Slides
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Benchmark ElectronicsSecond Quarter Fiscal Year 2026 ResultsJuly 29, 2026
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| 2 | 2 Forward-Looking StatementsThis document contains forward-looking statements within the meaning of Section 27A of theSecurities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, asamended. These forward-looking statements are identified as any statement that does not relatestrictly 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 quarterand fiscal year 2026 results, future operating results or margins, the ability to generate sales andincome or cash flow, expected revenue mix, the Company’s business strategy and strategicinitiatives, the Company’s expectations regarding enterprise AI opportunities, anticipated growth inbookings, and repurchases of shares of its common stock, the Company’s expectations regardingrestructuring activity and charges, stock-based compensation expense, amortization of intangibles,award or extension of any tax incentives and capital expenditures, the Company’s intentionsconcerning 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 orthreatened litigation and expected outcomes, among others, are forward-looking statements.Although the Company believes these statements are based on and derived from reasonableassumptions, they involve risks, uncertainties and assumptions, that are beyond the Company’sability 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 forthe year ended December 31, 2025, and in any of the Company’s subsequent reports filed with theSecurities and Exchange Commission. Risks and uncertainties relating to the possibility of customerdemand fluctuations, supply chain constraints, continuing inflationary pressures, the effects offoreign currency fluctuations and high interest rates, geopolitical uncertainties including continuinghostilities and tensions in the Middle East and elsewhere, trade restrictions and sanctions, tariffsand retaliatory countermeasures, the ability to utilize the Company’s manufacturing facilities atsufficient levels to cover its fixed operating costs, or write-downs or write-offs of obsolete or unsoldinventory, may have resulting impacts on the Company’s business, financial condition, results ofoperations, and the Company’s ability (or inability) to execute on its plans. Should one or more ofthese risks or uncertainties materialize, or should underlying assumptions prove incorrect, actualoutcomes, including the future results of the Company’s operations, may vary materially from thoseindicated. Undue reliance should not be placed on any forward-looking statements. Forward-lookingstatements are not guarantees of performance. All forward-looking statements included in thisdocument 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 InformationManagement 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.
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Today’s Speakers Bryan Schumaker EVP and Chief Financial Officer David MoezidisPresident & Chief Executive Officer
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| 4 Second Quarter Summary GAAP AND NON-GAAP REVENUE$756MNON-GAAP OPERATING INCOME GROWTH30%NON-GAAP EPS$0.75NON-GAAP EPSGROWTH 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
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| 5 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
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| 6 Financial Results (Non-GAAP)THREE MONTHS ENDED June 302026THREE MONTHS ENDED March 312026THREE MONTHS ENDED June 302025(in millions, except per share)$756$677$642Revenue 10.5%10.3%10.2%Gross Margin 5.2%4.8%4.7%Operating Margin26.6%27.4%24.3%Effective Tax Rate$0.75$0.58$0.55EPS* See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
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| 7 Second Quarter 2026 Sector Performance 18%29%15%17%21%$756MILLIONSales($M)YoYSector Mix Semi-Cap$22317% Industrial13%$161 Aerospace & Defense$111(12%) Medical$13422% AC&C$12771%
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| 8 Trended Non-GAAP ResultsRevenue$756M+18% YoYQ2-25Q3-25Q4-25Q1-26$756Q2-26Operating Income$39M+30% YoYQ2-25Q3-25Q4-25Q1-26$39Q2-26Operating Margin5.2%+50 bps YoYQ2-25Q3-25Q4-25Q1-265.2%Q2-26Diluted EPS$0.75+36% YoYQ2-25Q3-25Q4-25Q1-26$0.75Q2-26$0.58$0.71$0. 62$0.55$32$39$33$30$677$681$704$6424.8%5.5%4.8%4.7%* See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
