Latest news with #BenchmarkElectronics
Yahoo
3 days ago
- Business
- Yahoo
Benchmark Announces Appointment of Chuck Swoboda to Board of Directors
TEMPE, Ariz., August 04, 2025--(BUSINESS WIRE)--Benchmark Electronics, Inc. (NYSE: BHE), a global provider of engineering, design, and manufacturing services, today announced the appointment of Charles "Chuck" Swoboda to its Board of Directors. Mr. Swoboda brings over three decades of leadership in technology, innovation, and manufacturing experience to Benchmark's Board. He is the former Chairman and CEO of Cree, Inc., where he led the transformation of the company from a $177 million R&D-focused business into a $1.6 billion global leader in semiconductors and LED lighting. During his tenure, he championed a culture of innovation, launched thousands of new products, and helped secure over 5,000 patents, including 24 as a co-inventor. "Chuck is a visionary leader whose track record in scaling advanced technology businesses and driving innovation aligns perfectly with Benchmark's strategic direction," said Jeff Benck, President and CEO of Benchmark. "Chuck's experience in semiconductors, IoT, and global operations will be invaluable as we continue to expand our complex solution capabilities and deliver further value to our customers." "Chuck's deep understanding of advanced manufacturing, operational excellence, and global supply chains will enhance our board's perspective," said David W. Scheible, Chairman of the Board. "We are excited to welcome him and look forward to his contributions." In addition to his role at Cree, Mr. Swoboda currently serves on the board of Ryder System, Inc. (NYSE: R) and has held board positions at Anixter International, Vesper Technologies, and several early-stage technology companies. He is also the author of The Innovator's Spirit and serves as Innovator-in-Residence at Marquette University. Mr. Swoboda holds a Bachelor of Science in Electrical Engineering from Marquette University. To learn more about Benchmark's Board of Directors, please visit About Benchmark Electronics, Inc. Benchmark provides comprehensive solutions across the entire product lifecycle; leading through its innovative technology and engineering design services; leveraging its optimized global supply chain; and delivering world-class manufacturing services in the following industries: aerospace and defense, advanced computing and communications, industrial, medical, and semiconductor capital equipment. Benchmark's global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE. View source version on Contacts Paul ManskySr. Director of Investor Relations and Corporate DevelopmentEmail: Phone: 623-300-7052 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
Benchmark Announces Appointment of Chuck Swoboda to Board of Directors
TEMPE, Ariz.--(BUSINESS WIRE)-- Benchmark Electronics, Inc. (NYSE: BHE), a global provider of engineering, design, and manufacturing services, today announced the appointment of Charles 'Chuck' Swoboda to its Board of Directors. Mr. Swoboda brings over three decades of leadership in technology, innovation, and manufacturing experience to Benchmark's Board. He is the former Chairman and CEO of Cree, Inc., where he led the transformation of the company from a $177 million R&D-focused business into a $1.6 billion global leader in semiconductors and LED lighting. During his tenure, he championed a culture of innovation, launched thousands of new products, and helped secure over 5,000 patents, including 24 as a co-inventor. 'Chuck is a visionary leader whose track record in scaling advanced technology businesses and driving innovation aligns perfectly with Benchmark's strategic direction,' said Jeff Benck, President and CEO of Benchmark. 'Chuck's experience in semiconductors, IoT, and global operations will be invaluable as we continue to expand our complex solution capabilities and deliver further value to our customers.' 'Chuck's deep understanding of advanced manufacturing, operational excellence, and global supply chains will enhance our board's perspective,' said David W. Scheible, Chairman of the Board. 'We are excited to welcome him and look forward to his contributions.' In addition to his role at Cree, Mr. Swoboda currently serves on the board of Ryder System, Inc. (NYSE: R) and has held board positions at Anixter International, Vesper Technologies, and several early-stage technology companies. He is also the author of The Innovator's Spirit and serves as Innovator-in-Residence at Marquette University. Mr. Swoboda holds a Bachelor of Science in Electrical Engineering from Marquette University. To learn more about Benchmark's Board of Directors, please visit About Benchmark Electronics, Inc. Benchmark provides comprehensive solutions across the entire product lifecycle; leading through its innovative technology and engineering design services; leveraging its optimized global supply chain; and delivering world-class manufacturing services in the following industries: aerospace and defense, advanced computing and communications, industrial, medical, and semiconductor capital equipment. Benchmark's global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.
Yahoo
31-07-2025
- Business
- Yahoo
Benchmark Electronics Inc (BHE) Q2 2025 Earnings Call Highlights: Navigating Growth Amid ...
