Melexis (MELE) Q4 2025 earnings summary

Executive summary

• Full year 2025 sales reached EUR 839.6 million, down 10% year-over-year, with Q4 sales at EUR 214.5 million, up 9% year-over-year but flat sequentially.

• Net income for 2025 was EUR 112.5 million (EUR 2.78/share), down 34% year-over-year; Q4 net income was EUR 22.6 million (EUR 0.56/share), up 24% year-over-year but down 18% sequentially.

• APAC, especially China, drove growth with record Q4 sales, while Europe and the Americas saw sequential declines; automotive applications accounted for 88% of full-year sales.

• Innovation remained strong, with up to 90 new products launched, including advances in automotive, robotics, and industrial sensor ICs.

• Strategic focus on China and India, including local supply chain localization and new entity setup, aims to capture growth in these markets.

Financial highlights

• FY 2025 gross margin was 38.6% (EUR 324 million), down from 43.0% in 2024; Q4 gross margin was 38.4%.

• Operating income for 2025 was EUR 134 million (16% margin), down 39% year-over-year; Q4 EBIT was EUR 31.5 million (14.7% margin), up 14% year-over-year but down 17% sequentially.

• Net debt at year-end stood at EUR 279.7 million; free cash flow for FY 2025 was EUR 97 million.

• Dividend proposed for 2025 is EUR 3.70/share (EUR 2.40 final + EUR 1.30 interim).

• CAPEX for 2025 was EUR 32.4 million; 2026 CAPEX expected at EUR 40 million.

Outlook and guidance

• Sales in H1 2026 expected to be flat year-over-year; H2 2026 anticipated to grow versus H1, mirroring 2025 dynamics.

• Gross margin for H1 2026 guided around 40%, operating margin around 17%, with EUR/USD at 1.17 assumed.

• Price erosion expected at mid-single digits in 2026, but product mix to offset some of the impact.

• Non-automotive business volatility and customer supplier alternation to impact 2026 revenue.

• Sales and margin guidance for 2026 are based on stable EUR/USD exchange rates and market conditions.