Benchmark Electronics (BHE) 27th Annual Needham Growth Conference summary

Business overview and sector diversification

• Focuses on complex, high-value manufacturing and design for OEMs, with a strong engineering services component.

• Revenue is diversified across semiconductor capital equipment, industrial, medical, aerospace & defense, and advanced computing/communications, each contributing 17%-25%.

• Shifted away from commoditized and consumer products, emphasizing regulated and high-mix, lower-volume sectors.

Geographic footprint and supply chain trends

• Maintains the largest domestic footprint among top EMS peers, with significant U.S. capacity and global sites in Malaysia, Thailand, Romania, and Mexico.

• Customers are increasingly interested in reshoring and supply chain diversification due to tariffs and geopolitical factors.

• Facility in China is limited and primarily serves local demand, reducing exposure to tariff risks.

Sector performance and outlook

• Semiconductor capital equipment outperformed expectations with double-digit growth, driven by share gains and vertical integration.

• Industrial sector stabilized post-pandemic, with growth expected in 2025, especially in electrification and automation sub-sectors.

• Medical sector recovery lags due to ongoing inventory correction, with headwinds likely persisting into 2025.

• Aerospace and defense remain strong, supported by pent-up demand, commercial air recovery, and diversified defense exposure.

• Advanced computing and communications face headwinds in 2025 due to platform transitions and customer changes.