ams OSRAM delivers solid revenues in Q2 and continues turn-around with profitability at the upper end of the guided range
ams OSRAM delivers solid revenues in Q2 and continues turn-around with profitability at the upper end of the guided range
- Q2/24: revenues EUR 819m, adj. EBIT EUR 56m (6.8%), adj. EBITDA EUR 135m (16.5%)
- Q3/24: expected third quarter revenues of EUR 830 to 930m and adj. EBITDA margin of 17% to 20%
- H2/24: significantly improved free cash flow due to lower capex and higher profitability
- Implementation of Re-establish-the-Base program progressing well, approx. EUR 60m savings realized to date
- Design-win momentum for long-term structural growth continuing, around EUR 2.5bn (life-time-value) design-wins in H1/2024
Premstaetten, Austria, and Munich, Germany (26 July 2024) -- ams OSRAM delivers solid Q2 revenues of EUR 819m on the back of structural growth in automotive semis, continues turn-around with adj. EBITDA margin of 16.5% at the upper end of the guided range
“A year ago, we announced our strategic efficiency program ‘Re-establish-the-Base’ which aims at focusing the company on its profitable and structurally growing core. We are fully on track in terms of implementing the anticipated profitability improvements, while economic headwinds are increasing. Our long-term structural growth prospects are underpinned by the unabated momentum in winning new future business.” said Aldo Kamper, CEO of ams OSRAM.
Q2/24 financial update
ams OSRAM announces revenues of EUR 819 million for the second quarter 2024, at the midpoint of the guided range of EUR 770 – 870 million. The typical annual seasonality of the automotive lamps business drives the EUR 28 million decrease compared to the previous quarter. The semiconductor business was resilient, with year-over-year structural growth in automotive, a stabilization of the industrial business on the back of horticulture and professional lighting, and a decline in the consumer business due to a gradual ramp-down of legacy projects. Year-over-year, revenues declined slightly by 4%, on a like-for-like and constant currency basis a decline of around 3%. Reasons for this are mainly a weaker industrial & entertainment lamps business and lower revenues from the auto OEM lamps business, while the auto lamp replacement business remained strong. The semiconductor business with EUR 596 million stayed essentially flat year-over-year with a -1% decline. The average EUR/USD exchange rate stood at 1.08.
The adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization, i.e. operating margin adjusted for special, non-operational effects) came in at EUR 135 million, i.e. at a 16.5% adj. EBITDA margin, at the upper end of the guided range of 14% - 17%. Higher factory loading and savings from the ‘Re-establish-the-Base’ program are key contributors, which is especially evident from the improved performance of the CSA segment. In OS, a catch-up impact from the IPCEI funding scheme also supported the profitability increase.
The adjusted EBIT (adjusted earnings before interest and taxes, i.e. operating margin adjusted for special, non-operational effects) margin came in at 6.8%. The adjusted EBIT amounted to EUR 56 million.