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Benchmark ElectronicsThird Quarter Fiscal Year 2026 ResultsOctober 28, 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 fourthquarter and fiscal year 2026 results, future operating results or margins, the ability to generate salesand income or cash flow, expected revenue mix, the Company’s business strategy and strategicinitiatives, the Company’s expectations regarding enterprise artificial intelligence (AI) opportunities,anticipated growth in bookings, and repurchases of shares of its common stock, the Company’sexpectations regarding restructuring activity and charges, stock-based compensation expense,amortization of intangibles, award or extension of any tax incentives and capital expenditures, theCompany’s intentions concerning the payment of dividends, the Company’s expectations regardingthe impact of inflation, tariffs and trade policies, and the Company’s positions and strategies withrespect to ongoing or threatened litigation and expected outcomes, among others, are forward-looking statements. Although the Company believes these statements are based on and derivedfrom reasonable assumptions, they involve risks, uncertainties and assumptions, that are beyondthe Company’s ability to control or predict, relating to operations, markets and the businessenvironment generally, including those discussed under Part I, Item 1A of the Company's AnnualReport on Form 10-K for the year ended December 31, 2025, and in any of the Company’ssubsequent reports filed with the Securities and Exchange Commission. Risks and uncertaintiesrelating to the possibility of customer demand fluctuations, supply chain constraints, continuinginflationary pressures, the effects of foreign currency fluctuations and high interest rates,geopolitical uncertainties including continuing hostilities and tensions in the Middle East andelsewhere, trade restrictions and sanctions, tariffs and retaliatory countermeasures, the ability toutilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, orwrite-downs or write-offs of obsolete or unsold inventory including obsolete or unsold inventory thatis the subject of current litigation, may have resulting impacts on the Company’s business, financialcondition, 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 assumptionsprove incorrect, actual outcomes, including the future results of the Company’s operations, mayvary materially from those indicated. Undue reliance should not be placed on any forward-lookingstatements. Forward-looking statements are not guarantees of performance. All forward-lookingstatements included in this document are based upon information available to the Company as ofthe date of this document, and the Company assumes no obligation to update. Non-GAAP Financial MeasuresManagement discloses certain measures that are not defined by generally accepted accounting principles in the United States (GAAP) 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 (recoveries), 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, as applicable. 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. A detailed reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures 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. 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 Third Quarter Summary REVENUE 19% GROWTH$811MEPS *35% GROWTH$0.84CASH CYCLE DAYS23 DAYS IMPROVED54OPERATING MARGIN * 70 bp IMPROVED5.5%• Revenue and EPS exceeded high end of the prior guidance range• Top line growth was driven by strength in four of five sectors• Operating leverage resulted in EPS growth at almost 2x of revenue• Working capital focus reduced cycle days by 30% vs. prior year • Raised guidance mid-point represents 16% growth in FY:26, implying a new record high exceeding $3 billion in revenue * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
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| 5 Business Highlights Demand is Broadening • Semi-Cap, AC&C and Medical remain strong• Industrial has turned the corner• A&D well positioned for 2027 Customer Focus and Execution Driving Results• Continued bookings momentum across our sectors• Growth driven by new customers and increased share with existing customers • Accelerated additional capacity to support our growing AI demand Commitment to Financial Discipline• On track to deliver EPS growth at 1.5-2.0x revenue growth in 2026• Generating Free Cash Flow while investing for growth• Balance sheet continues to improve, providing capital allocation flexibility Investing for Growth• Expanding Thailand capacity with completion expected in late 2027• Penang PT 4 ramp remains on track• Investing in advanced manufacturing capabilities to support higher value growth
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| 6 Financial Results (non-GAAP)THREE MONTHS ENDED September 302026THREE MONTHS ENDED June 302026THREE MONTHS ENDED September 302025(in millions, except per share)$811$756$681Revenue 10.5%10.5%10.1%Gross Margin 5.5%5.2%4.8%Operating Margin24.9%26.6%24.5%Effective Tax Rate$0.84$0.75$0.62EPSSee APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results
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| 7 Third Quarter 2026 Sector Performance 17%30%16%16%21%$811MILLIONSales ($M)YoYSector Mix Semi-Cap$24130% Industrial13%$172 Aerospace & Defense$128(1%) Medical$1389% AC&C$13250%
