Benchmark Electronics (BHE) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $756 million, up 18% year-over-year, with non-GAAP EPS of $0.75 growing 36% year-over-year, both exceeding guidance.

• Net income for Q2 2026 was $19.9 million (GAAP), up sharply from $1.0 million in Q2 2025, driven by higher demand and improved product mix.

• Operating income and EPS grew 30% and 36% year-over-year, respectively, with operating leverage outpacing revenue growth by 1.5x–2x.

• Four out of five sectors posted double-digit growth; Aerospace & Defense bookings led the quarter despite revenue decline.

• Record quarterly bookings and broad-based improvement across all business segments.

Financial highlights

• Non-GAAP gross margin improved to 10.5%, up 30 bps year-over-year and 20 bps sequentially; GAAP gross margin was 10.4%.

• Non-GAAP operating margin rose to 5.2%, up 50 bps year-over-year; GAAP operating margin was 4.0%.

• Operating cash flow was $35 million and free cash flow $22 million in Q2; ended the quarter with $315 million in cash and $134 million net of debt.

• Net income for Q2 2026 was $19.9 million (GAAP); non-GAAP net income was $39.2 million.

• Working capital at June 30, 2026: $0.8 billion.

Outlook and guidance

• Fiscal 2026 revenue outlook raised to $3 billion, representing 13% annual growth and a new company record.

• Q3 2026 revenue guidance: $755M–$795M, implying 14% year-over-year growth at midpoint.

• Q3 non-GAAP EPS expected between $0.76–$0.82; gross margin 10.5%–10.7%; operating margin 5.3%–5.5%.

• CapEx expected at 2%–2.5% of revenue for 2026 and likely similar in 2027; projected at $80–90 million, focused on machinery and equipment.

• Management expects sufficient liquidity for the next 12 months, with ongoing investments in capacity and technology.