BENCHMARK ELECTRONICS INC (BHE): Results of Operations and Financial Condition
BENCHMARK ELECTRONICS INC (BHE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE BENCHMARK REPORTS STRONG SECOND QUARTER RESULTS RAISES FISCAL 2026 REVENUE GUIDANCE TO A RECORD $3 BILLION TEMPE, AZ, July 29, 2026 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30,
How this was made
The 30-second read
Why it matters
The key new information is the combination of Q2 outperformance versus prior guidance and raised revenue guidance for both Q3 and FY2026, indicating stronger demand and bookings momentum.
Market read
This is a guidance-raising earnings update with concrete revenue and EPS ranges, which is typically actionable for positioning and estimate revisions.
What to watch
Cash conversion cycle improved (cash conversion cycle down to 59 days), but traders should watch whether receivables/inventory normalization reverses in subsequent quarters and whether non-GAAP adjustments mask underlying cost pressures.
BENCHMARK REPORTS STRONG SECOND QUARTER RESULTS RAISES FISCAL 2026 REVENUE GUIDANCE TO A RECORD $3 BILLION
Revenue was $756 million, up 18% year-over-year, while diluted non-GAAP earnings per share was $0.75, up 36% year-over-year. GAAP and non-GAAP operating margins reached 4.0% and 5.2%, respectively, and the company raised its fiscal 2026 revenue outlook to approximately $3 billion.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended June 30, 2026GAAP | $756 million | – | up 18% year-over-year |
| Gross margin, three months ended June 30, 2026GAAP | 10.4 % | – | – |
| Operating margin, three months ended June 30, 2026GAAP | 4.0 % | – | – |
| Diluted EPS, three months ended June 30, 2026GAAP | $0.55 | – | – |
| Gross margin, three months ended June 30, 2026non-GAAP | 10.5 % | – | – |
| Operating margin, three months ended June 30, 2026non-GAAP | 5.2 % | – | – |
| Diluted EPS, three months ended June 30, 2026non-GAAP | $0.75 | – | up 36% year-over-year |
| Sales, three months ended June 30, 2026GAAP | $ 755,980 (in thousands) | – | – |
| Cost of sales, three months ended June 30, 2026GAAP | 677,580 (in thousands) | – | – |
| Gross profit, three months ended June 30, 2026GAAP | 78,400 (in thousands) | – | – |
| Selling, general and administrative expenses, three months ended June 30, 2026GAAP | 46,132 (in thousands) | – | – |
| Amortization of intangible assets, three months ended June 30, 2026GAAP | 1,204 (in thousands) | – | – |
| Restructuring charges and other costs, three months ended June 30, 2026GAAP | 811 (in thousands) | – | – |
| Income from operations, three months ended June 30, 2026GAAP | 30,253 (in thousands) | – | – |
| Interest expense, three months ended June 30, 2026GAAP | (3,751 ) (in thousands) | – | – |
| Interest income, three months ended June 30, 2026GAAP | 1,990 (in thousands) | – | – |
| Other income, net, three months ended June 30, 2026GAAP | 223 (in thousands) | – | – |
| Income before income taxes, three months ended June 30, 2026GAAP | 28,715 (in thousands) | – | – |
| Income tax expense, three months ended June 30, 2026GAAP | 8,833 (in thousands) | – | – |
| Net income, three months ended June 30, 2026GAAP | $ 19,882 (in thousands) | – | – |
| Basic EPS, three months ended June 30, 2026GAAP | $ 0.55 | – | – |
| Sales, six months ended June 30, 2026GAAP | $ 1,433,260 (in thousands) | – | – |
| Gross profit, six months ended June 30, 2026GAAP | 147,634 (in thousands) | – | – |
| Income from operations, six months ended June 30, 2026GAAP | 52,127 (in thousands) | – | – |
| Net income, six months ended June 30, 2026GAAP | $ 32,905 (in thousands) | – | – |
| Diluted EPS, six months ended June 30, 2026GAAP | $ 0.91 | – | – |
| Operating cash flow, second quarter 2026GAAP | $35 million | – | – |
| Free cash flow, second quarter 2026non-GAAP | $22 million | – | – |
| Cash conversion cycle, three months ended June 30, 2026other | 59 days | – | – |
| Days in accounts receivable, three months ended June 30, 2026other | 54 | – | – |
| Days in contract asset, three months ended June 30, 2026other | 23 | – | – |
| Days in inventory, three months ended June 30, 2026other | 72 | – | – |
| Days in accounts payable, three months ended June 30, 2026other | (73 ) | – | – |
| Days in advance payments from customers, three months ended June 30, 2026other | (17 ) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Semi-CapNo sector-specific driver was disclosed. | $ 223 million | – | – |
| IndustrialNo sector-specific driver was disclosed. | $ 161 million | – | – |
| A&DNo sector-specific driver was disclosed. | $ 111 million | – | – |
| MedicalNo sector-specific driver was disclosed. | $ 134 million | – | – |
| AC&CNo sector-specific driver was disclosed. | $ 127 million | – | – |
Third Quarter 2026 and fiscal year 2026 outlook
- RevenueThird Quarter 2026: between $755 million and $795 million. Fiscal year 2026: revenue growth of approximately 13%, positioning Benchmark to achieve $3 billion in annual revenue.
