Benchmark Electronics (BHE) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $677 million, up 7% year-over-year, with non-GAAP EPS of $0.58 and GAAP EPS of $0.36, both at the higher end of guidance, driven by strong execution and growth in Medical, AC&C, and Semi-Cap sectors.

• Net income rose to $13.0 million, reflecting improved operating performance and lower restructuring costs.

• Full-year revenue growth outlook raised to 9–10%, with EPS growth expected to outpace revenue due to margin expansion and disciplined expense management.

• Operational discipline, customer-first initiatives, and continued investment in capacity and automation are supporting consistent execution and productivity.

Financial highlights

• Q1 2026 revenue was $677 million, up from $632 million in Q1 2025, with non-GAAP gross margin at 10.3% and operating margin at 4.8%.

• Net income for Q1 2026 was $13 million, up from $3.6 million in Q1 2025.

• Generated $47 million in operating cash flow and $29 million in free cash flow; cash balance at $325 million.

• SG&A expenses increased due to higher professional services and variable compensation.

• Dividend paid: $6.1 million; share repurchases: $6 million; $117 million remaining under repurchase authorization.

Outlook and guidance

• Q2 2026 revenue expected between $700 million–$740 million, with non-GAAP EPS guidance of $0.65–$0.71 and effective tax rate projected at 26%–27%.

• Full-year 2026 revenue growth outlook raised to 9–10%, with capital spending to track to the higher end of 2.0%–2.5% of revenue.

• Management expects sufficient liquidity for the next 12 months and plans continued quarterly dividends.