8-K
Benchmark Electronics Inc (BHE)
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported): February 03, 2026 |
|---|
BENCHMARK ELECTRONICS, INC.
(Exact name of Registrant as Specified in Its Charter)
| Texas | 001-10560 | 74-2211011 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| 56 South Rockford Drive | ||
| Tempe, Arizona | 85288 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
| Registrant’s Telephone Number, Including Area Code: (623) 300-7000 | ||
| --- | ||
| Not Applicable | ||
| --- |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.10 per share | BHE | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 3, 2026, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter and year ended December 31, 2025. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein. The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release, dated February 3, 2026 |
| 99.2 | Investor presentation, dated February 3, 2026 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| BENCHMARK ELECTRONICS, INC. | |||
|---|---|---|---|
| Date: | February 3, 2026 | By: | /s/ Stephen J. Beaver |
| Stephen J. Beaver, Esq.<br>Senior Vice President, General Counsel and Chief Legal Officer |
EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
BENCHMARK REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 RESULTS
TEMPE, AZ, February 3, 2026 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the fourth quarter and year ended December 31, 2025.
Fourth quarter 2025 results:
- Revenue of $704 million
- Diluted GAAP earnings per share of $0.17
- Diluted non-GAAP earnings per share of $0.71
- Operating cash flow of $59 million with free cash flow of $48 million
Full year 2025 results:
- Revenue of $2,659 million
- Diluted GAAP earnings per share of $0.68
- Diluted non-GAAP earnings per share of $2.40
- Operating cash flow of $124 million with free cash flow of $85 million
“I am proud of our team’s performance in 2025, culminating in the fourth quarter’s high single-digit revenue growth and EPS growth at more than double that rate,” said Jeff Benck, Benchmark’s CEO.
Benck continued, “As I transition out of the CEO role at the end of the quarter, I have complete confidence in David and the leadership team. Benchmark is in excellent hands and well-positioned for continued success.”
David Moezidis, Benchmark’s President, continued, “I want to thank Jeff for his leadership and for the strong foundation he has built for Benchmark’s next chapter. I’m confident in the opportunities ahead of us and look forward to continuing our momentum as we execute on our growth strategy and create value for all our stakeholders.”
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Summary GAAP Items | December 31, | September 30, | December 31, | ||||||
| (Amounts in millions, except per share data) | 2024 | 2025 | 2025 | ||||||
| Revenue | $ | 657 | $ | 681 | $ | 704 | |||
| Gross Margin | 10.3 | % | 10.0 | % | 10.5 | % | |||
| Operating Margin | 4.3 | % | 3.5 | % | 2.9 | % | |||
| Diluted EPS | $ | 0.44 | $ | 0.39 | $ | 0.17 | |||
| Three Months Ended | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Summary Non-GAAP Items(1) | December 31, | September 30, | December 31, | ||||||
| (Amounts in millions, except per share data) | 2024 | 2025 | 2025 | ||||||
| Revenue | $ | 657 | $ | 681 | $ | 704 | |||
| Gross Margin | 10.4 | % | 10.1 | % | 10.6 | % | |||
| Operating Margin | 5.1 | % | 4.8 | % | 5.5 | % | |||
| Diluted EPS | $ | 0.61 | $ | 0.62 | $ | 0.71 | |||
| Summary GAAP Items | Year Ended December 31, | ||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| (Amounts in millions, except per share data) | 2024 | 2025 | |||||||
| Revenue | $ | 2,656 | $ | 2,659 | |||||
| Gross Margin | 10.2 | % | 10.2 | % | |||||
| Operating Margin | 4.1 | % | 2.9 | % | |||||
| Diluted EPS | $ | 1.66 | $ | 0.68 | |||||
| Summary Non-GAAP Items(1) | Year Ended December 31, | ||||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| (Amounts in millions, except per share data) | 2024 | 2025 | |||||||
| Revenue | $ | 2,656 | $ | 2,659 | |||||
| Gross Margin | 10.2 | % | 10.2 | % | |||||
| Operating Margin | 5.1 | % | 4.9 | % | |||||
| Diluted EPS | $ | 2.29 | $ | 2.40 |
(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.
