BE Semiconductor Industries (BESI) Q2 2025 earnings summary

Executive summary

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

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

• Orders in Q2 2025 declined 3.0% 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.

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 €43.5 million, up 10.7% sequentially but down 11.8% year-over-year.

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

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

• Net cash position at June 30, 2025, was negative €36.0 million, reflecting large dividend payments and facility purchase.

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, despite higher R&D spending.

• Orders for hybrid bonding systems and 2.5D Advanced Packaging expected to increase in H2 2025, with further growth in 2026-2029 driven by AI and new product launches.

• Management sees improved H2 2025 outlook, citing increased customer capex for AI infrastructure and strong advanced packaging demand.