds from the stronger US dollar resulting in a 6% quarter-over-quarter decline. The year-over-year decline comes in more pronounced with 11%, clearly showing the inventory adjustments in opto-electronic products due to demand uncertainties seen by Tier-1 and OEM customers. Industrial & Medical (I&M): The business showed again a mixed performance across verticals, e.g. horticulture with a seasonal decline, industrial automation stabilized on a low level, mass market with a regionally differing performance showing some signs of improvement. The cyclical trough seems to be reached with a 9% decline compared to a year ago. Quarter-over-quarter, revenues came in 11% lower than in Q4/24 due to end-of-life of certain legacy products. Consumer: Demand for new products and for consumer portable devices in general remained healthy following broadly its typical seasonal pattern. Revenues came in just 2% lower than in the previous quarter, supported by order from legacy products, representing a very small seasonal decline. Year-over-year, revenues increased by 21% due to a strong contribution of new products, despite meaningful contribution from non-core products a year ago that were mostly phased-out by December 2024. Lamps & Systems segment (L&S) The Lamps & Systems segment represented approx. 30% of Q1/25 revenues, equaling EUR 249 million. The business development followed its typical seasonal pattern with a quarter-over-quarter decline of 9%. The year-over-year reduction of 7% comes mainly from discontinued OEM products and the gradual structural decline in the OEM halogen lamps business for new cars. Adjusted EBITDA in Q1/25 came in even higher than in Q4/24 at EUR 61 million or 24.5% adjusted EBITDA margin on the back of a favorable product mix, a one-time effect and good plant utilization. Automotive: The automotive aftermarket business followed its typical seasonal demand pattern in Q1/25. The OEM business performed as expected. Specialty Lamps: Revenues stayed flat quarter-over-quarter. Overall, the inventory corrections in industrial and professional entertainment markets are continuing, whilst some customers pulled in orders ahead of expected tariffs. Q1/25 key financial figures Gross margin The adjusted gross margin increased by 130 basis points quarter-over-quarter due to an overall better product mix. Year-over-year, adj. gross margin remained unchanged. Net result & earnings per share The adjusted net result came in at EUR -23 million in Q1/25 better than EUR -35 million a year ago and down from EUR 3 million in the fourth quarter. Both Q1/25 adjusted basic and diluted earnings per share came in at EUR -0.23, down compared to EUR 0.03 EUR in Q4/24. The IFRS net result came in at EUR -82 million in Q1/25 after EUR -58 million in Q4/24. Both basic and diluted IFRS earnings per share came in at EUR -0.83 in Q1/25, after EUR -0.59 in Q4/24. Cash flows Operating cash flow (including net interest paid) came in at EUR 10 million in Q1/25. Cash flow from investments into PPE and intangibles, or CAPEX, ended up below the target 8% CAPEX/sales ratio at EUR -52 million compared to EUR -104 million in the previous quarter and significantly down compared to a year ago, where the figure stood at EUR -120 million. Free cash flow – defined as operating cash flow including net interest paid minus cash flow from CAPEX plus proceeds from divestments – came in at EUR -28 million in Q1/25. Net-debt related financial figures On 7 March 2025, the company paid back the outstanding 2025 convertible note at maturity with EUR 447 million in cash. The gross cash position reduced to EUR 573 million end of Q1/25 after EUR 1,098 million at the end of December 2024. Consequently, the net debt position slightly increased to EUR 1,484 million quarter-over-quarter after EUR 1,413 million in Q4/24. The equivalent value of the Sale-and-Lease Back (SLB) Malaysia transaction reduced to EUR 429 million in Q1/25 from EUR 441 million end of Q4/24. Despite the quarterly accrual of lease payments, the liability decreased due to a weaker exchange rate development of MYR / EUR. Including EUR 429 million equivalent from the SLB (booked under other financial liabilities), the net debt position increased to EUR 1,914 million in Q1/25 compared to EUR 1,854 million in Q4/24. Status of outstanding OSRAM minority shares On 31 March 2025, the Group held approx. 