Melexis (MELE) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached €245.7 million, up 4% year-over-year and 2% sequentially, near the high end of guidance.

• Net result for Q2 2024 was €49.1 million (EPS €1.21), down 5% year-over-year and 7% sequentially.

• Growth was driven by applications outside the powertrain, with strong performance in magnetic position and temperature sensors and premium features expanding into smaller vehicles.

• Automotive customers accounted for 89% of sales in Q2 and H1 2024, with five major design wins across EVs, combustion engines, and non-powertrain applications.

• Product portfolio diversity and global design wins support resilience against global car demand fluctuations.

Financial highlights

• Q2 2024 gross margin was 44.3% (€108.8 million), down from 47.0% in Q2 2023; operating margin was 26.2% (€64.4 million), down 5% year-over-year.

• Net result for Q2 2024 was €49.1 million; EPS was €1.21, down from €1.28 in Q2 2023.

• H1 2024 sales were €487.5 million, up 5% year-over-year; H1 2024 EBIT was €128.1 million (26.3% margin), flat year-over-year.

• Free cash flow in H1 2024 was €54 million; net debt stood at €191.1 million at the end of Q2 2024.

• Interim dividend of €1.30 per share payable after October 17, 2024.

Outlook and guidance

• Q3 2024 sales expected between €247–252 million.

• Full-year 2024 sales expected around €1 billion, with gross margin above 44% and operating margin above 25%.

• 2024 CAPEX guidance reduced to €50–60 million from previous €70 million, due to timing of investments.