Benchmark Reports Strong Second Quarter Results

About this update from Benchmark Electronics, Inc.

Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30, 2026. Second quarter 2026 results: Revenue of $756 million, up 18% year-over-year Diluted GAAP earnings per share of $0.55 Diluted non-GAAP earnings per share of $0.75, up 36% year-over-year Operating cash flow of $35 million with free cash flow of $22 million "Our second quarter results reflect continued momentum across the business, highlighted by revenue and earnings above the high end of our prior guidance along with another record quarter of bookings,” said David Moezidis, Benchmark’s President and CEO. Moezidis continued, “Strengthening demand across our end markets, growing customer engagement, and disciplined execution are contributing to broad‑based improvement throughout the portfolio. As a result, we are again raising our full year outlook and now expect revenue growth of approximately 13%, positioning Benchmark to achieve $3 billion in annual revenue for the first time in the company’s history.”     Three Months Ended   Summary GAAP Items   June 30,     March 31,     June 30,   (in millions, except per share data)   2025     2026     2026   Revenue   $ 642     $ 677     $ 756   Gross Margin     10.1 %     10.2 %     10.4 % Operating Margin     3.2 %     3.2 %     4.0 % Diluted EPS   $ 0.03     $ 0.36     $ 0.55       Three Months Ended   Summary Non-GAAP Items (1)   June 30,     March 31,     June 30,   (in millions, except per share data)   2025     2026     2026   Revenue   $ 642     $ 677     $ 756   Gross Margin     10.2 %     10.3 %     10.5 % Operating Margin     4.7 %     4.8 %     5.2 % Diluted EPS   $ 0.55     $ 0.58     $ 0.75   (1) A reconciliation of non-GAAP results to the most directly comparable GAAP measures and a discussion of why management believes these non-GAAP results are useful are included below. Second Quarter Revenue by Sector       Three Months Ended         June 30,     March 31,     June 30,     (in millions)   2025     2026     2026     Semi-Cap   $ 190       30 %   $ 191       28 %   $ 223       29 %   Industrial     142       22       133       20       161       21     A&D     126       20       120       18       111       15     Medical     110       17       128       19       134       18     AC&C     74       11       105       15       127       17     Total   $ 642       100 %   $ 677       100 %   $ 756       100 %   Cash Conversion Cycle       Three Months Ended       June 30,     March 31,     June 30,       2025     2026     2026   Days in accounts receivable     52       50       54   Days in contract asset     25       25       23   Days in inventory     83       75       72   Days in accounts payable     (55 )     (67 )     (73 ) Days in advance payments from customers     (20 )     (16 )     (17 ) Days in cash conversion cycle     85       67       59   Third Quarter 2026 Guidance Revenue between $755 million and $795 million Diluted GAAP earnings per share between $0.51 and $0.57 Diluted non-GAAP earnings per share between $0.76 and $0.82 Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $8.4 million and other non-operating expenses of $3.5 million to $4.0 million, which includes restructuring, amortization of intangibles and other expenses Second Quarter 2026 Earnings Conference Call The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company’s website at www.bench.com . A replay of the broadcast will also be available on the Company’s website. About Benchmark Electronics, Inc. Benchmark provides comprehensive solutions across the entire product lifecycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain, and delivering world-class manufacturing services in the following industries: advanced computing and communications, aerospace and defense, industrial, medical, and semiconductor capital equipment. Benchmark’s global operations include facilities in eight countries and its common shares trade on the New York Stock Exchange under the symbol BHE. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as “anticipate,” “believe,” “intend,” “plan,” “project,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” “could,” “predict,” and similar expressions of the negative or other variations thereof. In particular, statements, expressed or implied, concerning the Company’s outlook and guidance for third quarter and fiscal year 2026 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company’s business strategy and strategic initiatives, the Company’s expectations regarding enterprise AI opportunities, anticipated growth in bookings, and repurchases of shares of its common stock, the Company’s expectations regarding restructuring activity and charges, stock-based compensation expense, amortization of intangibles, award or extension of any tax incentives and capital expenditures, the Company’s intentions concerning the payment of dividends, the Company’s expectations regarding the impact of inflation, tariffs and trade policies, and the Company’s positions and strategies with respect to ongoing or threatened