Earnings release
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News Release Benchmark Delivers Record Third Quarter Revenue and Strong Earnings Growth Raises Fiscal Year 2026 Outlook 2026-10-28 TEMPE, Ariz.--(BUSINESS WIRE)-- Benchmark Electronics, Inc. (NYSE: BHE) today announced nancial results for the third quarter ended September 30, 2026. Third quarter 2026 results: Revenue of $811 million, up 19% year-over-year Diluted GAAP earnings per share of $0.47, up 21% year-over-year Diluted non-GAAP earnings per share of $0.84, up 35% year-over-year Operating cash ow of $30 million with free cash ow of $14 million "Our third quarter results re ect the continued transformation of Benchmark into a higher-performing company," said David Moezidis, Benchmark's President and CEO. Moezidis continued, "Demand is broadening across our portfolio, bookings momentum remains healthy, and our teams continue to execute at a high level. As a result, we delivered record quarterly revenue, grew earnings at nearly twice the rate of sales, and are once again raising our outlook for the year. We now expect 2026 revenue growth of approximately 16%, further increasing our outlook beyond the $3 billion annual revenue level we established last quarter." Three Months Ended Summary GAAP ItemsSeptember 30,June 30,September 30, (in millions, except per share data)2025 2026 2026 Revenue $ 681$ 756$ 811G Mi 100% 104% 104% 1
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Gross Margin 10.0% 10.4% 10.4%Operating Margin 3.5% 4.0% 3.8%Diluted EPS $ 0.39$ 0.55$ 0.47 Three Months Ended Summary non-GAAP ItemsSeptember 30,June 30,September 30, (in millions, except per share data)2025 2026 2026 Revenue $ 681$ 756$ 811Gross Margin 10.1% 10.5% 10.5%Operating Margin 4.8% 5.2% 5.5%Diluted EPS $ 0.62$ 0.75$ 0.84 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. Sector Performance Three Months Ended September 30,June 30, September 30, (in millions) 2025 2026 2026 Semi-Cap $ 185 27%$ 223 29%$ 241 30%Industrial 153 22 161 21 172 21Medical 126 19 134 18 138 17AC&C 88 13 127 17 132 16A&D 129 19 111 15 128 16 Total $ 681 100%$ 756 100%$ 811 100% Cash Conversion Cycle Three Months Ended September 30,June 30,September 30,2025 2026 2026Accounts Receivable Days 50 54 48Contract Asset Days 26 23 25Inventory Days 75 72 78Accounts Payable Days (56) (73) (82)Customer Advance Payment Days (18) (17) (15)Cash Conversion Cycle Days 77 59 54 Fourth Quarter 2026 Guidance Revenue between $815 million and $855 million Diluted GAAP earnings per share between $0.58 and $0.64 Diluted non-GAAP earnings per share between $0.85 and $0.91 (1) (1) 2
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Diluted non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $7.8 million and other non-operating expenses of $2.7 million to $3.2 million, which includes restructuring, amortization of intangibles and other expenses Third Quarter 2026 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, aerospace and defense, industrial, medical, and semiconductor capital equipment. Benchmark’s global operations include facilities in eight 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 2026 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 arti cial intelligence (AI) opportunities, anticipated growth in bookings, and repurchases of shares of its common stock, the Company’s expectations regarding restructuring activity and charges, stock-based compensation expense, amortization of intangibles, award or extension of any tax incentives and capital expenditures, the Company’s intentions concerning the payment of dividends, the Company’s expectations regarding the impact of in ation, tari s and trade policies, and the Company’s positions and strategies with respect to ongoing or threatened litigation and expected outcomes, 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 3
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Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in any of the Company’s subsequent reports led with the Securities and Exchange Commission. Risks and uncertainties 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 rates, geopolitical uncertainties including continuing hostilities and tensions in the Middle East and elsewhere, 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 including obsolete or unsold inventory that is the subject of current litigation, 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 measures that are not de ned 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" nancial 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 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, as applicable. 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. A detailed reconciliation of the non-GAAP nancial measures to the most comparable GAAP nancial 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 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. 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. 4
