Nucor earnings beat by $0.08, revenue fell short of estimates
Introduction & Market Context
BE Semiconductor Industries NV (AS:BESI) released its Q2 2025 financial results on July 24, 2025, revealing a mixed performance with revenue and earnings falling short of analyst expectations. Despite the earnings miss, the company’s stock rose 2.71% to €127, reflecting investor confidence in Besi’s strategic positioning in the growing advanced packaging market for AI applications.
The semiconductor assembly equipment manufacturer reported revenue of €148.1 million for Q2 2025, missing analyst forecasts of €151.77 million. Similarly, earnings per share came in at €0.40, falling significantly below the expected €0.4974. However, the company’s focus on advanced packaging technologies for AI applications continues to be viewed as a long-term growth driver.
Quarterly Performance Highlights
Besi’s Q2 2025 results showed sequential improvement but year-over-year decline across several key metrics. Revenue increased 2.8% from Q1 2025 but decreased 2.1% compared to Q2 2024. Orders of €128.0 million represented a 3.0% sequential decline and a substantial 30.9% year-over-year drop.
As shown in the following comprehensive financial results table from the presentation:
Operating income showed a positive trend quarter-over-quarter, increasing 10.7% to €43.5 million, though it declined 11.8% year-over-year. Net income followed a similar pattern, rising 1.9% sequentially to €32.1 million but falling 23.4% compared to Q2 2024.
For the first half of 2025, Besi reported revenue of €292.2 million, down 1.8% from H1 2024, with gross margin declining 2.7 percentage points to 63.4%.
Financial Analysis
Besi’s gross margin showed a slight sequential decline of 0.3 percentage points to 63.3% in Q2 2025, and a more significant year-over-year decrease of 1.7 percentage points. This trend reflects ongoing pressure on margins amid challenging market conditions.
The company’s quarterly revenue and order trends reveal the cyclical nature of the semiconductor equipment business, with significant fluctuations over the past several quarters:
The company’s liquidity position changed significantly during Q2 2025. Cash and deposits decreased from €685.7 million in Q1 2025 to €490.2 million, while net cash turned negative at -€36.0 million. This represents a substantial decline of 122.6% quarter-over-quarter and 148.4% year-over-year.
Besi has maintained its commitment to shareholder returns through consistent dividends and share repurchases. The company’s dividend payout ratio has remained around 95% since 2020, with a dividend of €2.18 per share in 2024. Cumulatively, Besi has returned €1.5 billion to shareholders through dividends since 2011, equivalent to €19.96 per share.
Strategic Initiatives
Besi’s strategic focus remains on advanced packaging technologies for AI applications, which the company sees as a key growth driver. The presentation highlights the projected expansion of the assembly equipment market from $5.1 billion in 2024 to $8.2 billion in 2029, representing a 63% increase over the five-year period.
The following chart illustrates this anticipated market growth:
The company is investing in R&D to capitalize on these opportunities, with H1 2025 R&D spending up 7.3% compared to H1 2024. Besi believes it is well-positioned in the highest growth segments of the market, particularly in advanced packaging solutions for AI applications.
As shown in the presentation, Besi sees significant opportunities in the evolving AI landscape:
CEO Richard Blickman emphasized the importance of advanced packaging in differentiating AI systems, stating, "Advanced Packaging (NYSE:PKG) is one of the key ways to achieve AI systems differentiation." He expressed confidence that Besi would "exceed market growth rates given our leadership position in Advanced Packaging."
Forward-Looking Statements
Looking ahead, Besi provided guidance for Q3 2025, projecting a revenue decrease of 5-15% compared to Q2 2025. Gross margin is expected to be between 60-62%, and operating expenses are anticipated to change by +5% to -5%.
The following slide details the Q3 2025 guidance and provides context with historical seasonal trends:
Despite the near-term challenges, Besi remains optimistic about its long-term prospects. The company anticipates accelerated innovation in advanced packaging between 2026 and 2030, driven by the growing demand for AI applications from cloud to edge computing.
Besi also highlighted key investment considerations for shareholders, emphasizing its disciplined strategic focus, technological leadership, and commitment to sustainable growth:
The company plans to launch a new flip chip tool with 1-micron accuracy in Q1 2026, which is expected to strengthen its market position. This initiative aligns with Besi’s strategy to capitalize on the growing demand for advanced packaging solutions in AI applications.
While Besi faces near-term headwinds as evidenced by its Q2 2025 results, the company’s strategic positioning in the high-growth advanced packaging segment for AI applications suggests potential for long-term growth. Investors appear to be looking beyond the current earnings miss to the company’s future prospects, as reflected in the positive stock price reaction following the results announcement.
Full presentation:
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