Besi Reports Steady Growth Amid Market Challenges

BE Semiconductor Industries N.V. ADR ( (BESIY) ) has released its Q4 earnings. Here is a breakdown of the information BE Semiconductor Industries N.V. ADR presented to its investors.

BE Semiconductor Industries N.V. (Besi), headquartered in Duiven, the Netherlands, is a leading manufacturer of assembly equipment for the semiconductor industry, offering advanced packaging solutions to semiconductor and electronics sectors worldwide.

The company recently reported its financial results for the fourth quarter and full year of 2024, showcasing a steady performance despite market challenges. For the fourth quarter, Besi’s revenue reached €153.4 million, while net income was €59.3 million, reflecting an increase compared to the same period in the previous year. For the full year, revenue grew by 4.9% to €607.5 million, driven by demand in the computing end-user markets, particularly for AI-related applications.

Key financial metrics highlighted include a gross margin of 64.0% for Q4-24, slightly lower than the previous quarter due to adverse forex effects. Despite this, the company’s net income saw a significant boost due to realized net tax benefits. Over the full year, orders increased by 7.0%, supported by strong demand for AI-related applications, which now account for approximately 50% of total orders. Besi also announced a proposed dividend of €2.18 per share, representing a 95% pay-out ratio.

Looking ahead, Besi remains cautiously optimistic for 2025. While they anticipate a slight decrease in revenue for Q1-25 due to ongoing market weaknesses, particularly in automotive and Chinese markets, the company continues to focus on innovation and expansion in AI applications. The management expects significant growth in the adoption of hybrid bonding technology, which is still in its early stages, foreseeing a potential recovery in mainstream assembly markets in the latter half of 2025.