Benchmark Electronics (NYSE: BHE) lifts outlook to $3B revenue
Rhea-AI Filing Summary
Benchmark Electronics reported strong second-quarter 2026 results, with revenue of $756 million, up 18% year-over-year, and diluted GAAP EPS of $0.55. Diluted non-GAAP EPS was $0.75, up 36% year-over-year, and non-GAAP operating margin improved to 5.2%. Management said revenue and earnings were above the high end of prior guidance and highlighted another record quarter of bookings.
Growth was broad-based, with four of five sectors posting double‑digit year-over-year sales, including 71% growth in Advanced Computing & Communications and 22% in Medical. Operating cash flow was $35 million and free cash flow $22 million, while net cash stood at $134 million and the cash conversion cycle improved to 59 days.
On the outlook, the company raised its 2026 revenue guidance to approximately 13% growth, positioning it to reach a record $3 billion in annual revenue. For the third quarter of 2026, it expects revenue between $755 million and $795 million, GAAP EPS of $0.51–$0.57, and non-GAAP EPS of $0.76–$0.82.
Positive
- Q2 2026 revenue grew 18% to $756 million, with diluted non-GAAP EPS up 36% to $0.75 and results above the high end of prior guidance.
- Full-year 2026 revenue guidance increased to approximately 13% growth and $3 billion, which would be the highest annual revenue in the company’s history.
- Solid cash generation and balance sheet, including $35 million operating cash flow, $22 million free cash flow, net cash of $134 million, and an improved 59-day cash conversion cycle.
Negative
- None.
Filing Explained
The filing records completed second-quarter results and forward-looking guidance alongside growth investments that remain in progress.
This Form 8-K, a filing used for specified material events, records Benchmark Electronics’ completed results for the quarter ended
The presentation says Penang PT 4 investments are on schedule and a new Thailand building is scheduled for completion in late
8-K Event Classification
Key Figures
Key Terms
free cash flow financial
cash conversion cycle financial
stock-based compensation expense financial
non-GAAP operating margin financial
advance payments from customers financial
Earnings Snapshot
Expects Q3 2026 revenue of $755–$795 million, GAAP EPS of $0.51–$0.57, non-GAAP EPS of $0.76–$0.82, and raised full-year 2026 revenue outlook to approximately 13% growth, or about $3 billion.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, 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): |
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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:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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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 July 29, 2026, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended June 30, 2026. 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. |
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Description |
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99.1 |
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Press release, dated July 29, 2026 |
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99.2 |
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Investor presentation, dated July 29, 2026 |
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104 |
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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.
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BENCHMARK ELECTRONICS, INC. |
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Date: |
July 29, 2026 |
By: |
/s/ Stephen J. Beaver |
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Stephen J. Beaver, Esq. |
Exhibit 99.1
FOR IMMEDIATE RELEASE
BENCHMARK REPORTS STRONG SECOND QUARTER RESULTS
RAISES FISCAL 2026 REVENUE GUIDANCE TO A RECORD $3 BILLION
TEMPE, AZ, July 29, 2026 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30, 2026.
Second quarter 2026 results:
"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 $3 billion in annual revenue for the first time in the company’s history.”
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Three Months Ended |
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Summary GAAP Items |
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June 30, |
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March 31, |
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June 30, |
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(in millions, except per share data) |
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2025 |
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2026 |
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2026 |
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Revenue |
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$ |
642 |
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$ |
677 |
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$ |
756 |
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Gross Margin |
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10.1 |
% |
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10.2 |
% |
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10.4 |
% |
Operating Margin |
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3.2 |
% |
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3.2 |
% |
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4.0 |
% |
Diluted EPS |
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$ |
0.03 |
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$ |
0.36 |
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$ |
0.55 |
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Three Months Ended |
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Summary Non-GAAP Items(1) |
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June 30, |
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March 31, |
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June 30, |
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(in millions, except per share data) |
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2025 |
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2026 |
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2026 |
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Revenue |
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$ |
642 |
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$ |
677 |
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$ |
756 |
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Gross Margin |
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10.2 |
% |
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10.3 |
% |
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10.5 |
% |
Operating Margin |
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4.7 |
% |
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4.8 |
% |
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5.2 |
% |
Diluted EPS |
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$ |
0.55 |
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$ |
0.58 |
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$ |
0.75 |
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(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.