litigation and expected outcomes, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions, that are beyond the Company’s ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission. Risks and uncertainties relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, geopolitical uncertainties including continuing hostilities and tensions in the Middle East and elsewhere, trade restrictions and sanctions, tariffs and retaliatory countermeasures, the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, or write-downs or write-offs of obsolete or unsold inventory, may have resulting impacts on the Company’s business, financial condition, results of operations, and the Company’s ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company’s operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and the Company assumes no obligation to update. Non-GAAP Financial Measures Management discloses certain non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. These non-GAAP financial measures exclude restructuring charges, stock-based compensation expense, amortization of intangible assets acquired in business combinations, certain legal and other settlement losses (gains), customer insolvency losses (recoveries), asset impairments, other significant non-recurring costs and the related tax impacts, including discrete tax items, and other non-GAAP tax adjustments, of all of the above. A detailed reconciliation between GAAP results and results excluding certain items (“non-GAAP”) is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. This document also references “free cash flow”, a non-GAAP measure, which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software. The Company’s non‐GAAP information is not necessarily comparable to the non‐GAAP information used by other companies. Non‐GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company’s profitability or liquidity. Readers should consider the types of events and transactions for which adjustments have been made. Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited)       Three Months Ended   Six Months Ended     June 30,   June 30,     2025     2026     2025     2026   Sales   $ 642,335     $ 755,980     $ 1,274,099     $ 1,433,260   Cost of sales     577,563       677,580       1,146,147       1,285,626   Gross profit     64,772       78,400       127,952       147,634   Selling, general and administrative expenses     40,569       46,132       79,369       88,541   Amortization of intangible assets     1,204       1,204       2,408       2,408   Restructuring charges and other costs     2,513       811       13,930       4,558   Income from operations     20,486       30,253       32,245       52,127   Interest expense     (6,348 )     (3,751 )     (11,643 )     (7,400 ) Interest income     3,135       1,990       5,867       3,890   Other (expense) income , net     (666 )     223       (1,468 )     (1,480 ) Income before income taxes     16,607       28,715       25,001       47,137   Income tax expense     15,635       8,833       20,385       14,232   Net income   $ 972     $ 19,882     $ 4,616     $ 32,905   Earnings per share:                 Basic   $ 0.03     $ 0.55     $ 0.13     $ 0.92   Diluted   $ 0.03     $ 0.55     $ 0.13     $ 0.91   Weighted-average number of shares outstanding:                 Basic     35,991       35,898       36,021       35,833   Diluted     36,258       36,397       36,427       36,341   Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (unaudited)       December 31,     June 30,       2025     2026   Assets             Current assets:             Cash and cash equivalents   $ 322,064     $ 314,836   Restricted cash     336       377   Accounts receivable, net     391,101       451,612   Contract assets     182,870       196,420   Inventories     482,544       544,261   Prepaid expenses and other current assets     69,226       77,471   Total current assets     1,448,141       1,584,977   Property, plant and equipment, net     223,784       232,856   Operating lease right-of-use assets     102,664       101,398   Goodwill and other long-term assets     297,126       295,140   Total assets   $ 2,071,715     $ 2,214,371                 Liabilities and Shareholders’ Equity             Current liabilities:             Current installments of long-term debt   $ 3,750     $ 3,750   Accounts payable     403,222       552,671   Advance payments from customers     115,545       124,320   Accrued liabilities     113,060       114,578   Total current liabilities     635,577       795,319   Long-term debt, net of current installments     206,826       177,234   Operating lease liabilities     98,689       96,329   Other long-term liabilities     30,820       29,206   Total liabilities     971,912       1,098,088   Shareholders’ equity     1,099,803       1,116,283   Total liabilities and shareholders’ equity   $ 2,071,715     $ 2,214,371   Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)       Six Months Ended     June 30,     2025   2026 Cash flows from operating activities:         Net income   $ 4,616   $ 32,905 Depreciation and