Benchmark Reports Third Quarter 2025 Results

TEMPE, Ariz.--( BUSINESS WIRE)--Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the third quarter ended September 30, 2025.

Third quarter 2025 results:

“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 Jeff 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 Officer, 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

Revenue

658

642

681

Gross Margin

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 Items (1)

September 30,

June 30,

September 30,

(Amounts in millions, except per share data)

2024

2025

Revenue

658

642

681

Gross Margin

10.2

10.1

Operating Margin

5.3

4.7

4.8

Diluted EPS

0.57

0.55

0.62

(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.

Third Quarter 2025 Industry Sector Revenue Update

September 30,

June 30,

September 30,

(In millions)

2024

2025

Semi-Cap

188

190

185

Industrial

151

142

153

A&D

102

126

129

Medical

107

110

126

AC&C

110

Total

658

100

642

100

681

100

Cash Conversion Cycle

September 30,

June 30,

September 30,

2024

2025

Days in accounts receivable

Days in contract asset

Days in inventory

Days in accounts payable

(54

)

(55

)

(56

)

Days in advance payments from customers

(22

)

(20

)

(18

)

Days in cash conversion cycle

Fourth Quarter 2025 Guidance

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 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 fourth quarter and fiscal year 2025 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 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, 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

Nine Months Ended

September 30,

2024

2025

2024

2025

Sales

657,747

680,678

1,999,218

1,954,777

Cost of sales

591,006

612,735

1,797,119

1,758,882

Gross profit

66,741

67,943

202,099

195,895

Selling, general and administrative expenses

36,636

41,520

111,990

120,889

Amortization of intangible assets

1,205

3,613

Restructuring charges and other costs

795

1,557

5,609

15,487

Income from operations

28,105

23,661

80,887

55,906

Interest 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 taxes

20,395

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

0.53

Diluted

0.42

0.39

1.23

0.52

Weighted-average number of shares outstanding:

Basic

36,051

35,802

35,970

35,947

Diluted

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

Assets

Current assets:

Cash and cash equivalents

315,152

285,419

Restricted cash

12,875

642

Accounts receivable, net

412,458

377,978

Contract assets

167,578

199,007

Inventories

553,654

509,005

Prepaid expenses and other current assets

42,512

63,363

Total current assets

1,504,229

1,435,414

Property, plant and equipment, net

225,097

226,234

Operating 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’ Equity

Current liabilities:

Current installments of long-term debt

6,737

3,782

Accounts payable

354,218

382,660

Advance 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 installments

250,457

212,622

Operating lease liabilities

108,997

101,801

Other long-term liabilities

17,598

24,733

Total liabilities

1,026,151

958,089

Shareholders’ equity

1,113,313

1,109,260

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 Ended

September 30,

2024

2025

Cash flows from operating activities:

Net income

44,904

18,879

Depreciation and amortization

34,578

35,629

Stock-based compensation expense

10,740

15,077

Accounts receivable

76,479

38,744

Contract assets

(11,559

)

(31,429

)

Inventories

102,540

48,547

Accounts payable

(16,107

)

19,566

Advance 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 flows 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 flows from financing activities:

Share repurchases

(5,101

)

(25,994

)

Net debt activity

(52,596

)

(41,415

)

Other financing activities, net

(23,507

)

(25,508

)

Net cash used in financing activities

(81,204

)

(92,917

)

Effect of exchange rate changes

2,843

8,473

Net increase (decrease) in cash and cash equivalents and restricted cash

41,210

(41,966

)

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 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 Ended

Nine Months Ended

Sept 30,

June 30,

Sept 30,

2024

2025

2024

2025

Income from operations (GAAP)

28,105

20,486

23,661

80,887

55,906

Restructuring charges and other costs

795

1,939

1,211

5,609

4,492

Stock-based compensation expense

4,379

5,335

5,345

10,740

15,077

Amortization of intangible assets

1,205

1,204

1,205

3,613

Legal and other settlement loss (1)

367

799

816

1,539

11,890

Other

—

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 margin

5.3

4.7

4.8

5.1

4.7

Gross profit (GAAP)

66,741

64,772

67,943

202,099

195,895

Stock-based compensation expense

413

514

515

1,165

1,460

Customer insolvency (recovery)

—

(316

)

—

Non-GAAP gross profit

67,154

65,286

68,458

202,948

197,355

GAAP gross margin

10.1

10.0

10.1

10.0

Non-GAAP gross margin

10.2

10.1

10.2

10.1

Selling, general and administrative expenses

36,636

40,569

41,520

111,990

120,889

Stock-based compensation expense

(3,966

)

(4,821

)

(4,830

)

(9,575

)

(13,617

)

Legal and other settlement loss (1)

(367

)

(225

)

(471

)

(1,539

)

(896

)

Other

—

(311

)

(357

)

—

(668

)

Non-GAAP selling, general and administrative expenses

32,303

35,212

35,862

100,876

105,708

Net income (GAAP)

15,374

972

14,263

44,904

18,879

Restructuring charges and other costs

795

1,939

1,211

5,609

4,492

Stock-based compensation expense

4,379

5,335

5,345

10,740

15,077

Amortization of intangible assets

1,205

1,204

1,205

3,613

Legal and other settlement loss (1)

367

799

816

1,539

11,890

Refinancing of Credit Facilities

—

224

—

224

Other

—

311

357

—

668

Customer insolvency (recovery)

—

(316

)

—

Income tax adjustments (2)

(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

0.52

Diluted (Non-GAAP)

0.57

0.55

0.62

1.70

1.69

Weighted-average number of shares used in calculating diluted earnings per share:

Diluted (GAAP)

36,629

36,258

36,182

36,469

36,337

Diluted (Non-GAAP)

36,629

36,258

36,182

36,469

36,337

Net cash provided by (used in) operations

39,036

(2,823

)

36,608

143,309

65,288

Additions to property, plant and equipment and software

(9,814

)

(12,304

)

(11,494

)

(24,221

)

(27,954

)

Free cash flow

29,222

(15,127

)

25,114

119,088

37,334

(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 and nine months ended September 30, 2025, $0.8 million and $11.3 million, respectively, in discrete tax charges relating to foreign withholding tax paid on repatriated dividends, net of anticipated recoveries, and the recognition of deferred tax liabilities on remaining unremitted earnings in China.