1
Second Quarter Revenue by Sector
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Three Months Ended |
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June 30, |
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March 31, |
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June 30, |
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(in millions) |
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2025 |
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2026 |
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2026 |
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Semi-Cap |
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$ |
190 |
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30 |
% |
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$ |
191 |
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28 |
% |
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$ |
223 |
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29 |
% |
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Industrial |
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142 |
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22 |
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133 |
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20 |
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161 |
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21 |
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A&D |
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126 |
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20 |
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120 |
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18 |
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111 |
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15 |
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Medical |
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110 |
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17 |
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128 |
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19 |
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134 |
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18 |
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AC&C |
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74 |
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11 |
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105 |
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15 |
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127 |
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17 |
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Total |
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$ |
642 |
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100 |
% |
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$ |
677 |
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100 |
% |
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$ |
756 |
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100 |
% |
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Cash Conversion Cycle
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Three Months Ended |
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June 30, |
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March 31, |
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June 30, |
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2025 |
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2026 |
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2026 |
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Days in accounts receivable |
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52 |
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50 |
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54 |
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Days in contract asset |
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25 |
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25 |
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23 |
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Days in inventory |
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83 |
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75 |
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72 |
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Days in accounts payable |
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(55 |
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(67 |
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(73 |
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Days in advance payments from customers |
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(20 |
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(16 |
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(17 |
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Days in cash conversion cycle |
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85 |
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67 |
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59 |
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Third Quarter 2026 Guidance
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.
For More Information, Please Contact:
Benchmark Investor Relations at investor.relations@bench.com
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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.
3
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2025 |
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2026 |
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2025 |
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2026 |
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Sales |
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$ |
642,335 |
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$ |
755,980 |
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$ |
1,274,099 |
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$ |
1,433,260 |
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Cost of sales |
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577,563 |
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677,580 |
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1,146,147 |
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1,285,626 |
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Gross profit |
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64,772 |
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78,400 |
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127,952 |
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147,634 |
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Selling, general and administrative expenses |
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40,569 |
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46,132 |
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79,369 |
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88,541 |
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Amortization of intangible assets |
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1,204 |
