Melexis Nv Ieper

Welcome, everyone, joining us today for the Mlexus third quarter 2025 earnings call. I am Philippe Ludwig, Investor Relations Director, and I'm joined by today's speakers, CEO Marc Piron and CFO Garen van Gerintven. We will start with brief remarks on the business and financials before taking your questions, starting with Marc Piron. Marc, the floor is yours.

Thank you, Philippe. Hello, everyone, and welcome to this earnings call. In the third quarter of 2025, we delivered sales of €215.3 million, landing just above the top end of our guidance. This confirms another quarter of sequential growth and demonstrates that the recovery, while very gradual, continues. The quarter-to-quarter sales growth was driven mainly by Europe, while Asia-Pacific and the Americas were broadly stable. Asia Pacific continues to be our largest region with around 60% of the total sales. Within our product portfolio, the sales of our motor driver was strong during Q3, especially in automotive HVAC application, as well as in thermal management for EV powertrains. Our pressure sensors also performed well, particularly for internal combustion engine such as fuel management and after-treatment system to reduce emissions. We launched an additional three new products during Q3 for a total of nine products since the beginning of the year. This included a new magnetic sensor for small motor applications such as automotive seats and windows. We have also launched an upgraded sensor measuring current, voltage, and temperature and enabling a more precise measurement in safety-critical applications like automotive batteries and DC fast charging. The third launch was a motor driver for smart fans used for server cooling, which is a very demanded application linked to the AI trend. With a busy queue for ahead, we remain well on track to approach the record number of product launches achieved in 2024. We have recorded new design wins in the third quarter, including the two largest design wins so far for this year. One of them was for a motor driver, especially designed for the 48-volt architecture of EV vehicles. This is a unique product, and we expect strong growth for 48-volt architecture, which has many advantages in terms of cost, in terms of electrical power density, not only in EVs, but also in robotics. Overall, we are booking clear progress on our strategy. The number of product launches is on track and will be similar to the record of 2024 with 19 or 20 product launches. We continue to expand our product portfolio with the ambition to address new customer needs in fast-growing applications driven by the electrification, the premiumization, and the automotive trends. The opportunities outside of automotive are still very strong. For example, in robotics, we have provided our first tactile sensing solution to our customers. Last but not least, we continue to have strong traction in Asia, both in automotive and outside automotive. We will go in more detail on our strategic progress at our Capital Market Day on November 5th. I will now hand it over to our CFO, Karen Van Grisven, to provide a detailed financial overview and outlook.

Thank you, Marc. And hello, everybody. So the sales for the third quarter of 2025 were 215.3 million euros, a decrease of 13% compared to the same quarter of the previous year, and an increase of 2% compared to the previous quarter. The euro-US dollar exchange rate evolution had a negative effect of 2% on sales compared to the same quarter of last year. and a negative impact of 1% on sales compared to the previous quarter. The gross result was 83.4 million euro or 38.8% of sales, a decrease of 23% compared to the same quarter of last year and an increase of 1% compared to the previous quarter. R&D expenses were 12.8% of sales G&A was at 6.1% of sales, and selling was at 2.3% of sales. The operating result was 37.8 million euros, or 17.6% of sales, a decrease of 41% compared to the same quarter of last year, and an increase of 6% compared to the previous quarter. The net result was 27.5 million euros, 0.68 euro per share, a decrease of 46% compared to 51.2 million euro, or 1.27 euro per share in the third quarter of 2024, and a decrease of 27% compared to the previous quarter. Moving to the outlook, Melexis expects sales in the fourth quarter of 2025 to be in the range of 215 to 200. For the full year 2025, Manexis expects sales to be in the range of €840 to €845 million, with a gross profit margin around 39% and an operating margin around 16%, all taking into account a EURUSD exchange rate of 1.17 for the remainder of the year. And for the full year 2025, Melexis now expects CapEx to be around 35 million euro, but previously around 40 million euro. So this concludes our remarks. We can now take your questions. So operator, please go ahead.