Melexis (MELE) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached €247.9 million, stable year-over-year and up 1% sequentially, with net income of €51.2 million, down 10% year-over-year but up 4% sequentially.

• Nine-month 2024 sales totaled €735.4 million, up 3% year-over-year, with net income of €153.2 million, down 4% from the prior year.

• Automotive customers accounted for 90% of Q3 sales and 89% of nine-month sales.

• Growth in magnetic position, pressure, sensor interface, and current sensors, with strong design wins in APAC, especially China.

• Several new product launches and innovations, including Triaxis magnetic and Triphibian pressure sensors.

Financial highlights

• Q3 2024 gross margin was 43.7% (€108.2 million), down 5% year-over-year; operating margin was 25.9% (€64.2 million), down 10%.

• Q3 2024 EPS was €1.27, down from €1.41 in Q3 2023; nine-month EPS was €3.79, down from €3.95.

• Operating cash flow before working capital changes was €74.9 million in Q3 2024 and €228.1 million in 9M 2024, both declining year-over-year.

• R&D expenses were 10.7% of Q3 sales; G&A 5.1%; Selling 1.9%.

• CAPEX for Q3 was €13.9 million; nine-month CAPEX was €46.2 million.

Outlook and guidance

• Q4 2024 sales expected at €200–210 million due to inventory corrections.

• Full-year 2024 sales guidance revised to €935–945 million (previously ~€1 billion), with gross margin above 43% and operating margin above 24%.

• Full-year CAPEX expected around €60 million.

• Global automotive sales and production forecasted to grow in 2025, but near-term visibility remains limited.

• Gross margin expected above 43% (previously above 44%), operating margin above 24% (previously above 25%).