BE Semiconductor Industries N.V.

Besi reported Q2 2026 revenue of EUR 249.9 million, up 68.7% versus Q2 2025 and 35.2% versus Q1 2026. Q2 net income was EUR 89 million, up 177.3% year over year and 72.5% sequentially, and net margin was 35.6% versus 21.6% a year ago. For H1 2026, revenue was EUR 434.7 million and net income was EUR 140.6 million, up 48.8% and 121.1% year over year, with net margin at 32.3% versus 21.7% in H1 2025. Orders were EUR 292.9 million in Q2, up 128.8% year over year, and H1 orders were EUR 562.6 million, up EUR 302.7 million or 116.5% year over year. Net cash at quarter-end was EUR 164 million, up 58.8% versus March 31, helped by conversion of EUR 175 million of convertible notes and strong operating cash flow, partly offset by EUR 125.4 million of annual dividend payments. For Q3 2026, management guided revenue up 10% to 15% sequentially, gross margin down to 63% to 65% from Q2 due to mix, and operating expenses flat to up 5% because of higher development spending.

Richard Blickman framed the quarter as evidence of strong AI-driven demand across photonics, data center, hybrid bonding, and mobile, and said Besi is seeing favorable industry conditions from AI infrastructure buildout and some recovery in traditional markets. He emphasized that the company is executing its strategy to expand wafer-level assembly, CoWoS/CoPoS, and photonics exposure while adjusting supply chain and service support to the current demand environment. His tone was confident but measured, repeatedly noting that hybrid bonding adoption is still being qualified and that the exact timing across end markets remains uncertain.

Andrea Kopp did not deliver a standalone prepared financial update in the transcript, but the financial points management highlighted were strong operating leverage, improved gross margins, and disciplined expense control. Management said baseline operating expenses fell from 30% of revenue in Q2 2025 to 18.9% in Q2 2026, helping net income and net margin expand sharply. Cash and balance sheet strength also improved, with net cash reaching EUR 164 million after the EUR 175 million convertible note conversion and EUR 125.4 million of dividend payments.

Analysts focused on hybrid bonding qualification and timing in HBM, the cadence of orders from large Taiwanese and memory customers, and whether Q3 strength signals a changed seasonal pattern. Management said the main hurdles remain yield, cost, and qualification, and that HBM adoption is still in early-stage testing at major memory customers, with outcomes expected to become clearer in Q3 and Q4. They also said the large Taiwanese customer is still pressing for capacity expansion, that CoWoS-like orders are already a significant part of the order book, and that the unusual Q3 guide reflects a mix shift toward AI/data center demand rather than traditional smartphone seasonality.