Osram Licht AG
XHAM:OSR
Osram Licht AG
Osram Licht AG, a company with roots tracing back over a century, has evolved from its beginnings in conventional lighting solutions to becoming a beacon in the high-tech optics and photonics industry. Originally known for its traditional incandescent bulbs, Osram has embraced change, steering its focus toward innovative lighting technologies that cater to industries ranging from automotive to healthcare. As the world increasingly pivots towards energy-efficient solutions, Osram has positioned itself at the forefront, pivoting its business model to capitalize on the LED and semiconductor sectors. The company's ability to innovate and adapt has allowed it to remain relevant in a competitive landscape, building its reputation as a leader in intelligent lighting solutions that go beyond mere illumination.
The financial engine behind Osram's success is its diversified portfolio that spans various high-growth segments. The automotive lighting arm, which supplies innovative lighting solutions to major car manufacturers, is a significant revenue driver. Beyond automotive, Osram has made strategic investments in sensing and visualization technologies. This includes products like infrared and laser lights popular in consumer electronics and security systems. Additionally, Osram's ambitious strides into the health sector, with applications like phototherapy and sterilization lighting, highlight its versatility. Osram's revenue streams are thus a symbiotic relationship between the legacy of traditional lighting and new-age technology, delicately balancing between evolutionary continuity and revolutionary innovation.
Osram Licht AG, a company with roots tracing back over a century, has evolved from its beginnings in conventional lighting solutions to becoming a beacon in the high-tech optics and photonics industry. Originally known for its traditional incandescent bulbs, Osram has embraced change, steering its focus toward innovative lighting technologies that cater to industries ranging from automotive to healthcare. As the world increasingly pivots towards energy-efficient solutions, Osram has positioned itself at the forefront, pivoting its business model to capitalize on the LED and semiconductor sectors. The company's ability to innovate and adapt has allowed it to remain relevant in a competitive landscape, building its reputation as a leader in intelligent lighting solutions that go beyond mere illumination.
The financial engine behind Osram's success is its diversified portfolio that spans various high-growth segments. The automotive lighting arm, which supplies innovative lighting solutions to major car manufacturers, is a significant revenue driver. Beyond automotive, Osram has made strategic investments in sensing and visualization technologies. This includes products like infrared and laser lights popular in consumer electronics and security systems. Additionally, Osram's ambitious strides into the health sector, with applications like phototherapy and sterilization lighting, highlight its versatility. Osram's revenue streams are thus a symbiotic relationship between the legacy of traditional lighting and new-age technology, delicately balancing between evolutionary continuity and revolutionary innovation.
Revenue: Q3 revenue reached €853 million, above the midpoint of guidance. Like-for-like core portfolio revenue grew about 6% year-over-year, with semiconductor core business up 9%.
Profitability: Adjusted EBITDA margin improved to 19.5%, up nearly 1 percentage point both sequentially and year-over-year. Profitability was supported by a one-off gain of over €10 million from a manufacturing asset sale.
Cash Flow: Operating cash flow was strong at €88 million, with positive free cash flow of €43 million in Q3; year-to-date free cash flow is at breakeven.
Cost Savings: The cost savings program ('reestablish the base') delivered €185 million in run rate savings, ahead of plan and target for 2025.
Outlook: Q4 revenue is expected between €790 million and €890 million, with adjusted EBITDA margin guidance at 17.5% (plus or minus 1.5 percentage points). Free cash flow for Q4 is forecast to exceed €100 million.
Strategic Progress: Asset disposals are on track, with over €500 million of proceeds targeted. The company won €4 billion in semiconductor design wins in the first nine months, supporting future growth.
