Philip Ludwig
Investor Relations Director

Welcome, everyone, joining us today for the Melexis First Quarter 2026 Earnings Call. I am Philip Ludwig, Investor Relations Director. And with us today are our CEO, Marc Biron; and CFO, Karen Van Griensven.

Earlier today, we published our press release and presentation, which can be found on our website. We will start the call with some brief remarks before taking questions, starting with Marc Biron. Marc, the floor is yours.

Marc Biron
MD, CEO & Executive Director

Thank you, Philip. Hello, everyone, and welcome to this earnings call. I will share some highlights about our business performance and strategic progress, and then our CFO, Karen Van Griensven, will provide the financial overview and outlook.

The results of our first quarter were fully in line with our expectations, taking into account the seasonal factor like the Chinese New Year and the changes of the automotive incentive schemes.

Importantly, our profitability grew already in the first quarter, driven by our operational improvements and disciplined cost control. We recorded a 2% increase in sales year-over-year, which put us on track to achieve our first half '26 sales outlook.

Automotive applications have represented 89% of our total sales