BHE Benchmark Electronics Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2024

 

 

BENCHMARK ELECTRONICS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Texas			001-10560	74-2211011
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
56 South Rockford Drive
Tempe, Arizona				85288
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (623) 300-7000

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.10 per share		BHE		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On October 30, 2024, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended September 30, 2024. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein. The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press release, dated October 30, 2024
99.2		Investor presentation, dated October 30, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			BENCHMARK ELECTRONICS, INC.
Date:	October 30, 2024	By:	/s/ Stephen J. Beaver
			Stephen J. Beaver, Esq. Senior Vice President, General Counsel and Chief Legal Officer

 

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Exhibit 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK REPORTS THIRD QUARTER 2024 RESULTS

 

TEMPE, AZ, October 30, 2024 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the third quarter ended September 30, 2024.

 

Third quarter 2024 results(1):

 

		Three Months Ended
		September 30,				June 30,				September 30,
(Amounts in millions, except per share data)		2024				2024				2023
Sales		$	658			$	666			$	720
Net income		$	15			$	16			$	20
Income from operations		$	28			$	27			$	30
Net income – non-GAAP(1)		$	21			$	21			$	23
Income from operations – non-GAAP(1)		$	35			$	34			$	37
Diluted earnings per share		$	0.42			$	0.43			$	0.57
Diluted earnings per share – non-GAAP(1)		$	0.57			$	0.57			$	0.65
Operating margin			4.3	%			4.1	%			4.2	%
Operating margin – non-GAAP(1)			5.3	%			5.1	%			5.2	%

 

(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.

 

“Our third quarter results represent the 16th consecutive quarter of non-GAAP operating margin expansion on a year-over-year basis. These results coupled with our focused working capital initiatives, has enabled us to deliver $245 million of positive free cash flow over the last 12 months,” said Jeff Benck, Benchmark’s President and CEO.

Benck continued “I would again like to welcome our new CFO, Bryan Schumaker, to the company. I am confident with his background and experience he will play a key role in helping drive continued operational excellence as we embark on our next phase of growth.”

 

Cash Conversion Cycle

 

		September 30,				June 30,				September 30,
		2024				2024				2023
Accounts receivable days			51				51				60
Contract asset days			26				25				24
Inventory days			89				90				100
Accounts payable days			(54	)			(52	)			(53	)
Advance payments from customers days			(22	)			(24	)			(26	)
Cash conversion cycle days			90				90				105

 

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Third Quarter 2024 Industry Sector Update

Revenue and percentage of sales by industry sector were as follows.

 

		September 30,								June 30,								September 30,
(In millions)		2024								2024								2023
Semi-Cap		$	188				28	%		$	172				26	%		$	165				23	%
Complex Industrials			151				23				142				21				154				21
Medical			107				16				111				17				149				21
A&D			102				16				109				16				100				14
AC&C			110				17				132				20				152				21
Total		$	658				100	%		$	666				100	%		$	720				100	%

 

Revenue decreased quarter over quarter primarily due to decreases in Advanced Computing and Communications (AC&C) sales, which were partially offset by an increase in Semi-Cap sales. Revenue decreased year-over-year primarily due to decreases in Medical and AC&C sales, which were partially offset by increases in Semi-Cap and A&D sales.

 

Fourth Quarter 2024 Guidance

 

In the fourth quarter of 2024, stock-based compensation expense is expected to be $3.5 million, amortization of intangible assets is expected to be $1.2 million and restructuring and other charges are expected to be approximately $1.0 million.

 

Third Quarter 2024 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 www.bench.com. 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, complex industrials, 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.

 

For More Information, Please Contact:

Paul Mansky, Investor Relations and Corporate Development

1-623-300-7052 or paul.mansky@bench.com

 

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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, express or implied, concerning the Company’s outlook and guidance for fourth quarter and fiscal year 2024 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, 2023, 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, or the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, 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 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.

 

 

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Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
Sales		$	657,747			$	719,695			$	1,999,218			$	2,147,622
Cost of sales			591,006				650,618				1,797,119				1,947,556
Gross profit			66,741				69,077				202,099				200,066
Selling, general and administrative expenses			36,636				35,509				111,990				111,379
Amortization of intangible assets			1,205				1,592				3,613				4,775
Restructuring charges and other costs			795				1,635				5,609				6,348
Income from operations			28,105				30,341				80,887				77,564
Interest expense			(6,569	)			(8,475	)			(20,747	)			(23,183	)
Interest income			2,811				1,343				7,329				4,223
Other (expense) income, net			(3,952	)			2,384				(7,452	)			280
Income before income taxes			20,395				25,593				60,017				58,884
Income tax expense			5,021				5,181				15,113				12,121
Net income		$	15,374			$	20,412			$	44,904			$	46,763
Earnings per share:
Basic		$	0.43			$	0.57			$	1.25			$	1.32
Diluted		$	0.42			$	0.57			$	1.23			$	1.30
Weighted-average number of shares used in    calculating earnings per share:
Basic			36,051				35,647				35,970				35,535
Diluted			36,629				35,876				36,469				35,879

