Benchmark Electronics (BHE -1.87%), a provider of engineering and manufacturing services for complex, regulated markets, reported its second quarter 2025 earnings on July 30, 2025. The company Non-GAAP earnings per share and GAAP revenue for Q2 2025 slightly exceeded expectations. Non-GAAP EPS was $0.55 in Q2 2025, ahead of the $0.54 analyst estimate, while GAAP revenue was $642 million in Q2 2025, $3 million higher than consensus forecasts. However, Compared to Q2 2024, both GAAP and non-GAAP revenue and e ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Commission File Number: 1-10560 BENCHMARK ELECTRONICS, INC. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to________________ (Exact name of registrant as specified in its charter) or If an e ...

Benchmark Electronics (BHE) Q2 2025 Earnings Call July 30, 2025 05:00 PM ET Speaker0Good afternoon, ladies and gentlemen, and welcome to the Benchmark Second Quarter twenty twenty five Earnings Conference Call and Webcast. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on 07/30/2025. I would now like to turn the conference over to Paul Maske.Please go ahead.Speaker1Thank you, Constantine, and thanks, eve ...

Benchmark Electronics Second Quarter 2025 Financial Results July 30, 2025 Forward-Looking 2025 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," "project," "f ...

Exhibit 99.1 FOR IMMEDIATE RELEASE BENCHMARK REPORTS SECOND QUARTER 2025 RESULTS TEMPE, AZ, July 30, 2025 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30, 2025. Second quarter 2025 results: "Benchmark's second quarter results continue to validate our strategy. We are the partner of choice for complex product execution, from concept through design to global delivery and support. Our second quarter progress was measured by sequential growth acro ...

Summary of Benchmark Electronics Conference Call Company Overview - **Company**: Benchmark Electronics - **Industry**: Electronics and Precision Technologies Manufacturing - **Market Capitalization**: $2.7 billion [3] Key Financial Highlights - **Free Cash Flow**: $140 million over the last twelve months, with a gross margin greater than 10% for six consecutive quarters [4][11] - **Net Cash**: $79 million at the end of Q1 [4][19] - **Revenue**: $632 million in Q1, in line with guidance [13] - **Gross Margin**: 10.1% in Q1, slightly up from 10.0% year-over-year [14] Operational Insights - **Global Manufacturing Footprint**: 21 locations, with 55% in the Americas and 36% in the U.S. [6] - **Employee Count**: 12,500 associates, including 420 engineers [4] - **Focus on Inventory Management**: Reduced inventory days from 94 to 89, aiming for 5-5.5 turns [20] Sector Performance - **Medical Sector**: 12% decline quarter-over-quarter due to demand softness, expected recovery in the latter half of the year [16][24] - **Aerospace and Defense**: 4% growth quarter-over-quarter, driven by strong defense demand [15][22] - **Industrial Sector**: Slight decline of 2% quarter-over-quarter, but positive outlook for growth [15][22] - **Semi Cap Sector**: Revenue decreased by 2%, but year-over-year growth of 18% indicates market share gains [14] Strategic Focus - **Outsourcing Trend**: Continued growth expected in outsourcing, particularly in industrial and medical sectors [8][30] - **Tariff Management**: Minimal impact from tariffs as they are considered a pass-through, with 36% U.S. footprint providing stability [12][13] - **Future Growth Areas**: Anticipated growth in semi cap and industrial sectors, with ongoing investments in technology and capacity [21][22] Capital Allocation and Shareholder Returns - **Dividends**: Commitment to maintaining dividends, with a focus on returning capital to shareholders [18][47] - **Share Buybacks**: $8 million in shares repurchased in Q1, aimed at offsetting dilution [19][47] - **M&A Strategy**: No recent acquisitions, focusing on organic growth and existing customer base [48][49] Conclusion - **Outlook**: Optimistic about future growth, particularly in semi cap and industrial sectors, while maintaining operational efficiency and margin stability [28][30]