87% of OSRAM Licht AG shares. The total liability for minority shareholders' put options reduced to EUR 570 million at the end of Q1/25 compared to EUR 585 million at the end of the previous quarter. The company has a 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 would be sufficient to fully cover all outstanding minority shareholders' put options. It could also be drawn for general corporate and working capital purposes. Second quarter 2025 Outlook On the back of an improving order entry during the first quarter, the company expects an improved demand for its automotive semiconductor products in Q2/25. The demand from industrial and medical markets might slightly increase despite persisting macro-economic uncertainties. The business with its semiconductor products for consumer handheld devices will follow its normal seasonal pattern and reach its seasonal low in the second quarter. Combined, the semiconductor business is expected to follow a normal pattern, but with a slight reduction due to the weaker USD in contrast to a year ago. The automotive aftermarket halogen lamps business will enter its typical spring & summer weakness, following its traditional seasonal demand pattern. In total, the sequential development is in line with normal seasonal patterns, although from a lower base due to the cyclical bottom in industrial and the inventory correction in automotive in Q1. Approximately EUR 35 million revenue decline is due to the assumed appreciation of the EUR in Q2 by 8 cents, compared to the first quarter when the EUR/USD exchange rate stood at 1.05. As a result, the Group expects second quarter revenues to land in a range of EUR 725 – 825 million assuming a EUR/USD exchange rate of 1.13. The company expects adj. EBITDA to come in at 18.5% +/-1.5% on the back of seamless execution ahead of plan of its Re-establish the Base strategic efficiency program. FY 2025 commentary The company continues to expect a stronger second half mainly due to product ramp-ups and seasonality. A market normalization can still materialize but is subject to potential impacts to global car production, smartphone sales, or other impact to GDP, following the recent introduction or announcement of elevated tariffs in the US. The company expects improving profitability driven by its 'Re-establish the Base' program even in case of lower predictability of its topline, CAPEX spendings of less than 8% of sales(including capitalized R&D and expected investment grants, e.g. from the European Chips Act). The company continues to expect positive free cash flow (incl. net interest paid) exceeding EUR 100 million due to improved earnings, lower capex and reduced NWC in FY25. Additional Information Additional financial information for the first quarter 2025 is available on the company website. The first quarter 2025 investor presentation incl. detailed information is also available on the company website. ams OSRAM will host a press call as well as a conference call for analysts and investors on the first quarter 2025 results on Wednesday, 30 April 2025. The conference call for analysts and investors will start at 9.45 am CEST and can be joined via webcast. The conference call for journalists will take place at 11.00 am CEST.
Yahoo
11-02-2025
- Business
- Yahoo
ams OSRAM Delivers Cost Savings Ahead of Plan, Positive FCF in FY24, Q4 Revenues & Profitability Above Mid-Point of Guided Range and Expects FCF Exceeding EUR 100m in 2025
Q4/24: revenues of EUR 882m, 17.0% adj. EBITDA margin (each above mid-point of guided range) Q4/24: realized run-rate savings of EUR 110m from 'Re-establish the Base' (RtB) program FY24: revenues EUR 3.43bn and 16.8% adj. EBITDA margin FY24: free cash flow (incl. net interest paid) EUR 12m positive after EUR -332m in FY23 FY24: semi-core portfolio with ~7% growth yoy FY24: strong cash position of EUR 1.1bn FY24: roughly EUR 5bn life-time-value new semiconductor business won Q1/25: revenues of EUR 750m – 850m and 16% +/-1.5% adj. EBITDA margin expected FY25: free cash flow exceeding EUR 100m expected FY25: improved profitability at moderate revenue development expected due to RtB PREMSTAETTEN, Austria & MUNICH, Germany, February 11, 2025--(BUSINESS WIRE)--ams OSRAM delivers cost savings ahead of plan, EUR 12m positive FCF in FY24, Q4 revenues and profitability above mid-point of guided range and expects FY25 - FCF exceeding EUR 100m "Our turnaround is in full swing. Focusing on the core portfolio in our semiconductor business proves right. This semi core grew approx. 