Melexis posts quarterly sales of 223.7 million euros and reaches agreement with BYD
Key Facts
Melexis said on October 28, 2026, that sales reached 223.7 million euros in the third quarter, up 4% from the same period a year earlier and 3% from the second quarter. The company said results were in line with expectations, in a quarter that saw record sales in China. The CEO said the company had signed a master purchase agreement with BYD, one of the leading original equipment manufacturers. He also noted that fourth-quarter orders in China were set to rise further. The results combine a quarterly improvement in performance with an expansion of the company’s business with a major Chinese company, while earnings over the first nine months remained weaker than sales growth.
Operating profit was 41.3 million euros, equivalent to 18.5% of sales, up 9% year on year and 7% from the previous quarter. Net profit reached 31.3 million euros, or 0.78 euros per share, compared with 27.5 million euros and 0.68 euros per share in the third quarter of 2025. That represents a 14% annual increase in net profit. Melexis said disciplined cost management lifted gross margin by 170 basis points year on year in the first nine months. The company said third-quarter results were in line with expectations, as it continued to win new business in targeted applications.
For the first nine months of 2026, sales reached 642.9 million euros, up 3% from the corresponding period in 2025. But net profit for the period fell to 85.2 million euros from 89.9 million euros, a decline of 5%, while earnings per share were 2.11 euros, according to the company’s filing. The results highlight the divergence between revenue growth and lower net profit from January through September. The third quarter alone, by contrast, recorded an increase in net profit alongside growth in sales and operating profit. Management said rising electronic content was supporting growth in automotive demand after customers’ inventories normalized, without specifically attributing the record China sales figure to that trend.
In China, Melexis said third-quarter sales were the highest in its history there, and that it had signed a master purchase agreement with BYD. The CEO said the agreement allows the company to be a direct supplier within BYD’s procurement ecosystem. New business associated with the agreement includes magnetic and inductive position sensors, as well as latch and switch components for a specific application, and is expected to start in 2027. The company also introduced its first integrated circuit manufactured under a local manufacturing model in China. These steps give the company an additional operational and commercial presence in the Chinese market, while it said orders there for the fourth quarter pointed to a further increase.
Data from China’s National Bureau of Statistics show that the manufacturing purchasing managers’ index stood at 50.1% in September 2026, up 0.3 percentage points from August and back in expansion territory. Industrial value added at companies above designated size also rose 5.5% year on year in September. In the first nine months, value added in high-tech manufacturing increased 14.3% year on year. The next PMI reading is due on October 31, 2026, according to the bureau’s calendar; the available evidence contained no documented forecast for the upcoming reading. The industrial data coincided with Melexis posting its highest quarterly sales in China, though the company did not say they were the cause of that record.
Melexis reaffirmed its outlook for the second half of 2026, setting sales at between 445 and 455 million euros, with a gross margin of about 41% and an operating margin of about 18%. Investing.com reported that adjusted earnings per share of 0.78 euros came in below a consensus estimate of 0.83 euros, while gross margin was 40.7% against an expected 40.8%. The website added that the midpoint of the company’s second-half sales range, at 450 million euros, was slightly below the consensus estimate of 451.1 million euros. In connection with future business with BYD, the CEO said production of the first Snubber product is a candidate to start in summer 2027, following the product qualification phase with the customer. Melexis is due to report its 2026 fiscal-year results on February 3, 2027.