Sales Performance - Sales for Q1 2025 were $631.8 million, a 6% decrease from $675.6 million in Q1 2024[109] - Total sales for Q1 2025 were $631.8 million, a decrease of 6.5% from $675.6 million in Q1 2024[121] - Semiconductor Capital Equipment sales increased by 18% to $195.1 million from $165.9 million in Q1 2024[117] - Aerospace and Defense sales increased by 15% to $121.9 million from $105.8 million in Q1 2024[118] - Medical sales decreased by 10% to $103.6 million from $114.7 million in Q1 2024[119] - Advanced Computing and Communications sales decreased by 50% to $74.5 million from $148.0 million in Q1 2024[119] - Sales in the Americas decreased by 24% to $284.3 million, primarily due to softness in AC&C and semi-cap sectors[121] - Sales in Asia increased by 10% to $284.0 million, driven by higher demand in the semi-cap sector[122] - Sales in Europe increased by 7% to $86.3 million, attributed to higher demand in the A&D and industrial sectors[123] - Sales to the top ten customers represented 54% of total sales for both Q1 2025 and Q1 2024[110] Financial Metrics - Gross profit margin for Q1 2025 was 10.0%, unchanged from Q1 2024[115] - Gross profit decreased by 6% to $63.2 million, with a gross profit margin remaining flat at 10.0%[124] - Net income for Q1 2025 was 0.6%, down from 2.0% in Q1 2024[115] - Income from operations decreased by 54% to $11.8 million, with a significant loss of $4.4 million reported in the Americas[125] Expenses - Selling, general and administrative expenses increased to 6.1% of sales in Q1 2025 from 5.5% in Q1 2024[115] - SG&A expenses increased to $38.8 million, primarily due to higher stock-based compensation and professional services[127] Cash and Capital Expenditures - Cash provided from operating activities was $31.5 million, with working capital reported at $0.9 billion[138] - As of March 31, 2025, the company had $355.3 million in cash and cash equivalents, including $344.0 million held outside the U.S.[136] - The company plans capital expenditures of approximately $60 million to $70 million over the next 12 months to increase production capacity[144] Debt and Interest Rate Management - As of March 31, 2025, the company had $121.4 million outstanding on the floating rate term loan facility[155] - The company has an interest rate swap agreement with a notional amount of $121.4 million and a fixed interest rate of 4.039%[155] - The interest rate swap agreement is designated as a cash flow hedge, converting floating rate interest expense to fixed interest rate expense[155] - The company is exposed to market risk for changes in interest rates on its financial instruments, particularly related to invested cash balances[154] - The company is also exposed to interest rate risk on borrowings under its Credit Agreement[155] Risk Management - The company mitigates default risk by generally investing in investment grade securities[154] - The company does not use derivative financial instruments in its investing activities[154] - The company places cash and cash equivalents and investments with various major financial institutions to protect invested principal funds[154] - Additional information regarding forward currency exchange contracts and interest rate swap agreements can be found in the financial statements[156]

Financial Data and Key Metrics Changes - First quarter revenue was $632 million, down 4% sequentially and 6% year over year [10][11] - Non GAAP earnings per share was $0.52, above the midpoint of guidance [6][10] - Non GAAP gross margin was 10.1%, a 30 basis point decrease quarter over quarter but a 10 basis point increase year over year [10][13] - Non GAAP operating margin was 4.6%, down 50 basis points sequentially and 30 basis points year over year [10][11] Business Line Data and Key Metrics Changes - Semi cap revenue grew 18% year over year but decreased 2% quarter over quarter [11][19] - A and D sector revenue was up 15% year over year and 4% quarter over quarter [11][22] - Industrial revenue was down 2% quarter over quarter due to demand softness [11][21] - Medical revenue decreased 12% quarter over quarter, reflecting ongoing demand softness [12][22] - AC and C revenue decreased 12% quarter over quarter due to timing-related weaknesses [12][22] Market Data and Key Metrics Changes - The company has a significant U.S. manufacturing footprint at 36% and over 55% in North America [8][25] - Demand in the semi cap sector is expected to continue growing despite tariff uncertainties [19][20] - Medical sector recovery is anticipated in the second half of 2025 as inventory levels normalize [22][64] Company Strategy and Development Direction - The company is focused on optimizing supply chains for customers amid tariff-related uncertainties [5][27] - Continued investment in strategic growth areas, including a new facility in Penang, Malaysia [20][96] - The company is evaluating M&A opportunities that align with strategic plans while maintaining a focus on organic growth [28][102] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are short-term risks due to global macroeconomic uncertainties, there are also mid to long-term opportunities [25][27] - The company expects to deliver sequential growth throughout the year, barring a recession caused by tariffs [27][28] - Management expressed confidence in returning to year-over-year growth in the second half of 2025 [16][40] Other Important Information - The company generated $27 million in free cash flow in the quarter, marking the eighth consecutive quarter of positive free cash flow [6][14] - Cash balance as of March 31 was $355 million, a year-over-year increase of $59 million [14] - The company paid cash dividends of $6.1 million and repurchased $8 million of outstanding shares during the quarter [14] Q&A Session Summary Question: Are customer pauses and pull-ins creating a net headwind? - Management indicated that the situation is balancing out, with some customers pausing and others pulling in orders, leading to uncertainty but not a significant bias in either direction [31][32] Question: What is the impact of supply chain optimization on existing customers? - Management noted that some bids are taking longer due to customers evaluating their supply chains, elongating the cycle for new bookings [33][34] Question: Where is the traction seen in the industrial sector? - Management highlighted a balance of new and existing customers, with strong follow-on business and new growth in automation solutions [36] Question: Is the expected rebound in medical driven by channel replenishment or new program launches? - Management indicated that both factors are contributing, with customers working through inventory and new competitive takeaways expected to drive growth [56][57] Question: What is the expected tax rate for the second half of the year? - Management projected a slight drop in the tax rate, estimating around 24% for the year [60] Question: How quickly can the company pivot or launch new programs? - Management stated that moving a customer to an existing facility is challenging, but new programs can ramp significantly in about six months if leveraging existing manufacturing knowledge [82] Question: Are there opportunities to acquire a customer's manufacturing facility? - Management expressed openness to discussions about taking over facilities if they align with existing operations but emphasized a preference against acquiring facilities at a premium [88][90]

