Benchmark Electronics (BHE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $632 million, down from $676 million year-over-year, with strong Semi-Cap (18% YoY) and A&D (15% YoY) growth offset by declines in Medical and AC&C sectors.

• Non-GAAP gross margin exceeded 10% for the sixth consecutive quarter; free cash flow was $27 million in Q1 and over $140 million in the last 12 months.

• Non-GAAP EPS was $0.52, above the midpoint of guidance; GAAP EPS was $0.10, reflecting lower sales and higher restructuring/tax costs.

• Operational focus and supply chain optimization supported performance amid global tariff and market disruptions.

• Maintained a net cash positive position and continued share repurchases and dividends.

Financial highlights

• Q1 2025 revenue: $632 million, down 6% year-over-year and 4% sequentially.

• Non-GAAP gross margin: 10.1%; GAAP gross margin: 10.0%.

• Non-GAAP operating margin: 4.6%; GAAP operating margin: 1.9%.

• Net income (GAAP): $3.6 million, down from $14.0 million year-over-year.

• Cash and equivalents: $355 million at quarter-end; free cash flow: $27 million.

Outlook and guidance

• Q2 2025 revenue expected between $615 million and $665 million.

• Non-GAAP gross margin guidance: 10.2%-10.4%; operating margin: 4.8%-4.9%.

• Non-GAAP EPS expected at $0.52-$0.58; GAAP EPS: $0.31-$0.37; effective tax rate 24%-26%.

• Capital spending for 2025 projected at $60-$70 million, mainly for Penang expansion and equipment.

• Second half 2025 revenue expected to grow mid-single digits YoY after a first half decline.