Trump announces trade deal with EU following months of negotiations
Investing.com -- ams OSRAM said on Wednesday it has successfully placed €500 million in 2029 senior notes while reporting preliminary second-quarter results that met expectations.
The company posted preliminary Q2 revenues of €775 million, aligned with analyst forecasts. Its adjusted EBITDA margin reached 18.8%, while free cash flow was slightly negative at €-14 million, though showing sequential improvement from the previous quarter.
For the third quarter, ams OSRAM provided revenue guidance in the range of €790-890 million, with the midpoint falling below analyst expectations of €890 million.
However, the company projected an adjusted EBITDA margin of 19.5% (plus or minus 150 basis points), exceeding analyst forecasts of 18.6%.
The company reaffirmed its full-year 2025 outlook, anticipating improved profitability and free cash flow exceeding €100 million.
This positive cash flow projection is attributed to improved earnings, lower capital expenditures (less than 8% of sales), and reduced net working capital.
Approximately €350 million from the note placement will be used to pre-finance OSRAM minority put option bulk exercises, taking advantage of favorable market conditions.
A court decision regarding this matter is expected in the coming months. The company will also allocate funds to buy back €150 million in 2027 convertible bonds.
ams OSRAM indicated it expects a stronger second half of the year, primarily due to product ramp-ups and seasonality, while noting that market normalization remains subject to potential impacts on global car production, smartphone sales, or other GDP effects following announcements of elevated tariffs in the US.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.