AMS Osram - comment

AMS Osram operationally continue to meet and slightly exceed their expectations, with Revenue in line and EBITDA above mid-point guidance.  The Higher EBITDA is driven by the continued cost-saving program and higher loading in their semiconductor segment. The business is maintaining its momentum in design wins, gaining €2.5bn in H1 2024.  

However, the Company has not made any concrete progress on the process for finding a new lessee for the Kulim-2 factory. We had also expected further non-core disposals and although expected proceeds are small, the lack of any progress will hang over the credit in the coming months.  AMS Osram have reconfirmed FY24 guidance, with FCF significantly improving in H2 due to lower CAPEX and higher profitability.