- NoteThird Quarter 2026 diluted GAAP earnings per share between $0.51 and $0.57.
- NoteThird Quarter 2026 diluted non-GAAP earnings per share between $0.76 and $0.82.
- NoteNon-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $8.4 million and other non-operating expenses of $3.5 million to $4.0 million, which includes restructuring, amortization of intangibles and other expenses.
What drove it
- Revenue of $756 million was up 18% year-over-year.
- Management cited continued momentum, another record quarter of bookings, strengthening demand across end markets, growing customer engagement, and disciplined execution.
- Semi-Cap revenue was $ 223 million, Industrial revenue was $ 161 million, Medical revenue was $ 134 million, and AC&C revenue was $ 127 million in the second quarter 2026.
- GAAP gross margin was 10.4 % and non-GAAP gross margin was 10.5 %.
- The company raised its full-year outlook and expects revenue growth of approximately 13%.
Concerns
- A&D revenue was $ 111 million in the second quarter 2026, compared with $ 126 million in the three months ended June 30, 2025 and $ 120 million in the three months ended March 31, 2026.
- Days in accounts receivable were 54 in the second quarter 2026, compared with 50 in the three months ended March 31, 2026.
- Accounts receivable, net was 451,612 (in thousands) and inventories were 544,261 (in thousands) at June 30, 2026.
- The filing identifies risks including customer demand fluctuations, supply chain constraints, inflationary pressures, foreign currency fluctuations, high interest rates, geopolitical uncertainties, tariffs, manufacturing-facility utilization, and inventory write-downs or write-offs.
What to watch
- Third-quarter revenue delivery within the guidance range of between $755 million and $795 million.
- Third-quarter diluted GAAP earnings per share guidance of between $0.51 and $0.57 and diluted non-GAAP earnings per share guidance of between $0.76 and $0.82.
- Execution toward fiscal 2026 revenue growth of approximately 13% and $3 billion in annual revenue.
- Sustainability of the 10.4 % GAAP gross margin and 5.2 % non-GAAP operating margin.
- Bookings, end-market demand, accounts receivable days, inventory, and the 59-day cash conversion cycle.
Balance sheet and cash flow
- Cash and cash equivalents were $ 314,836 (in thousands) at June 30, 2026, compared with $ 322,064 (in thousands) at December 31, 2025.
- Restricted cash was 377 (in thousands) at June 30, 2026, compared with 336 (in thousands) at December 31, 2025.
- Accounts receivable, net was 451,612 (in thousands) at June 30, 2026, compared with 391,101 (in thousands) at December 31, 2025.
- Contract assets were 196,420 (in thousands) at June 30, 2026, compared with 182,870 (in thousands) at December 31, 2025.
- Inventories were 544,261 (in thousands) at June 30, 2026, compared with 482,544 (in thousands) at December 31, 2025.
- Property, plant and equipment, net was 232,856 (in thousands) at June 30, 2026, compared with 223,784 (in thousands) at December 31, 2025.
- Current installments of long-term debt were $ 3,750 (in thousands) at June 30, 2026, unchanged from December 31, 2025.
- Long-term debt, net of current installments was 177,234 (in thousands) at June 30, 2026, compared with 206,826 (in thousands) at December 31, 2025.
- Total assets were $ 2,214,371 (in thousands) at June 30, 2026, compared with $ 2,071,715 (in thousands) at December 31, 2025.
- Total liabilities were 1,098,088 (in thousands) at June 30, 2026, compared with 971,912 (in thousands) at December 31, 2025.
- Shareholders’ equity was 1,116,283 (in thousands) at June 30, 2026, compared with 1,099,803 (in thousands) at December 31, 2025.
- Operating cash flow was $35 million and free cash flow was $22 million in the second quarter 2026.