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Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Income(in thousands, except per share data)(unaudited)Three Months EndedNine Months EndedSeptember 30, September 30, 2025 2026 2025 2026 Sales $ 680,678$ 810,898$ 1,954,777$ 2,244,158 Cost of sales 612,735 726,4511,758,8822,012,077 Gross pro t 67,943 84,447 195,895 232,081Selling, general and administrative expenses41,520 50,372 120,889 138,913Amortization of intangible assets1,205 1,205 3,613 3,613 Restructuring charges and other costs1,557 2,171 15,487 6,729 Income from operations 23,661 30,699 55,906 82,826Interest expense (4,418) (3,433) (16,061) (10,833)Interest income 1,955 1,952 7,822 5,842 Other expense, net (608) (2,363) (2,076) (3,843) Income before income taxes20,590 26,855 45,591 73,992 Income tax expense 6,327 9,708 26,712 23,940 Net income $ 14,263$ 17,147$ 18,879$ 50,052 Earnings per share:Basic $ 0.40$ 0.48$ 0.53$ 1.40Diluted $ 0.39$ 0.47$ 0.52$ 1.38Weighted-average number of shares outstanding:Basic 35,802 35,879 35,947 35,848Diluted 36,182 36,396 36,337 36,359 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets(in thousands)(unaudited) December 31,September 30,2025 2026 AssetsCurrent assets:Cash and cash equivalents $ 322,064$ 290,656Restricted cash 336 —Accounts receivable, net 391,101 435,296Contract assets 182,870 221,548Inventories 482,544 633,575 Prepaid expenses and other current assets69,226 118,182 Total current assets 1,448,1411,699,257 Property, plant and equipment, net 223,784 239,032Operating lease right-of-use assets 102,664 101,175 Goodwill and other long-term assets 297,126 277,806 Total assets $ 2,071,715$ 2,317,270 Liabilities and Shareholders’ EquityCurrent liabilities:Current installments of long-term debt$ 3,750$ 3,750Accounts payable 403,222 663,708Advance payments from customers 115,545 123,722 Accrued liabilities 113,060 118,744 Total current liabilities 635,577 909,924 Long-term debt, net of current installments206,826 154,086Operating lease liabilities 98,689 95,948 Other long-term liabilities 30,820 28,858 Total liabilities 971,9121,188,816 Shareholders’ equity 1,099,8031,128,454 Total liabilities and shareholders’ equity$ 2,071,715$ 2,317,270 5
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Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Nine Months EndedSeptember 30, 2025 2026 Cash ows from operating activities:Net income $ 18,879$ 50,052Depreciation and amortization 35,629 36,042Stock-based compensation expense 15,077 21,156Accounts receivable 38,744 (46,004)Contract assets (31,429) (38,678)Inventories 48,547 (152,258)Accounts payable 19,566 260,485Advance payments from customers (19,449) 8,176 Other changes in working capital and other, net(60,276) (27,356) Net cash provided by operating activities65,288 111,615 Cash ows from investing activities:Additions to property, plant and equipment and software(27,954) (46,669) Other investing activities, net 5,144 2,282 Net cash used in investing activities (22,810) (44,387) Cash ows from nancing activities:Share repurchases (25,994) (14,266)Net debt activity (41,415) (53,175) Other nancing activities, net (25,508) (27,367) Net cash used in nancing activities (92,917) (94,808) E ect of exchange rate changes 8,473 (4,164) Net decrease in cash and cash equivalents and restricted cash(41,966) (31,744) Cash and cash equivalents and restricted cash at beginning of year328,027 322,400 Cash and cash equivalents and restricted cash at end of period$ 286,061$ 290,656 Benchmark Electronics, Inc. and Subsidiaries Reconciliation of GAAP to non-GAAP Financial Results(in thousands, except per share data)(unaudited)Three Months EndedNine Months Ended September30, June 30,September30, September 30,2025 2026 2026 2025 2026 Income from operations (GAAP)$ 23,661$ 30,253$ 30,699$ 55,906$ 82,826Restructuring charges and other costs1,2111,1262,1714,4927,044Stock-based compensation expense5,3456,2109,54515,07721,156Amortization of intangible assets1,2051,2041,2053,6133,613Legal and other settlement loss (recovery)816 (107) 200 11,890247 Other 357 261 889 668 1,150 Non-GAAP income from operations$ 32,595$ 38,947$ 44,709$ 91,646$116,036 GAAP operating margin 3.5% 4.0% 3.8% 2.9% 3.7%Non-GAAP operating margin 4.8% 5.2% 5.5% 4.7% 5.2%Gross pro t (GAAP) $ 67,943$ 78,400$ 84,447$195,895$232,081 Stock-based compensation expense515 636 496 1,4601,691 Non-GAAP gross pro t $ 68,458$ 79,036$ 84,943$197,355$233,772 GAAP gross margin 10.0% 10.4% 10.4% 10.0% 10.3%Non-GAAP gross margin 10.1% 10.5% 10.5% 10.1% 10.4%Selling, general and administrative expenses$ 41,520$ 46,132$ 50,372$120,889$138,913Stock-based compensation expense(4,830) (5,574) (9,049) (13,617) (19,465)Legal and other settlement loss(471) (208) (200) (896) (562) Other (357) (261) (889) (668) (1,150) Non-GAAP selling, general and administrative expenses$ 35,862$ 40,089$ 40,234$105,708$117,736 Net income (GAAP) $ 14,263$ 19,882$ 17,147$ 18,879$ 50,052Restructuring charges and other costs1,2111,1262,1714,4927,044Stock-based compensation expense5,3456,2109,54515,07721,156Amortization of intangible assets1,2051,2041,2053,6133,613Legal and other settlement loss (recovery)816 (107) 200 11,890247Re nancing of Credit Facilities— — — 224 —Other 357 261 889 668 1,150(905) (1135) (458) 6658 (4118) 6
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Income tax adjustments (905) (1,135) (458) 6,658(4,118) Non-GAAP net income $ 22,292$ 27,441$ 30,699$ 61,501$ 79,144 Diluted earnings per share:Diluted (GAAP) $ 0.39$ 0.55$ 0.47$ 0.52$ 1.38Diluted (non-GAAP) $ 0.62$ 0.75$ 0.84$ 1.69$ 2.18Weighted-average number of shares used in calculating diluted earningsper share:Diluted (GAAP) 36,18236,39736,39636,33736,359Diluted (non-GAAP) 36,18236,39736,39636,33736,359Net cash provided by operations$ 36,608$ 34,675$ 29,912$ 65,288$111,615 Additions to property, plant and equipment and software(11,494) (12,922) (15,477) (27,954) (46,669) Free cash ow $ 25,114$ 21,753$ 14,435$ 37,334$ 64,946 (1)This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable e ective tax rates. For More Information, Please Contact: Benchmark Investor Relations at investor.relations@bench.com Source: BENCHMARK ELECTRONICS (1) 7