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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
Yahoo
29-04-2025
- Business
- Yahoo
Benchmark Reports First Quarter 2025 Results
TEMPE, Ariz., April 29, 2025--(BUSINESS WIRE)--Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the first quarter ended March 31, 2025. First quarter 2025 results: Revenue of $632 million GAAP Operating Income of $12 million Non-GAAP Operating Income of $29 million GAAP earnings per share $0.10 Non-GAAP earnings per share $0.52 "I am pleased by Benchmark's ability to continue to execute to our long-term objectives despite this dynamic market, as evidenced by our sixth consecutive quarter of greater than 10% non-GAAP gross margins while we again generated over $27 million of free cash flow even with a sequential decline of revenue in the first quarter," said Jeff Benck, Benchmark's President and CEO. Benck continued, "Looking forward, we are navigating through tariff-related uncertainty that could impact some customer sourcing decisions in the near term. However, I am very confident with 10 manufacturing facilities in the United States and plenty of manufacturing capacity globally that we are well positioned to support our current and future customers' evolving manufacturing needs regardless of where they would like us to produce their products." Three Months Ended Summary GAAP Items March 31, December 31, March 31, (Amounts in millions, except per share data) 2024 2024 2025 Revenue $ 676 $ 657 $ 632 Gross Margin 10.0 % 10.3 % 10.0 % Operating Margin 3.8 % 4.3 % 1.9 % Diluted EPS $ 0.38 $ 0.50 $ 0.10 Three Months Ended Summary Non-GAAP Items(1) March 31, December 31, March 31, (Amounts in millions, except per share data) 2024 2024 2025 Revenue $ 676 $ 657 $ 632 Gross Margin 10.0 % 10.4 % 10.1 % Operating Margin 4.9 % 5.1 % 4.6 % Diluted EPS $ 0.55 $ 0.61 $ 0.52 (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. March 31, December 31, March 31, (In millions) 2024 2024 2025 Semi-Cap $ 166 25 % $ 198 30 % 195 32 % Industrial 141 21 140 21 137 22 A&D 106 16 117 18 122 19 Medical 115 17 117 18 104 16 AC&C 148 21 85 13 74 11 Total $ 676 100 % $ 657 100 % $ 632 100 % March 31, December 31, March 31, 2024 2024 2025 Days in accounts receivable 56 57 53 Days in contract asset 24 23 25 Days in inventory 94 85 89 Days in accounts payable (52 ) (54 ) (61 ) Days in advance payments from customers (28 ) (22 ) (20 ) Days in cash conversion cycle 94 89 86 Second Quarter 2025 Guidance Revenue between $615 million - $665 million Diluted GAAP earnings per share between $0.31 - $0.37 Diluted non-GAAP earnings per share between $0.52 - $0.58 Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $5.3 million and other non-operating expenses of $4.7 million to $4.9 million which includes restructuring, amortization of intangibles and other expenses. First 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, industrial, medical, commercial aerospace, defense, and advanced computing and communications. 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 second 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, 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 March 31, 2024 2025 Sales $ 675,575 $ 631,764 Cost of sales 608,167 568,584 Gross profit 67,408 63,180 Selling, general and administrative expenses 37,332 38,800 Amortization of intangible assets 1,204 1,204 Restructuring charges and other costs 3,343 11,417 Income from operations 25,529 11,759 Interest expense (7,245 ) (5,295 ) Interest income 1,992 2,732 Other expense, net (1,177 ) (802 ) Income before income taxes 19,099 8,394 Income tax expense 5,097 4,750 Net income $ 14,002 $ 3,644 Earnings per share: Basic $ 0.39 $ 0.10 Diluted $ 0.38 $ 0.10 Weighted-average number of shares outstanding: Basic 35,810 36,052 Diluted 36,401 36,605 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands) (UNAUDITED) December 31, March 31, 2024 2025 Assets Current assets: Cash and cash equivalents $ 315,152 $ 355,340 Restricted cash 12,875 — Accounts receivable, net 412,458 374,108 Contract assets 167,578 171,988 Inventories 553,654 560,285 Prepaid expenses and other current assets 42,512 43,571 Total current assets 1,504,229 1,505,292 Property, plant and equipment, net 225,097 224,258 Operating lease right-of-use assets 117,995 114,141 Goodwill and other long-term assets 292,143 291,928 Total assets $ 2,139,464 $ 2,135,619 Liabilities and Shareholders' Equity Current liabilities: Current installments of long-term debt $ 6,737 $ 6,690 Accounts payable 354,218 384,460 Advance payments from customers 143,614 