ams Osram: "Our turnaround is in full swing"
Austrian semiconductor manufacturer ams Osram delivers cost savings ahead of plan, Q4 revenues and profitability above mid-point of guided range.
“Our turnaround is in full swing. Focusing on the core portfolio in our semiconductor business proves right. This semi core grew approx. 7% compared to 2023, driven by a strong rebound in sensors for mobile devices based on new product ramps and a resilient auto business. Savings from our ‘Re-establish the Base’ (RtB) strategic efficiency program are ahead of plan, measures supporting the upsized target are already detailed out. We delivered positive FCF in 2024 and expect margin expansion and a positive FCF exceeding EUR 100 million in 2025 even though markets remain volatile.” says Aldo Kamper, CEO of ams OSRAM, in a press release.
Revenues essentially stayed flat QoQ at EUR 882 million in Q4/24 – above the midpoint of the guided range of EUR 810 – 910 million. The company says that strong seasonal auto lamps aftermarket sales and steady semi automotive business compensated continued weakness in industrial & medical applications and the beginning seasonal decline in semiconductor products for consumer handheld devices. The stronger USD also helped coming in above the midpoint of the guided range.
YoY, group revenues declined by 3% due to cyclical weakness in automotive and I&M semiconductor businesses and some end-of-life of OEM modules business in Lamps & Systems.
Adjusted EBITDA came in at EUR 150 million, in other words at 17.0%. EBITDA margin, above the midpoint of the guided range of 15–18%.
"Re-establish the Base"
The company launched the ‘Re-establish the Base’ efficiency program on July 27, 2023, to focus on its profitable core business. Initially, the goal was to achieve EUR 150 million in annual savings by the end of FY25 (compared to FY23). On November 7, 2024, the company extended the program to 2026, raising the savings target to EUR 225 million.
By the end of 2024, the company had already achieved EUR 110 million in savings, surpassing the FY24 target of EUR 75 million. The CMOS Sensors & ASICs (CSA) segment has seen notable profitability improvements, and all remaining cost-saving measures are set for full implementation by the end of 2026.
