Benchmark Reports First Quarter 2026 Results and Raises Full Year Outlook

Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the first quarter ended March 31, 2026. First quarter 2026 results and 2026 outlook: Revenue of $677 millionDiluted GAAP earnings per share of $0.36Diluted non-GAAP earnings per share of $0.58Operating cash flow of $47 million with free cash flow of $29 millionIncreasing full year revenue growth outlook to 9-10% “Our first quarter results have increased our confidence in 2026 and are a clear sign of the benefits from the customer‑first initiatives we began implementing over two years ago and continue to build on today,” said David Moezidis, Benchmark’s President and CEO. Moezidis continued, “We are seeing improvement across a broad cross‑section of our business, led by strengthening in Semi‑Cap and continued momentum in AC&C and Medical. This positions us for sequential and year‑over‑year growth through the remainder of the year, with full year revenue now expected to be in the 9–10% range, up from prior expectations of mid‑single‑digit growth." Three Months Ended Summary GAAP Items March 31, December 31, March 31, (Amounts in millions, except per share data) 2025 2025 2026 Revenue $ 632 $ 704 $ 677 Gross Margin 10.0 % 10.5 % 10.2 % Operating Margin 1.9 % 2.9 % 3.2 % Diluted EPS $ 0.10 $ 0.17 $ 0.36 Three Months Ended Summary Non-GAAP Items(1) March 31, December 31, March 31, (Amounts in millions, except per share data) 2025 2025 2026 Revenue $ 632 $ 704 $ 677 Gross Margin 10.1 % 10.6 % 10.3 % Operating Margin 4.6 % 5.5 % 4.8 % Diluted EPS $ 0.52 $ 0.71 $ 0.58 (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. First Quarter and Fiscal Year Revenue by Sector Three Months Ended March 31, December 31, March 31, (In millions) 2025 2025 2026 Semi-Cap $ 195 32 % $ 171 24 % $ 191 28 % Industrial 137 22 144 20 133 20 A&D 122 19 137 20 120 18 Medical 104 16 144 21 128 19 AC&C 74 11 108 15 105 15 Total $ 632 100 % $ 704 100 % $ 677 100 % Cash Conversion Cycle Three Months Ended March 31, December 31, March 31, 2025 2025 2026 Days in accounts receivable 53 50 50 Days in contract asset 25 23 25 Days in inventory 89 69 75 Days in accounts payable (61 ) (58 ) (67 ) Days in advance payments from customers (20 ) (17 ) (16 ) Days in cash conversion cycle 86 67 67 Second Quarter 2026 Guidance Revenue between $700 million and $740 millionDiluted GAAP earnings per share between $0.51 and $0.57Diluted non-GAAP earnings per share between $0.65 and $0.71Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $6.1 million and other non-operating expenses of $0.8 million to $1.2 million, which includes restructuring, amortization of intangibles and other expenses. First 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 (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. 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 second 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, 2025, 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. Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Amounts in Thousands, Except Per Share Data) (UNAUDITED) Three Months Ended March 31, 2025 2026 Sales $ 631,764 $ 677,280 Cost of sales 568,584 608,046 Gross profit 63,180 69,234 Selling, general and administrative expenses 38,800 42,409 Amortization of intangible assets 1,204 1,204 Restructuring charges and other costs 11,417 3,747 Income from operations 11,759 21,874 Interest expense (5,295 ) (3,649 ) Interest income 2,732 1,900 Other expense, net (802 ) (1,703 ) Income before income taxes 8,394 18,422 Income tax expense 4,750 5,399 Net income $ 3,644 $ 13,023 Earnings per share: Basic $ 0.10 $ 0.36 Diluted $ 0.10 $ 0.36 Weighted-average number of shares outstanding: Basic 36,052 35,766 Diluted 36,605 36,276 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands) (UNAUDITED) December 31, March 31, 2025 2026 Assets Current assets: Cash and cash equivalents $ 322,064 $ 324,908 Restricted cash 336 333 Accounts receivable, net 391,101 375,902 Contract assets 182,870 190,934 Inventories 482,544 507,447 Prepaid expenses and other current assets 69,226 60,461 Total current assets 1,448,141 1,459,985 Property, plant