 

 

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Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands)

(UNAUDITED)

 

		September 30,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	324,423			$	277,391
Restricted cash			—				5,822
Accounts receivable, net			372,276				449,404
Contract assets			186,538				174,979
Inventories			581,901				683,801
Prepaid expenses and other current assets			43,569				44,350
Total current assets			1,508,707				1,635,747
Property, plant and equipment, net			224,164				227,698
Operating lease right-of-use assets			122,117				130,830
Goodwill and other long-term assets			294,009				280,480
Total assets		$	2,148,997			$	2,274,755
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt		$	6,751			$	4,283
Accounts payable			356,038				367,480
Advance payments from customers			145,350				204,883
Accrued liabilities			130,992				136,901
Total current liabilities			639,131				713,547
Long-term debt, net of current installments			272,000				326,674
Operating lease liabilities			114,181				123,385
Other long-term liabilities			21,009				32,064
Total liabilities			1,046,321				1,195,670
Shareholders’ equity			1,102,676				1,079,085
Total liabilities and shareholders’ equity		$	2,148,997			$	2,274,755

 

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Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(UNAUDITED)

 

		Nine Months Ended
		September 30,
		2024				2023
Cash flows from operating activities:
Net income		$	44,904			$	46,763
Depreciation and amortization			34,578				34,103
Stock-based compensation expense			10,740				12,331
Accounts receivable			76,479				12,937
Contract assets			(11,559	)			(6,472	)
Inventories			102,540				1,789
Accounts payable			(16,107	)			(24,420	)
Advance payments from customers			(59,533	)			(8,879	)
Other changes in working capital and other, net			(38,733	)			(30,938	)
Net cash provided by operating activities			143,309				37,214
Cash flows from investing activities:
Additions to property, plant and equipment and software			(24,221	)			(66,713	)
Other investing activities, net			483				588
Net cash used in investing activities			(23,738	)			(66,125	)
Cash flows from financing activities:
Share repurchases			(5,101	)			—
Net debt activity			(52,596	)			107,194
Other financing activities, net			(23,507	)			(23,306	)
Net cash (used in) provided by financing activities			(81,204	)			83,888
Effect of exchange rate changes			2,843				(1,647	)
Net increase in cash and cash equivalents and restricted cash			41,210				53,330
Cash and cash equivalents and restricted cash at beginning of year			283,213				207,430
Cash and cash equivalents and restricted cash at end of period		$	324,423			$	260,760

 

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Benchmark Electronics, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

 

