Benchmark Reports Fourth Quarter and Fiscal Year 2025 Results

TEMPE, Ariz.--( BUSINESS WIRE)--Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the fourth quarter and year ended December 31, 2025.

Fourth quarter 2025 results:

Full year 2025 results:

“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

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

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

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

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,

(In millions)

2024

2025

2024

2025

Semi-Cap

198

185

171

723

741

Industrial

140

153

144

573

575

A&D

117

129

137

434

514

Medical

117

126

144

451

484

AC&C

108

475

345

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

Days in accounts receivable

Days in contract asset

Days in inventory

Days in accounts payable

(54

)

(56

)

(58

)

Days in advance payments from customers

(22

)

(18

)

(17

)

Days in cash conversion cycle

First Quarter 2026 Guidance

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.

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,

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

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,

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,

2024

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

Asset impairments

—

11,102

—

11,102

Legal and other settlement loss (1)

239

816

1,174

1,778

13,064

Other

—

357

—

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

Non-GAAP gross margin

10.4

10.1

10.6

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

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

—

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

(1)

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.

(2)

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.