Fourth Quarter and Fiscal Year Revenue by Sector
| Three Months Ended | Year Ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| (In millions) | 2024 | 2025 | 2025 | 2024 | 2025 | |||||||||||||||
| Semi-Cap | $ | 198 | 30 | % | $ | 185 | 27 | % | $ | 171 | 24 | % | $ | 723 | 27 | % | $ | 741 | 28 | % |
| Industrial | 140 | 21 | 153 | 22 | 144 | 20 | 573 | 22 | 575 | 22 | ||||||||||
| A&D | 117 | 18 | 129 | 19 | 137 | 20 | 434 | 16 | 514 | 19 | ||||||||||
| Medical | 117 | 18 | 126 | 19 | 144 | 21 | 451 | 17 | 484 | 18 | ||||||||||
| AC&C | 85 | 13 | 88 | 13 | 108 | 15 | 475 | 18 | 345 | 13 | ||||||||||
| Total | $ | 657 | 100 | % | $ | 681 | 100 | % | $ | 704 | 100 | % | $ | 2,656 | 100 | % | $ | 2,659 | 100 | % |
Cash Conversion Cycle
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31, | September 30, | December 31, | |||||||
| 2024 | 2025 | 2025 | |||||||
| Days in accounts receivable | 57 | 50 | 50 | ||||||
| Days in contract asset | 23 | 26 | 23 | ||||||
| Days in inventory | 85 | 75 | 69 | ||||||
| Days in accounts payable | (54 | ) | (56 | ) | (58 | ) | |||
| Days in advance payments from customers | (22 | ) | (18 | ) | (17 | ) | |||
| Days in cash conversion cycle | 89 | 77 | 67 |
First Quarter 2026 Guidance
- Revenue between $655 million and $695 million
- Diluted GAAP earnings per share between $0.31 and $0.37
- Diluted non-GAAP earnings per share between $0.53 and $0.59
- Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $5.4 million and other non-operating expenses of $5.1 million to $5.5 million, which includes restructuring, amortization of intangibles and other expenses.
Fourth Quarter 2025 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 (AC&C), aerospace and defense (A&D), industrial, medical, and semiconductor capital equipment (Semi-Cap). Benchmark’s global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.
For More Information, Please Contact:
Paul Mansky, Investor Relations and Corporate Development
1-623-300-7052 or paul.mansky@bench.com
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 first 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 the Company’s expectations regarding restructuring charges, stock-based compensation expense, amortization of intangibles, and capital expenditures, 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, 2024, and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, the potential of another U.S. government shutdown and the economic impacts, volatility and uncertainty resulting therefrom, geopolitical uncertainties including continuing hostilities and tensions, 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.
Immaterial Correction of an Error
During the fourth quarter of fiscal 2025, we identified immaterial errors related to our income tax calculation. We evaluated the effects of these errors and concluded that they were not material to any previously issued annual or interim financial statements. Accordingly, prior year amounts presented herein for 2024 have been adjusted to correct the immaterial error, which as of December 31, 2024 and for the year then ended (i) understated income tax expense by $2.2 million, income tax receivable by $2.2 million, current taxes payable by less than $0.1 million, deferred tax liabilities by $3.7 million, and (ii) overstated deferred tax assets by $7.2 million and shareholder’s equity by $8.7M.
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
| Three Months Ended | Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2024 | 2025 | 2024 | 2025 | |||||||||
| Sales | $ | 656,887 | $ | 704,331 | $ | 2,656,105 | $ | 2,659,108 | ||||
| Cost of sales | 588,962 | 630,162 | 2,386,081 | 2,389,044 | ||||||||
| Gross profit | 67,925 | 74,169 | 270,024 | 270,064 | ||||||||
| Selling, general and administrative expenses | 37,470 | 38,769 | 149,460 | 159,658 | ||||||||
| Amortization of intangible assets | 1,204 | 1,204 | 4,817 | 4,817 | ||||||||
| Restructuring charges and other costs | 727 | 14,053 | 6,336 | 29,540 | ||||||||
| Income from operations | 28,524 | 20,143 | 109,411 | 76,049 | ||||||||
| Interest expense | (6,175 | ) | (4,097 | ) | (26,922 | ) | (20,158 | ) | ||||
