BE Semiconductor Industries (BESI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached €151.2 million, up 3.3% sequentially but down 7.0% year-over-year, with net income of €41.9 million, up 23.2% from Q1 2024, driven by strong demand for photonics, hybrid bonding, and 2.5D assembly for AI applications, offsetting weakness in smartphones and automotive.

• Bookings surged to €185.2 million in Q2 2024, up 64.5% year-over-year and 45.0% sequentially, with about 50% of orders AI-related.

• H1 2024 revenue totaled €297.5 million (+0.5% year-over-year), with net income of €75.9 million (-12.9%), reflecting higher R&D and share-based compensation.

• Advanced packaging, hybrid bonding, and photonics for AI applications are key growth drivers, offsetting ongoing weakness in mainstream, mobile, and automotive markets.

• Net cash stood at €74.4 million after significant dividends, share repurchases, and convertible note conversions.

Financial highlights

• Q2 2024 revenue: €151.2 million (+3.3% sequentially, -7.0% year-over-year); net income: €41.9 million (+23.2% sequentially, -20.3% year-over-year).

• Q2 gross margin: 65.0% (down 2.2 pts sequentially, -0.6 pts year-over-year); net margin: 27.7%.

• Bookings: €185.2 million in Q2 (+64.5% YoY); €313 million in H1 (+22.9% YoY).

• EPS (basic): €0.53 (+20.5% sequentially, -22.1% year-over-year).

• Net cash: €74.4 million at quarter end.

Outlook and guidance

• Q3 2024 revenue expected to be flat (±5%) versus Q2, with gross margin between 64%-66%.

• Q3 operating expenses forecasted to decrease by 0%-5% sequentially.

• Market recovery in assembly equipment is slow, especially in China, automotive, and smartphones; strong rebound expected in 2025/2026 driven by AI, datacenter, and HPC.

• TechInsights cut 2024 assembly market growth estimate to 9% but raised 2025-2026 forecasts, with a market peak expected in 2026.

• Management anticipates further order growth for hybrid bonding and TCB systems as AI and advanced packaging adoption expands.