amortization     23,785     23,885 Stock-based compensation expense     9,732     11,611 Accounts receivable     46,794     (61,891) Contract assets     (7,523)     (13,550) Inventories     26,087     (62,686) Accounts payable     (3,727)     150,471 Advance payments from customers     (17,150)     8,775 Other changes in working capital and other, net     (53,934)     (7,817) Net cash provided by operating activities     28,680     81,703           Cash flows from investing activities:         Additions to property, plant and equipment and software     (16,460)     (31,192) Other investing activities, net     62     2,108 Net cash used in investing activities     (16,398)     (29,084)           Cash flows from financing activities:         Share repurchases     (15,995)     (5,799) Net debt activity     (50,430)     (29,875) Other financing activities, net     (18,990)     (20,478) Net cash used in financing activities     (85,415)     (56,152)           Effect of exchange rate changes     9,753     (3,654) Net decrease in cash and cash equivalents and restricted cash     (63,380)     (7,187) Cash and cash equivalents and restricted cash at beginning of year     328,027     322,400 Cash and cash equivalents and restricted cash at end of period   $ 264,647   $ 315,213 Benchmark Electronics, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Results (in thousands, except per share data) (unaudited)       Three Months Ended   Six Months Ended     June 30,   Mar 31,   June 30,   June 30,     2025     2026     2026     2025     2026   Income from operations (GAAP)   $ 20,486     $ 21,874     $ 30,253     $ 32,245     $ 52,127   Restructuring charges and other costs     1,939       3,747       1,126       3,281       4,873   Stock-based compensation expense     5,335       5,401       6,210       9,732       11,611   Amortization of intangible assets     1,204       1,204       1,204       2,408       2,408   Legal and other settlement loss (recovery)     799       154       (107 )     11,074       47   Other     311       —       261       311       261   Non-GAAP income from operations   $ 30,074     $ 32,380     $ 38,947     $ 59,051     $ 71,327   GAAP operating margin     3.2 %     3.2 %     4.0 %     2.5 %     3.6 % Non-GAAP operating margin     4.7 %     4.8 %     5.2 %     4.6 %     5.0 %                       Gross profit (GAAP)   $ 64,772     $ 69,234     $ 78,400     $ 127,952     $ 147,634   Stock-based compensation expense     514       559       636       945       1,195   Non-GAAP gross profit   $ 65,286     $ 69,793     $ 79,036     $ 128,897     $ 148,829   GAAP gross margin     10.1 %     10.2 %     10.4 %     10.0 %     10.3 % Non-GAAP gross margin     10.2 %     10.3 %     10.5 %     10.1 %     10.4 %                       Selling, general and administrative expenses   $ 40,569     $ 42,409     $ 46,132     $ 79,369     $ 88,541   Stock-based compensation expense     (4,821 )     (4,842 )     (5,574 )     (8,787 )     (10,416 ) Legal and other settlement loss     (225 )     (154 )     (208 )     (425 )     (362 ) Other     (311 )     —       (261 )     (311 )     (261 ) Non-GAAP selling, general and administrative expenses   $ 35,212     $ 37,413     $ 40,089     $ 69,846     $ 77,502                         Net income (GAAP)   $ 972     $ 13,023     $ 19,882     $ 4,616     $ 32,905   Restructuring charges and other costs     1,939       3,747       1,126       3,281       4,873   Stock-based compensation expense     5,335       5,401       6,210       9,732       11,611   Amortization of intangible assets     1,204       1,204       1,204       2,408       2,408   Legal and other settlement loss (recovery)     799       154       (107 )     11,074       47   Refinancing of Credit Facilities     224       —       —       224       —   Other     311       —       261       311       261   Income tax adjustments (1)     9,208       (2,525 )     (1,135 )     7,563       (3,660 ) Non-GAAP net income   $ 19,992     $ 21,004     $ 27,441     $ 39,209     $ 48,445                         Diluted earnings per share:                     Diluted (GAAP)   $ 0.03     $ 0.36     $ 0.55     $ 0.13     $ 0.91   Diluted (Non-GAAP)   $ 0.55     $ 0.58     $ 0.75     $ 1.08     $ 1.33                         Weighted-average number of shares used in calculating diluted earnings per share:                     Diluted (GAAP)     36,258       36,276       36,397       36,427       36,341   Diluted (Non-GAAP)     36,258       36,276       36,397       36,427       36,341                         Net cash provided by (used in) operations   $ (2,823 )   $ 47,028     $ 34,675     $ 28,680     $ 81,703   Additions to property, plant and equipment and software     (12,304 )     (18,270 )     (12,922 )     (16,460 )     (31,192 ) Free cash flow (used)   $ (15,127 )   $ 28,758     $ 21,753     $ 12,220     $ 50,511   (1) This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable effective tax rates.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260729313894/en/

View stock analysis, news, and events for Benchmark Electronics, Inc.