Melexis Turns the Corner: Robotics Revenue, China Records, and a Data-Center Option
Q2 2026 shows order momentum finally translating into sales, with robotics turning real and China hitting a record pace — but pricing and margin leverage remain the watch items.
MELE.BR · Earnings Call · 2026-07-29
A Quiet Inflection
The second quarter of 2026 marked a subtle but real shift at Melexis. Sales of €217.3 million came in ahead of the company's own outlook, and the tone on the call was notably more confident than six months ago. CEO Marc Biron said: “We have seen customer orders increasing as we have progressed through the quarter.” — Marc Biron, CEO · 2026-07-29 That momentum is broad-based, but the standouts are clear: data center opportunities are finally showing up in product launches, position sensors are winning steering and braking sockets, and — most importantly for the growth narrative — humanoid robot business has moved from design wins to actual revenue. This is a company that has been stuck in an inventory-correction narrative for over a year. The prior calls were dominated by cautious language about visibility and order timing. In February 2026, the CFO was still explaining that the gross margin would be lifted mainly by the cost of yield, with a flat first half. Now, management is guiding Q3 sales to €220-225 million, H2 to €445-455 million, and gross margin around 41%. The change is not just numerical — it is qualitative.The China Engine
China has been a recurring theme, but the current quarter shows something new: record performance and a confident outlook. Biron stated, “Q2 was quite good in China, even very good in China. What we see in Q3, it will be even higher, even probably a record level... in China for Q3.” — Marc Biron, CEO · 2026-07-29 Crucially, he attributed the growth to local Chinese customers, not to Western OEMs manufacturing in the region. The China strategy — localizing supply chain and support — is producing results, especially in position sensors, lighting, and the fast-growing solar panel current sensor business. This stands in sharp contrast to the prior call in February, where the company acknowledged a sharp drop in China due to the Lunar New Year and incentive-scheme changes. Now, the recovery is not just a bounce but appears structural, driven by share gains. The CFO added that China's sales mix is heavily weighted toward growth drivers, which helps the company overall.Robotics: From Design Wins to Revenue
The most striking new development is the confirmation that robotics is contributing to the top line. When asked whether humanoid robotics could reach €10 million of revenue in 2027, Biron replied, “For sure. Since Q2, we have now real business. We have real order. As you mentioned, the opportunity is translating in design win, now the design win are translating in real revenue.” — Marc Biron, CEO · 2026-07-29 He cited the U.S. design win from September last year, and noted that Q3 order intake is already higher than Q2. The company's humanoid robot exposure spans position sensors for joints, motor drivers for actuation, and a tactile sensor still in the design-win phase. This is a genuine inflection point. In the prior call from October 2025, management was still describing robotics as a small volume business with a long ramp. Now, the language is about "real revenue" and a "huge multiplication factor". The market has been waiting for a tangible robotics revenue stream from any European semi player, and Melexis is now delivering one. Meanwhile, the data center opportunity is building, albeit from a small base. Biron mentioned three new products launched in Q2 for thermal management and current sensing, and highlighted the snubber's traction in both automotive and AI data centers. He said, “We are launching many products for the data center.” — Marc Biron, CEO · 2026-07-29 This aligns with the global keyword trend — data centers are a recurring theme across the market, and Melexis is positioning itself as a supplier of power and sensing components for that buildout.Margin Recovery and the Cost of Yield
The gross margin recovered to 40.5% in Q2, up from 39.3% in Q1, and management guides to around 41% in H2. The key driver is the cost of yield improvement, which the CFO said was "the big move up" in Q1 and will benefit the full year. This is a continuation of a story first laid out in 2025, when the company was suffering from ramp-up issues in one fab. The prior call noted that the improvement would be gradual, and now it is showing up. Management also flagged that further cost-of-yield gains are possible in 2027. Pricing remains a deliberate choice. The company has not raised prices, prioritizing volume and long-term relationships. As Biron explained, “We did not increase our price indeed earlier in 2026. We are now just starting the price negotiation with our customer. It's about price and volume, and we want to give priority to volume.” — Marc Biron, CEO · 2026-07-29 This is consistent with the prior call where they said ASPs would be flat. The market may need to wait for pricing power, but the volume payoff is visible in the order book.Looking ahead, the key risks are the same as before: limited visibility (still 4-5 months) and the potential for China's volatility to return. But the tone of this call suggests that Melexis has finally moved past the inventory correction and is entering a growth phase driven by share gains, robotics, and the data-center buildout. The company is still guiding only ~3% sales growth for the year, but the trajectory into Q4 and 2027 looks more constructive. For a name that has underperformed its peers for over a year, this is a meaningful change in the story.Since Q2, we have now real business. We have real order. As you mentioned, the opportunity is translating in design win, now the design win are translating in real revenue. This is fact.