7% compared to 2023, driven by a strong rebound in sensors for mobile devices based on new product ramps and a resilient auto business. Savings from our 'Re-establish the Base' (RtB) strategic efficiency program are ahead of plan, measures supporting the upsized target are already detailed out. We delivered positive FCF in 2024 and expect margin expansion and a positive FCF exceeding EUR 100 million in 2025 even though markets remain volatile." said Aldo Kamper, CEO of ams OSRAM. Q4/24 financial update Revenues stayed essentially flat at EUR 882 million quarter-over-quarter in Q4/24, above the midpoint of the guided range of EUR 810 – 910 million. Strong seasonal auto lamps aftermarket sales and steady semi automotive business compensated continued weakness in industrial & medical applications and the beginning seasonal decline in semiconductor products for consumer handheld devices. The stronger USD also helped coming in above the midpoint of the guided range. Year-over-year, Group revenues declined by 3% due to cyclical weakness in automotive and I&M semiconductor businesses and some end-of-life of OEM modules business in Lamps & Systems. The relevant semi core portfolio (excluding the exited non-core portfolio) delivered a growth of approx. 7% year-over-year. Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) came in at EUR 150 million, i.e. at 17.0% adj. EBITDA margin, above the midpoint of the guided range of 15% - 18%. Adjusted EBIT (adjusted earnings before interest and taxes) margin for the Group stood at 6.8%. Adjusted EBIT amounted to EUR 60 million. Key reported figures EUR millions (except per share data) Q4 2024 Q3 2024 QoQ Q4 2023 YoY Revenues 882 881 0 % 908 -3 % Opto Semiconductors (OS) 350 381 -8 % 365 -4 % CMOS Sensors & ASICs (CSA) 258 266 -3 % 262 -2 % Lamps & Systems (L&S) 275 233 +18% 279 -1 % Gross profit adj. 239 262 -9 % 260 -8 % Gross margin adj. % 27.1 % 29.7 % -260 bps 28.7 % -160 bps Operating income (EBIT) adj.1) 60 82 -27 % 62 -3 % Operating margin (EBIT) adj. %1) 6.8 % 9.3 % 250 bps 6.9 % -10 bps EBITDA adj. 150 166 -10 % 150 0 % EBITDA margin adj. % 17 % 18.8 % -180 bps 16.5 % 50 bps Net result adj. 1) 3 37 -92 % -16 n/a Diluted & undiluted EPS adj. (in EUR)1)2) 0.03 0.37 -92 % -0.34 n/a Net result (IFRS) -58 24 n/a -82 -29 % Diluted & undiluted EPS (IFRS, in EUR) 2) -0.59 0.24 n/a -1.79 -67 % Operating cash flow 3) 79 246 -68 % 34 132 % Cash flow from CAPEX 4) -104 -102 -2 % -222 -53 % FCF (incl. net interest paid) 5) 2 188 -99 % -125 n/a Net debt 1,413 1,399 1 % 1,312 8 % Net debt (incl. SLB) 6) 1,854 1,840 1 % 1,696 9 % 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) Earnings per share are not comparable between the years due to the capital increase on 7 December 2023 whereby additional 724,154,662 shares were issued. Comparative figures were adjusted following the 10:1 reverse share split on 30 September 2024. 3) From Q1 2024, operating CF includes net interest paid; 2023 figures reclassified for comparison. 4) Cash flow from investments in property, plant, and equipment and intangibles (such as capitalized R&D), incl. investment grants. 5) Excl. financial investments. 6) Incl. EUR 441m equivalent as of end of December 2024 from SLB Malaysia transaction. Semiconductor business update Opto Semiconductors segment (OS) Revenues for opto-electronic semiconductors decreased by EUR 31 million to EUR 350 million in Q4/24 compared to EUR 381 million in Q3/24. Adjusted EBITDA was EUR 51 million, representing an adjusted EBITDA margin of 14.6%, down from EUR 88m in Q3/24. The company continues to receive non-refundable engineering payments (so called 'NRE') for the development of LED technologies from certain customers on a currently recurring basis, exemplifying its leading technology position. CMOS sensors and ASICs segment (CSA) Revenues for CMOS sensors and ASICs slightly decreased by EUR 8 million to EUR 258 million in Q4/24 compared to EUR 266 million in Q3/24 due to the typical seasonal softening in demand for components for consumer handheld devices. Adjusted EBITDA increased further to EUR 55 million in Q4/24, driven by one-off effects, portfolio optimization and cost savings, both part of the 'Re-establish the Base' program, up from EUR 48 million in Q3/24, representing an adjusted EBITDA Margin of 21.3%. Semiconductors industry dynamics Revenues from the two semiconductor business units represented approx. 