Revenue: $642 million, up 2% sequentially. Non-GAAP EPS: $0.55, at the midpoint of prior guidance. Gross Margin: Non-GAAP gross margin of 10.2%, consistent with prior performance. Operating Margin: Non-GAAP operating margin of 4.7%, up 10 basis points sequentially. Cash Balance: $265 million as of June 30, 2025. Free Cash Flow: $15 million free cash outflow during the quarter. Debt Refinancing: Completed in June, extending maturity to June 2030. Capital Expenditures: $12 million invested during the quarter. Shareholder Returns: $6 million in cash dividends and $8 million in stock repurchases. Cash Conversion Cycle: 85 days, improving sequentially and year over year. Sector Performance: Semi-Cap revenue up 11% year over year; A&D revenue up 16% year over year. Q3 2025 Revenue Guidance: $635 million to $685 million. Q3 2025 Non-GAAP EPS Guidance: $0.56 to $0.62. Warning! GuruFocus has detected 4 Warning Signs with BHE. Release Date: July 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Benchmark Electronics Inc (NYSE:BHE) reported revenue of $642 million and non-GAAP EPS of $0.55, both at the midpoint of prior guidance. The company achieved its seventh consecutive quarter of greater than 10% gross margin. Double-digit annual revenue growth was observed in two sectors, with sequential growth in three out of five sectors. Strong bookings were recorded, particularly in the Medical and AC&C sectors, indicating a positive outlook for future growth. Successful refinancing of debt at attractive rates and repatriation of significant cash from China and Thailand were achieved. Negative Points Semi-Cap revenue decreased 2% quarter over quarter, and the broader industry recovery is taking longer than expected due to trade restrictions and tariff uncertainties. AC&C revenue was flat quarter over quarter and down considerably year over year, with growth not expected until later in 2025. The company experienced a $15 million free cash outflow during the quarter due to one-time events and working capital items. Despite improvements, the cash conversion cycle remains at 85 days, indicating ongoing inventory management challenges. The Semi-Cap market faces pressure from both fab buildout timing and government restrictions on sales to China. Q & A Highlights Q: Can you provide more perspective on the recovery in AC&C, particularly regarding liquid cooling and the timing and strength of the rebound? A: Jeffrey Benck, CEO, explained that Benchmark's experience with complex water-cooled systems, like Intel's Aurora, positions them well in the AI sector. They expect growth in AC&C to ramp up in the fourth quarter and continue into 2026, driven by new wins and opportunities in AI data centers. Q: How are political factors, like China restrictions, affecting the Semi-Cap market compared to end-market conditions? A: Jeffrey Benck noted that both trade restrictions and adjustments in capital spending are impacting the Semi-Cap market. Despite these challenges, Benchmark continues to invest in vertical integration and expects long-term growth, supported by the industry's projected expansion to a $1 trillion market by 2030. Q: Regarding the Medical segment, how much of the sequential growth was from existing programs versus new business? A: David Moezidis, COO, stated that most growth came from existing programs as inventory issues cleared. However, significant new bookings, including a competitive lift-and-shift program, are expected to contribute to growth by next year. Q: What is the impact of reducing cash cycle days on cash flow, and do you have a long-term target for this metric? A: Bryan Schumaker, CFO, mentioned that each day reduction in the cash cycle equates to about $7 million in cash flow. The company aims to improve inventory turns to 5-5.5, focusing on operational discipline and customer demand management. Q: How did Benchmark win the competitive leadership program in the Medical sector? A: David Moezidis highlighted a revamped go-to-market strategy focusing on proactive customer engagement and creative solutions, which helped secure new business and expand existing customer relationships. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
30-07-2025
- Business
- Yahoo
Benchmark (NYSE:BHE) Beats Q2 Sales Targets But Stock Drops
Electronics manufacturing services provider Benchmark (NYSE:BHE) reported revenue ahead of Wall Street's expectations in Q2 CY2025, but sales fell by 3.5% year on year to $642.3 million. On the other hand, next quarter's revenue guidance of $660 million was less impressive, coming in 1.1% below analysts' estimates. Its non-GAAP profit of $0.55 per share was 1.9% above analysts' consensus estimates. Is now the time to buy Benchmark? Find out in our full research report. Benchmark (BHE) Q2 CY2025 Highlights: Revenue: $642.3 million vs analyst estimates of $638.7 million (3.5% year-on-year decline, 0.6% beat) Adjusted EPS: $0.55 vs analyst estimates of $0.54 (1.9% beat) Revenue Guidance for Q3 CY2025 is $660 million at the midpoint, below analyst estimates of $667.1 million Adjusted EPS guidance for Q3 CY2025 is $0.59 at the midpoint, above analyst estimates of $0.58 Operating Margin: 3.2%, down from 4.3% in the same quarter last year Free Cash Flow was -$15.13 million, down from $48.24 million in the same quarter last year Market Capitalization: $1.45 billion '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 across most of our sectors with continued strength in A&D and solid recovery in the Industrial and Medical sectors. Even more encouraging was that we achieved a multi-year record in new bookings during the quarter,' said Jeff Benck, Benchmark's President and CEO. Company Overview Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE:BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors. Revenue Growth A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $2.59 billion in revenue over the past 12 months, Benchmark is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Benchmark's sales grew at a mediocre 4.6% compounded annual growth rate over the last five years. This shows it couldn't generate demand in any major way and is a tough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Benchmark's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 6.3% annually. This quarter, Benchmark's revenue fell by 3.5% year on year to $642.3 million but beat Wall Street's estimates by 0.6%. