ams OSRAM Delivers Solid Q4 2023

ams OSRAM delivers solid Q4 2023 results, with revenues at €908 million and adjusted EBIT of 6.9%, above the midpoint of the guided range, revenues of €3.59 billion and 6.5% adj EBIT for fiscal year 2023.

ams OSRAM continues executing its “Re-establish-the-Base” efficiency and strategic realignment program to benefit from structural growth. The plan is underpinned by a strong design-win pipeline.

“We kept our promise and have achieved a lot in 2023: defined a new strategy, implemented a new organization, secured the re-financing and strengthened the balance sheet. We are now ready to deliver the turnaround and benefit from structural growth in our core markets in automotive, industrial, medical and dedicated consumer applications,” said Aldo Kamper, CEO of ams OSRAM.

“On the back of a very solid Q4 2023, we are confident to be able to execute our plans for 2024 and make ams OSRAM a more focused, leaner, and more efficient company driven by relentless innovation and sustainable partnerships with our customers,” said Kamper.

ams OSRAM announces revenues of €908 million for the fourth quarter, slightly above the midpoint of the guided range of €850 – 950 million, a €4 million increase compared to the previous quarter. The adjusted EBIT (adjusted earnings before interest and taxes, i.e. operating margin adjusted for special, non-operational effects) margin came in above the midpoint of the guided range of 5% – 8%, namely at 6.9%. The adjusted EBIT amounted to €62 million.

The company continues to win new business across the board underpinning its structural growth plans, especially in automotive. The company progresses with preparing the exit of the non-core semiconductor portfolio (with 2023 run-rate of around €300 to 400 million) with focus on its passive optical components business.

The Semiconductor segment represented 69% of Q4 revenues, or correspondingly €629 million. End-markets continued to show a diverse pattern.

The Lamps & Systems segment represented 31% of Q4 revenues, or correspondingly €279 million. In both automotive and industrial & entertainment markets, business performed as expected.

Operating cash flow came in at €80 million in Q4 2023 compared to €199 million in Q3. A reduction of trade payables mostly relating to Capex amongst other factors contributed to this development.

Consequently, the net debt position significantly improved from €2,269 million in Q3 to €1,696 million in Q4 when including €384 million equivalent from the Sale-and-Lease Back Malaysia transaction.