AMS Osram - comment

The numbers were slightly ahead of guidance, but that is not the pertinent issue for AMS Osram. Details are a little light, but the Company has acknowledged the need to divest assets to deleverage its balance sheet. We had expected some more clarity on an RCF extension. The order book has improved, but uncertainty over tariffs still creates some doubt over the Company’s claim of low double-digit growth in H2 over H1. Margin guidance is a little higher for Q2 than our expectations, resulting from better-than-modelled cost-saving measures.  

AMS Osram will remain in the headlines for the coming months, with a refinancing required for the 2027 convertible bonds. Execution of some asset sales is a must.