Benchmark Electronics(BHE) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $681 million, representing a 3.5% increase year-over-year[4] - GAAP diluted earnings per share (EPS) for Q3 2025 was $0.39, while non-GAAP diluted EPS was $0.62[4] - The company achieved a gross margin of 10.0% and an operating margin of 3.5% for Q3 2025[4] - The company reported a total operating income of $24 million for Q3 2025[4] - Net income for the nine months ended September 30, 2025, was $18,879,000, a decrease from $44,904,000 in the same period of 2024, representing a decline of approximately 58.1%[17] - Non-GAAP net income for the nine months ended September 30, 2025, was $61,501,000, compared to $61,853,000 in 2024, reflecting a slight decrease of 0.6%[20] - GAAP operating margin for the nine months ended September 30, 2025, was 2.9%, down from 4.0% in the same period of 2024, showing a decline of 27.5%[20] - Non-GAAP operating margin for the nine months ended September 30, 2025, was 4.7%, compared to 5.1% in 2024, representing a decrease of 7.8%[20] - The company reported a GAAP gross profit of $195,895,000 for the nine months ended September 30, 2025, compared to $202,099,000 in 2024, a decrease of about 3.1%[20] Cash Flow and Assets - The cash conversion cycle improved to 77 days in Q3 2025, down from 90 days in Q3 2024[6] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $65,288,000, down from $143,309,000 in 2024, indicating a decrease of about 54.4%[20] - Cash and cash equivalents at the end of the period on September 30, 2025, were $286,061,000, down from $324,423,000 at the end of the previous year, a decline of approximately 11.8%[17] - Free cash flow for the nine months ended September 30, 2025, was $37,334,000, significantly lower than $119,088,000 in 2024, indicating a decrease of about 68.8%[20] Inventory and Expenses - Total inventories as of September 30, 2025, were $48,547,000, a decrease from $102,540,000 in 2024, reflecting a reduction of approximately 52.7%[17] - Stock-based compensation expense increased from $10,740,000 in the nine months ended September 30, 2024, to $15,077,000 in 2025, representing an increase of approximately 40.5%[17] Guidance and Future Outlook - Bookings momentum continued in Q3 2025, positioning the company for growth into 2026 and beyond[3] - Fourth quarter 2025 revenue guidance is projected between $670 million and $720 million[9] - Non-GAAP EPS guidance for Q4 2025 is expected to be between $0.62 and $0.68[9] Sector Performance - The semiconductor capital equipment sector generated $185 million in revenue, accounting for 27% of total revenue in Q3 2025[5] Current Assets - Total current assets decreased to $1,435 million as of September 30, 2025, compared to $1,504 million a year earlier[15]