BE Semiconductor (Besi) closed the fourth quarter with revenue of €166.4 million, a sequential increase of 25.4% and an 8.5% rise versus the same quarter a year earlier, the company reported. Management attributed the quarter's top-line improvement largely to higher shipments for 2.5D AI-related computing and photonics applications.
Orders expanded substantially during the period, rising to €250.4 million. That level represents a 43.3% increase from the prior quarter and more than double the order intake from a year earlier. Besi said the jump in orders reflected broad-based demand from Asian subcontractors for 2.5D datacenter applications, renewed capacity purchases for photonics, and a material uptick in hybrid bonding orders.
Profitability metrics showed a mixed picture. Gross margin improved to 63.9%, up 1.7 percentage points from the preceding quarter, a shift the company linked to a more favorable product mix. Compared with the same period last year, gross margin was broadly unchanged. Net income for the quarter came in at €42.8 million, with net margin expanding to 25.7%. On a year-over-year basis, however, both net income and net margin were lower, with net income down 27.8% and net margin falling by 12.9 percentage points.
Outlook for first quarter 2026
Looking forward, Besi expects first-quarter 2026 revenue to increase between 5% and 15% relative to the Q4 revenue of €166.4 million. The company projected gross margin in the range of 63% to 65% for the quarter. Operating expenses are anticipated to rise 10% to 15% from the €50.0 million recorded in the fourth quarter, with the firm citing higher research and development spending as the primary driver of that increase.
Implications for sector participants
- Demand linked to AI-related 2.5D packaging and photonics is supporting higher equipment shipments and order books for semiconductor packaging suppliers.
- Renewed capacity purchases for photonics and a notable increase in hybrid bonding orders indicate continued spending activity among foundry and subcontractor customers, particularly in Asia.
- Margin stability appears tied to product mix dynamics, while increased R&D investment will put upward pressure on operating expenses in the near term.
Key takeaways
- Q4 revenue reached €166.4 million, up 25.4% sequentially and 8.5% year over year, driven by 2.5D AI-related computing and photonics shipments.
- Order intake surged to €250.4 million, a 43.3% sequential jump and more than double the prior year figure, supported by Asian subcontractor demand, photonics capacity purchases, and hybrid bonding orders.
- Gross margin improved to 63.9% from the prior quarter; net income was €42.8 million and net margin expanded to 25.7%, though both were lower year over year.
Risks and uncertainties
- Operating expenses are forecast to rise 10% to 15% from the €50.0 million reported in Q4, driven mainly by higher R&D spending, which could weigh on near-term operating profit if revenue or margins shift unfavorably.
- While orders increased sharply, the company’s year-over-year decline in net income and net margin highlights potential sensitivity of profitability to product mix and cost structure.
- Revenue guidance for Q1 2026 is given as a range of 5% to 15% growth from €166.4 million, introducing uncertainty around the pace of near-term top-line expansion.
Besi's results underscore a demand environment currently driven by AI-related packaging, photonics, and hybrid bonding activity, with management projecting continued, albeit ranged, growth into the first quarter of 2026. Gross margin guidance suggests the company expects product mix and cost dynamics to keep profitability near the fourth-quarter level even as R&D investment increases.