| Interest income | 2,879 | 1,730 | 10,208 | 9,552 | ||||||||
| Other expense, net | (1,350 | ) | (1,833 | ) | (8,802 | ) | (3,909 | ) | ||||
| Income before income taxes | 23,878 | 15,943 | 83,895 | 61,534 | ||||||||
| Income tax expense | 7,656 | 9,970 | 22,769 | 36,682 | ||||||||
| Net income | $ | 16,222 | $ | 5,973 | $ | 61,126 | $ | 24,852 | ||||
| Earnings per share: | ||||||||||||
| Basic | $ | 0.45 | $ | 0.17 | $ | 1.70 | $ | 0.69 | ||||
| Diluted | $ | 0.44 | $ | 0.17 | $ | 1.66 | $ | 0.68 | ||||
| Weighted-average number of shares outstanding: | ||||||||||||
| Basic | 35,973 | 35,677 | 35,970 | 35,879 | ||||||||
| Diluted | 36,659 | 36,193 | 36,759 | 36,300 |
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands)
(UNAUDITED)
| December 31, | December 31, | |||
|---|---|---|---|---|
| 2024 | 2025 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 315,152 | $ | 322,064 |
| Restricted cash | 12,875 | 336 | ||
| Accounts receivable, net | 412,458 | 391,101 | ||
| Contract assets | 167,578 | 182,870 | ||
| Inventories | 553,654 | 482,544 | ||
| Prepaid expenses and other current assets | 44,720 | 69,226 | ||
| Total current assets | 1,506,437 | 1,448,141 | ||
| Property, plant and equipment, net | 225,097 | 223,784 | ||
| Operating lease right-of-use assets | 117,995 | 102,664 | ||
| Goodwill and other long-term assets | 284,915 | 297,126 | ||
| Total assets | $ | 2,134,444 | $ | 2,071,715 |
| Liabilities and Shareholders’ Equity | ||||
| Current liabilities: | ||||
| Current installments of long-term debt | $ | 6,737 | $ | 3,750 |
| Accounts payable | 354,218 | 403,222 | ||
| Advance payments from customers | 143,614 | 115,545 | ||
| Accrued liabilities | 144,536 | 113,060 | ||
| Total current liabilities | 649,105 | 635,577 | ||
| Long-term debt, net of current installments | 250,457 | 206,826 | ||
| Operating lease liabilities | 108,997 | 98,689 | ||
| Other long-term liabilities | 21,313 | 30,820 | ||
| Total liabilities | 1,029,872 | 971,912 | ||
| Shareholders’ equity | 1,104,572 | 1,099,803 | ||
| Total liabilities and shareholders’ equity | $ | 2,134,444 | $ | 2,071,715 |
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(UNAUDITED)
| Year Ended | ||||||
|---|---|---|---|---|---|---|
| December 31, | ||||||
| 2024 | 2025 | |||||
| Cash flows from operating activities: | ||||||
| Net income | $ | 61,126 | $ | 24,852 | ||
| Depreciation and amortization | 46,144 | 47,630 | ||||
| Stock-based compensation expense | 13,366 | 17,198 | ||||
| Asset impairments | — | 11,102 | ||||
| Accounts receivable | 33,953 | 25,667 | ||||
| Contract assets | 7,401 | (15,292 | ) | |||
| Inventories | 127,840 | 75,167 | ||||
| Accounts payable | (18,283 | ) | 32,397 | |||
| Advance payments from customers | (61,269 | ) | (28,068 | ) | ||
| Other changes in working capital and other, net | (21,053 | ) | (66,689 | ) | ||
| Net cash provided by operating activities | 189,225 | 123,964 | ||||
| Cash flows from investing activities: | ||||||
| Additions to property, plant and equipment and software | (33,253 | ) | (38,544 | ) | ||
| Other investing activities, net | 486 | 5,846 | ||||
| Net cash used in investing activities | (32,767 | ) | (32,698 | ) | ||
| Cash flows from financing activities: | ||||||
| Share repurchases | (5,100 | ) | (26,848 | ) | ||
| Net debt activity | (74,283 | ) | (47,385 | ) | ||
| Other financing activities, net | (29,724 | ) | (31,671 | ) | ||
| Net cash used in financing activities | (109,107 | ) | (105,904 | ) | ||
| Effect of exchange rate changes | (2,537 | ) | 9,011 | |||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 44,814 | (5,627 | ) | |||
| Cash and cash equivalents and restricted cash at beginning of year | 283,213 | 328,027 | ||||
| Cash and cash equivalents and restricted cash at end of year | $ | 328,027 | $ | 322,400 |
Benchmark Electronics, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
| Three Months Ended | Year Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, | Sep 30, | Dec 31, | Dec 31, | ||||||||||||
| 2024 | 2025 | 2025 | 2024 | 2025 | |||||||||||