		Three Months Ended																				Nine Months Ended
		Sept 30,				June 30,				March 31,				Dec 31,				Sept 30,				Sept 30,
		2024				2024				2024				2023				2023				2024				2023
Income from operations (GAAP)		$	28,105			$	27,253			$	25,529			$	32,100			$	30,341			$	80,887			$	77,564
Restructuring charges and other costs			795				1,471				3,343				2,054				1,437				5,609				5,227
Stock-based compensation expense			4,379				4,185				2,176				2,955				3,674				10,740				12,331
Amortization of intangible assets			1,205				1,204				1,204				1,204				1,592				3,613				4,775
Asset impairment			—				—				—				—				198				—				1,121
Legal and other settlement loss (gain)			367				317				855				—				—				1,539				—
Customer insolvency (recovery)			—				(316	)			—				—				—				(316	)			—
Non-GAAP income from operations		$	34,851			$	34,114			$	33,107			$	38,313			$	37,242			$	102,072			$	101,018
GAAP operating margin			4.3	%			4.1	%			3.8	%			4.6	%			4.2	%			4.0	%			3.6	%
Non-GAAP operating margin			5.3	%			5.1	%			4.9	%			5.5	%			5.2	%			5.1	%			4.7	%
Gross profit (GAAP)		$	66,741			$	67,950			$	67,408			$	71,004			$	69,077			$	202,099			$	200,066
Stock-based compensation expense			413				326				426				416				420				1,165				1,239
Customer insolvency (recovery)			—				(316	)			—				—				—				(316	)			—
Non-GAAP gross profit		$	67,154			$	67,960			$	67,834			$	71,420			$	69,497			$	202,948			$	201,305
GAAP gross margin			10.1	%			10.2	%			10.0	%			10.3	%			9.6	%			10.1	%			9.3	%
Non-GAAP gross margin			10.2	%			10.2	%			10.0	%			10.3	%			9.7	%			10.2	%			9.4	%
Selling, general and administrative expenses		$	36,636			$	38,022			$	37,332			$	35,646			$	35,509			$	111,990			$	111,379
Stock-based compensation expense			(3,966	)			(3,859	)			(1,750	)			(2,539	)			(3,254	)			(9,575	)			(11,092	)
Legal and other settlement (loss) gain			(367	)			(317	)			(855	)			—				—				(1,539	)			—
Non-GAAP selling, general and administrative expenses		$	32,303			$	33,847			$	34,727			$	33,107			$	32,255			$	100,876			$	100,287
Net income (GAAP)		$	15,374			$	15,528			$	14,002			$	17,552			$	20,412			$	44,904			$	46,763
Restructuring charges and other costs			795				1,471				3,343				2,899				1,437				5,609				5,227
Stock-based compensation expense			4,379				4,185				2,176				2,955				3,674				10,740				12,331
Amortization of intangible assets			1,205				1,204				1,204				1,204				1,592				3,613				4,775
Asset impairment			—				—				—				—				198				—				1,121
Legal and other settlement loss (gain)			367				317				855				(37	)			(3,375	)			1,539				(4,530	)
Customer insolvency (recovery)			—				(316	)			—				—				—				(316	)			—
Income tax adjustments(1)			(1,406	)			(1,437	)			(1,393	)			(1,280	)			(529	)			(4,236	)			(3,536	)
Non-GAAP net income		$	20,714			$	20,952			$	20,187			$	23,293			$	23,409			$	61,853			$	62,151
Diluted earnings per share:
Diluted (GAAP)		$	0.42			$	0.43			$	0.38			$	0.49			$	0.57			$	1.23			$	1.30
Diluted (Non-GAAP)		$	0.57			$	0.57			$	0.55			$	0.65			$	0.65			$	1.70			$	1.73
Weighted-average number of shares used in calculating diluted earnings per share:
Diluted (GAAP)			36,629				36,497				36,401				35,956				35,876				36,469				35,879
Diluted (Non-GAAP)			36,629				36,497				36,401				35,956				35,876				36,469				35,879
Net cash provided by operations		$	39,036			$	55,816			$	48,457			$	137,079			$	37,583			$	143,309			$	37,214
Additions to property, plant and equipment and software			(9,814	)			(8,504	)			(5,903	)			(11,026	)			(19,664	)			(24,221	)			(66,713	)
Free cash flow (used)		$	29,222			$	47,312			$	42,554			$	126,053			$	17,919			$	119,088			$	(29,499	)

 

(1) This amount represents the tax impact of the non-GAAP adjustments using the applicable effective tax rates.

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Benchmark Electronics Third Quarter 2024 Financial Results October 30, 2024

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Forward-Looking 2024 Statements This document 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, express or implied, concerning the Company’s outlook and guidance for fourth quarter and fiscal year 2024 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, 2023, 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, or the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, 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 Information 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 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.

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Third Quarter 2024 Results Revenue of $658M was above the mid-point of guidance - Double-digit growth in Semi-Cap year-over-year - Offset by anticipated softness in Medical and AC&C GAAP EPS of $0.42 and non-GAAP* EPS of $0.57 GAAP and non-GAAP gross margin of 10.1% and 10.2%, respectively, each up 50 bps year-over-year GAAP operating margin of 4.3% with non-GAAP of 5.3% Generated positive Free Cash Flow of $29 million, totaling $245M over the last 4 quarters Stock repurchases of $5.1 million * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results

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Third Quarter 2024 Revenue by Market Sector Q3-24 Sept 30, 2024 Revenue by Mix and Market Sector June 30, 2024 Sept 30, 2023 For the Three Months Ended (Dollars in Millions) Sector   Mix % Revenue   Mix % Revenue Q/Q   Mix % Revenue Y/Y Semi-Cap   28% $188   26% $172 9%   23% $165 13% Complex Industrials   23% $151   21% $142 7%   21% $154 (2%) Medical   16% $107   17% $111 (4%)   21% $149 (28%) A&D   16% $102   16% $109 (6%)   14% $100 2% AC&C   17% $110   20% $132 (16%)   21% $152 (27%) Total Revenue 100% $658 100% $666 (1%) 100% $720 (9%)

