ams Osram (AMS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached EUR 805 million, at the high end of guidance, with 13% like-for-like growth in the semiconductor core portfolio, driven by automotive and industrial demand.

• Record first-half design wins secured, totaling over EUR 2.5 billion, with EUR 1.6 billion in Q2 alone, reflecting strong momentum in Digital Photonics and next-generation technologies.

• Strategic divestments, including sales to Infineon and Indie Semiconductors, supported balance sheet deleveraging and reduced annual interest costs by EUR 40 million.

• Digital Photonics strategy advanced with key milestones in AR smart glasses, AI photonics, and organizational restructuring.

• CEO contract extended through September 2031.

Financial highlights

• Adjusted EBITDA margin was 16.9% (EUR 136 million), at the high end of guidance, though slightly down year-over-year due to deconsolidation and FX headwinds.

• Free cash flow was negative EUR 119 million in Q2, impacted by working capital build-up, transformation costs, and higher interest expenses.

• Cash and cash equivalents at quarter-end were EUR 994 million; total liquidity including revolver at EUR 1.5 billion, rising to EUR 2.1 billion post-divestment.

• Net debt stood at EUR 1,288 million as of June 2026.

• Adjusted net result for Q2 was EUR -55 million; reported net result EUR -121 million.

Outlook and guidance

• Q3 2026 revenue expected between EUR 770–870 million, with adjusted EBITDA margin of 16.0% ±1.5%, reflecting deconsolidation of the non-optical sensor business.

• FY26 outlook unchanged; revenue modestly lower due to divestments and FX, adjusted EBITDA temporarily pressured by transition effects.

• Path to positive free cash flow (excluding divestment proceeds) in sight for FY2027.