Melexis: Revenue up 4% in third quarter 2026, gross margin at 40.7%
Melexis' revenue grew 4% year-on-year in the third quarter of 2026, reaching €223.7 million. Over the same period, operating profit increased by 9%, to €41.3 million, driven by a gross margin that rose from 38.8% to 40.7%.
The Belgian sensor and driver designer published these accounts on October 28, 2026, and confirmed its targets for the second half. Over nine months, net profit remains down 5%, while financial result shifted from +€4.9 million to -€10.1 million.
Operating profit up 9% for 4% sales growth
In the third quarter, revenue grew 4% compared to the same quarter in 2025, including a positive EUR/USD exchange effect of 1%. It increased 3% compared to the second quarter, with no exchange effect on this comparison.
Gross operating profit reached €91.1 million, up 9% year-on-year. Gross margin stands at 40.7%, compared to 38.8% a year earlier and 40.5% in the second quarter.
EBIT margin rose from 17.6% to 18.5% year-on-year, and EBITDA amounted to €54.2 million, or 24.2% of sales compared to 23.9%. Net profit grew 14%, to €31.3 million, or €0.78 per share versus €0.68.
This earnings per share is below the average expectations of four analysts, who predicted €0.86 (range of €0.79 to €0.91). Chief Executive Officer Marc Biron described these results as "in line with our expectations".
EBIT advances 10% and net profit falls 5% over nine months
Over the first nine months of 2026, revenue reached €642.9 million, up 3%, despite a negative exchange effect of 1%. Gross margin improved from 38.7% to 40.4%, a gain of 170 basis points that the chief executive attributes to "disciplined cost management".
Operating profit increased 10%, to €113.0 million, representing a margin of 17.6% compared to 16.4%. Net profit, however, fell 5%, to €85.2 million, as financial result shifted from a gain of €4.9 million to a charge of €10.1 million.
On the cash front, cash flows from operating activities reached €220.3 million over nine months, compared to €79.3 million a year earlier. Inventories returned to €261.5 million as of September 30, compared to €300.3 million at end-2025, and financial debt over one year to €227.3 million, compared to €301.3 million.
The geographic distribution evolved: the Asia-Pacific region represented 65% of quarterly sales, compared to 61% a year earlier. According to Marc Biron, sales in China reached "a historic record level", and the group concluded a framework purchase agreement with automaker BYD.
Revenue target of €445 to €455 million for second half
Melexis confirmed its outlook for the second half of 2026: revenue between €445 and €455 million, gross margin of approximately 41% and operating margin of approximately 18%. These targets are based on an EUR/USD exchange rate of 1.12 for the remainder of the year.
In the third quarter, the first of the two quarters in question, gross margin stood at 40.7% and operating margin at 18.5%. The group also expects investments of approximately €40 million over the 2026 fiscal year, compared to €28.4 million committed over the first nine months.
According to the chief executive, customers have "normalized their inventories" and fourth-quarter orders in China "point to further growth". He also notes that the group's robotics technology has entered production at customers "earlier than expected".
For reference, Melexis had achieved revenue of €839.6 million over fiscal year 2025, according to accounts published on March 15, 2026. The confirmed target of €445 to €455 million in sales for the second half is now the main financial benchmark for year-end.