127,858 Accrued liabilities 144,530 117,413 Total current liabilities 649,099 636,421 Long-term debt, net of current installments 250,457 268,946 Operating lease liabilities 108,997 106,438 Other long-term liabilities 17,598 19,116 Total liabilities 1,026,151 1,030,921 Shareholders' equity 1,113,313 1,104,698 Total liabilities and shareholders' equity $ 2,139,464 $ 2,135,619 Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In Thousands) (UNAUDITED) Three Months Ended March 31, 2024 2025 Cash flows from operating activities: Net income $ 14,002 $ 3,644 Depreciation and amortization 11,594 11,768 Stock-based compensation expense 2,176 4,397 Accounts receivable 30,960 39,870 Contract assets (5,835 ) (4,410 ) Inventories 45,222 (5,182 ) Accounts payable (20,259 ) 24,194 Advance payments from customers (15,730 ) (15,755 ) Other changes in working capital and other, net (13,673 ) (27,023 ) Net cash provided by operating activities 48,457 31,503 Cash flows from investing activities: Additions to property, plant and equipment and software (5,903 ) (4,156 ) Other investing activities, net (251 ) 50 Net cash used in investing activities (6,154 ) (4,106 ) Cash flows from financing activities: Share repurchases — (7,996 ) Net debt activity (15,865 ) 18,312 Other financing activities, net (11,276 ) (12,785 ) Net cash used in financing activities (27,141 ) (2,469 ) Effect of exchange rate changes (2,320 ) 2,385 Net increase in cash and cash equivalents and restricted cash 12,842 27,313 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 $ 296,055 $ 355,340 Benchmark Electronics, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Results (Amounts in Thousands, Except Per Share Data) (UNAUDITED) Three Months Ended Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2023 2024 2024 2024 2024 2025 Income from operations (GAAP) $ 32,100 $ 25,529 $ 27,253 $ 28,105 $ 28,524 $ 11,759 Restructuring charges and other costs 2,054 3,343 1,471 795 727 1,342 Stock-based compensation expense 2,955 2,176 4,185 4,379 2,626 4,397 Amortization of intangible assets 1,204 1,204 1,204 1,205 1,204 1,204 Legal and other settlement loss(1) — 855 317 367 239 10,275 Customer insolvency (recovery) — — (316 ) — — — Non-GAAP income from operations $ 38,313 $ 33,107 $ 34,114 $ 34,851 $ 33,320 $ 28,977 GAAP operating margin 4.6 % 3.8 % 4.1 % 4.3 % 4.3 % 1.9 % Non-GAAP operating margin 5.5 % 4.9 % 5.1 % 5.3 % 5.1 % 4.6 % Gross profit (GAAP) $ 71,004 $ 67,408 $ 67,950 $ 66,741 $ 67,925 $ 63,180 Stock-based compensation expense 416 426 326 413 503 431 Customer insolvency (recovery) — — (316 ) — — — Non-GAAP gross profit $ 71,420 $ 67,834 $ 67,960 $ 67,154 $ 68,428 $ 63,611 GAAP gross margin 10.3 % 10.0 % 10.2 % 10.1 % 10.3 % 10.0 % Non-GAAP gross margin 10.3 % 10.0 % 10.2 % 10.2 % 10.4 % 10.1 % Selling, general and administrative expenses $ 35,646 $ 37,332 $ 38,022 $ 36,636 $ 37,470 $ 38,800 Stock-based compensation expense (2,539 ) (1,750 ) (3,858 ) (3,966 ) (2,123 ) (3,966 ) Legal and other settlement loss — (855 ) (317 ) (367 ) (239 ) (200 ) Non-GAAP selling, general and administrative expenses $ 33,107 $ 34,727 $ 33,847 $ 32,303 $ 35,108 $ 34,634 Net income (GAAP) $ 17,552 $ 14,002 $ 15,528 $ 15,374 $ 18,423 $ 3,644 Restructuring charges and other costs 2,899 3,343 1,471 795 727 1,342 Stock-based compensation expense 2,955 2,176 4,185 4,379 2,626 4,397 Amortization of intangible assets 1,204 1,204 1,204 1,205 1,204 1,204 Legal and other settlement loss (gain)(1) (37 ) 855 317 367 239 10,275 Customer insolvency (recovery) — — (316 ) — — — Income tax adjustments(2) (1,280 ) (1,393 ) (1,437 ) (1,406 ) (971 ) (1,645 ) Non-GAAP net income $ 23,293 $ 20,187 $ 20,952 $ 20,714 $ 22,248 $ 19,217 Diluted earnings per share: Diluted (GAAP) $ 0.49 $ 0.38 $ 0.43 $ 0.42 $ 0.50 $ 0.10 Diluted (Non-GAAP) $ 0.65 $ 0.55 $ 0.57 $ 0.57 $ 0.61 $ 0.52 Weighted-average number of shares used in calculating diluted earnings per share: Diluted (GAAP) 35,956 36,401 36,497 36,629 36,659 36,605 Diluted (Non-GAAP) 35,956 36,401 36,497 36,629 36,659 36,605 Net cash provided by operations $ 137,079 $ 48,457 $ 55,816 $ 39,036 $ 45,916 $ 31,503 Additions to property, plant and equipment and software (11,026 ) (5,903 ) (8,504 ) (9,814 ) (9,032 ) (4,156 ) Free cash flow $ 126,053 $ 42,554 $ 47,312 $ 29,222 $ 36,884 $ 27,347 (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 using the applicable effective tax rates. View source version on Contacts For More Information, Please Contact: Paul Mansky, Investor Relations and Corporate Development1-623-300-7052 or Sign in to access your portfolio
