BE Semiconductor Industries (BESI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 27% year-over-year to €156.6 million, with net income up 33.7% to €46.8 million, driven by strong demand in advanced packaging, hybrid bonding, and photonics, despite ongoing weakness in automotive and Chinese markets.

• Orders increased 19.2% year-over-year to €151.8 million, with hybrid bonding orders comprising about 50% of total orders in the past 12 months.

• For the first nine months of 2024, revenue grew 8.3% and net income was stable at €122.7 million, as higher R&D and share-based compensation offset revenue gains.

• Financial position strengthened, with net cash at €110.7 million and total cash and deposits at €637.4 million, supported by a €350 million senior note offering and ongoing share buybacks.

• Capacity expansion underway, including plans to double Malaysian clean room space and increase R&D in Singapore.

Financial highlights

• Q3 2024 revenue: €156.6 million (+27% YoY); orders: €151.8 million (+19.2% YoY); net income: €46.8 million (+33.7% YoY); EPS: €0.59 (+31.1% YoY).

• Q3-24 gross margin: 64.7%, up 0.1 points YoY; operating margin: 35.2%; net margin: 29.9%.

• Net cash at quarter-end: €110.7 million (+48.8% QoQ, +22.7% YoY); total cash and deposits: €637.4 million.

• Adjusted net income for Q3-24: €50.2 million (32.1% margin); EBITDA: €62.4 million (+27.6% YoY).

• Dividend payout ratio for 2023 was 92%; cumulative dividends since 2011 total €1.4 billion.

Outlook and guidance

• Q4 2024 revenue expected to be flat, plus or minus 10% versus Q3, due to shipment timing of hybrid bonding systems.

• Gross margin guidance for Q4: 63%-65%; operating expenses forecasted flat to up 5% sequentially.

• FY 2024 revenue expected at €610.7 million (+5.5% YoY); FY 2024 gross margin forecasted at 65.2%.

• Market upcycle now expected in 2025-2026, with 2024 growth forecast revised down to 2.9%.