Earnings release
Page 1
News Release Benchmark Reports Third Quarter 2025 Results 2025-11-04 TEMPE, Ariz.--(BUSINESS WIRE)-- Benchmark Electronics, Inc. (NYSE: BHE) today announced nancial results for the third quarter ended September 30, 2025. Third quarter 2025 results: Revenue of $681 million, up 3.5% year-over-year GAAP Operating Income of $24 million Non-GAAP Operating Income of $33 million Diluted GAAP earnings per share of $0.39 Diluted non-GAAP earnings per share of $0.62 “I am proud of our execution in the third quarter as we achieved the high end of our guidance for revenue and non- GAAP earnings per share,” said Je Benck, Benchmark’s CEO. Benck continued: “During the quarter we saw improved year-over-year performance across the majority of our market sectors and I am encouraged by indicators pointing to stronger growth as we exit the year, including the beginning stages of our ramping enterprise AI opportunities.” David Moezidis, President and Chief Commercial O cer, further added: “Our bookings momentum continued in the third quarter of 2025, reinforcing the strength we’ve seen all year. This trajectory positions us well for continued growth as we look to 2026 and beyond.” Three Months Ended Summary GAAP Items September 30,June 30,September 30, (Amounts in millions, except per share data)2024 2025 2025 Revenue $ 658$ 642$ 681G Mi 101% 101% 100% 1
Page 2
Gross Margin 10.1% 10.1% 10.0%Operating Margin 4.3% 3.2% 3.5%Diluted EPS $ 0.42$ 0.03$ 0.39 Three Months Ended Summary Non-GAAP ItemsSeptember 30,June 30,September 30, (Amounts in millions, except per share data)2024 2025 2025 Revenue $ 658$ 642$ 681Gross Margin 10.2% 10.2% 10.1%Operating Margin 5.3% 4.7% 4.8%Diluted EPS $ 0.57$ 0.55$ 0.62 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. Third Quarter 2025 Industry Sector Revenue Update September 30, June 30, September 30, (In millions) 2024 2025 2025 Semi-Cap $ 188 28%$ 190 30%$ 185 27%Industrial 151 23 142 22 153 22A&D 102 16 126 20 129 19Medical 107 16 110 17 126 19AC&C 110 17 74 11 88 13 Total $ 658 100%$ 642 100%$ 681 100% Cash Conversion Cycle September 30,June 30,September 30,2024 2025 2025 Days in accounts receivable 51 52 50Days in contract asset 26 25 26Days in inventory 89 83 75Days in accounts payable (54) (55) (56)Days in advance payments from customers(22) (20) (18) Days in cash conversion cycle 90 85 77 Fourth Quarter 2025 Guidance Revenue between $670 million - $720 million Diluted GAAP earnings per share between $0.44 - $0.50 Diluted non-GAAP earnings per share between $0.62 - $0.68 Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $2.3 (1) (1) 2
Page 3
million and other non-operating expenses of $4.9 million to $5.3 million which includes restructuring, amortization of intangibles and other expenses. Third 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. 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 identi ed 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 fourth quarter and scal year 2025 results, future operating results or margins, the ability to generate sales and income or cash ow, 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 led with the Securities and Exchange Commission. Events relating to the possibility of customer demand uctuations, supply chain constraints, continuing in ationary pressures, the e ects of foreign currency uctuations and high interest 3
Page 4
rates, the continuing U.S. government shutdown and the economic impacts, volatility and uncertainty resulting therefrom, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, tari s and retaliatory countermeasures, the ability to utilize the Company’s manufacturing facilities at su cient levels to cover its xed operating costs, or write-downs or write-o s of obsolete or unsold inventory, may have resulting impacts on the Company’s business, nancial 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 nancial 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 signi cant 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 e ort due to the uncertainty and inherent di culty predicting the occurrence, the nancial 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 ow,” a non-GAAP measure, which the Company de nes as cash ow 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 pro tability 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)ThMhEdd NiMhEdd 4
Page 5
Three Months EndedNine Months EndedSeptember 30, September 30, 2024 2025 2024 2025 Sales $ 657,747$ 680,678$ 1,999,218$ 1,954,777 Cost of sales 591,006 612,7351,797,1191,758,882 Gross pro t 66,741 67,943 202,099 195,895Selling, general and administrative expenses36,636 41,520 111,990 120,889Amortization of intangible assets1,205 1,205 3,613 3,613 Restructuring charges and other costs795 1,557 5,609 15,487 Income from operations28,105 23,661 80,887 55,906Interest expense (6,569) (4,418) (20,747) (16,061)Interest income 2,811 1,955 7,329 7,822 Other expense, net (3,952) (608) (7,452) (2,076) Income before income taxes20,395 20,590 60,017 45,591 Income tax expense 5,021 6,327 15,113 26,712 Net income $ 15,374$ 14,263$ 44,904$ 18,879 Earnings per share:Basic $ 0.43$ 0.40$ 1.25$ 0.53Diluted $ 0.42$ 0.39$ 1.23$ 0.52Weighted-average number of shares outstanding:Basic 36,051 35,802 35,970 35,947Diluted 36,629 36,182 36,469 36,337 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets(In Thousands)(UNAUDITED) December 31,September 30,2024 2025 AssetsCurrent assets:Cash