Melexis Nv Ieper (MLXSF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome, everyone, joining us today for the Melexis fourth quarter and full year 2025 earnings call. I'm Philip Ludwig, Investor Relations Director at Melexis, and I'm joined today by our CEO, Marc Biron, and CFO, Garen van Heeringsveen. Earlier today, we published our press release and presentation, which can be found on our website. We will start with some brief remarks on the business and financials before taking your questions, starting with Marc Biron. Marc, the floor is yours. Thank you, Philippe. Hello, everyone, and welcome to this earnings call. Let me start by sharing some perspective on the full year of 2025 and how we see 2026 as of today. Then we will discuss the last quarter of 2025. Looking back at 2025, at the beginning of the year, we had entered a phase of customer inventory correction later than our peers. We are now in a period with more geopolitical uncertainties and more short-term volatility in demand. The period of customer inventory correction was largely completed by the summer. As a result, our sales were stable or grew sequentially as the year has progressed. High in-quarter ordering has started in Q2, which we could serve from our strategic inventory. Still in 2025, sales in our largest region, APAC, has increased as a percentage of group sales. China has followed an alternating pattern of very strong sales in one quarter, lower the next quarter, and strong again the following quarter, as it was in Q4 when we recorded our highest ever sales in China. Now, looking ahead to 2026, we remain in the recovery phase of the automotive demand cycle. We expect that these fails will not be linear, given all the uncertainties and the late ordering behavior of our customers. Following the very strong Q4, sales in China continue their alternating patte...