Benchmark Electronics (NYSE:BHE) Issues Quarterly Earnings Results

Key Points

• Benchmark Electronics exceeded second-quarter expectations, reporting $755.98 million in revenue, up 17.7% year over year, and $0.75 EPS versus the $0.69 consensus estimate.
• Management issued an upbeat third-quarter outlook of $0.76–$0.82 adjusted EPS and raised its 2026 revenue forecast to approximately $3 billion, driven by AI-related programs and broad-based growth across several end markets.
• Despite strong demand, component supply remains a risk, with lead times for some parts reaching 12 months; Aerospace and Defense revenue also declined 12% during a program transition.

Benchmark Electronics (NYSE:BHE - Get Free Report) issued its earnings results on Wednesday. The technology company reported $0.75 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.69 by $0.06, FiscalAI reports. Benchmark Electronics had a return on equity of 6.63% and a net margin of 1.27%.The business had revenue of $755.98 million during the quarter, compared to the consensus estimate of $720.00 million. During the same period last year, the company earned $0.03 EPS. The company's revenue for the quarter was up 17.7% on a year-over-year basis. Benchmark Electronics updated its Q3 2026 guidance to 0.760-0.820 EPS.

Here are the key takeaways from Benchmark Electronics' conference call:

• Q2 results exceeded guidance, with revenue up 18% year over year to $756 million and non-GAAP EPS up 36% to $0.75. Gross and operating margins also improved, supported by higher volume and favorable mix.
• Benchmark raised its 2026 revenue outlook to approximately $3 billion, or 13% growth and a company record, while maintaining its target for operating income and EPS growth at 1.5 to 2 times revenue growth.
• Demand broadened across the business, led by AC&C revenue growth of 71% from AI-related program ramps, Semi-Cap growth of 17%, Medical growth of 22%, and Industrial growth of 13%. Management expects Semi-Cap momentum to accelerate in the second half and sees additional HPC opportunities emerging in late Q4 and 2027.
• Aerospace and Defense revenue fell 12% year over year during a previously expected program-transition period, though it generated the quarter’s largest bookings contribution. Management expects A&D revenue to be roughly flat in 2026 and return to growth in 2027 as new programs ramp.
• Component supply remains tight, with lead times for some complex parts extending from three to five months to as much as 12 months, including pressure in memory. Benchmark is mitigating the risk through advance purchasing and supply-chain management while investing in new Penang and Thailand capacity.

Benchmark Electronics Trading Up 6.3%

NYSE BHE traded up $4.63 during trading hours on Thursday, reaching $78.74. The company had a trading volume of 710,383 shares, compared to its average volume of 411,788. The stock has a 50-day moving average of $86.25 and a 200 day moving average of $69.79. Benchmark Electronics has a 1-year low of $34.44 and a 1-year high of $100.41. The company has a current ratio of 2.18, a quick ratio of 1.42 and a debt-to-equity ratio of 0.18. The stock has a market capitalization of $2.83 billion, a P/E ratio of 82.89 and a beta of 1.24.

Benchmark Electronics Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Tuesday, June 30th were given a $0.17 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.68 dividend on an annualized basis and a yield of 0.9%. Benchmark Electronics's dividend payout ratio is presently 71.58%.

Insider Buying and Selling at Benchmark Electronics

In other Benchmark Electronics news, SVP Stephen J. Beaver sold 20,000 shares of Benchmark Electronics stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $86.25, for a total transaction of $1,725,000.00. Following the completion of the sale, the senior vice president directly owned 75,020 shares in the company, valued at $6,470,475. This trade represents a 21.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Rhonda R. Turner sold 6,600 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $85.14, for a total transaction of $561,924.00. Following the completion of the sale, the senior vice president directly owned 36,067 shares in the company, valued at $3,070,744.38. This trade represents a 15.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 86,352 shares of company stock valued at $7,312,806. 1.10% of the stock is currently owned by company insiders.

Institutional Trading of Benchmark Electronics

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its stake in shares of Benchmark Electronics by 30.2% in the first quarter. Royal Bank of Canada now owns 14,420 shares of the technology company's stock valued at $548,000 after buying an additional 3,341 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Benchmark Electronics by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 21,239 shares of the technology company's stock worth $808,000 after acquiring an additional 931 shares in the last quarter. Caxton Associates LLP acquired a new position in Benchmark Electronics during the 1st quarter worth about $202,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Benchmark Electronics by 12.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 104,673 shares of the technology company's stock valued at $3,981,000 after acquiring an additional 11,369 shares during the period. Finally, Jane Street Group LLC boosted its holdings in Benchmark Electronics by 99.8% during the 1st quarter. Jane Street Group LLC now owns 107,802 shares of the technology company's stock valued at $4,100,000 after acquiring an additional 53,840 shares during the period. Hedge funds and other institutional investors own 92.29% of the company's stock.

Key Stories Impacting Benchmark Electronics

Here are the key news stories impacting Benchmark Electronics this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations: Benchmark reported $756 million in revenue, up 18% year over year, and non-GAAP diluted EPS of $0.75, compared with analysts’ estimates of $720 million in revenue and $0.69 EPS. EPS also increased substantially from $0.03 in the year-ago quarter. Benchmark Reports Strong Second Quarter Results
• Positive Sentiment: Optimistic third-quarter outlook: Management forecast adjusted EPS of $0.76 to $0.82 and revenue of $755 million to $795 million, both above analyst consensus of $0.72 EPS and $744.3 million in revenue. The guidance suggests continued operating momentum. Benchmark Electronics Earnings Report
• Positive Sentiment: Analyst raises price target: Needham increased its price target on BHE from $80 to $90 and maintained a “Buy” rating, signaling greater confidence in the company’s earnings outlook and potential upside. Benzinga Analyst Coverage
• Positive Sentiment: Cash generation remained positive: Benchmark produced $35 million in operating cash flow and $22 million in free cash flow during the quarter, supporting financial flexibility.
• Neutral Sentiment: Investor focus remains on execution: Despite the strong quarter, Benchmark’s reported GAAP EPS was $0.55 versus $0.75 on a non-GAAP basis, while its net margin remained relatively modest at 1.27%. Sustaining growth and converting revenue gains into durable profitability will be important.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Needham & Company LLC upped their price objective on shares of Benchmark Electronics from $80.00 to $90.00 and gave the company a "buy" rating in a report on Thursday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Benchmark Electronics in a research note on Friday, July 17th. Finally, Lake Street Capital reiterated a "buy" rating and issued a $92.00 target price on shares of Benchmark Electronics in a report on Thursday, April 30th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $91.00.

Benchmark Electronics Company Profile

Benchmark Electronics, Inc is a global provider of comprehensive electronics manufacturing services (EMS) and integrated engineering solutions. The company offers a full suite of services that span the entire product lifecycle, from early‐stage design and prototyping to high‐volume production and aftermarket support. Benchmark serves diverse end markets, including industrial automation, medical devices, communications, aerospace and defense, and semiconductor equipment.

At the core of Benchmark's offering are printed circuit board assemblies (PCBA), system integration, box build assemblies and turnkey manufacturing.

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