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1,204 |
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2,408 |
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2,408 |
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Restructuring charges and other costs |
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2,513 |
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811 |
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13,930 |
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4,558 |
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Income from operations |
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20,486 |
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30,253 |
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32,245 |
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52,127 |
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Interest expense |
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(6,348 |
) |
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(3,751 |
) |
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(11,643 |
) |
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(7,400 |
) |
Interest income |
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3,135 |
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1,990 |
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5,867 |
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3,890 |
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Other (expense) income , net |
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(666 |
) |
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223 |
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(1,468 |
) |
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(1,480 |
) |
Income before income taxes |
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16,607 |
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|
28,715 |
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25,001 |
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47,137 |
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Income tax expense |
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15,635 |
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8,833 |
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20,385 |
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|
14,232 |
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Net income |
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$ |
972 |
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$ |
19,882 |
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$ |
4,616 |
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$ |
32,905 |
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Earnings per share: |
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Basic |
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$ |
0.03 |
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$ |
0.55 |
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$ |
0.13 |
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$ |
0.92 |
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Diluted |
|
$ |
0.03 |
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$ |
0.55 |
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$ |
0.13 |
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$ |
0.91 |
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Weighted-average number of shares outstanding: |
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Basic |
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35,991 |
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35,898 |
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36,021 |
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35,833 |
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Diluted |
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36,258 |
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36,397 |
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36,427 |
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36,341 |
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4
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
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December 31, |
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June 30, |
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2025 |
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2026 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
322,064 |
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$ |
314,836 |
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Restricted cash |
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|
336 |
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|
377 |
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Accounts receivable, net |
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|
391,101 |
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|
451,612 |
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Contract assets |
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|
182,870 |
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|
196,420 |
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Inventories |
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482,544 |
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|
544,261 |
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Prepaid expenses and other current assets |
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69,226 |
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|
77,471 |
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Total current assets |
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1,448,141 |
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1,584,977 |
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Property, plant and equipment, net |
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223,784 |
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|
232,856 |
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Operating lease right-of-use assets |
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102,664 |
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|
101,398 |
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Goodwill and other long-term assets |
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|
297,126 |
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|
295,140 |
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Total assets |
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$ |
2,071,715 |
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$ |
2,214,371 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Current installments of long-term debt |
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$ |
3,750 |
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$ |
3,750 |
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Accounts payable |
|
|
403,222 |
|
|
|
552,671 |
|
Advance payments from customers |
|
|
115,545 |
|
|
|
124,320 |
|
Accrued liabilities |
|
|
113,060 |
|
|
|
114,578 |
|
Total current liabilities |
