BE Semiconductor Industries (BESI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was €144.1 million, down 1.5% year-over-year and 6.1% sequentially, mainly due to weakness in mobile and automotive, partially offset by growth in hybrid bonding and AI-related applications.

• Orders increased 8.2% sequentially and 3.3% year-over-year, driven by AI data center and advanced computing demand.

• Net income was €31.5 million, down 46.9% sequentially and 7.4% year-over-year, with net margin at 21.9%.

• Applied Materials acquired a 9% stake, deepening strategic collaboration on hybrid bonding technology.

• Significant progress in wafer-level assembly, with hybrid bonding orders from leading memory producers and a US logic manufacturer starting production.

Financial highlights

• Gross margin was 63.6%, trending toward the lower end of the target range due to less favorable product mix and forex headwinds.

• Operating income was €39.3 million, down 22.3% sequentially and 3.4% year-over-year.

• Adjusted net income (excluding share-based comp and tax benefits) was €35.9 million (24.9% margin) in Q1-25.

• Net cash increased 10.8% sequentially to €159.4 million, representing 26.3% of LTM revenue.

• Operating cash flow was €44.4 million in Q1-25.

Outlook and guidance

• Q2 2025 revenue is forecast to be flat ±10% versus Q1 2025, with gross margins between 62-64%.

• Operating expenses are expected to decrease 0-10% sequentially, mainly due to lower consulting costs.

• Market recovery anticipated in H2-25, with assembly equipment market forecast to grow 13% in 2025 and 26% in 2026.

• Long-term fundamentals remain strong, with anticipated growth in advanced packaging for AI, though timing is uncertain due to tariff risks.