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 7.5% over the next 12 months, an improvement versus the last two years. This projection is noteworthy and suggests its newer products and services will catalyze better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Benchmark was profitable over the last five years but held back by its large cost base. Its average operating margin of 3.6% was weak for a business services business. On the plus side, Benchmark's operating margin rose by 1.4 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, Benchmark generated an operating margin profit margin of 3.2%, down 1.1 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Benchmark's EPS grew at an astounding 19.6% compounded annual growth rate over the last five years, higher than its 4.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Benchmark's earnings can give us a better understanding of its performance. As we mentioned earlier, Benchmark's operating margin declined this quarter but expanded by 1.4 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don't tell us as much about a company's fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Benchmark, its two-year annual EPS growth of 4.3% was lower than its five-year trend. We hope its growth can accelerate in the future. In Q2, Benchmark reported adjusted EPS at $0.55, down from $0.57 in the same quarter last year. Despite falling year on year, this print beat analysts' estimates by 1.9%. Over the next 12 months, Wall Street expects Benchmark's full-year EPS of $2.25 to grow 10.4%. Key Takeaways from Benchmark's Q2 Results It was good to see Benchmark narrowly top analysts' EPS guidance for next quarter expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, operating margin declined when compared to the same period last year, and the company's revenue guidance for next quarter slightly missed. Overall, this was a weaker quarter. The stock traded down 8.4% to $35.97 immediately after reporting. Is Benchmark an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Business Wire
30-07-2025
- Business
- Business Wire
Benchmark Reports Second Quarter 2025 Results
TEMPE, Ariz.--(BUSINESS WIRE)--Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30, 2025. Second quarter 2025 results: Revenue of $642 million GAAP Operating Income of $20 million Non-GAAP Operating Income of $30 million GAAP earnings per share of $0.03 Non-GAAP earnings per share of $0.55 '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 across most of our sectors with continued strength in A&D and solid recovery in the Industrial and Medical sectors. Even more encouraging was that we achieved a multi-year record in new bookings during the quarter,' said Jeff Benck, Benchmark's President and CEO. Benck continued 'My conviction in our strategy and execution has never been higher. We see this play out in our margin improvement, bookings momentum with existing customers, and increased commitment to our value proposition by new customers. I am confident our accelerating momentum will drive growth and operational leverage in the coming quarters.' Three Months Ended Summary GAAP Items June 30, March 31, June 30, (Amounts in millions, except per share data) 2024 2025 2025 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 Expand Three Months Ended Summary Non-GAAP Items(1) June 30, March 31, June 30, (Amounts in millions, except per share data) 2024 2025 2025 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 Expand (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. Expand Second Quarter 2025 Industry Sector Update 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 % Expand Cash Conversion Cycle 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 Expand Third Quarter 2025 Guidance Revenue between $635 million - $685 million Diluted GAAP earnings per share between $0.28 - $0.34 Diluted non-GAAP earnings per share between $0.56 - $0.62 Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $5.3 million and other non-operating expenses of $6.1 million to $6.3 million which includes restructuring, amortization of intangibles and other expenses. Second Quarter 2025 Earnings Conference Call The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company's website at A replay of the broadcast will also be available on the Company's website. About Benchmark Electronics, Inc. Benchmark provides comprehensive solutions across the entire product life cycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain and delivering world-class manufacturing services in the following industries: semiconductor capital equipment (Semi-Cap), industrial, medical, aerospace and defense (A&D), and advanced computing and communications (AC&C). Benchmark's global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE. Forward-Looking Statements This press release 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,' 'position,' 'continue,' 'estimate,' 'expect,' 'may,' 'will,' 'could,' 