Melexis (MELE) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached EUR 202.1 million, up 2% year-over-year, with automotive applications accounting for 89% of total sales and gross margin at 39.9%.

• Profitability improved due to operational enhancements and cost control, though net profit declined 6% year-over-year to EUR 23.1 million (EPS EUR 0.57).

• Strategic progress included expansion in China with a wholly foreign-owned enterprise and new product launches in automotive, robotics, and data centers.

• Notable advancements in robotics, including a partnership with OYMotion to integrate Tactaxis technology into robotic hands.

• Operating cash flow before working capital changes was EUR 43.8 million, up 1% year-over-year.

Financial highlights

• Gross profit margin was 39.9%, up from 38.2% in Q1 2025; EBIT rose 14% year-over-year to EUR 33.2 million (16.4% of sales).

• Net result was EUR 23.1 million, down 6% year-over-year but up 2% sequentially; EPS at EUR 0.57.

• Free cash flow for Q1 2026 was EUR 82 million.

• Net debt stood at EUR 207.0 million at quarter-end.

• EUR/USD exchange rate had a 4% negative impact on sales year-over-year.

Outlook and guidance

• Sales for H1 2026 expected to be flat year-over-year; H2 2026 sales projected to grow sequentially.

• Gross profit margin for H1 2026 expected around 40%, operating margin around 17%.

• Full-year 2026 CapEx expected to be around EUR 40 million.