Benchmark Electronics (BHE) 28th Annual Needham Growth Conference Virtual summary

Leadership transition and organizational updates

• CEO transition set for April 1, with the outgoing CEO remaining as special advisor for a year.

• New Chief Commercial Officer and CTO appointed, both with strong EMS and technology backgrounds.

• Recent leadership changes aim to build on commercial and technical strengths.

Sector performance and strategic focus

• Semi-cap equipment is the largest sector, with expectations for a rebound in the second half of 2026 after a two-year slowdown.

• Medical sector has recovered from an 18-month downturn, with new program wins accelerating growth.

• Aerospace & Defense (A&D) has shown stable double-digit growth, with increased focus on space-related programs.

• Industrial remains steady, with significant market opportunities and personal leadership focus.

• Advanced communications and compute (ACC) is seeing renewed interest due to AI and high-performance computing.

AI and high-performance computing opportunities

• Experience in building large, water-cooled supercomputers positions the company for sovereign AI and on-premise AI solutions.

• Early-stage participation in AI-related projects, with direct involvement expected to increase by 2026.

• Focus on custom solutions for government and commercial clients, leveraging system integration expertise.