| Income from operations (GAAP) | $ | 28,524 | $ | 23,661 | $ | 20,143 | $ | 109,411 | $ | 76,049 | |||||
| Restructuring charges and other costs | 727 | 1,211 | 2,952 | 6,336 | 7,444 | ||||||||||
| Stock-based compensation expense | 2,626 | 5,345 | 2,121 | 13,366 | 17,198 | ||||||||||
| Amortization of intangible assets | 1,204 | 1,205 | 1,204 | 4,817 | 4,817 | ||||||||||
| Asset impairments | — | — | 11,102 | — | 11,102 | ||||||||||
| Legal and other settlement loss(1) | 239 | 816 | 1,174 | 1,778 | 13,064 | ||||||||||
| Other | — | 357 | 60 | — | 728 | ||||||||||
| Customer insolvency (recovery) | — | — | — | (316 | ) | — | |||||||||
| Non-GAAP income from operations | $ | 33,320 | $ | 32,595 | $ | 38,756 | $ | 135,392 | $ | 130,402 | |||||
| GAAP operating margin | 4.3 | % | 3.5 | % | 2.9 | % | 4.1 | % | 2.9 | % | |||||
| Non-GAAP operating margin | 5.1 | % | 4.8 | % | 5.5 | % | 5.1 | % | 4.9 | % | |||||
| Gross profit (GAAP) | $ | 67,925 | $ | 67,943 | $ | 74,169 | $ | 270,024 | $ | 270,064 | |||||
| Stock-based compensation expense | 503 | 515 | 498 | 1,668 | 1,958 | ||||||||||
| Customer insolvency (recovery) | — | — | — | (316 | ) | — | |||||||||
| Non-GAAP gross profit | $ | 68,428 | $ | 68,458 | $ | 74,667 | $ | 271,376 | $ | 272,022 | |||||
| GAAP gross margin | 10.3 | % | 10.0 | % | 10.5 | % | 10.2 | % | 10.2 | % | |||||
| Non-GAAP gross margin | 10.4 | % | 10.1 | % | 10.6 | % | 10.2 | % | 10.2 | % | |||||
| Selling, general and administrative expenses | $ | 37,470 | $ | 41,520 | $ | 38,769 | $ | 149,460 | $ | 159,658 | |||||
| Stock-based compensation expense | (2,123 | ) | (4,830 | ) | (1,623 | ) | (11,698 | ) | (15,240 | ) | |||||
| Legal and other settlement loss(1) | (239 | ) | (471 | ) | (1,173 | ) | (1,778 | ) | (2,069 | ) | |||||
| Other | — | (357 | ) | (60 | ) | — | (728 | ) | |||||||
| Non-GAAP selling, general and administrative expenses | $ | 35,108 | $ | 35,862 | $ | 35,913 | $ | 135,984 | $ | 141,621 | |||||
| Net income (GAAP) | $ | 16,222 | $ | 14,263 | $ | 5,973 | $ | 61,126 | $ | 24,852 | |||||
| Restructuring charges and other costs | 727 | 1,211 | 2,952 | 6,336 | 7,444 | ||||||||||
| Stock-based compensation expense | 2,626 | 5,345 | 2,121 | 13,366 | 17,198 | ||||||||||
| Amortization of intangible assets | 1,204 | 1,205 | 1,204 | 4,817 | 4,817 | ||||||||||
| Asset impairments | — | — | 11,102 | — | 11,102 | ||||||||||
| Legal and other settlement loss(1) | 239 | 816 | 1,174 | 1,778 | 13,064 | ||||||||||
| Refinancing of Credit Facilities | — | — | — | — | 224 | ||||||||||
| Other | — | 357 | 60 | — | 728 | ||||||||||
| Customer insolvency (recovery) | — | — | — | (316 | ) | — | |||||||||
| Income tax adjustments(2) | 1,230 | (905 | ) | 1,182 | (3,006 | ) | 7,840 | ||||||||
| Non-GAAP net income | $ | 22,248 | $ | 22,292 | $ | 25,768 | $ | 84,101 | $ | 87,269 | |||||
| Diluted earnings per share: | |||||||||||||||
| Diluted (GAAP) | $ | 0.44 | $ | 0.39 | $ | 0.17 | $ | 1.66 | $ | 0.68 | |||||
| Diluted (Non-GAAP) | $ | 0.61 | $ | 0.62 | $ | 0.71 | $ | 2.29 | $ | 2.40 | |||||
| Weighted-average number of shares used in calculating diluted earnings per share: | |||||||||||||||
| Diluted (GAAP) | 36,659 | 36,182 | 36,193 | 36,759 | 36,300 | ||||||||||
| Diluted (Non-GAAP) | 36,659 | 36,182 | 36,193 | 36,759 | 36,300 | ||||||||||
| Net cash provided by operations | $ | 45,916 | $ | 36,608 | $ | 58,676 | $ | 189,225 | $ | 123,964 | |||||
| Additions to property, plant and equipment and software | (9,032 | ) | (11,494 | ) | (10,590 | ) | (33,253 | ) | (38,544 | ) | |||||
| Free cash flow | $ | 36,884 | $ | 25,114 | $ | 48,086 | $ | 155,972 | $ | 85,420 |
- Includes settlement of the tax assessment in Mexico that was previously disclosed under Note 15 in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
- This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable effective tax rates. For the three months and year ended December 31, 2025, $4.7 million and $16.0 million, respectively, in discrete tax charges relating to tax impacts that are non-recurring, event-driven, or attributable to prior periods, and not reflective of the Company’s current-year operating performance.