and equipment, net 223,784 235,086 Operating lease right-of-use assets 102,664 104,725 Goodwill and other long-term assets 297,126 296,397 Total assets $ 2,071,715 $ 2,096,193 Liabilities and Shareholders’ Equity Current liabilities: Current installments of long-term debt $ 3,750 $ 3,750 Accounts payable 403,222 451,146 Advance payments from customers 115,545 110,966 Accrued liabilities 113,060 103,359 Total current liabilities 635,577 669,221 Long-term debt, net of current installments 206,826 201,030 Operating lease liabilities 98,689 99,546 Other long-term liabilities 30,820 29,895 Total liabilities 971,912 999,692 Shareholders’ equity 1,099,803 1,096,501 Total liabilities and shareholders’ equity $ 2,071,715 $ 2,096,193 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In Thousands) (UNAUDITED) Three Months Ended March 31, 2025 2026 Cash flows from operating activities: Net income $ 3,644 $ 13,023 Depreciation and amortization 11,768 11,902 Stock-based compensation expense 4,397 5,401 Accounts receivable 39,870 14,170 Contract assets (4,410 ) (8,064 ) Inventories (5,182 ) (25,558 ) Accounts payable 24,194 42,323 Advance payments from customers (15,755 ) (4,579 ) Other changes in working capital and other, net (27,023 ) (1,590 ) Net cash provided by operating activities 31,503 47,028 Cash flows from investing activities: Additions to property, plant and equipment and software (4,156 ) (18,270 ) Other investing activities, net 50 2,172 Net cash used in investing activities (4,106 ) (16,098 ) Cash flows from financing activities: Share repurchases (7,996 ) (5,799 ) Net debt activity 18,312 (5,938 ) Other financing activities, net (12,785 ) (14,163 ) Net cash used in financing activities (2,469 ) (25,900 ) Effect of exchange rate changes 2,385 (2,189 ) Net increase in cash and cash equivalents and restricted cash 27,313 2,841 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 $ 355,340 $ 325,241 Benchmark Electronics, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Results (Amounts in Thousands, Except Per Share Data) (UNAUDITED) Three Months Ended March 31, Dec 31, March 31, 2025 2025 2026 Income from operations (GAAP) $ 11,759 $ 20,143 $ 21,874 Restructuring charges and other costs 1,342 2,952 3,747 Stock-based compensation expense 4,397 2,121 5,401 Amortization of intangible assets 1,204 1,204 1,204 Asset impairments — 11,102 — Legal and other settlement loss 10,275 1,174 154 Other — 60 — Non-GAAP income from operations $ 28,977 $ 38,756 $ 32,380 GAAP operating margin 1.9 % 2.9 % 3.2 % Non-GAAP operating margin 4.6 % 5.5 % 4.8 % Gross profit (GAAP) $ 63,180 $ 74,169 $ 69,234 Stock-based compensation expense 431 498 559 Non-GAAP gross profit $ 63,611 $ 74,667 $ 69,793 GAAP gross margin 10.0 % 10.5 % 10.2 % Non-GAAP gross margin 10.1 % 10.6 % 10.3 % Selling, general and administrative expenses $ 38,800 $ 38,769 $ 42,409 Stock-based compensation expense (3,966 ) (1,622 ) (4,842 ) Legal and other settlement loss (200 ) (1,174 ) (154 ) Other — (60 ) — Non-GAAP selling, general and administrative expenses $ 34,634 $ 35,913 $ 37,413 Net income (GAAP) $ 3,644 $ 5,973 $ 13,023 Restructuring charges and other costs 1,342 2,952 3,747 Stock-based compensation expense 4,397 2,121 5,401 Amortization of intangible assets 1,204 1,204 1,204 Asset impairments — 11,102 — Legal and other settlement loss 10,275 1,174 154 Other — 60 — Income tax adjustments(1) (1,645 ) 1,182 (2,525 ) Non-GAAP net income $ 19,217 $ 25,768 $ 21,004 Diluted earnings per share: Diluted (GAAP) $ 0.10 $ 0.17 $ 0.36 Diluted (Non-GAAP) $ 0.52 $ 0.71 $ 0.58 Weighted-average number of shares used in calculating diluted earnings per share: Diluted (GAAP) 36,605 36,193 36,276 Diluted (Non-GAAP) 36,605 36,193 36,276 Net cash provided by operations $ 31,503 $ 58,676 $ 47,028 Additions to property, plant and equipment and software (4,156 ) (10,590 ) (18,270 ) Free cash flow $ 27,347 $ 48,086 $ 28,758 (1) This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable effective tax rates. For More Information, Please Contact: Paul Mansky, Investor Relations and Corporate Development 1-623-300-7052 or [email protected] Source: BENCHMARK ELECTRONICS