BE Semiconductor Industries (BESI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached €148.1M, up 2.8% sequentially but down 2.1% year-over-year, with net income at €32.1M, a 1.9% sequential increase but 23.4% lower year-over-year, amid soft demand in mobile and automotive and higher expenses.

• H1 2025 revenue was €292.2M, down 1.8% year-over-year, with net income of €63.6M, a 16.2% decrease, reflecting ongoing softness in mobile and automotive, partially offset by growth in hybrid bonding shipments.

• Orders in Q2 2025 declined 3% sequentially and 30.9% year-over-year, mainly due to lower demand in mainstream computing and mobile, but saw new orders for TCB Next systems.

• Sequential growth in Q2 was driven by AI-related data center shipments and lower operating expenses.

Financial highlights

• Q2 2025 gross margin was 63.3%, down 0.3 points sequentially and 1.7 points year-over-year, impacted by product mix and adverse forex.

• Operating income for Q2 2025 was €43.5M, up 10.7% sequentially but down 11.8% year-over-year.

• Cash and deposits at June 30, 2025, totaled €490.2M, up 90.6% year-over-year, mainly due to the Senior Note offering.

• Dividend payments in Q2 2025 totaled €172.8M; share repurchases during the quarter amounted to €20.7M for 196,000 shares.

• Book-to-bill ratio was 0.9x in Q2 2025, indicating order softness.

Outlook and guidance

• Q3 2025 revenue is expected to decline 5%-15% sequentially, while orders are anticipated to increase significantly due to demand for hybrid bonding and 2.5D packaging.

• Gross margin for Q3 2025 is projected at 60%-62%, lower than Q2 2025, mainly due to adverse forex from a weaker USD.

• Operating expenses in Q3 2025 are expected to remain flat within a ±5% range of Q2 2025 levels.

• Orders for hybrid bonding systems and 2.5D advanced packaging expected to increase in H2 2025, with strong demand for AI, data center, and high-end mobile applications.

• Market recovery in mainstream assembly and mobile expected to begin late Q3 or Q4, with higher growth forecast for 2026.