BE Semiconductor Industries (BESI) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was €153.4M, down 2% sequentially and 3.9% year-over-year, mainly due to lower automotive demand, partially offset by hybrid bonding shipments; full-year 2024 revenue rose 4.9% to €607.5M, driven by AI, hybrid bonding, and photonics.

• Q4 2024 net income was €59.3M, up 26.7% sequentially and 8% year-over-year, aided by a net tax benefit; FY 2024 net income increased 2.8% to €182.0M.

• Q4 2024 orders were €121.9M, down 19.7% sequentially and 26.7% year-over-year, reflecting lower bookings in hybrid bonding, photonics, and mainstream assembly.

• AI applications represented about 50% of total 2024 orders; hybrid bonding revenue tripled and orders more than doubled year-over-year, with customer base expanding from 9 to 15.

• Proposed dividend of €2.18 per share for 2024, representing a 95% payout ratio.

Financial highlights

• FY 2024 gross margin: 65.2%, up 0.3 pts year-over-year; Q4 2024 gross margin: 64.0%, down 0.7 pts sequentially and 1.1 pts year-over-year.

• FY 2024 operating margin: 32.2%; net margin: 30.0%; Q4 2024 net margin: 38.6% (boosted by tax benefit).

• R&D spending increased 31.7% in 2024 to support next-gen architectures and hybrid bonding.

• Cash, cash equivalents, and deposits at year-end: €672.3M; net cash: €143.8M, up 62.6% and 27.3% respectively from 2023.

• FY 2024 EPS (basic): €2.31; Q4 2024 EPS (basic): €0.75.

Outlook and guidance

• Q1 2025 revenue expected to decrease 0–10% sequentially; gross margin forecasted at 63–65%.

• Operating expenses projected to rise 10–20% in Q1 2025 due to higher strategic consulting costs.

• Mainstream assembly market recovery anticipated in H2 2025, contingent on end-market demand and global trade conditions.

• Significant incremental adoption of hybrid bonding expected over the next three years, especially in HBM4/5, ASIC logic, silicon photonics, and mobile computing.

• Management anticipates continued momentum in advanced die placement for AI, but ongoing weakness in automotive, smartphone, industrial, and China markets.