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Third Quarter 2024 Financial Summary (Dollars in Millions, except EPS) Sept 30, 2024 June 30, 2024 Q/Q Sept 30, 2023 Y/Y Net Sales $658 $666 (1%) $720 (9%) GAAP Gross Margin 10.1% 10.2% (10) bps 9.6% 50 bps GAAP SG&A $36.6 $38.0 (4%) $35.5 3% GAAP Operating Margin 4.3% 4.1% 20 bps 4.2% 10 bps GAAP Diluted EPS $0.42 $0.43 (2%) $0.57 (26%) GAAP ROIC 7.7% 7.7% 0 bps 7.1% 60 bps Non-GAAP Gross Margin 10.2% 10.2% 0 bps 9.7% 50 bps Non-GAAP SG&A $32.3 $33.8 (4%) $32.3 0% Non-GAAP Operating Margin 5.3% 5.1% 20 bps 5.2% 10 bps Non-GAAP Diluted EPS $0.57 $0.57 0% $0.65 (12%) Non-GAAP ROIC 9.9% 9.9% 0 bps 9.4% 50 bps See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results GAAP ROIC = (GAAP TTM income from operations – GAAP Tax Impact) / (Average Invested Capital for last 5 quarters) Non-GAAP ROIC = (non-GAAP TTM income from operations + Stock-based compensation – non-GAAP Tax Impact) ÷ [Average Invested Capital for last 5 quarters]

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Trended Non-GAAP* Results (Dollars in Millions, except EPS) * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results

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Cash Conversion Cycle Update

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Liquidity Update (1) Free Cash Flow (FCF) is defined as net cash provided by (used in) operations less capex Debt Structure (In Millions) Sept 30, 2024 Senior Secured Term Loan $125 Revolving Credit Facility Drawn Amount $155 Borrowing Capacity Available under Revolver $391 * Leverage ratio is Net Debt / LTM Adjusted EBITDA, as defined in the credit facility, is a non-GAAP measure Continued inventory reductions supporting free cash flow Further reduced revolving debt balance Strong balance sheet and leverage ratio For the Three Months Ended (In Millions) Sept 30, 2024 June 30, 2024 Sept 30, 2023 Cash Flows from Operations $39 $56 $38 FCF (1) $29 $47 $18 Cash $324 $310 $261

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Capital Allocation Update Dividends Quarterly dividend of $0.165 per share totaling $6.0 million paid in July 2024 Increased quarterly dividend to $0.17 per share Paid to shareholders as of September 30, 2024 on October 11, 2024 Share Repurchases Repurchased $5.1 million in stock during the quarter at an average price of $40.27 Remaining authorization of $149.5 million as of September 30, 2024 Expect to continue share repurchases opportunistically Reduced revolving debt balance by $10 million sequentially Net cash positive at $46 million as of the end of the quarter Revolver reduction remains a focus item Debt Management

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Fourth Quarter 2024 Guidance Q4 2024 Net Sales $640 - $680 million Gross Margin – non-GAAP ~10.2% Operating Margin – non-GAAP 4.9% – 5.1% Other Expenses, Net ~$6.4 million Restructuring Charges $1.0 million Amortization of Intangibles $1.2 million Stock-Based Compensation Expense $3.5 million Effective Tax Rate 22% – 24% Diluted EPS – GAAP $0.40 – $0.46 Diluted EPS – non-GAAP $0.53 – $0.59 Diluted Weighted-Average Shares 36.6 million This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers.

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Business Trends Jeff Benck - CEO

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Sector Outlook Q4-24 Q/Q 2024 Y/Y Sector Commentary Semi-Cap Expect >10% growth in 2024 and further new program ramps in 2025 Memory market continues to lead the recovery, logic slower to rebound Grand opening of new Precision Technology site in Penang in 3Q Complex Industrials Expect flat year-over-year in 2H24 with return to full year growth anticipated in 2025 Continued momentum in T&M and Electrification driving new opportunities Strong pipeline of new deals as we invest to address the longer-term market opportunity Medical Seeing continued softness, specifically within medical devices New bookings momentum continues, both from existing and new customers Program ramps in Q4 don’t fully offset year-over-year comparisons A&D Defense sub-sector continues to drive double-digit year-over-year performance Space subsector new business win ramping into 2025 Our customer exposure in commercial aero remains healthy AC&C New HPC program timing impacting compute Significant new communications win in NPI and ramping in 2025 Win with a new customer in the geo-spatial imaging market

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Summary Progress Toward Key Objectives Manage demand volatility while continuing to progress toward improved profitability Delivered year-on-year non-GAAP Operating Margin expansion for 16th consecutive quarter Continue to work down inventory - Reduced inventory by ~$18M sequentially and $143M year-over-year - Now expect 2024 Free Cash Flow of greater than $130M Return capital to investors Maintained our recurring dividend, recently increased to $0.17 per share Resumed share repurchase activity in the 3rd quarter

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Appendix

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(Dollars in Thousands, Except Per Share Data) – (UNAUDITED) APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results

v3.24.3

Document And Entity Information	Oct. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 30, 2024
Entity Registrant Name	BENCHMARK ELECTRONICS, INC.
Entity Central Index Key	0000863436
Entity Emerging Growth Company	false
Entity File Number	001-10560
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-2211011
Entity Address, Address Line One	56 South Rockford Drive
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85288
City Area Code	(623)
Local Phone Number	300-7000
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	BHE
Security Exchange Name	NYSE

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