Benchmark Electronics Financial Results April 29, 2025 Forward-Looking 2025 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," "project," "forecast," "strategy ...

Financial Data and Key Metrics Changes - First quarter revenue was $632 million, down 4% sequentially and 6% year over year [12][14] - Non-GAAP earnings per share (EPS) was $0.52, above the midpoint of guidance [8][12] - Non-GAAP gross margin was 10.1%, a 30 basis point decrease quarter over quarter but a 10 basis point increase year over year [12][15] - Non-GAAP operating margin was 4.6%, down 50 basis points sequentially and 30 basis points year over year [12][15] - Free cash flow generated in the quarter was $27 million, totaling slightly more than $140 million on a trailing twelve-month basis [9][16] Business Line Data and Key Metrics Changes - Semi cap revenue grew 18% year over year but decreased 2% quarter over quarter [13][20] - Aerospace and Defense (A&D) revenue was up 15% year over year and 4% quarter over quarter [13][22] - Industrial revenue was down 2% quarter over quarter due to existing customer demand softness [13][22] - Medical revenue decreased 12% quarter over quarter, reflecting demand softness in medical devices [13][22] - AC and C revenue decreased 12% quarter over quarter due to timing-related weaknesses [13][22] Market Data and Key Metrics Changes - The company noted a mixed recovery in the broader industry, particularly in semi cap and A&D sectors [20][22] - Demand in the medical sector is expected to improve in the second half of 2025 as inventory levels normalize [24][66] - The company has a significant U.S. manufacturing footprint, with 36% of its capacity in the U.S. and over 55% in North America [10][68] Company Strategy and Development Direction - The company aims to optimize supply chains for customers amid tariff-related uncertainties [6][27] - Continued investment in semi cap and A&D sectors is a focus, with a new facility in Penang, Malaysia, to support future growth [21][100] - The company is exploring M&A opportunities that align with strategic plans but remains focused on organic growth [28][109] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to revenue growth despite current headwinds [7][27] - The company anticipates mid-single-digit revenue growth in the second half of 2025 [18][44] - Management highlighted the importance of adapting to customer needs and optimizing supply chains in a dynamic environment [88][90] Other Important Information - The company paid cash dividends of $6.1 million and repurchased $8 million of outstanding shares in the quarter [16][17] - The cash balance as of March 31 was $355 million, a year-over-year increase of $59 million [16][17] Q&A Session Summary Question: Are customer pauses and pull-ins creating a net headwind? - Management indicated that customer activity is balancing out, with some customers pausing shipments while others are pulling in orders [31][32] Question: What is the outlook for existing customers optimizing their supply chains? - Management noted that some bids are taking longer due to customers evaluating their supply chains amid tariff uncertainties [34][35] Question: Where is the traction seen in the industrial sector? - Management reported a balance of new and existing customers driving growth in the industrial sector, particularly in electronic controls and automation solutions [37][38] Question: Is the first half expected to decline while the second half sees growth? - Management confirmed that the first half is expected to decline mid-single digits year over year, with growth anticipated in the second half [42][43] Question: What is the expected tax rate for the second half of the year? - The expected effective tax rate for the remainder of the year is projected to be around 24% [61][62] Question: Are inventory levels in the medical sector normalized? - Management believes that OEMs have worked through much of the inventory, leading to expected growth in the second half [65][66] Question: How quickly can new programs be launched in new facilities? - Management indicated that while moving existing customers can be challenging, new programs can ramp up significantly within six months if they are competitive takeaways [86][88] Question: Is the company considering acquiring customer manufacturing facilities? - Management expressed openness to discussions about taking over facilities but emphasized a preference for leveraging existing infrastructure rather than acquiring new factories [92][94]