To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $704 million, representing a high single-digit increase year-over-year and exceeding prior guidance [5][11] - Full year 2025 revenue was $2.66 billion, flat compared to the prior year, but showed improving momentum throughout the year [7][12] - Q4 non-GAAP EPS was $0.71, surpassing the guidance range of $0.62-$0.68 [11] - Gross margin for Q4 was 10.6%, up 50 basis points sequentially and 20 basis points year-over-year [11][12] - Operating margin for Q4 was 5.5%, demonstrating leverage in the company's model [5] Business Line Data and Key Metrics Changes - Semi-Cap revenue decreased 8% quarter-over-quarter and 14% year-over-year, but full year revenue grew 2% [12][13] - Industrial revenue was flat for the full year but up 3% year-over-year [13] - A&D revenue grew 17% year-over-year and 19% for the full year [13] - Medical revenue increased 23% year-over-year in Q4, leading to 7% growth for the full year [13] - AC&C revenue rebounded in Q4, up 27% year-over-year, with expectations for continued growth [14] Market Data and Key Metrics Changes - The company noted improved sell-through and healthier end demand across sectors as channel inventory normalized [20] - The semi-cap sector is expected to see a demand inflection in the back half of 2026, with early signs of improvement [21][22] - Industrial sector performance is expected to gradually improve throughout 2026, driven by demand in transportation and HVAC [22] - A&D revenue growth is expected to moderate in 2026 due to program timing, but bookings momentum in space applications is promising [23][24] - Medical sector is anticipated to maintain double-digit growth in 2026, supported by strong bookings in MedTech [24] Company Strategy and Development Direction - The company targets five core high-value markets, focusing on complex, high-mix opportunities while avoiding commoditized markets [8] - Continued investment in global precision technology and production equipment is planned to align with new business wins [10][16] - The company aims to improve working capital efficiency and maintain positive free cash flow while investing in growth [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of bookings and operational execution, particularly in medical and AC&C sectors [9][20] - The company anticipates a strong recovery in the semi-cap sector in 2026, with proactive capacity planning already in place [10][59] - Management remains optimistic about mid-single-digit growth guidance for 2026, with potential for further strengthening as visibility improves [26] Other Important Information - The company generated $85 million in free cash flow for fiscal year 2025 and maintained a net cash positive position of $111 million [15][16] - An $11.1 million non-cash impairment was recorded on certain assets due to program end-of-life [18] - The cash conversion cycle improved to 67 days, with significant improvements in inventory management [17][70] Q&A Session Summary Question: Areas of increased confidence beyond Semi-Cap - Management indicated that medical and AC&C sectors have shown improved momentum, with industrial gradually picking up as well [31][32] Question: Thoughts on gross margins and operating leverage - Management noted that while gross margins are stable, operating margins are where leverage can be realized as revenue accelerates [33][34] Question: Expansion of Total Addressable Market (TAM) in industrial - Management highlighted the broad nature of the industrial segment, with opportunities in HVAC, transportation, and agriculture [41][43] Question: Insights on space applications and bookings - Management expressed excitement about the momentum in space bookings, which is expected to contribute positively to A&D growth [44][45] Question: Details on medical program wins and momentum - Management confirmed ongoing success in medical devices and life sciences, with expectations for continued growth into 2026 [55][56] Question: Timeline for semi-cap recovery - Management indicated that they are prepared to respond to orders within 1-3 months, with proactive capacity planning already in place [58][59] Question: Expectations for cash cycle days and CapEx - Management aims to maintain stability in cash conversion cycle days while anticipating a slight increase in CapEx due to new projects [70][72]

Benchmark Electronics (NYSE:BHE) Q4 2025 Earnings call February 03, 2026 05:00 PM ET Company ParticipantsBryan Schumaker - CFODavid Moezidis - PresidentJeff Benck - CEOPaul Manske - Head of Investor RelationsSteven Fox - Founder and CEOConference Call ParticipantsAnja Soderstrom - Senior Equity Research AnalystJim Ricchiuti - Senior AnalystMax Michaelis - Equity Research AnalystOperatorGood afternoon, ladies and gentlemen, and welcome to the Benchmark Q4 and Fiscal Year 2025 Earnings Call and Webcast. At th ...

Benchmark Electronics (NYSE:BHE) Q4 2025 Earnings call February 03, 2026 05:00 PM ET Speaker6Good afternoon, ladies and gentlemen, and welcome to the Benchmark Q4 and fiscal year 2025 earnings call and webcast. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on February 3, 2025, and I would now like ...

Benchmark Electronics Fourth Quarter and Fiscal Year 2025 Results February 3rd, 2026 Forward-Looking Statements This document 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," "projec ...

