Innovative Strategies Propel BE Semiconductor Industries Growth

BE Semiconductor Industries Reports Q3-25 Performance

BE Semiconductor Industries N.V. (the "Company" or "Besi") (Euronext: BESI; OTC markets: BESIY), a renowned manufacturer of semiconductor assembly equipment, recently unveiled its financial results for the third quarter and the first nine months of 2025. The remarkable growth in orders highlights the company's resilience amid challenges faced within the industry.

Q3-25 Financial Highlights

During the third quarter of 2025, Besi demonstrated its ability to navigate a challenging market landscape. Despite a decrease in revenue to €132.7 million, which marked a 10.4% decline compared to the previous quarter and a 15.3% dip from Q3-24 due to a sustained industry downturn, the company achieved significant order growth. Orders surged by 36.5% quarter-over-quarter, reflecting strong demand, particularly from Asian subcontractors for 2.5D data center and photonics applications.

Revenue and Income Insights

The gross margin for Q3-25 stood at 62.2%, surpassing expectations despite a slight decline compared to previous quarters. Similarly, net income fell to €25.3 million, down by 21.2% from Q2-25 and by 45.9% compared to Q3-24. This decline was attributed to lower revenue and gross margins amid ongoing economic pressures. Despite these challenges, cash and deposits increased by €28.4 million during the quarter, largely driven by improved operational cash flow.

Year-to-Date Performance

Besi's year-to-date results also reflected similar trends, with revenue totaling €425.0 million, a decrease of 6.4% compared to the same period last year. The decline was primarily due to sluggishness in mainstream assembly markets, notably mobile and automotive applications. However, increased shipments to Asian subcontractors for data center applications partially mitigated the downturn.

Positive Order Trends

Orders during the first nine months of 2025 reached €434.6 million, a decline of 6.5% year-over-year, primarily due to reduced bookings for hybrid bonding and mobile applications. Nonetheless, Besi witnessed increased demand for die attach orders related to AI computing, showcasing a shift in market dynamics.

Future Outlook for Q4-25

Looking ahead to Q4-25, Besi anticipates a revenue increase ranging between 15% to 25% compared to Q3-25 due to higher order levels. There are expectations of gross margins in the 61-63% range and a corresponding rise in operating expenses by around 5-10% primarily attributed to ramped-up research and development initiatives.

Share Repurchase Program Initiatives

In a significant move to enhance shareholder value, Besi has initiated a new €60 million share repurchase program, which follows the successful completion of a previous €100 million buyback. This new program aims to offset dilution arising from employee stock plans and convertible notes, with plans to complete the buyback by October 2026.

Conclusion: Navigating Industry Challenges

Richard W. Blickman, President and CEO of Besi, expressed optimism about the company's future trajectory. He noted the increased order activity in Q3-25 and the continuous order momentum observed in Q4-25, signifying a potential rebound in advanced packaging demands essential for the burgeoning data center and AI sectors.

Frequently Asked Questions

What was the revenue for Q3-25?

The revenue for Q3-25 was €132.7 million, reflecting a decline compared to the previous quarters.

How much did orders increase in Q3-25?

Orders increased by 36.5% compared to Q2-25, demonstrating strong demand particularly from the Asian market.

What is the outlook for Q4-25?

Besi anticipates revenue to grow by 15 to 25% compared to Q3-25, driven by increased bookings.

What share repurchase program has Besi initiated?

Besi has launched a new €60 million share repurchase program aimed at reducing share dilution and increasing shareholder value.

What were the main factors affecting net income?

Net income was largely impacted by lower revenues and gross margins, in addition to higher interest expenses during the period.

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