Benchmark Electronics Fourth Quarter and Fiscal Year 2025 Results February 3rd, 2026
Forward-Looking Statements This document 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 first 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 repurchases of shares of its common stock, regarding enterprise AI opportunities, anticipated growth in bookings, the Company’s expectations regarding restructuring charges, stock-based compensation expense, amortization of intangibles, capital expenditures, and the Company’s intentions concerning the payment of dividends, 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, 2024, and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, the potential of another U.S. government shutdown and the economic impacts, volatility and uncertainty resulting therefrom, geopolitical uncertainties including continuing hostilities and tensions, 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 Information 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. Immaterial Correction of an Error During the fourth quarter of fiscal 2025, we identified immaterial errors related to our income tax calculation. We evaluated the effects of these errors and concluded that they were not material to any previously issued annual or interim financial statements. Accordingly, prior year amounts presented herein for 2024 have been adjusted to correct the immaterial error, which as of December 31, 2024 and for the year then ended (i) understated income tax expense by $2.2 million, income tax receivable by $2.2 million, current taxes payable by less than $0.1 million, deferred tax liabilities by $3.7 million, and (ii) overstated deferred tax assets by $7.2 million and shareholder’s equity by $8.7M.
Today’s Speakers Bryan Schumaker EVP and Chief Financial Officer Jeff Benck Chief Executive Officer David Moezidis President
Fourth Quarter 2025 Overview GAAP AND NON-GAAP REVENUE $704M NON-GAAP GROSS MARGIN 10.6% NON-GAAP EPS $0.71 NON-GAAP OPERATING MARGIN 5.5% HIGHLIGHTS Strong year-over-year revenue performance led by double-digit growth in AC&C, Medical and A&D Continued to deliver gross margin at or above 10% Sequential operating margin expansion of 70 basis points equaled a multi-year high Earnings per share grew over twice the rate of revenue, exceeding prior guidance range * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Fiscal Year 2025 Overview GAAP AND NON-GAAP REVENUE $2,659M NON-GAAP GROSS MARGIN 10.2% NON-GAAP EPS $2.40 NON-GAAP OPERATING MARGIN 4.9% HIGHLIGHTS Returned to year-over-year growth in the 2nd half of the year Delivered two consecutive years of greater than 10% gross margin Drove sequential operating margin expansion each quarter during the year * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Business Highlights Strategic focus continues to drive results Well-balanced sector portfolio in growth markets Driving improved revenue growth and delivering strong gross margin performance New business momentum 2025 bookings strength across the enterprise Increased conviction around 2026 revenue growth Financial discipline remains at the forefront Inventory turns continue to improve with cash cycles at multi-year record Generated $48M of Free Cash Flow in the quarter and $85M in the year Continuing to invest in growth Global PT and cleanroom investments well-timed for Semi-Cap recovery cycle US-based liquid cooling infrastructure supports AI opportunities
Financial Results (Non-GAAP) THREE MONTHS ENDED December 31 2024 THREE MONTHS ENDED September 30 2025 THREE MONTHS ENDED December 31 2025 ($ MILLIONS) Revenue $657 $681 $704 Gross Margin 10.4% 10.1% 10.6% Operating Margin 5.1% 4.8% 5.5% Effective Tax Rate 22.4% 24.5% 25.4% EPS $0.61 $0.62 $0.71 * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Financial Results (Non-GAAP) TWELVE MONTHS ENDED December 31 2024 TWELVE MONTHS ENDED December 31 2025 ($ MILLIONS) Revenue $2,656 $2,659 Gross Margin 10.2% 10.2% Operating Margin 5.1% 4.9% Effective Tax Rate 23.5% 24.8% EPS $2.29 $2.40 * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Fourth Quarter 2025 Sector Performance 21% 24% 20% 15% 20% $704 MILLION Sales $MM Q/Q Sector Mix Semi-Cap $171 (8%) Industrial (6%) $144 Aerospace & Defense $137 7% Medical $144 14% AC&C $108 22%
