Melexis (MELE) Q4 2025 earnings summary

Executive summary

• Full year 2025 sales were EUR 839.6 million, down 10% year-over-year, with Q4 sales at EUR 214.5 million, up 9% year-over-year; net income for 2025 was EUR 112.5 million (EUR 2.78/share), down 34% year-over-year, with Q4 net income at EUR 22.6 million (EUR 0.56/share), up 24% year-over-year.

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

• Innovation included 90 new product launches in 2025, notably in automotive, robotics, and protective devices for power modules.

• Strategic focus on China and India, with localization of supply chain, new teams, and an India entity being established to capture growth.

• The company maintains a strong position in automotive sensors, ranking 4th globally, and continues to innovate in sensor and driver ICs.

Financial highlights

• Full year 2025 sales were EUR 839.6 million, down 10% year-over-year; Q4 sales were EUR 214.5 million, up 9% year-over-year.

• Gross margin for 2025 was 38.6%, 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 operating income was EUR 31.5 million (14.7% margin), up 14% year-over-year.

• 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.

• Dividend payout for 2025 is EUR 3.7/share (EUR 2.4 final, EUR 1.3 interim).

Outlook and guidance

• Sales in H1 2026 expected to be flat year-over-year; H2 2026 expected to grow versus H1.

• Gross margin for H1 2026 expected around 40%; operating margin around 17% (EUR/USD 1.17 assumed).

• CapEx for 2026 expected at EUR 40 million.

• Price erosion expected at mid-single digits in 2026, offset by positive product mix.

• Long-term high single-digit growth target remains intact.