70% of Q4/24 revenues, or EUR 608 million, compared to EUR 629 million a year ago. End-markets continued to show different cyclicality in the fourth quarter. Automotive: The automotive business came in slightly better than expected against the backdrop of an inventory correction in the semi supply chain. Momentarily customers order on very short notice, reflecting a higher level of uncertainty at the carmakers. The company benefited from order backlog and ramping new sensor products resulting in a 3% quarter-over-quarter increase. The year-over-year decline of 14% is in line with these inventory adjustments due to demand uncertainties seen by Tier-1 and OEM customers, compared to the all-time high revenue in Q4/23. Industrial & Medical (I&M): The business showed a mixed performance, showing a seasonal (horticulture) and cyclical (industrial automation & mass market) 14% quarter-over-quarter decline. Revenues came in 10% lower than a year ago. However, the company believes that segments with weak demand seem to have bottomed out. Consumer: With the ramp of new products and healthy overall demand for consumer portable devices, the consumer segment showed a healthy 20% year-over-year increase in revenues. Quarter-over-quarter, the typical seasonal regression set in with an 8% quarter-over-quarter decline. Lamps & Systems segment (L&S) The Lamps & Systems segment represented approx. 30% of Q4/24 revenues, equaling EUR 275 million. A typical, strong quarter-over-quarter increase of 18%, in line with the aftermarket's seasonal demand pattern. The slight year-over-year reduction of 3% comes mainly from discontinued OEM products. Adjusted EBITDA in Q4/24 came in at EUR 50 million or 18.2% adjusted EBITDA margin in line with fall-through from operating leverage. Automotive: The automotive aftermarket business was in full swing in Q4/24. The OEM business came in as expected. Specialty Lamps: Lower demand and partially inventory corrections in industrial and professional entertainment markets are continuing, nevertheless revenues improved a bit quarter-over-quarter. Q4/24 key financial figures Gross margin The adjusted gross margin decreased 260 basis points quarter-over-quarter with CSA coming in stronger due to better loading and OS coming in weaker due to lower loading and lower customer engineering payments. Year-over-year, adj. gross margin decreased 160 basis points in line with lower revenues, product-mix and currency effects. Net result & earnings per share The adjusted net result came in at EUR 3 million in Q4/24 up from EUR -16 million a year ago and down from EUR 37 million in the third quarter. Both Q4/24 adjusted basic and diluted earnings per share came in at EUR 0.03, down compared to the EUR 0.37 in Q3/24. The IFRS net result stood at EUR -58 million in Q4/24 after EUR 24 million in Q3/24, due to various positive one-off effects in Q3/24. The company recorded approx. EUR 29 million positive one-offs related to lower microLED strategy adaption expenses. Both basic and diluted IFRS earnings per share came in at EUR -0.58 in Q4/24, after EUR 0.24 in Q3/24. Cash flows Operating cash flow (including net interest paid) came in at EUR 79 million in Q4/24. Cash flow from investments into PPE and intangibles, or CAPEX, came down significantly to EUR -104 million compared to EUR -222 million a year ago, stayed essentially flat compared to the previous quarter. Free cash flow – defined as operating cash flow including net interest paid minus cash flow from CAPEX plus proceeds from divestments – came in at EUR 2 million in Q4/24. Net-debt related financial figures The gross cash position stayed flat with EUR 1,098 million in Q4/24 after EUR 1,097 million in Q3/24. For this, the net debt position stayed also basically flat at EUR 1,413 million quarter-over-quarter after EUR 1,399 million in Q3/24. The company repaid EUR 161 million maturing loans and drew EUR 141 million new loans maturing in 2025 and 2026. When including EUR 441 million equivalent from the Sale-and-Lease Back Malaysia transaction (booked under other financial liabilities), the net debt position stayed with EUR 1,854 million in Q4/24 on a similar level as in Q3/24. Status of outstanding OSRAM minority shares On 31 December 2024, the Group held approx. 