Besi’s Earnings Call: Mixed Sentiment Amid Growth

BE Semiconductor Industries N.V. ADR ((BESIY)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for BE Semiconductor Industries N.V. ADR (Besi) painted a mixed picture of the company’s financial health and market position. While there were notable highlights such as a significant increase in bookings and a robust liquidity position, these were counterbalanced by declines in revenue and net income, as well as a delayed market recovery. The sentiment expressed during the call was one of cautious optimism, with positive trends in advanced packaging demand offering a silver lining amid the challenges.

Significant Increase in Bookings

Besi reported a substantial increase in bookings for the third quarter of 2025, reaching EUR 174.7 million. This marks a 36.5% rise compared to the previous quarter and a 15.1% increase year-over-year. This surge in bookings is a promising indicator of potential revenue growth in future quarters.

Improved Order Outlook

The company highlighted an improved order outlook, driven by increased die attach bookings, especially for 2.5D data center applications and photonics customers. This trend suggests a positive trajectory for upcoming quarters as demand in these sectors continues to grow.

Strong Liquidity Position

Besi’s liquidity remains robust, with cash and deposits totaling EUR 518.6 million, an increase of EUR 28.4 million from the previous quarter. This strong liquidity position is attributed to a more than doubling of cash flow from operations, providing a solid financial foundation for the company.

Completion of Share Buyback Program

The company successfully completed a EUR 100 million share buyback program and has authorized a new EUR 60 million program, expected to be completed by October 2026. This move reflects confidence in the company’s financial stability and commitment to returning value to shareholders.

Advanced Packaging Demand

There is a growing demand for advanced packaging capacity, driven by the expansion of data centers and next-generation semiconductor devices. Besi expects this demand to exceed market growth rates, positioning the company well in a rapidly evolving technological landscape.

Revenue Decline

Despite the positive developments, Besi experienced a 10.4% decline in revenue in Q3 ’25 compared to Q2 ’25 and a 15.3% decrease year-over-year. This decline is attributed to weakness in mainstream assembly markets, particularly in mobile and automotive applications.

Decrease in Year-to-Date Net Income

Year-to-date net income for 2025 decreased by 27.6% compared to the same period in 2024, amounting to EUR 88.8 million. This decline was primarily due to lower revenue, adverse foreign exchange effects, and higher interest expenses.

Delayed Recovery in Assembly Market

TechInsights revised its growth forecast for the assembly market in 2025 from 9% to 1.8%, with recovery now expected in 2026. This delay poses a challenge for Besi as it navigates a slower-than-anticipated market rebound.

Positive Guidance for Q4 ’25

Looking ahead, Besi provided an optimistic guidance for the fourth quarter of 2025, anticipating a revenue increase of 15% to 25% due to higher booking levels. The company expects gross margins to be between 61% and 63%, although operating expenses are projected to rise by 5% to 10%, largely due to increased R&D spending. This guidance underscores a positive outlook, driven by significant order momentum, particularly in the advanced packaging sector.

In summary, the earnings call for BE Semiconductor Industries N.V. ADR reflects a mixed sentiment, balancing positive developments in bookings and liquidity with challenges in revenue and market recovery. The company’s forward-looking guidance offers hope for improvement, supported by strong demand in advanced packaging and data center applications. As Besi navigates these dynamics, its strategic focus on innovation and market expansion will be crucial in driving future success.