Fiscal Year 2025 Sector Performance 18% 28% 19% 13% 22% Sales $MM Y/Y Sector Mix Semi-Cap $741 2% Industrial 0% $575 Aerospace & Defense $514 19% Medical $484 7% AC&C $345 (27%) $2,659 MILLION
Trended Non-GAAP Results (Dollars in Millions, except EPS) * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Balance Sheet and Cash Flow Update Debt Structure (In Millions) Q4-25 Senior Secured Term Loan $148 Revolving Credit Facility Drawn Amount $65 Borrowing Capacity Available under Revolver $481 Leverage Ratio (2) 0.01x (In Millions) Q4-24 Q3-25 Q4-25 FY 2024 FY 2025 Cash Flows from Operations $46 $37 $59 $189 $124 Free Cash Flow (1) $37 $25 $48 $156 $85 Share Repurchases $0 $10 $1 $5 $27 Cash $328 $286 $322 $328 $322 (1) Free Cash Flow (FCF), a non-GAAP measure, is defined as net cash provided by (used in) operations less capex (2) Leverage ratio is Net Debt / LTM Adjusted EBITDA, as defined in the credit facility, which is a non-GAAP measure Focus on working capital management supported achieving Free Cash Flow objective Balance sheet remains strong, with net cash above $110 million Repurchased $27 million in stock during the year, offsetting annual dilution Continued to support the quarterly dividend, including $6 million paid in the quarter and $24 million for the full year
Working Capital Trends Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Accounts Receivable Days 57 53 52 50 50 Contract Asset Days 23 25 25 26 23 Inventory Days 85 89 83 75 69 Accounts Payable Days (54) (61) (55) (56) (58) Advance Payments from Customers Days (22) (20) (20) (18) (17) Cash Conversion Cycle Days 89 86 85 77 67
First Quarter 2026 Guidance Q1-26E Net Sales $655M to $695M Gross Margin – non-GAAP 10.0% to 10.4% Operating Margin – non-GAAP 4.7% to 4.9% Interest and Other Expenses, Net ~$4.7M Non-operating Expenses $5.1M to $5.5M Stock-Based Compensation Expense ~$5.4M Effective Tax Rate 26% to 27% Diluted EPS – GAAP $0.31 to $0.37 Diluted EPS – non-GAAP $0.53 to $0.59 Diluted Weighted-Average Shares ~36.3M
Sector Outlook Semi-Cap Increased confidence in WFE market improvement in 2026 New building in Penang supports 2025 bookings momentum Expecting improved Y/Y performance throughout the year Industrial Expect to return to Y/Y growth in 2026 supported by existing program ramps Transportation, HVAC and automation showing strength Improved global macro could bolster performance Sector momentum expected to continue into 1H:26 Led by ramp of announced Enterprise AI-program wins Advanced Computing & Communications Demand has steadily improved through 2H:25 driven by end-market strength and new program ramps Expecting continued momentum in 2026 2025 MedTech bookings support longer-term revenue growth Medical Commercial air expected to remain stable Program timing may moderate defense growth near-term after years of double-digit performance Broad-based momentum in space applications improves long-term outlook Aerospace & Defense
Summary 1. Business Momentum in 2025 Shapes Future Growth Potential Solid year of bookings with both new and existing customers End-markets within Medical and Semi-Cap appear to be improving into 2026 Space, MedTech and AI-related computing opportunities are promising Industrial positioned for return to growth in the back half of the year 2. Operational Execution Continues to be a Top Priority Potential leverage from operating efficiencies implemented in 2025 as revenue grows Ongoing working capital discipline and net income growth help drive full year Free Cash Flow generation while continuing to invest in our growth Longer-term potential to structurally improve tax rate 3. Disciplined Capital Allocation Supporting our regular quarterly dividend while offsetting dilution with share repurchases Reduced revolving debt by $70 million Y/Y with year-end net cash of $111 million Increasing capital investment to support new wins
Appendix
APPENDIX 1 – Reconciliation of GAAP to Non-GAAP (Dollars in thousands, except per share data – Unaudited)