Ams Ag Stock Earnings Reports

Key takeaways for investors: Revenues for Q2 were EUR 775m (midpoint of guidance); reported revenues down 5% YoY but core semiconductor business grew ~2% on a like‑for‑like, constant‑currency basis (and ~7% YoY for the semi core business excluding discontinued products). Profitability improved materially: adjusted EBITDA margin rose to 18.8% (quarter‑on‑quarter and year‑on‑year improvement of >2pp) helped by the Reestablish‑the‑Base cost program, nonrefundable engineering payments, inventory prebuild for H2 ramps, and subsidy catch‑ups. Reestablish‑the‑Base is ahead of schedule with ~EUR 160m run‑rate savings implemented (target EUR 225m by end‑2026). The company is actively deleveraging and executing portfolio disposals: sale of Entertainment & Industrial Lamps to Ushio for EUR 114m (closing expected Q1 2026) is the first step in a program targeting well above EUR 500m proceeds. Management tapped the high‑yield bond market (upsized to EUR 500m) to secure refinancing flexibility and to enable repurchase of a 2027 convertible, accepting temporarily higher interest as insurance against refinancing risk; pro‑forma liquidity after the tap is ~EUR 1.6bn. Net debt is just under ~EUR 2bn today; available liquidity (cash + facilities + bond tap) provides significant runway. H2 outlook: Q3 revenue guidance EUR 790–890m (assumes USD/EUR 1.16) and adjusted EBITDA margin ~19.5% ±1.5pp; full‑year free cash flow still expected >EUR 100m, supported by Chips Act/Austria subsidy catch‑up and a EUR 37m cash inflow from a legal settlement. Key risks remain macro/FX volatility (weaker USD cost ~EUR 35m in Q2; ongoing currency and tariff uncertainty), timing of remaining divestments, and pending appraisal proceedings/tendering of OSRAM minority shares.