Benchmark Electronics — Q3 2026 Earnings Summary

Financial Performance:

• Revenue reached $811 million for the quarter ended September 30, 2026, representing a 19% year-over-year increase compared to $681 million in Q3 2025.
• Diluted GAAP earnings per share (EPS) were $0.47, up 21% year-over-year from $0.39.
• Diluted non-GAAP EPS were $0.84, up 35% year-over-year from $0.62.
• Operating cash flow was $30 million, with free cash flow of $14 million.
• GAAP gross margin was 10.4%, while non-GAAP gross margin was 10.5%.
• GAAP operating margin was 3.8%, while non-GAAP operating margin was 5.5%.
• Net income for the nine months ended September 30, 2026, was $50.052 million, compared to $18.879 million in the prior year period.
• Cash and cash equivalents stood at $290.656 million as of September 30, 2026, down from $322.064 million at December 31, 2025.
• Total assets increased to $2.317 billion as of September 30, 2026, from $2.072 billion at December 31, 2025.
• Total liabilities increased to $1.189 billion as of September 30, 2026, from $971.912 million at December 31, 2025.
• Long-term debt, net of current installments, decreased to $154.086 million as of September 30, 2026, from $206.826 million at December 31, 2025.
• The cash conversion cycle improved to 54 days in Q3 2026 from 77 days in Q3 2025.

Guidance and Future Outlook:

• The company raised its fiscal year 2026 revenue growth outlook to approximately 16%, exceeding the $3 billion annual revenue level established in the previous quarter.
• Fourth quarter 2026 revenue guidance is set between $815 million and $855 million.
• Fourth quarter 2026 diluted GAAP EPS guidance is between $0.58 and $0.64.
• Fourth quarter 2026 diluted non-GAAP EPS guidance is between $0.85 and $0.91.
• Non-GAAP EPS guidance for Q4 excludes stock-based compensation expense of approximately $7.8 million and other non-operating expenses of $2.7 million to $3.2 million.

Business Segments and Product Lines:

• Semi-Cap segment revenue was $241 million, accounting for 30% of total revenue, up 27% year-over-year.
• Industrial segment revenue was $172 million, accounting for 21% of total revenue, up 22% year-over-year.
• Medical segment revenue was $138 million, accounting for 17% of total revenue, up 19% year-over-year.
• AC&C (Advanced Computing and Communications) segment revenue was $132 million, accounting for 16% of total revenue, up 13% year-over-year.
• A&D (Aerospace and Defense) segment revenue was $128 million, accounting for 16% of total revenue, up 19% year-over-year.
• Demand is broadening across the company's portfolio, and bookings momentum remains healthy.

Market and Competitive Landscape:

• Benchmark operates in advanced computing and communications, aerospace and defense, industrial, medical, and semiconductor capital equipment industries.
• The company leverages an optimized global supply chain and delivers manufacturing services across facilities in eight countries.

Risks and Challenges:

• Forward-looking statements note risks including customer demand fluctuations, supply chain constraints, continuing inflationary pressures, foreign currency fluctuations, and high interest rates.
• Geopolitical uncertainties, including hostilities in the Middle East, trade restrictions, sanctions, tariffs, and retaliatory countermeasures are cited as potential risks.
• Risks include the ability to utilize manufacturing facilities at sufficient levels to cover fixed operating costs and potential write-downs or write-offs of obsolete or unsold inventory, including inventory subject to current litigation.

Management Commentary and Tone:

• David Moezidis, President and CEO, stated that results reflect the continued transformation of Benchmark into a higher-performing company.
• Management noted that earnings grew at nearly twice the rate of sales during the quarter.
• The tone was confident, citing high-level team execution and broadening demand.

Other Key Points:

• Share repurchases totaled $14.266 million for the nine months ended September 30, 2026, compared to $25.994 million in the prior year period.
• Net debt activity for the nine months ended September 30, 2026, was $(53.175) million.
• Additions to property, plant, and equipment and software were $46.669 million for the nine months ended September 30, 2026.
• A conference call to discuss results was scheduled for October 28, 2026, at 5:00 p.m. Eastern Time.
• Non-GAAP financial measures exclude restructuring charges, stock-based compensation, amortization of intangible assets, legal settlements, and other non-recurring costs.