ams-OSRAM's Photonics Bet Takes Shape as Frankfurt Showcase Meets a 116% Year
Published on 09/19/2026 at 07:41 | Editorial boerse-global.de
ams-OSRAM used the Automechanika trade fair in Frankfurt to put its automotive aftermarket business on display, presenting a portfolio of retrofit products under the banner "Be Road Ready." The lineup featured LED retrofit solutions — among them the NIGHT BREAKER LED SPEED H1 and NIGHT BREAKER LED VINTAGE H1 — alongside redesigned windshield wipers, tire-pressure monitoring systems, and breakdown assistance equipment. The showing underscores the company's intent to keep expanding its higher-margin lighting and sensor operations for vehicles.
The stock finished Friday's session at EUR 18.15, having climbed 2.6% to EUR 18.05 at one point during the day. Since the start of the year, the shares have gained 116%, even after some turbulence tied to the company's recent transactions.
A Slimmer Portfolio, One Exit at a Time
That headline gain sits atop a broader restructuring effort. Roughly a week ago, ams-OSRAM agreed to sell its tungsten and molybdenum production operations in Schwabmünchen, Bavaria, to The Elmet Group, a US buyer. The deal is expected to close in the first quarter of 2027, subject to the necessary regulatory approvals. Since the agreement was announced, the stock has pulled back 6.4%.
The Schwabmünchen sale is the latest in a series of divestitures. The company has already completed the sale of its non-optical sensor business to Infineon, and has signed an agreement covering its CMOS image sensor operations with Indie Semiconductors. Proceeds from these transactions are earmarked primarily for reducing liabilities, while the company refocuses on its semiconductor and photonics core.
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Photonics Takes Center Stage
Those core operations are where management sees the real growth story. The semiconductor portfolio expanded 13% year over year, driven by rising demand for photonic solutions. To sharpen that focus, ams-OSRAM has set up dedicated business units for Digital Photonics.
Key milestones on the agenda include moving toward volume production of microLED-array-based light engines for augmented-reality glasses, as well as optical interconnect and connectivity technologies for future data networks. A development agreement with a leading partner in optical technologies for AI data centers is expected to help pave the way toward positive free cash flow in 2027.
Design Wins and the Numbers Behind Them
The order book offers further support for the turnaround. In the second quarter of 2026, ams-OSRAM secured design wins worth EUR 1.6 billion. Combined with the first three months, new orders for the first half of 2026 totaled roughly EUR 2.5 billion.
Reported results for the second quarter of 2026 showed revenue of EUR 805 million, a 3.9% increase from the prior-year period, with an adjusted EBITDA margin of 16.9% — ahead of market expectations. For the current third quarter of 2026, management is targeting revenue of between EUR 770 million and EUR 870 million, with an adjusted EBITDA margin of around 16.0%, plus or minus 1.5 percentage points.
Analysts Stay Cautious, Targets Move Higher
Analysts are tracking the overhaul with measured optimism. Deutsche Bank Research reportedly raised its price target on the stock from CHF 16 to CHF 19 on Monday, while keeping its rating at "Hold." How quickly ams-OSRAM can convert its secured development projects into high-margin series orders is likely to determine where the shares go from here.
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