Benchmark Electronics (BHE) investor relations material

Company overview and sector exposure

• Focused on complex, highly regulated markets with a strong North American presence and end-to-end capabilities from engineering to precision machining and EMS.

• Revenue mix has shifted from legacy telco and compute to higher exposure in Semi-Cap, industrial, medical, and A&D sectors, with advanced computing and communications also significant.

• Achieved 9+ quarters of 10% or better gross margin and recently reported a 5.5% non-GAAP operating margin.

Financial performance and targets

• Q4 operating margin reached 5.5%, with Q1 guidance slightly below 5% due to scale being a key lever for margin improvement.

• Mid-single digit growth is targeted for 2026, with potential for higher performance depending on sector momentum.

• Free cash flow is projected at $70M-$90M, supported by CapEx investments and improvements in inventory turns and cash conversion cycle.

Leadership and strategy

• Recent CEO transition brings continuity and strategic depth, with the new CEO having prior experience as chief commercial officer and at a larger competitor.

• Leadership changes are not expected to alter the growth strategy but may introduce fresh ideas.