BE Semiconductor Industries N.V. Announces Q2-25 Results

Core Insights - BE Semiconductor Industries N.V. (Besi) reported Q2-25 revenue of €148.1 million, a 2.8% increase from Q1-25, but a 2.1% decrease from Q2-24, primarily due to weak mobile end markets [5][6] - Net income for Q2-25 was €32.1 million, reflecting a 1.9% increase from Q1-25 but a 23.4% decrease from Q2-24, attributed to lower revenue and gross margins, increased R&D spending, and higher interest expenses [5][6] - For H1-25, revenue totaled €292.2 million, down 1.8% compared to H1-24, with orders decreasing by 17.0% due to lower bookings for hybrid bonding systems and mobile applications [5][7] Q2-25 Highlights - Revenue of €148.1 million, operating income of €43.5 million, and net income of €32.1 million were reported for Q2-25 [5][6] - Orders decreased to €128.0 million, down 3.0% from Q1-25 and 30.9% from Q2-24, mainly due to ongoing weakness in mainstream computing and mobile applications [5][6] - Gross margin was 63.3%, a decrease of 0.3 points from Q1-25 and 1.7 points from Q2-24, influenced by a less favorable product mix and adverse forex effects [5][6] H1-25 Highlights - Total revenue for H1-25 was €292.2 million, a decline of 1.8% from H1-24, primarily due to weakness in mainstream assembly markets [7][8] - Net income for H1-25 was €63.6 million, down 16.2% from H1-24, driven by lower revenue and gross margins, as well as increased interest expenses [7][8] - Cash and deposits increased to €490.2 million at June 30, 2025, a 90.6% rise compared to June 30, 2024, due to the Senior Note offering [5][7] Q3-25 Outlook - Revenue is expected to decline by 5-15% compared to Q2-25, with orders anticipated to increase significantly due to rising demand for hybrid bonding systems and die attach systems for AI-related applications [10][9] - Gross margin is projected to range between 60-62%, reflecting adverse forex effects from a weaker USD against the euro [10] - Operating expenses are expected to remain flat, with a potential +/- 5% variation from €50.2 million in Q2-25 [10] Share Repurchase Activity - In Q2-25, the company repurchased approximately 196,000 ordinary shares for €20.7 million at an average price of €105.80 per share [11] - As of June 30, 2025, €72.2 million of the current €100 million share repurchase authorization has been utilized [11]