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| 8 Trended non-GAAP Results * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results Revenue$811M+19% YoYQ3-25Q4-25Q1-26Q2-26$811Q3-26Gross Margin *10.5%+40 bps YoYQ3-25Q4-25Q1-26Q2-2610.5%Q3-26Operating Margin *5.5%+70 bps YoYQ3-25Q4-25Q1-26Q2-265.5%Q3-26Diluted EPS *$0.84+35% YoYQ3-25Q4-25Q1-26Q2-26$0.84Q3-26$0.75$0.58$0.71$0.6210.5%10.3%10.6%10.1%$756$704$677$6815.2%4.8%5.5%4.8%
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| 9 Balance Sheet and Cash Flow Update (in millions)Q3-26Debt Structure$143Term Loan Facility, net of $2 Debt Costs$576Capacity Available under Revolver Borrowing Facilities (1) Free Cash Flow, a non-GAAP measure, is defined as net cash provided by operations less capex •Generated $14 million in Free Cash Flow while supporting investment in growth•Balance sheet remains strong, with net cash at $133 million and over $575 million in available capacity •Returned $14 million to investors in the quarterQ3-26Q2-26Q3-25$30$35$37Cash Flows from Operations$14$22$25Free Cash Flow (1)$8$0$10Share Repurchases $291$315$286Cash
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| 10 Cash Conversion CycleQ3-26Q2-26Q3-25485450Accounts Receivable Days252326Contract Asset Days787275Inventory Days(82)(73)(56)Accounts Payable Days(15)(17)(18)Customer Advance Payment Days545977Cash Conversion Cycle Days
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| 11 Q4 2026 GuidanceQ4-26E$815M to $855MNet Sales10.5% to 10.7%Gross Margin – non-GAAP5.5% to 5.7%Operating Margin – non-GAAP~$3.8MInterest and Other Expenses$2.7M to $3.2MNon-operating Expenses~$7.8MStock-Based Compensation25% to 26%Effective Tax Rate$0.58 to $0.64Diluted EPS – GAAP$0.85 to $0.91Diluted EPS – non-GAAP~36.4MWeighted-Average Shares
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| 12 Sector OutlookSemi-Cap •Expecting continued year-over-year acceleration in Q4•Customer discussions suggest demand durability beyond 2027•Penang PT 4 ramping operations to support growth Industrial •Exceeding growth expectations for the year•Benefitting from improved market demand and new program wins, including lift-and-shifts•Well-positioned as we exit 2026 •On-prem AI infrastructure revenue continuing to ramp•Strong sequential and year-over-year growth expected in Q4•Next-generation HPC opportunities expected to begin ramping mid to late 2027Advanced Computing & Communications •Benefiting from end-market strength and new program ramps•Double-digit growth expected in 2026•Won a sizable program with a new logo expected to ramp in 2H:27 Medical •New program ramps position A&D to return to growth in 2027•Record Q2 bookings followed by another solid bookings performance in Q3•2026 revenue tracking as expected, with 2H stronger than 1HAerospace & Defense
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| 13 Summary1. Growth Momentum Continues to Build• Raised guidance to more than $3 billion in revenue• Demand strengthening across a broader portion of the portfolio• Healthy bookings momentum across the portfolio• Positioned for continued growth in 20272. Execution Driving Operating Leverage• On track to grow EPS at 1.5–2.0x the rate of revenue growth in 2026• Positioned for additional operating leverage in 2027• Tax rate initiatives beginning to deliver results3. Investing for Continued Growth • Expanding capacity in Penang and Thailand to support customer demand• Investing in technology, talent and processes to support future growth• Maintaining disciplined investment with a focus on returns
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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) Sep 302026Jun 302026Mar 312026Dec 312025Sep 302025Three months ended30,69930,25321,87420,14323,661Income from operations (GAAP)2,1711,1263,7472,9521,211Restructuring charges and other costs9,5456,2105,4012,1215,345Stock-based compensation expense1,2051,2041,2041,2041,205Amortization of intangible assets———11,102—Asset impairments200(107)1541,174816Legal and other settlement loss (recovery)889261—60357Other44,70938,94732,38038,75632,595Non-GAAP income from operations3.8%4.0%3.2%2.9%3.5%GAAP operating margin5.5%5.2%4.8%5.5%4.8%Non-GAAP operating margin84,44778,40069,23474,16967,943Gross profit (GAAP)496636559498515Stock-based compensation expense84,94379,03669,79374,66768,458Non-GAAP gross profit10.4%10.4%10.2%10.5%10.0%GAAP gross margin10.5%10.5%10.3%10.6%10.1%Non-GAAP gross margin50,37246,13242,40938,76941,520Selling, general and administrative expenses(9,049)(5,574)(4,842)(1,622)(4,830)Stock-based compensation expense(200)(208)(154)(1,174)(471)Legal and other settlement loss(889)(261)—(60)(357)Other40,23440,08937,41335,91335,862Non-GAAP selling, general and administrative expenses Sep 302026Jun 302026Mar 312026Dec 312025Sep 302025Three months ended17,14719,88213,0235,97314,263Net income (GAAP)2,1711,1263,7472,9521,211Restructuring charges and other costs9,5456,2105,4012,1215,345Stock-based compensation expense1,2051,2041,2041,2041,205Amortization of intangible assets———11,102—Asset impairments200(107)1541,174816Legal and other settlement loss (recovery)889261—60357Other(458)(1,135)(2,525)1,182(905)Income tax adjustments (1)30,69927,44121,00425,76822,292Non-GAAP net incomeDiluted earnings per share:$0.47$0.55$0.36$0.17$0.39Diluted (GAAP)$0.84$0.75$0.58$0.71$0.62Diluted (non-GAAP)Weighted-average shares used in diluted earnings per share:36,39636,39736,27636,19336,182Diluted (GAAP)36,39636,39736,27636,19336,182Diluted (non-GAAP)29,91234,67547,02858,67636,608Net cash provided by operations(15,477)(12,922)(18,270)(10,590)(11,494)Additions to property, plant and equipment and software14,43521,75328,75848,08625,114Free cash flow(1) This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable effective tax rates.