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|
635,577 |
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|
|
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 |
|
5
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
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Six Months Ended |
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June 30, |
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2025 |
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2026 |
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Cash flows from operating activities: |
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|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
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Cash flows from investing activities: |
|
|
|
|
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||
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 |
) |
|
|
|
|
|
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|
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Cash flows from financing activities: |
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|
|
|
|
|
||
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 |
|
6
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 |
|
7
Benchmark Electronics Second Quarter Fiscal Year 2026 Results July 29, 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 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 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.
Today’s Speakers Bryan Schumaker EVP and Chief Financial Officer David Moezidis President & Chief Executive Officer
Second Quarter Summary GAAP AND NON-GAAP REVENUE $756M NON-GAAP OPERATING INCOME GROWTH 30% NON-GAAP EPS $0.75 NON-GAAP EPS GROWTH 36% Revenue and EPS exceeded high end of the prior guidance range Top line growth of 18% year-over-year led by double-digit performance in four of five sectors Achieved strong bookings during the quarter Raising full year revenue guidance to 13% growth, positioning us to achieve a record $3 billion in revenue * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Business Highlights Well-Positioned Portfolio Top line performance driven by double-digit growth in 4 of 5 sectors Each of our sectors are benefitting from multi-year demand drivers Growing product complexity has expanded our customer partnerships Customer Focus Driving Results Continued bookings momentum Organization-wide execution driving increased share of wallet Expanded strategic partnership with Ouster in next-gen physical AI Continued Financial Discipline Operating Income and EPS growing 1.5-2x faster than revenue in 2026 Generating positive Free Cash Flow while investing in future growth Strong balance sheet provides flexibility around capital allocation Further Investing in Growth Penang PT 4 investments on schedule Adding a new building in Thailand, scheduled for completion in late 2027 Investing in automation and AI to improve productivity
Financial Results (Non-GAAP) THREE MONTHS ENDED June 30 2025 THREE MONTHS ENDED March 31 2026 THREE MONTHS ENDED June 30 2026 (in millions, except per share) Revenue $642 $677 $756 Gross Margin 10.2% 10.3% 10.5% Operating Margin 4.7% 4.8% 5.2% Effective Tax Rate 24.3% 27.4% 26.6% EPS $0.55 $0.58 $0.75 * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Second Quarter 2026 Sector Performance 18% 29% 15% 17% 21% $756 MILLION Sales ($M) YoY Sector Mix Semi-Cap $223 17% Industrial 13% $161 Aerospace & Defense $111 (12%) Medical $134 22% AC&C $127 71%
Trended Non-GAAP Results Revenue $756M +18% YoY Q2-25 Q3-25 Q4-25 Q1-26 $756 Q2-26 Operating Income $39M +30% YoY Q2-25 Q3-25 Q4-25 Q1-26 $39 Q2-26 Operating Margin 5.2% +50 bps YoY Q2-25 Q3-25 Q4-25 Q1-26 5.2% Q2-26 Diluted EPS $0.75 +36% YoY Q2-25 Q3-25 Q4-25 Q1-26 $0.75 Q2-26 $0.58 $0.71 $0. 62 $0.55 $32 $39 $33 $30 $677 $681 $704 $642 4.8% 5.5% 4.8% 4.7% * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
Balance Sheet and Cash Flow Update (in millions) Debt Structure Q2-26 Senior Secured Term Loan, net of $2 Debt Costs $144 Revolving Credit Facility Drawn Amount $37 Borrowing Capacity Available under Revolver $509 (1) Free Cash Flow (FCF), a non-GAAP measure, is defined as net cash provided by (used in) operations less capex Generated $22 million in Free Cash Flow while supporting investment in growth Balance sheet remains strong, with net cash at $134 million and over $500 million in available capacity Returned $6 million to investors in the quarter Q2-25 Q1-26 Q2-26 Cash Flows (Used) from Operations ($3) $47 $35 Free Cash Flow (Used) (1) ($15) $29 $22 Share Repurchases $8 $6 $0 Cash $265 $325 $315
Working Capital Trends Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Accounts Receivable Days 52 50 50 50 54 Contract Asset Days 25 26 23 25 23 Inventory Days 83 75 69 75 72 Accounts Payable Days (55) (56) (58) (67) (73) Customer Advance Payment Days (20) (18) (17) (16) (17) Cash Conversion Cycle Days 85 77 67 67 59
Q3 2026 Guidance Q3-26E Net Sales $755M to $795M Gross Margin – non-GAAP 10.5% to 10.7% Operating Margin – non-GAAP 5.3% to 5.5% Interest and Other Expenses ~$3.0M Non-operating Expenses $3.5M to $4.0M Stock-Based Compensation ~$8.4M Effective Tax Rate 26% to 27% Diluted EPS – GAAP $0.51 to $0.57 Diluted EPS – non-GAAP $0.76 to $0.82 Weighted-Average Shares ~36.4M
Sector Outlook Semi-Cap Expecting sequential and year-over-year acceleration in 2H 2026 Penang PT 4 ramping operations to support growth Share of wallet gains combined with strong underlying demand Industrial Excluding one-time benefit, performing in-line with expectations Continuing to win new programs, including a competitive take-away in the quarter Production ramp activities increasing as we exit 2026 Significant ramp in AI-related revenue from clustered AI and on-prem cloud Continue to expect strong year-over-year growth in 2026 Next-gen HPC opportunities anticipated to enter early production late Q4 into 2027 Advanced Computing & Communications Continues to track to expectations for double-digit growth Benefiting from end-market strength and new program ramps Broad-based engineering wins support future growth Medical 2026 tracking as expected, with 2H stronger than 1H Largest bookings quarter out of all our sectors in Q2, notably Defense and Space Positioned well for growth in 2027 Aerospace & Defense
Summary 1. Growth Expectations Continue to Improve Increasing 2026 outlook to 13% growth, which would position the Company to achieve a record $3 billion in revenue Four of five sectors are growing double-digits, with Semi-Cap and AC&C leading the upside Record bookings reflect continued success across existing and new customer relationships 2. Investing in Future Growth Ramping PT production in Penang and expanding Thailand to support future EMS growth Continuing to invest in our people and processes to efficiently deliver customer success 3. Operating Leverage Expected throughout 2026 Expecting Operating Income and Earnings to grow 1.5-2.0x faster than revenue Positioned for attractive operating leverage expansion in 2H vs 1H
Appendix
APPENDIX 1 – Reconciliation of GAAP to Non-GAAP (in thousands, except per share data – unaudited)