ams Osram (AMS) investor relations material

Executive summary

• Q1 2026 delivered strong core semiconductor portfolio growth of 9% year-over-year at constant currency, with group revenue of EUR 796 million at the upper end of guidance.

• Adjusted EBITDA margin reached 16.5%, supported by positive free cash flow of EUR 37 million, mainly from divestment proceeds.

• Transformation and efficiency programs, including 'Simplify', delivered initial cost savings and streamlined operations.

• Completed sale of Entertainment & Industrial Lamps business; non-optical sensor business divestment to Infineon on track for mid-2026.

• Achieved milestones in Digital Photonics, including AI photonics development agreements and AR smart glasses portfolio expansion.

Financial highlights

• Q1 2026 group revenue: EUR 796 million, down 3% year-over-year due to FX and divestments, but core portfolio grew 9% at constant currency.

• Adjusted EBITDA: EUR 131 million (16.5% margin), down from prior year due to divestitures and FX headwinds.

• Adjusted net result was negative (EUR -72 million to EUR -82 million), mainly due to high interest expenses and transformation costs.

• Free cash flow in Q1 2026 was EUR 37 million, supported by EUR 90 million in divestment proceeds.

• Cash on hand at quarter-end was EUR 1.3 billion, with available liquidity of EUR 2 billion.

Outlook and guidance

• Q2 2026 revenue expected between EUR 725 million and EUR 825 million; adjusted EBITDA margin around 15.5% ± 1.5pp.

• Full year 2026 outlook unchanged: revenues modestly softer due to divestments and FX; adjusted EBITDA temporarily pressured by one-offs and stranded costs.

• Free cash flow for 2026 expected well above EUR 300 million including divestments; path to positive free cash flow in 2027 excluding divestments.

• 2030 targets: free cash flow above EUR 200 million, adjusted EBITDA margin at least 25%, net debt/EBITDA below 2x.