86% of OSRAM Licht AG shares. The total liability for minority shareholders' put options reduced to EUR 585 million at the end of Q4/24 compared to EUR 604 million at the end of the previous quarter. The company has a 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 would be sufficient to fully cover all outstanding minority shareholders' put options. It could also be drawn for general corporate and working capital purposes. FY24 financial and business update The Group recorded revenues of EUR 3.43 billion in FY24 after EUR 3.59 billion in FY23, due to a decline in the L&S segment after divesting its Digital Systems business in 2023 and discontinuing some OEM module business. EUR millions (except per share data) 2024 2023 YoY Revenues 3,428 3,590 -5 % Opto Semiconductors (OS) 1,448 1,386 5 % CMOS Sensors & ASICs (CSA) 981 1,039 -6 % Lamps & Systems (L&S) 1,000 1,165 -14 % Gross profit adj. 984 1,031 -5 % Gross margin adj. %1) 28.7 % 28.7 % 0 bps Operating profit adj.1) 241 233 3 % Operating margin adj. %1) 7.0 % 6.5 % 50bps EBITDA adj. 575 604 -5 % EBITDA margin adj. % 16.8 % 16.8 % 0 bps Net profit adj.1) 3 50 -96 % Diluted EPS adj.1)2) 0.03 1.61 -88 % Net result (IFRS) -785 -1,613 -51 % Diluted EPS (IFRS) 2) -7.94 -52.0 85 % Operating cash flow 3) 435 493 -12 % Cash flow from CAPEX 4) -502 -1,049 -52 % Free cash flow (incl. interest paid) 5) 12 -332 n/a Net debt 1,413 1,312 8 % Net debt (incl. SLB) 6) 1,854 1,696 9 % 1) Excluding microLED strategy adaption expenses M&A-related, other transformation and share-based compensation costs, results from investments in associates and sale of businesses. 2) Earnings per share are not comparable between the years due to the capital increase on 7 December 2023 whereby additional 724,154,662 shares were issued. Comparative figures were adjusted following the 10:1 reverse share split on 30 September 2024. Earnings per share in CHF were converted using the average currency exchange rate for the respective periods. 3) From Q1 2024, operating CF includes net interest paid; 2023 figures reclassified for comparison. 4) Cash flow from investments in property, plant, and equipment and intangibles (such as capitalized R&D), incl. Investment grants. 5) Excl. financial investments. 6) Incl. EUR 441m equivalent from SLB Malaysia transaction. Growth in the core-semiconductor portfolio When launching its 'Re-establish the Base' program, the company identified a non-profitable, non-core semiconductor portfolio of approx. EUR 350 million in FY23 which was decided to be exited. During FY24, most of these product lines have been exited step by step, however, the accumulated revenues for the year still totaled approx. EUR 200 million, which had been mostly phased-out by end of December 2024. Taking this into account, the core semiconductor portfolio grew year-over-year approx. 7% - broadly in line with the growth target of the company's target operating model. Profitability In 2024, the company switched its key profitability metrics to adj. EBITDA. For fiscal year 2024, adj. EBITDA came in at EUR 575 million after EUR 604 million, resulting in a stable adj. EBITDA margin of 16.8% for both years. The market weakness in automotive and I&M semis in the second half of 2024 offset improvements due to RtB, i.e. lower operating expenses and the gradual exit of non-profitable, non-core semi-portfolio, as well as customer payments for development and deconsolidation of L&S businesses. Adjusted EBIT improved to EUR 241 million in FY24 after EUR 233 million in the previous fiscal year. In addition to the effects for the yoy development of adj. EBITDA, lower depreciation after impairment of manufacturing equipment improved adj. EBIT. In FY24, adjusted diluted earnings per share stood at EUR 0.03 and EUR -7.94 unadjusted. Free cash flow In 2023, the Group reported free cash flow (incl. interest paid) of EUR -332 million driven by exceptionally high CAPEX levels associated with the microLED project. In 2024, this steeply improved coming in at a positive EUR 12 million despite significant transformation cost for the adjustment of the microLED strategy after the cancellation of the cornerstone project in February 2024. On top, the transformation costs for implementing the 'Re-establish the Base' program had to be borne. Key for the significant FCF improvement yoy were savings from the 'Re-establish the Base' program, customer pre-payments exemplifying the company's leading technology position, and significantly reduced capital expenditures. FY24 progress of 'Re-establish the Base' program On 27 July 2023, the company announced its strategic efficiency program 'Re-establish the Base', which aimed at focusing the company on its profitable, structurally growing core, initially targeting approx. EUR 150 million run-rate savings by end of FY25 compared to FY23 actuals. On 7 November 