Q1 2026 Benchmark Electronics Inc Earnings Call Transcript
Key Points
- Benchmark Electronics Inc (BHE) delivered revenue of $677 million and EPS of $0.58, both towards the higher end of expectations.
- The company expects full-year revenue growth to be in the 9% to 10% range, up from prior expectations of mid-single-digit growth.
- Medical revenue grew 24% year-over-year, and AC&C grew 41% year-over-year, indicating strong performance in these sectors.
- The company generated $47 million in operating cash flow and $29 million in free cash flow, despite investments in inventory and capital equipment.
- Benchmark Electronics Inc (BHE) was named HPE Enterprises' 2026 Manufacturing Partner of the Year, highlighting strong customer relationships.
- Non-GAAP gross margin decreased 30 basis points sequentially, primarily due to volume.
- Non-GAAP operating margin was down 70 basis points sequentially, driven by lower revenue and higher variable compensation.
- The first quarter non-GAAP effective tax rate was slightly above prior guidance, driven by jurisdictional mix.
- Semicap revenue was down slightly year-over-year, despite a 12% sequential increase.
- The company is experiencing select lead times increasing in pockets, particularly in the memory space, indicating supply chain challenges.
Thank you for standing by. Welcome to the Benchmark Q1 Fiscal Year 2026 Earnings Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press the star, followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star one again.
Thank you.
I would now like to turn the conference over to Paul Manske, Benchmark Investor Relations. You may begin.
Thank you, operator, and thanks, everyone, for joining us today for Benchmark's first-quarter 2026 earnings call. With us today are David Muizidiz, our President and CEO, and Brian Shoemaker, our CFO. After the market closed, we issued an earnings release pertaining to our financial performance for the first quarter of 2026, along with a presentation, which we will reference on this call. Both are available under the Investor
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