ams OSRAM AG Reports Strong Q3 2024 Performance

ams-OSRAM AG Unsponsored ADR ( (AMSSY) ) has released its Q3 earnings. Here is a breakdown of the information ams-OSRAM AG Unsponsored ADR presented to its investors.

ams OSRAM AG is a global leader in sensor and light technologies, operating primarily in the semiconductor industry, with a strong focus on innovation that enhances quality of life while reducing environmental impact. In its latest earnings report, ams OSRAM AG announced solid third-quarter revenues of EUR 881 million, marking an 8% increase quarter-over-quarter, coupled with a significant adjusted EBITDA margin of 18.8%. The company also reported a strong cash position of EUR 1.1 billion and highlighted robust free cash flow supported by customer prepayments and non-recurring engineering revenues.

Key financial metrics revealed an adjusted EBIT of EUR 82 million and a net result of EUR 24 million, showcasing a notable improvement from previous quarters. The company is making significant progress with its ‘Re-establish the Base’ strategic efficiency program, realizing EUR 85 million in savings and increasing its target savings by an additional EUR 75 million to reach a total of EUR 225 million by the end of 2026. This initiative aims to improve profitability amidst market uncertainties, particularly in the automotive sector.

The semiconductor business, which constitutes 73% of total revenues, showed resilience with a flat year-over-year performance, driven by consumer applications that offset weaker automotive and industrial segments. Furthermore, the company reported a significant design-win momentum, adding EUR 1 billion in new business during the third quarter, totaling EUR 3.5 billion year-to-date.

Looking forward, ams OSRAM AG anticipates a fourth-quarter revenue range of EUR 810 million to 910 million and an adjusted EBITDA margin of 15% to 18%, reflecting the seasonal business mix. Despite a predicted weak start in 2025, the company expects growth in its semiconductor core-portfolio for the year, aligning with its updated mid-term operating model targeting a 6% to 10% growth in core semiconductor business by 2027.