07/30/2025 – 04:07 PM
TEMPE, Ariz. — Benchmark Electronics, Inc. (NYSE: BHE) announced its financial results for the second quarter, ending June 30, 2025, showcasing a resilient business strategy amid evolving market dynamics.
Second Quarter 2025 Highlights:
Revenue: $642 million
GAAP Operating Income: $20 million
Non-GAAP Operating Income: $30 million
GAAP Earnings per Share: $0.03
Non-GAAP Earnings per Share: $0.55
“Benchmark’s second-quarter performance validates our strategic direction, solidifying our position as a preferred partner for intricate product execution, encompassing concept development, design, global delivery, and ongoing support,” stated Jeff Benck, President and CEO of Benchmark. He highlighted sequential growth across key sectors, including impressive performance in Aerospace & Defense (A&D) and a robust rebound in the Industrial and Medical sectors. Benck noted, “Even more encouraging was that we achieved a multi-year record in new bookings during the quarter,” signaling a promising trajectory for future growth.
Benck expressed strong confidence in Benchmark’s future, emphasizing margin improvements, bookings momentum with existing clients, and heightened commitment to the company’s value proposition from new customers. “I am confident our accelerating momentum will drive growth and operational leverage in the coming quarters.”
Three Months Ended
June 30,
March 31,
June 30,
2024
2025
2025
(Amounts in millions, except per share data)
Revenue
$
666
$
632
$
642
Gross Margin
10.2
%
10.0
%
10.1
%
Operating Margin
4.1
%
1.9
%
3.2
%
Diluted EPS
$
0.43
$
0.10
$
0.03
Three Months Ended
Summary Non-GAAP Items(1)
June 30,
March 31,
June 30,
2024
2025
2025
(Amounts in millions, except per share data)
Revenue
$
666
$
632
$
642
Gross Margin
10.2
%
10.1
%
10.2
%
Operating Margin
5.1
%
4.6
%
4.7
%
Diluted EPS
$
0.57
$
0.52
$
0.55
(1)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.
Second Quarter 2025 Industry Sector Performance:
June 30,
March 31,
June 30,
(In millions)
2024
%
2025
%
2025
%
Semi-Cap
$
172
26
$
195
32
$
190
30
Industrial
142
21
137
22
142
22
A&D
109
16
122
19
126
20
Medical
111
17
104
16
110
17
AC&C
132
20
74
11
74
11
Total
$
666
100
$
632
100
$
642
100
Benchmark’s cash conversion cycle demonstrated continued efficiency:
June 30,
March 31,
June 30,
2024
2025
2025
Days in accounts receivable
51
53
52
Days in contract asset
25
25
25
Days in inventory
90
89
83
Days in accounts payable
(52
)
(61
)
(55
)
Days in advance payments from customers
(24
)
(20
)
(20
)
Days in cash conversion cycle
90
86
85
Guidance for Third Quarter 2025:
Revenue: $635 million – $685 million
Diluted GAAP Earnings per Share: $0.28 – $0.34
Diluted Non-GAAP Earnings per Share: $0.56 – $0.62
Non-GAAP EPS Guidance excludes stock-based compensation expense of approximately $5.3 million and other non-operating expenses of $6.1 million to $6.3 million, including restructuring, amortization of intangibles, and other expenses.
Earnings Conference Call:
Benchmark will host a conference call today at 5:00 p.m. Eastern Time to discuss these results. A live webcast and related materials will be available on the company’s website: www.bench.com.
About Benchmark Electronics, Inc.:
Benchmark provides comprehensive product lifecycle solutions driven by innovative technology and engineering design services. Leveraging its global supply chain and manufacturing capabilities, Benchmark serves diverse industries, including: semiconductor capital equipment (Semi-Cap), industrial, medical, aerospace and defense (A&D), and advanced computing and communications (AC&C). Benchmark operates facilities in seven countries. Its common shares are traded on the New York Stock Exchange under the symbol BHE.
Disclaimer: This press release includes forward-looking statements subject to risks and uncertainties detailed in Benchmark’s filings with the Securities and Exchange Commission. Actual results may differ materially.
