Benchmark Electronics, Inc. Q4 FY2025 earnings call

• Jeffrey Benck thanked the team for closing 2025 strong, noting Q4 revenue of $704M with high single-digit growth and double-digit growth in three sectors. Bryan Schumaker detailed Q4 and FY 2025 results, including non-GAAP EPS of $0.71 exceeding guidance, gross margin of 10.6%, and operating margin of 5.5%. Full-year 2025 revenue was $2.66 billion, flat year over year, with non-GAAP EPS up 5% to $2.40. David Moezidis discussed sector outlooks, noting bookings momentum, improving end demand, and operational execution. The company has been investing in global footprint and production equipment, and has improved working capital efficiency with cash cycle improvement.

In the fourth quarter, revenue was $704 million, up 7% year over year. By segment: Semi cap revenue decreased 8% quarter over quarter and 14% year over year, with full-year growth of 2%. Industrial revenue was down sequentially but up 3% year over year, consistent with prior year full-year. A and D posted strong performance, up 7% sequentially and 17% year over year in the quarter, with full-year growth well into double digits at 19%. Medical had fourth-quarter revenue up 14% quarter over quarter and 23% compared to the prior year, with full-year growth of 7%. AC and C full-year 2025 revenue was down driven by a challenging first half, but Q4 revenue was up 22% sequentially and 27% year over year, with momentum expected to continue into Q1.

For 2026, revenue is expected to be within $655 to $695 million (up 7% midpoint). Non-GAAP gross margin is between 10.4% and 10.6%, non-GAAP operating margin between 4.7% and 4.9%, non-GAAP diluted EPS in the range of $0.53 to $0.59, effective tax rate 26% to 27%, and weighted average share count approximately 36.3 million.

Forward-looking statements involve risks and uncertainties as described in press releases and SEC filings. Actual results may differ materially from forward-looking statements, and Benchmark undertakes no obligation to update such statements.

Q: Jim Ricchiuti asked about areas of demand change besides semi cap.

A: David Moezidis said medical turned a corner, AC and C had strong Q4 with momentum continuing, semi showed signs of picking up earlier, and industrial is gradually picking up.

Q: Steven Fox asked about margins and semi cap recovery.

A: Bryan Schumaker said they feel good about gross margin tracking, and David Moezidis noted semi is high-value and scale helps with OpEx leverage.

Q: Maxwell Michaelis asked about medical programs and semi ramp.

A: David Moezidis said medical has momentum in med devices and life sciences, and semi can respond to orders within 1-3 months with prior capacity planning.

Q: Anja Soderstrom asked about aerospace defense, AC and C visibility, cash cycle, and CapEx.

A: David Moezidis discussed aerospace defense moderation and space bookings, Bryan Schumaker talked about cash cycle improvement targets and CapEx driven by program wins and Penang expansion.