Besi: Revenue up 113.6% in third quarter, stable fourth quarter expected
BE Semiconductor Industries (Besi), a Dutch manufacturer of assembly equipment for semiconductors, reported on October 22, 2026 a quarterly net profit of €107.2 million. Earnings per share came in at €1.33, slightly above the €1.30 average expected by analysts. This announcement follows a decline of nearly 35% in the stock over one quarter, noted on October 15, and target price cuts by several brokers, including BofA on October 7 and JP Morgan on October 19.
The central point of the announcement concerns the delivery schedule. Orders are progressing, but management expects flat revenue in the fourth quarter. According to the group, certain customers have requested that third quarter orders be delivered in line with their production capacity plans for the first half of 2027.
Revenue up 113.6% and net margin of 37.8%
In the third quarter of 2026, revenue reached €283.4 million, up 13.4% from the second quarter and up 113.6% year-over-year. The group attributes the annual growth primarily to computing end markets, with sustained demand in hybrid bonding, photonics, and data centers. Orders totaled €342.6 million, up 17.0% quarter-over-quarter and up 96.1% year-over-year.
Gross margin stood at 65.2%. It declined by 0.5 percentage point compared to the second quarter, while exceeding the group's previous guidance. Year-over-year, it gained 3.0 percentage points, which Besi explains primarily by a more favorable product mix and price increases.
Operating profit advanced 280.4% year-over-year to €129.7 million, or 45.8% of revenue compared to 25.7% a year earlier. Net margin increased from 19.0% to 37.8%, versus 35.6% in the second quarter. Basic operating expenses fell from 32.0% to 16.4% of revenue year-over-year.
Over nine months, revenue exceeds full-year 2025 performance
Over the first nine months of 2026, revenue totaled €718.1 million, up 69.0%. It already exceeds the €591.3 million achieved over the entire 2025 fiscal year, reported on March 4, 2026. Net profit reached €247.8 million, up 179.1%, compared to €131.6 million for the full previous fiscal year. Cumulative orders grew 108.3% to €905.2 million, and those of the last twelve months reached €1.2 billion.
Hybrid bonding remains the primary development focus highlighted. Orders for this technology more than doubled over nine months compared to fiscal year 2025. The number of customers increased to 23 and cumulative demand exceeds 215 systems. Chief Executive Officer Richard W. Blickman clarified that the group does not consider ASML a competitor in this field, contrary to recent analyst reports according to him, and that the two companies are collaborating on certain programs.
Net cash stood at €246.6 million as of September 30, 2026, compared to a negative position of €7.8 million a year earlier. It increased by €82.6 million during the quarter, while the change in working capital absorbed €30.3 million over the period.
Fourth quarter expected flat and new €100 million share buyback program
For the fourth quarter of 2026, Besi expects revenue to be flat, within plus or minus 5%, compared to the €283.4 million of the third quarter. This midpoint falls below the €298 million average expected by analysts ahead of the announcement. Gross margin is expected to be between 63% and 65%, compared to 65.2% in the third quarter. Operating expenses should increase by 5% to 10% from the €55.1 million of the third quarter, primarily due to higher strategic consulting costs.
The group announced a new €100 million share buyback program, which will begin on October 27, 2026 and is expected to be completed by October 2027. It succeeds the current €60 million program, which is scheduled to complete on October 26, 2026. In the third quarter, Besi devoted €15.8 million to repurchasing approximately 75,000 shares at an average price of €210.67.
According to the consensus of analysts surveyed, the stock trades at approximately 36.8 times the expected earnings for the current fiscal year. Besi enters the final quarter with €342.6 million in orders recorded in the third quarter, compared to €283.4 million in revenue billed over the same period.
