Melexis NV
XBER:MEX
Melexis NV
In the rapidly evolving landscape of semiconductor technology, Melexis NV emerges as a notable player, particularly within the automotive sector. Founded in 1988 and headquartered in Belgium, Melexis has carved a niche for itself by developing advanced integrated circuits that respond to the increasing complexity of modern vehicles. With vehicle automation and electric vehicles driving demand, Melexis provides innovative products such as sensors for safety systems, power management devices, and motor drivers. These technologies integrate into automotive systems to enhance energy efficiency, safety, and overall vehicle performance—critical components as manufacturers race towards smarter, greener transportation solutions.
Melexis's business model primarily revolves around designing, manufacturing, and selling semiconductor components tailored to automotive applications. The company's success is deeply intertwined with trends shaping automotive innovations, dictating its strategic directions and development efforts. Revenue generation hinges on the company's ability to deliver robust solutions that meet stringent industry standards, ensuring reliability and performance in challenging environments. By securing long-term partnerships with automotive manufacturers and emphasizing research and development, Melexis has established a resilient business framework that not only supports its growth but also positions it to leverage future opportunities in a technologically demanding marketplace.
In the rapidly evolving landscape of semiconductor technology, Melexis NV emerges as a notable player, particularly within the automotive sector. Founded in 1988 and headquartered in Belgium, Melexis has carved a niche for itself by developing advanced integrated circuits that respond to the increasing complexity of modern vehicles. With vehicle automation and electric vehicles driving demand, Melexis provides innovative products such as sensors for safety systems, power management devices, and motor drivers. These technologies integrate into automotive systems to enhance energy efficiency, safety, and overall vehicle performance—critical components as manufacturers race towards smarter, greener transportation solutions.
Melexis's business model primarily revolves around designing, manufacturing, and selling semiconductor components tailored to automotive applications. The company's success is deeply intertwined with trends shaping automotive innovations, dictating its strategic directions and development efforts. Revenue generation hinges on the company's ability to deliver robust solutions that meet stringent industry standards, ensuring reliability and performance in challenging environments. By securing long-term partnerships with automotive manufacturers and emphasizing research and development, Melexis has established a resilient business framework that not only supports its growth but also positions it to leverage future opportunities in a technologically demanding marketplace.
Sales Recovery: Melexis reported Q4 2025 sales of EUR 214.5 million, up 9% year-on-year, marking a return to growth after a period of inventory correction and demand volatility.
China Growth: China posted its highest-ever sales in Q4, driving double-digit APAC growth, though this region continues to show high quarter-to-quarter volatility.
Full-Year Decline: Full-year 2025 sales fell 10% to EUR 839.6 million, with gross and operating results also down sharply due to lower volumes and negative currency impact.
Margin Improvement Ahead: Gross margin headwinds from yield issues and inventory revaluation are expected to ease in 2026, with H1 gross margin guided to about 40% and operating margin around 17%.
Cautious Outlook: Sales are expected to be flat in H1 2026 versus last year, with growth anticipated in H2, mirroring the 2025 dynamic. No full-year guidance was given due to continued volatility.
Innovation & Strategy: Melexis launched 19 new products in 2025, is accelerating its China and India strategies, and sees hybrids as a key growth area, benefiting from both combustion and electric engine content.
Dividend: Proposed final dividend of EUR 2.4 per share, bringing the total 2025 dividend to EUR 3.7 per share.
