ams Osram (AMS) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered revenues of 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 reached 16.5%, at the upper end of guidance, with adjusted EBITDA of EUR 131 million.

• Positive free cash flow of EUR 37 million was achieved, supported by proceeds from the Specialty Lamps divestment.

• Transformation initiatives, including the 'Simplify' and 'Re-establish the Base' programs, began delivering cost savings ahead of schedule.

• Expanded the optical component portfolio for AI-enabled AR smart glasses and signed a development agreement for AI data center photonics.

Financial highlights

• Q1 group revenue was EUR 796 million, with adjusted EBITDA margin at 16.5%; revenue declined slightly year-over-year due to FX and divestments, but core portfolio grew 9% at constant currency.

• Adjusted EBITDA for Q1 2026 was EUR 131 million, down from 19.5% in Q1 2025 due to deconsolidation and FX headwinds.

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

• CapEx remained disciplined and well below the full-year guidance of 8% of revenue.

• Cash on hand at quarter-end was EUR 1,317 million, up 130% year-over-year.

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 impacted by one-offs and stranded costs.

• Free cash flow for 2026 expected above EUR 300 million including divestment proceeds; path to positive free cash flow in 2027 without divestments.