2024, the company extended the program to 2026, upsizing the savings target to approx. EUR 225 million run-rate savings by end of 2026. Until end-of-2024, the company has realized already approx. EUR 110 million savings, exceeding the EUR 75 million run-rate savings target for FY24. Recent implementation successes are especially evident when looking at the profitability improvement of the CSA segment. All measures to achieve the full savings have already been defined and will be fully implemented until end of 2026. When it comes to the company's non-core semiconductor portfolio (approx. EUR 350 million, in 2023, approx. EUR 200 million in 2024), it is mostly phased out by the end-of-2024. Thus, the exit is essentially complete with (a) the sale of assets of the Passive Optical Components business to Focuslight Inc. (2) the restructuring of the CMOS image sensor business, and (3) the end-of-life phase out of the remaining product-lines. Summary of transformation costs The company excludes transformation costs amongst other items from its operational performance measures, i.e. adj. EBITDA and adj. EBIT. Transformation costs in FY24 were mainly driven by the adjustment of its microLED strategy and its 'Re-establish the Base' program. In Q4/24, the company recorded a net gain of approx. EUR 29 million by reversing certain provisions related to the microLED strategy adaption. In summary, total cost for adjusting the microLED strategy came in at EUR 576 million in FY24, significantly lower than initially expected. Within that number, there were impairment charges of EUR 490 million and transformation costs of EUR 86 million. Transformation costs related to 'Re-establish the Base' were approx. EUR 18 million in Q4/24. For FY24, the total amount came in with EUR 37 million. FY24 Strong Design-Win performance in Fiscal Year The company continues to win meaningfully new business across a wide customer base underpinning its structural growth targets in its core semiconductor business. The combined figure came in close to EUR 5 billion, supported by wins across all segments of its core semiconductor portfolio. The largest contribution came from automotive. First quarter 2025 Outlook The company expects muted demand for its automotive semiconductor products in Q1/25 reflecting the persisting uncertainties and corrections in the global automotive supply chain. The demand from industrial and medical markets also remains muted, although first small signals might indicate that the weakness has reached its bottom. The business with its semiconductor products for consumer handheld devices will go into its typical strong seasonal decline. Looking at the L&S segment, the automotive aftermarket halogen lamps business will come in slightly lower – in line with its typical, seasonal demand pattern. As a result, the Group expects first quarter revenues to land in a range of EUR 750 – 850 million. In line with fall-through and further savings from the 'Re-establish the Base' program coming into effect, the company expects adj. EBITDA to come in at 16% +/-1.5%. The EUR/USD exchange rate is assumed to be 1.05. FY 2025 commentary The company expects a meaningfully stronger second half mainly due to product ramps and to some extent, market normalization. Furthermore, the company expects improving profitability driven by its 'Re-establish the Base' program even in case of moderate revenue development, CAPEX spendings of less than 8% of sales (including capitalized R&D and expected investment grants, e.g. from the European Chips Act), and a positive free cash flow (incl. net interest paid) exceeding EUR 100 million due to improved earnings, lower CAPEX and similar operating NWC in FY25. Additional Information Additional financial information for the fourth quarter 2024 is available on the company website. The fourth quarter 2024 investor presentation incl. detailed information is also 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 2024 results on Tuesday, 11 February 2025. The conference call for analysts and investors will start at 9.45 am CET and can be joined via webcast. The annual press conference and call will take place at 11.00 am CET. Journalists who would like to join the press conference in person or the call can reach out to press@ or investor@ for further information. View source version on Contacts Investor Relations ams-OSRAM AG Dr Juergen RebelSenior Vice PresidentInvestor RelationT: +43 3136 500-0investor@ Sign in to access your portfolio