Analysis
Benchmark reported second-quarter revenue of $756 million, up 18% year-over-year from $642 million and above the $677 million reported in the three months ended March 31, 2026. The company described the quarter as another record period of bookings and attributed the result to strengthening end-market demand, customer engagement, and execution. Sector revenue was led by Semi-Cap at $223 million, followed by Industrial at $161 million, Medical at $134 million, AC&C at $127 million, and A&D at $111 million.
Profitability improved across the reported summary measures. GAAP gross margin was 10.4 %, compared with 10.1 % in the three months ended June 30, 2025 and 10.2 % in the three months ended March 31, 2026. GAAP operating margin was 4.0 %, versus 3.2 % in both comparison periods. Non-GAAP gross margin reached 10.5 % and non-GAAP operating margin reached 5.2 %. GAAP diluted EPS was $0.55, while non-GAAP diluted EPS was $0.75, up 36% year-over-year.
Cash generation was positive, with operating cash flow of $35 million and free cash flow of $22 million in the second quarter. The cash conversion cycle was 59 days, compared with 85 days in the three months ended June 30, 2025 and 67 days in the three months ended March 31, 2026. At June 30, 2026, cash and cash equivalents were $ 314,836 (in thousands), while long-term debt, net of current installments, was 177,234 (in thousands). Accounts receivable, net and inventories were 451,612 (in thousands) and 544,261 (in thousands), respectively.
The company guided third-quarter revenue to between $755 million and $795 million, with diluted GAAP EPS between $0.51 and $0.57 and diluted non-GAAP EPS between $0.76 and $0.82. It also raised fiscal 2026 revenue expectations to growth of approximately 13%, positioning the company to achieve $3 billion in annual revenue. The most notable portfolio contrast is A&D at $111 million, compared with $126 million in the three months ended June 30, 2025 and $120 million in the three months ended March 31, 2026, while Semi-Cap, Industrial, Medical, and AC&C each reported higher revenue than in the three months ended March 31, 2026.
Management, verbatim
Our second quarter results reflect continued momentum across the business, highlighted by revenue and earnings above the high end of our prior guidance along with another record quarter of bookings.
David Moezidis, Benchmark’s President and CEO
Strengthening demand across our end markets, growing customer engagement, and disciplined execution are contributing to broad ‑ based improvement throughout the portfolio. As a result, we are again raising our full year outlook and now expect revenue growth of approximately 13%, positioning Benchmark to achieve $3 billion in annual revenue for the first time in the company’s history.
David Moezidis, Benchmark’s President and CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- No capital-return amounts for share repurchases or dividends were reported in the provided filing text.
- No third-quarter gross-margin, operating-expense, or tax-rate guidance was reported.
- No fiscal 2026 GAAP or non-GAAP EPS guidance was reported.
- The provided cash-flow statement text is truncated; complete six-month cash-flow line items, capital expenditures, and a cash-flow reconciliation to free cash flow were not available.
- No sector-specific revenue growth percentages or sector-specific demand drivers were reported.
- No GAAP tax rate was reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Benchmark Electronics filed an 8-K with Exhibit 99.1 reporting Q2 2026 results and providing Q3 2026 guidance plus an updated FY2026 revenue outlook.
Ticker impact
Benchmark Electronics reported Q2 revenue of $756M and raised Q3 revenue guidance to $755M-$795M, plus raised FY2026 revenue outlook to a record $3B.
Likely positive near-term bias as guidance upside can drive multiple expansion and estimate revisions, with follow-through dependent on bookings quality.
The filing is a primary 8-K with specific Q2 results and explicit Q3 and FY2026 guidance increases, which typically leads to rapid analyst model updates and sentiment repricing.
Market effects
Supports a constructive read-through for electronics manufacturing services demand and bookings momentum across end markets (Semi-Cap, Industrial, A&D, Medical, AC&C).
No explicit regional macro catalyst; impact is company-specific but can influence sentiment toward US-listed EMS peers.
Global supply chain and end-market demand strength is cited, which can modestly affect broader EMS/industrial electronics sentiment.
Counterpoint
Guidance upside may already be partially anticipated; investors may focus on margin sustainability given thin operating margins (about 4% GAAP) and working-capital dynamics.
Key entities
- companyBenchmark Electronics, Inc.
NYSE-listed EMS provider reporting Q2 results and raising Q3 and FY2026 revenue guidance.
- executiveDavid Moezidis
President and CEO cited for commentary on momentum, bookings, and disciplined execution.