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| 9 Balance Sheet and Cash Flow Update (in millions)Q2-26Debt Structure$144Senior Secured Term Loan, net of $2 Debt Costs$37Revolving Credit Facility Drawn Amount$509Borrowing Capacity Available under Revolver(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 quarterQ2-26Q1-26Q2-25$35$47($3)Cash Flows (Used) from Operations$22$29($15)Free Cash Flow (Used) (1)$0$6$8Share Repurchases $315$325$265Cash
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| 10 Working Capital TrendsQ2-26Q1-26Q4-25Q3-25Q2-255450505052Accounts Receivable Days2325232625Contract Asset Days7275697583Inventory Days(73)(67)(58)(56)(55)Accounts Payable Days(17)(16)(17)(18)(20)Customer Advance Payment Days5967677785Cash Conversion Cycle Days
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| 11 Q3 2026 GuidanceQ3-26E$755M to $795MNet Sales10.5% to 10.7%Gross Margin – non-GAAP5.3% to 5.5%Operating Margin – non-GAAP~$3.0MInterest and Other Expenses$3.5M to $4.0MNon-operating Expenses~$8.4MStock-Based Compensation26% to 27%Effective Tax Rate$0.51 to $0.57Diluted EPS – GAAP$0.76 to $0.82Diluted EPS – non-GAAP~36.4MWeighted-Average Shares
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| 12 Sector OutlookSemi-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 2027Advanced 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
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| 13 Summary1. Growth Expectations Continue to Improve • Increasing 2026 outlook to 13% growth, which would position the Company to achieve a record $3 billion in revenue • Four of five sectors are growing double-digits, with Semi-Cap and AC&C leading the upside• Record bookings reflect continued success across existing and new customer relationships 2. Investing in Future Growth • Ramping PT production in Penang and expanding Thailand to support future EMS growth• Continuing to invest in our people and processes to efficiently deliver customer success3. Operating Leverage Expected throughout 2026• Expecting Operating Income and Earnings to grow 1.5-2.0x faster than revenue• Positioned for attractive operating leverage expansion in 2H vs 1H
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| 14 Appendix
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| 15 APPENDIX 1 – Reconciliation of GAAP to Non-GAAP (in thousands, except per share data – unaudited) Jun 30, Sep 30, Dec 31, Mar 31, Jun 30,2025 2025 2025 2026 2026Income from operations (GAAP) 20,486$ 23,661$ 20,143$ 21,874$ 30,253$ Restructuring charges and other costs 1,939 1,211 2,952 3,747 1,126Stock-based compensation expense 5,335 5,345 2,121 5,401 6,210Amortization of intangible assets 1,204 1,205 1,204 1,204 1,204Asset impairments — — 11,102 — —Legal and other settlement loss (recovery) 799 816 1,174 154 (107)Other 311 357 60 — 261Non-GAAP income from operations 30,074$ 32,595$ 38,756$ 32,380$ 38,947$ GAAP operating margin 3.2% 3.5% 2.9% 3.2% 4.0%Non-GAAP operating margin 4.7% 4.8% 5.5% 4.8% 5.2% Gross profit (GAAP) 64,772$ 67,943$ 74,169$ 69,234$ 78,400$ Stock-based compensation expense 514 515 498 559 636Non-GAAP gross profit 65,286$ 68,458$ 74,667$ 69,793$ 79,036$ GAAP gross margin 10.1% 10.0% 10.5% 10.2% 10.4%Non-GAAP gross margin 10.2% 10.1% 10.6% 10.3% 10.5%Selling, general and administrative expenses40,569$ 41,520$ 38,769$ 42,409$ 46,132$ Stock-based compensation expense (4,821) (4,830) (1,622) (4,842) (5,574)Legal and other settlement loss (225) (471) (1,174) (154) (208)Other (311) (357) (60) — (261)Non-GAAP selling, general and administrative expenses35,212$ 35,862$ 35,913$ 37,413$ 40,089$ Net income (GAAP) 972$ 14,263$ 5,973$ 13,023$ 19,882$ Restructuring charges and other costs 1,939 1,211 2,952 3,747 1,126Stock-based compensation expense 5,335 5,345 2,121 5,401 6,210Amortization of intangible assets 1,204 1,205 1,204 1,204 1,204Asset impairments — — 11,102 — —Legal and other settlement loss (recovery) 799 816 1,174 154 (107)Refinancing of Credit Facilities 224 — — — —Other 311 357 60 — 261Income tax adjustments(1) 9,208 (905) 1,182 (2,525) (1,135)Non-GAAP net income 19,992$ 22,292$ 25,768$ 21,004$ 27,441$ Diluted earnings per share:Diluted (GAAP) 0.03$ 0.39$ 0.17$ 0.36$ 0.55$ Diluted (Non-GAAP) 0.55$ 0.62$ 0.71$ 0.58$ 0.75$ Weighted-average number of shares used in calculating diluted earnings per share:Diluted (GAAP) 36,258 36,182 36,193 36,276 36,397Diluted (Non-GAAP) 36,258 36,182 36,193 36,276 36,397Net cash provided by (used in) operations (2,823)$ 36,608$ 58,676$ 47,028$ 34,675$ Additions to property, plant and equipment and software (12,304) (11,494) (10,590) (18,270) (12,922)Free cash flow (used) (15,127)$ 25,114$ 48,086$ 28,758$ 21,753$ Three Months Ended (1) This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable effective tax rates.