Melexis (MELE) Q4 2024 earnings summary

Executive summary

• 2024 sales were €932.8 million, down 3% year-over-year, with Q4 sales at €197.4 million, a 21% decline year-over-year, mainly due to automotive inventory corrections and order push-outs.

• Net income for 2024 was €171.4 million (EPS €4.24–€4.25), down 18% year-over-year; Q4 net income was €18.3 million (EPS €0.45), down 63% year-over-year.

• Record product launches and strong design wins in automotive and non-automotive sectors, especially in China, robotics, and electrification applications.

• Push order requests and inventory corrections impacted Q4 and are expected to continue into the first half of 2025, with demand recovery anticipated around summer.

• Automotive remained the core segment, representing 90% of sales, with balanced design wins across EV, hybrid, and ICE powertrains.

Financial highlights

• Full-year 2024 sales: €932.8 million (-3% YoY); Q4 sales: €197.4 million (-21% YoY, -20% QoQ).

• Gross margin for 2024: 43% (down from 45.7% in 2023); Q4 gross margin: 39.3% (down from 44.6% in Q4 2023).

• Operating income for 2024: €219.9 million (23.6% of sales, -16% YoY); Q4 operating income: €27.6 million (14% of sales, -55% YoY, -57% QoQ).

• Net income for 2024: €171.4 million (EPS €4.24–€4.25, -18% YoY); Q4 net income: €18.3 million (EPS €0.45, -63% YoY, -64% QoQ).

• Dividend proposal: €3.70 per share for 2024, including €1.30 interim and €2.40 final dividend.

Outlook and guidance

• Q1 2025 sales expected at €190–€200 million; H1 2025 sales around €400 million, gross margin near 40%, operating margin around 16%.

• Significant sales growth anticipated in H2 2025, driven by stable global automotive production and increasing semiconductor content.

• FY 2025 CAPEX expected at €50 million.

• Price erosion expected to remain low (2–3%) and manageable, with no major impact on gross margin.