Business update:

   --  Q3/25: revenues EUR 853 m / 19.5 % adj. EBITDA margin (including a 
      positive one-off), above / at the midpoint of guidance 
 
   --  Q3/25: realized run-rate savings of approx. EUR 185 m from 
      'Re-establish the Base' (RtB) program 
 
   --  Q3/25: FCF (incl. net interest paid) at EUR 43 m 
 
   --  Q4/25: revenue EUR 790 m -- 890 m, 17.5 % +/-1.5 % adj. EBITDA, at 
      EUR/USD 1.16 expected 
 
   --  FY25: FCF outlook of above EUR 100 m confirmed (assuming timely Chips 
      Act inflows) 
 
   --  Design-win momentum on track to reach EUR 5 bn in 2025 

Deleveraging plan and refinancing:

   --  Process for asset disposals for generating proceeds well above EUR 500 
      m in 2026 on track 

Continuous investment in differentiating technology platforms:

   --  Broad patent cross-license agreement signed with Nichia for 
      unparalleled IP safety of customers 
 
   --  Advancements in its industry leading infrared LED & infrared laser 
      technology 
 
   --  Launched industry benchmark 2-dimensional direct Time-of-Flight sensor 
      platform 
PREMSTAETTEN, Austria & MUNICH--(BUSINESS WIRE)--November 18, 2025-- 

"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.

Q3/25 business and earnings summary

 
EUR millions (except per share 
data)                              Q3 2025  Q2 2025    QoQ    Q3 2024    YoY 
Revenues                               853      775    +10 %      881     -3 % 
EBITDA margin adj. % (1)            19.5 %   18.8 %  +70 bps   18.8 %  +70 bps 
EBITDA adj. (1)                        166      145    +14 %      166      0 % 
Net result adj. (1)                     27       18    +50 %       37    -27 % 
Diluted EPS (adj., in EUR) (2)        0.27     0.18    +50 %     0.37    -27 % 
 
 
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. 
 

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.

 
EUR millions                          Q3 2025  Q2 2025   QoQ   Q3 2024   YoY 
FCF (incl. net interest paid)              43      -14   n.a.  188 (1)  -77 % 
Cash on hand                              979      511  +92 %    1,097  -11 % 
Net debt                                1,581    1,570   +1 %    1,399  +13 % 
Kulim-2 (Sale-and-Lease-Back (SLB))       422      420   +0 %      441   -4 % 
Net debt (incl. SLB (3) )               2,003    1,990   +1 %    1,840   +9 % 
OSRAM minority put options (2)            517      528   -2 %      604  -14 % 
 
 
1) In Q3 2024, FCF contained a non-operational one-time cash pre-payment from 
a customer of the order of EUR 225 million. 
2) Contingent liability part of 'other financial liabilities'. 
 

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 shareholder's put options. It can also be drawn for general corporate and working capital purposes.

Q3/25 Business Unit $(BU)$ results & industry update

Semiconductor Business

 
EUR millions                 Q3 2025  Q2 2025    QoQ     Q3 2024    YoY 
Opto Semiconductors (OS) 
    Revenue                      365      344      +6 %      381      -4 % 
    EBITDA margin adj. %      22.6 %   22.9 %   -30 bps   23.1 %   -50 bps 
    EBITDA adj.                   82       79      +4 %       88      -7 % 
CMOS Sensors & ASICs $(CSA)$ 
    Revenue                      271      239     +13 %      266      +2 % 
    EBITDA margin adj. %      23.6 %   18.0 %  +560 bps   17.9 %  +570 bps 
    EBITDA adj.                   64       43     +49 %       48     +33 % 
Semiconductors by industry 
    Automotive                   239      229      +4 %      234      +2 % 
    I&M                          174      171      +2 %      184      -5 % 
    Consumer                     224      183     +22 %      230      -3 % 
 

Semiconductor revenues were approx. 75 % of Q3/25 group revenue or EUR 637 million, compared to EUR 647 million a year ago, equally driven by the change in the EUR/USD exchange rate and the phase-out of non-core businesses under the 'Re-establish the Base' program, which still contributed with a couple of 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. The comparable growth in semiconductors was approx. 9%, when correcting for the phased-out non-core portfolio (approx. EUR 30 million) and EUR/USD exchange rate (approx. EUR 30 million) - 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.

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November 18, 2025 03:02 ET (08:02 GMT)