Non-GAAP Financial Measures: This release includes non-GAAP financial measures to provide investors with additional insights into the company’s performance. These measures exclude specific items; reconciliations to GAAP measures are provided in the attached tables. Management believes these non-GAAP measures improve comparability with previous guidance and better reflect ongoing operating performance. Free cash flow, another non-GAAP measure, is defined as cash flow from operations less additions to property, plant, and equipment and purchased software.
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2025
2024
2025
Sales
$
665,896
$
642,335
$
1,341,471
$
1,274,099
Cost of sales
597,946
577,563
1,206,113
1,146,147
Gross profit
$
67,950
$
64,772
$
135,358
$
127,952
Selling, general and administrative expenses
38,022
40,569
75,354
79,369
Amortization of intangible assets
1,204
1,204
2,408
2,408
Restructuring charges and other costs
1,471
2,513
4,814
13,930
Income from operations
27,253
20,486
52,782
32,245
Interest expense
(6,933
)
(6,348
)
(14,178
)
(11,643
)
Interest income
2,526
3,135
4,518
5,867
Other expense, net
(2,323
)
(666
)
(3,500
)
(1,468
)
Income before income taxes
20,523
16,607
39,622
25,001
Income tax expense
4,995
15,635
10,092
20,385
Net income
$
15,528
$
972
$
29,530
$
4,616
Earnings per share:
Basic
$
0.43
$
0.03
$
0.82
$
0.13
Diluted
$
0.43
$
0.03
$
0.81
$
0.13
Weighted-average number of shares outstanding:
Basic
36,047
35,991
35,929
36,021
Diluted
36,497
36,258
36,388
36,427
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands)
(UNAUDITED)
December 31,
June 30,
2024
2025
Assets
Current assets:
Cash and cash equivalents
$
315,152
$
264,647
Restricted cash
12,875
—
Accounts receivable, net
412,458
369,246
Contract assets
167,578
175,101
Inventories
553,654
531,986
Prepaid expenses and other current assets
42,512
56,010
Total current assets
1,504,229
1,396,990
Property, plant and equipment, net
225,097
223,809
Operating lease right-of-use assets
117,995
110,771
Goodwill and other long-term assets
292,143
299,275
Total assets
$
2,139,464
$
2,030,845
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt
$
6,737
$
3,830
Accounts payable
354,218
354,715
Advance payments from customers
143,614
126,463
Accrued liabilities
144,530
107,142
Total current liabilities
649,099
592,150
Long-term debt, net of current installments
250,457
203,418
Operating lease liabilities
108,997
104,896
Other long-term liabilities
17,598
23,511
Total liabilities
1,026,151
923,975
Shareholders’ equity
1,113,313
1,106,870
Total liabilities and shareholders’ equity
$
2,139,464
$
2,030,845
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(UNAUDITED)
Six Months Ended
June 30,
2024
2025
Cash flows from operating activities:
Net income
$
29,530
$
4,616
Depreciation and amortization
23,026
23,785
Stock-based compensation expense
6,361
9,732
Accounts receivable
71,346
46,794
Contract assets
(7,111
)
(7,523
)
Inventories
82,717
26,087
Accounts payable
(25,550
)
(3,727
)
Advance payments from customers
(47,727
) (17,150
)
Other changes in working capital and other, net
(28,318
)
(53,934
)
Net cash provided by operating activities
104,274
28,680
Cash flows from investing activities:
Additions to property, plant and equipment and software
(14,407
)
(16,460
)
Other investing activities, net
(1,405
)
62
Net cash used in investing activities
(15,812
)
(16,398
)
Cash flows from financing activities:
Share repurchases
—
(15,995
)
Net debt activity
(41,731
) (50,430
)
Other financing activities, net
(17,161
)
(18,990
)
Net cash used in financing activities
(58,892
)
(85,415
)
Effect of exchange rate changes
(2,918
)
9,753
Net increase (decrease) in cash and cash equivalents and restricted cash
26,652
(63,380
)
Cash and cash equivalents and restricted cash at beginning of year
283,213
328,027
Cash and cash equivalents and restricted cash at end of period
$
309,865
$
264,647
Benchmark Electronics, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Jun 30,
2024
2025
2025
2024
2025
Income from operations (GAAP)
$
27,253
$
11,759
$
20,486
$
52,782 $
32,245
Restructuring charges and other costs
1,471
1,342
1,939&n
Original article, Author: Jam. If you wish to reprint this article, please indicate the source:https://aicnbc.com/6021.html
