Austria's ams OSRAM expects first quarter revenue below market expectations (updated)
10/02/2026 06:39
Adds analyst comment in paragraph 5, share move in paragraph 6, new cost cutting program in paragraphs 7 and 8, Q4 revenue in paragraph 9 By Ozan Ergenay Feb 10 (Reuters) - Austrian semiconductor supplier and sensor maker ams OSRAM AMS.S on Tuesday reported better than expected fourth quarter results but said its first quarter revenue would be below market expectations citing a challenging market environment. The company expects revenue of 760 million euros ($905 million) for the quarter, compared with 820 million euros a year earlier. Analysts polled by Vara Research were expecting sales of 787 million euros for the period. Ams anticipates a modest year-over-year softening in revenue and expects adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to be negatively affected in 2026, due to divestments, higher precious metal prices and a weaker dollar, it said. Semiconductor suppliers like ams OSRAM have been hit by weakening auto demand and low electric vehicle sales amid geopolitical concerns and a high interest rate environment. However, Vontobel and Jefferies analysts said that the company's fourth quarter was ahead of expectations, due to a stronger lamps business while its semiconductor business performed in line with expectations. Shares in ams OSRAM, which have gained 11.4% since the start of the year including today's session, were up 6.6% in early trading. The Austrian firm also said it would launch a new cost cutting program called "Simplify", targeting additional 200 million euros run-rate savings by 2028. The program will affect approximately 2,000 employees, roughly half of them are in Europe, according to the statement. Ams OSRAM posted its fourth quarter revenue of 874 million euros, down 1% from 882 million euros last year, but above analysts' forecast of 847.5 million euros according to Vara. ($1 = 0.8400 euros) (Reporting by Ozan Ergenay in Gdansk; Editing by Matt Scuffham) ((Ozan.Ergenay@thomsonreuters.com;))