Revenue and Earnings - Fourth quarter 2025 revenue reached $704 million, reflecting a high single-digit growth compared to the previous quarter[1] - Full year 2025 revenue totaled $2,659 million, slightly up from $2,656 million in 2024[4] - Diluted GAAP earnings per share for Q4 2025 were $0.17, while diluted non-GAAP earnings per share were $0.71[3] - The company expects Q1 2026 revenue guidance between $655 million and $695 million[7] - The company reported a diluted GAAP earnings per share of $1.66 in 2024, up from $0.68 in 2025, marking a growth of 144.1%[22] Profitability and Margins - Gross margin for Q4 2025 improved to 10.5% from 10.0% in Q3 2025[1] - Benchmark's operating margin for the full year 2025 was 2.9%, down from 4.1% in 2024[4] - GAAP operating margin improved to 4.1% in 2024 from 2.9% in 2025, indicating enhanced operational efficiency[22] Cash Flow and Assets - Operating cash flow for Q4 2025 was $59 million, with free cash flow of $48 million[3] - Cash and cash equivalents at the end of 2024 were $328,027 thousand, down from $322,400 thousand in 2025, reflecting a decrease of 1.9%[20] - Free cash flow for 2024 was $155,972 thousand, compared to $85,420 thousand in 2025, representing an increase of 82.2%[22] - Net cash provided by operating activities was $189,225 thousand in 2024, compared to $123,964 thousand in 2025, indicating a 52.7% increase[20] Sector Performance - The aerospace and defense (A&D) sector revenue increased to $137 million in Q4 2025, representing 20% of total revenue[5] Liabilities and Current Financial Position - Total current liabilities decreased from $635,577 thousand in 2025 to $649,105 thousand in 2024, a reduction of approximately 1.5%[17] - Total liabilities decreased from $971,912 thousand in 2025 to $1,029,872 thousand in 2024, a decline of approximately 5.9%[17] Strategic Direction - The company plans to continue executing its growth strategy under new leadership, focusing on creating value for stakeholders[2] Cash Conversion Cycle - The cash conversion cycle decreased to 67 days in Q4 2025, down from 89 days in Q4 2024[6]

Group 1 - Lake Street raised the price target on Benchmark Electronics (BHE) to $57 from $51 while maintaining a Buy rating on the shares as the analyst took over coverage of the stock [1] - The firm believes Benchmark is well-positioned for sustained, long-term growth in the Aerospace & Defense (A&D), Artificial Intelligence (AI), and Medical verticals [1] - The analyst expects the stock to increase as the company begins to ramp Semi orders throughout 2026 [1]

Benchmark Electronics Conference Call Summary Company Overview - **Company**: Benchmark Electronics - **Industry**: Electronic Manufacturing Services (EMS) - **Key Management**: Transition of CEO from Jeff Benck to David Moezidis effective April 1st, 2024 [6][3] Market Sector Breakdown - **Revenue Distribution**: - Semiconductor Equipment: 27% - Medical Sector: 20% - Industrial Sector: 20% - Aerospace and Defense (A&D): 20% - Advanced Communications and Compute: 13%-15% [7][8] Core Insights and Arguments - **Semiconductor Sector**: - Anticipation of growth in the semiconductor market in the second half of 2026 after a two-year slowdown [19] - Investments made in wafer fab equipment have allowed Benchmark to gain market share [28] - New facility in Malaysia expected to enhance capacity and support growth [29] - **Medical Sector**: - Medical sector has shown signs of recovery after an 18-month channel-clearing period [20] - Significant program win from a competitor has accelerated revenue generation [21] - **Aerospace and Defense (A&D)**: - A&D has experienced double-digit growth, with a focus on space programs [22][34] - Anticipated normalization of growth rates but at a higher level than previous years [36] - **Industrial Sector**: - Steady performance with numerous opportunities for growth due to the large total available market [22] - **AI and Advanced Computing**: - Early-stage participation in AI opportunities, particularly in government installations and commercial sectors [38] - Water-cooled infrastructure expertise positions Benchmark well for future AI developments [39] Financial Performance - **Margins**: - Consistent gross margins above 10% over the last nine quarters [44] - Potential for earnings growth to outpace revenue growth due to operational efficiencies [47] - **Working Capital Management**: - Reduction of $270 million in inventory since Q1 2023, with a cash conversion cycle of 77 days [49] - Focus on dividends, debt reduction, and stock buybacks as part of capital allocation strategy [50] Geopolitical Impact - **Manufacturing Footprint**: - 22 global locations with minimal impact from geopolitical issues; growth observed in Thailand and Mexico [41] - Ability to adapt to customer needs regarding manufacturing locations [42][43] Key Management Changes - **New Appointments**: - David Cummings appointed as Chief Commercial Officer [14] - Josh Holland appointed as Chief Technology Officer [15] Conclusion - Benchmark Electronics is strategically positioned for growth across multiple sectors, with a focus on operational efficiency and market share expansion. The company is navigating transitions in leadership while maintaining a strong financial profile and adapting to market dynamics.

Core Insights - A joint venture between Transource Energy and BHE Transmission plans to construct a nearly 200-mile, 765-kV transmission line in Wisconsin, selected by MISO for its competitive transmission planning process [1][2]. Investment and Project Details - Midcontinent Grid Solutions, the joint venture, will invest $1.2 billion in this infrastructure project aimed at enhancing reliability and supporting growing energy demand within the MISO footprint [3]. - The project is part of MISO's strategy to efficiently deliver power to customers, with a target in-service date set for 2034 [4][7]. Technological and Environmental Considerations - The line will utilize Transource's innovative "Guyed-Y" design, which minimizes the required right-of-way and reduces environmental impacts [5]. - A single 765-kV line can transmit 600% more energy than a 345-kV line while using less than half the land area, showcasing the efficiency of high-voltage transmission systems [6]. Company Background - Transource Energy is a partnership between American Electric Power (AEP) and Evergy, with AEP holding an 86.5% stake and Evergy 13.5% [8]. - BHE Transmission operates a diverse energy portfolio and serves over 13 million customers across the U.S., Great Britain, and Alberta, Canada, emphasizing its commitment to reliable service [9].

TEMPE, Ariz.--(BUSINESS WIRE)--Benchmark Electronics, Inc. (NYSE: BHE), a global provider of engineering, design, and manufacturing services, today announced the appointment of Josh Hollin as Senior Vice President and Chief Technology Officer (CTO). Hollin succeeds Jan Janick, who will retire on January 16, 2026, after a distinguished tenure shaping Benchmark's engineering strategy and culture of innovation. Hollin brings more than 25 years of experience in engineering leadership, automation, a. ...