ams Osram (AMS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached EUR 796 million, at the upper half of guidance, with 9% year-over-year like-for-like growth in the semiconductor core portfolio at constant FX.

• Adjusted EBITDA margin was 16.5%, at the upper end of guidance, with adjusted EBITDA of EUR 131 million.

• Free cash flow was EUR 37 million, supported by proceeds from the Specialty Lamps business divestment.

• Advanced Digital Photonics strategy, expanding the optical component portfolio for AI-enabled AR smart glasses and signing a development agreement for AI data center photonics.

• Transformation initiatives, including the 'Simplify' and 'Re-establish the Base' programs, delivered and targeted significant cost savings.

Financial highlights

• Group revenues for Q1 2026 were EUR 796 million, with core portfolio up 9% year-over-year at constant currency; adjusted EBITDA margin reached 16.5%.

• Revenue declined slightly year-over-year due to FX headwinds and divestments; at constant currency, revenue would have grown 8%.

• Adjusted net result was negative EUR 72 million, impacted by higher net financing costs and transformation charges.

• Free cash flow was EUR 37 million in Q1, including EUR 90 million investment proceeds.

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

Outlook and guidance

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

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

• Free cash flow for 2026 expected above EUR 300 million including divestment proceeds; excluding divestments, free cash flow expected to be significantly negative.

• Path to positive free cash flow excluding divestments anticipated for FY 2027.