Chipmaker Melexis posts lower sales and profit as outlook disappoints

Belgian chipmaker Melexis saw its sales fall last year and has warned that growth is unlikely in the short term, hitting investor confidence.

The company reported 2025 revenue of 839.6 million euros, down 10 per cent on 2024 and below its own target of 840-845 million. Fourth-quarter sales rose 9 per cent to 214.5 million but still missed analysts’ forecasts.

Operating profit dropped sharply, falling 39 per cent to 134 million, while net profit slid by a third to 112.5 million. Profit margins also weakened, with the gross margin down to 38.6 per cent from 43 per cent a year earlier. Despite this, Melexis will keep its dividend unchanged at 3.70 per share.

It is the second year in a row that both sales and profit have declined. The firm blamed factory issues, a weaker US dollar, high gold prices used in chip packaging, and a slow European car market.

Looking ahead, Melexis expects revenue in the first half of 2026 to stay roughly flat, far below market hopes for strong growth. Demand from carmakers remains uncertain, the company said, partly because of changing rules and incentives for electric vehicles.

Chief executive Marc Biron said profitability should start to improve from the first quarter, and the firm expects higher sales in the second half of the year.

^{#FlandersNewsService | The Melexis factory in Ypres © BELGA PHOTO BENOIT DOPPAGNE}