Benchmark Electronics (BHE) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $704 million, up 7% year-over-year, with double-digit growth in AC&C, Medical, and A&D sectors.

• Full-year 2025 revenue was $2.66 billion, flat year-over-year, with sequential growth and improved momentum in the second half.

• Non-GAAP EPS for Q4 was $0.71, exceeding guidance; full-year non-GAAP EPS rose to $2.40.

• Operating margin improved sequentially throughout the year, reaching 5.5% in Q4.

• Bookings momentum and sector diversification support confidence in 2026 revenue growth.

Financial highlights

• Q4 2025 non-GAAP gross margin was 10.6%, and operating margin was 5.5%, both at multi-year highs.

• Full-year 2025 non-GAAP gross margin was 10.2%; operating margin was 4.9%.

• Q4 operating cash flow was $59 million; free cash flow was $48 million; full-year free cash flow was $85 million.

• Cash balance at year-end was $322 million, with $148 million term loan and $65 million revolver outstanding.

• Cash conversion cycle improved to 67 days, down 10 days sequentially and 22 days year-over-year.

Outlook and guidance

• Q1 2026 revenue expected between $655 million–$695 million, up 7% year-over-year at midpoint.

• Q1 non-GAAP gross margin guidance is 10%–10.4%; operating margin 4.7%–4.9%.

• Q1 non-GAAP EPS expected in the range of $0.53–$0.59.

• Effective tax rate for Q1 and full year expected at 26%–27%.

• Mid-single-digit growth guidance for 2026, with potential for further strengthening as customer visibility improves.