'predict,' and similar expressions of the negative or other variations thereof. In particular, statements, expressed or implied, concerning the Company's outlook and guidance for third quarter and fiscal year 2025 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company's business strategy and strategic initiatives, the Company's repurchases of shares of its common stock, the Company's expectations regarding restructuring charges, stock-based compensation expense, amortization of intangibles, award of any tax incentives and capital expenditures, and the Company's intentions concerning the payment of dividends, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond the Company's ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in any of the Company's subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, tariffs and retaliatory countermeasures, the ability to utilize the Company's manufacturing facilities at sufficient levels to cover its fixed operating costs, or write-downs or write-offs of obsolete or unsold inventory, may have resulting impacts on the Company's business, financial condition, results of operations, and the Company's ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company's operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and the Company assumes no obligation to update. Non-GAAP Financial Measures Management discloses certain non‐GAAP information to provide investors with additional information to analyze the Company's performance and underlying trends. These non-GAAP financial measures exclude restructuring charges, stock-based compensation expense, amortization of intangible assets acquired in business combinations, certain legal and other settlement losses (gains), customer insolvency losses (recoveries), asset impairments, other significant non-recurring costs and the related tax impacts, including discrete tax items and other non-GAAP tax adjustments, of all of the above. A detailed reconciliation between GAAP results and results excluding certain items ('non-GAAP') is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. This document also references 'free cash flow', a non-GAAP measure, which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software. The Company's non‐GAAP information is not necessarily comparable to the non‐GAAP information used by other companies. Non‐GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company's profitability or liquidity. Readers should consider the types of events and transactions for which adjustments have been made. 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 Expand 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 Expand 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 Expand 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, 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 4,814 3,281 Stock-based compensation expense 4,185 4,397 5,335 6,361 9,732 Amortization of intangible assets 1,204 1,204 1,204 2,408 2,408 Legal and other settlement loss(1) 317 10,275 799 1,172 11,074 Customer insolvency (recovery) (316 ) — — (316 ) — Other — — 311 — 311 Non-GAAP income from operations $ 34,114 $ 28,977 $ 30,074 $ 67,221 $ 59,051 GAAP operating margin 4.1 % 1.9 % 3.2 % 3.9 % 2.5 % Non-GAAP operating margin 5.1 % 4.6 % 4.7 % 5.0 % 4.6 % Gross profit (GAAP) $ 67,950 $ 63,180 $ 64,772 $ 135,358 $ 127,952 Stock-based compensation expense 326 431 514 752 945 Customer insolvency (recovery) (316 ) — — (316 ) — Non-GAAP gross profit $ 67,960 $ 63,611 $ 65,286 $ 135,794 $ 128,897 GAAP gross margin 10.2 % 10.0 % 10.1 % 10.1 % 10.0 % Non-GAAP gross margin 10.2 % 10.1 % 10.2 % 10.1 % 10.1 % Selling, general and administrative expenses $ 38,022 $ 38,800 $ 40,569 $ 75,354 $ 79,369 Stock-based compensation expense (3,858 ) (3,966 ) (4,821 ) (5,608 ) (8,787 ) Legal and other settlement loss(1) (317 ) (200 ) (225 ) (1,172 ) (425 ) Other — — (311 ) — (311 ) Non-GAAP selling, general and administrative expenses $ 33,847 $ 34,634 $ 35,212 $ 68,574 $ 69,846 Net income (GAAP) $ 15,528 $ 3,644 $ 972 $ 29,530 $ 4,616 Restructuring charges and other costs 1,471 1,342 1,939 4,814 3,281 Stock-based compensation expense 4,185 4,397 5,335 6,361 9,732 Amortization of intangible assets 1,204 1,204 1,204 2,408 2,408 Legal and other settlement loss(1) 317 10,275 799 1,172 11,074 Refinancing of Credit Facilities — — 224 — 224 Customer insolvency (recovery) (316 ) — — (316 ) — Other — — 311 — 311 Income tax adjustments(2) (1,437 ) (1,645 ) 9,208 (2,830 ) 7,563 Non-GAAP net income $ 20,952 $ 19,217 $ 19,992 $ 41,139 $ 39,209 Diluted earnings per share: Diluted (GAAP) $ 0.43 $ 0.10 $ 0.03 $ 0.81 $ 0.13 Diluted (Non-GAAP) $ 0.57 $ 0.52 $ 0.55 $ 1.13 $ 1.08 Weighted-average number of shares used in calculating diluted earnings per share: Diluted (GAAP) 36,497 36,605 36,258 36,388 36,427 Diluted (Non-GAAP) 36,497 36,605 36,258 36,388 36,258 Net cash provided by (used in) operations $ 55,816 $ 31,503 $ (2,823 ) $ 104,274 $ 28,680 Additions to property, plant and equipment and software (8,504 ) (4,156 ) (12,304 ) (14,407 ) (16,460 ) Free cash flow (used) $ 47,312 $ 27,347 $ (15,127 ) $ 89,867 $ 12,220 Expand (1) Includes settlement of the tax assessment in Mexico that was previously disclosed under Note 15 in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. (2) This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable effective tax rates. For the three and six months ended June 30, 2025, $10.4 million in discrete tax charges relating to foreign withholding tax paid on repatriated dividends, net of anticipated recoveries, and the recognition of deferred tax liabilities on remaining unremitted earnings in China. Expand