and cash equivalents $ 315,152$ 285,419Restricted cash 12,875 642Accounts receivable, net 412,458 377,978Contract assets 167,578 199,007Inventories 553,654 509,005 Prepaid expenses and other current assets42,512 63,363 Total current assets 1,504,2291,435,414 Property, plant and equipment, net 225,097 226,234Operating lease right-of-use assets 117,995 106,436 Goodwill and other long-term assets 292,143 299,265 Total assets $ 2,139,464$ 2,067,349 Liabilities and Shareholders’ EquityCurrent liabilities:Current installments of long-term debt$ 6,737$ 3,782Accounts payable 354,218 382,660Advance payments from customers 143,614 124,164 Accrued liabilities 144,530 108,327 Total current liabilities 649,099 618,933 Long-term debt, net of current installments250,457 212,622Operating lease liabilities 108,997 101,801 Other long-term liabilities 17,598 24,733 Total liabilities 1,026,151958,089 Shareholders’ equity 1,113,3131,109,260 Total liabilities and shareholders’ equity$ 2,139,464$ 2,067,349 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows(In Thousands)(UNAUDITED) Nine Months EndedSeptember 30, 5
Page 6
2024 2025 Cash ows from operating activities:Net income $ 44,904$ 18,879Depreciation and amortization 34,578 35,629Stock-based compensation expense 10,740 15,077Accounts receivable 76,479 38,744Contract assets (11,559) (31,429)Inventories 102,540 48,547Accounts payable (16,107) 19,566Advance payments from customers (59,533) (19,449) Other changes in working capital and other, net(38,733) (60,276) Net cash provided by operating activities 143,309 65,288 Cash ows from investing activities:Additions to property, plant and equipment and software(24,221) (27,954) Other investing activities, net 483 5,144 Net cash used in investing activities (23,738) (22,810) Cash ows from nancing activities:Share repurchases (5,101) (25,994)Net debt activity (52,596) (41,415) Other nancing activities, net (23,507) (25,508) Net cash used in nancing activities (81,204) (92,917) E ect of exchange rate changes 2,843 8,473 Net increase (decrease) in cash and cash equivalents and restricted cash41,210 (41,966) Cash and cash equivalents and restricted cash at beginning of year283,213 328,027 Cash and cash equivalents and restricted cash at end of period$ 324,423$ 286,061 Benchmark Electronics, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Results(Amounts in Thousands, Except Per Share Data)(UNAUDITED)Three Months EndedNine Months Ended Sept 30,June 30,Sept 30, Sept 30,2024 2025 2025 2024 2025 Income from operations (GAAP)$ 28,105$ 20,486$ 23,661$ 80,887$ 55,906Restructuring charges and other costs795 1,939 1,211 5,609 4,492Stock-based compensation expense4,379 5,335 5,345 10,740 15,077Amortization of intangible assets1,205 1,204 1,205 3,613 3,613Legal and other settlement loss367 799 816 1,539 11,890Other — 311 358 — 668 Customer insolvency (recovery)— — — (316) — Non-GAAP income from operations$ 34,851$ 30,074$ 32,596$ 102,072$ 91,646 GAAP operating margin 4.3% 3.2% 3.5% 4.0% 2.9%Non-GAAP operating margin5.3% 4.7% 4.8% 5.1% 4.7%Gross pro t (GAAP)$ 66,741$ 64,772$ 67,943$ 202,099$ 195,895Stock-based compensation expense413 514 515 1,165 1,460 Customer insolvency (recovery)— — — (316) — Non-GAAP gross pro t$ 67,154$ 65,286$ 68,458$ 202,948$ 197,355 GAAP gross margin 10.1% 10.1% 10.0% 10.1% 10.0%Non-GAAP gross margin10.2% 10.2% 10.1% 10.2% 10.1%Selling, general and administrative expenses$ 36,636$ 40,569$ 41,520$ 111,990$ 120,889Stock-based compensation expense(3,966) (4,821) (4,830) (9,575) (13,617)Legal and other settlement loss(367) (225) (471) (1,539) (896) Other — (311) (357) — (668) Non-GAAP selling, general and administrativeexpenses $ 32,303$ 35,212$ 35,862$ 100,876$ 105,708 Net income (GAAP) $ 15,374$ 972$ 14,263$ 44,904$ 18,879Restructuring charges and other costs795 1,939 1,211 5,609 4,492Stock-based compensation expense4,379 5,335 5,345 10,740 15,077Amortization of intangible assets1,205 1,204 1,205 3,613 3,613Legal and other settlement loss367 799 816 1,539 11,890Re nancing of Credit Facilities— 224 — — 224Other — 311 357 — 668Customer insolvency (recovery)— — — (316) — Income tax adjustments(1,406) 9,208 (905) (4,236) 6,658 Non-GAAP net income$ 20,714$ 19,992$ 22,292$ 61,853$ 61,501 Diluted earnings per share:Diluted (GAAP) $ 0.42$ 0.03$ 0.39$ 1.23$ 0.52Diluted (Non-GAAP)$ 0.57$ 0.55$ 0.62$ 1.70$ 1.69Wihd b fh di (1) (1) (1) (2) 6
Page 7
Weighted-average number of shares used incalculating diluted earnings per share:Diluted (GAAP) 36,629 36,258 36,182 36,469 36,337Diluted (Non-GAAP) 36,629 36,258 36,182 36,469 36,337Net cash provided by (used in) operations$ 39,036$ (2,823) $ 36,608$ 143,309$ 65,288Additions to property, plant and equipmentand software (9,814) (12,304) (11,494) (24,221) (27,954) Free cash ow $ 29,222$ (15,127) $ 25,114$ 119,088$ 37,334 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 Reporton 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 e ective tax rates. For thethree and nine months ended September 30, 2025, $0.8 million and $11.3 million, respectively, in discrete tax charges relating to foreign withholdingtax paid on repatriated dividends, net of anticipated recoveries, and the recognition of deferred tax liabilities on remaining unremitted earnings inChina. For More Information, Please Contact: Paul Mansky, Investor Relations and Corporate Development 1-623-300-7052 or paul.mansky@bench.com Source: BENCHMARK ELECTRONICS (1) (2) 7