Ams OSRAM Reports Strong Q2 Results with Solid Revenues and Profit Margins

ams OSRAM AG reported solid revenues of EUR 819 million in the second quarter of 2024, demonstrating resilience amid challenging market conditions. Adjusted EBIT stood at EUR 56 million, a margin of 6.8%, while adjusted EBITDA reached EUR 135 million, representing a margin of 16.5%, both at the upper end of the guided range.

The company anticipates third-quarter revenues to range between EUR 830 million and EUR 930 million, with an expected adjusted EBITDA margin of 17% to 20%. The ongoing implementation of the "Re-establish-the-Base" program has contributed significantly to operational efficiencies, achieving approximately EUR 60 million in savings to date.

Key growth areas include automotive semiconductors, while the industrial and medical segments continue to face inventory corrections. ams OSRAM secured around EUR 2.5 billion in design-wins during the first half of 2024, bolstering its long-term growth prospects.

Despite Q2's positive performance, the company acknowledges economic headwinds and a mixed demand outlook for its various business segments. The strategic adjustments and cost-saving initiatives position it for potential improvements in free cash flow in the second half of the year.