Key Takeaways
- • Benchmark Electronics (NYSE:BHE) reported second-quarter 2026 revenue of $756m, up 18% from $642m a year earlier, with non-GAAP diluted EPS of $0.75, up 36% from $0.55.
- • Semiconductor capital equipment (Semi-Cap) was the largest sector at $223m, or 29% of revenue, highlighting the company's exposure to a cyclical customer base.
- • Management guided to third-quarter revenue of $755m to $795m and non-GAAP EPS of $0.76 to $0.82, and raised its full-year revenue growth expectation to about 13%, implying annual revenue near $3bn.
- • The company held $315m of cash against roughly $181m of debt at 30 June 2026, while buybacks slowed to $5.8m in the first half from $16.0m a year earlier.
Summary
Benchmark Electronics, an electronics manufacturing services provider, reported second-quarter 2026 results on 29 July 2026, according to the company's release as summarized by Kalkine. Revenue rose 18% year over year to $756m from $642m. GAAP diluted EPS was $0.55, compared with $0.03 in the second quarter of 2025, while non-GAAP diluted EPS reached $0.75, up 36% from $0.55. Gross margin was 10.4% on a GAAP basis and 10.5% non-GAAP, while operating margin was 4.0% GAAP and 5.2% non-GAAP. Operating cash flow was $35m and free cash flow was $22m. For the first half of 2026, revenue totaled $1.43bn.
By sector, semiconductor capital equipment generated $223m, or 29% of revenue, the largest share. Industrial contributed $161m (21%), Medical $134m (18%), Advanced Computing and Communications $127m (17%), and Aerospace and Defense $111m (15%). Aerospace and Defense was the only sector to decline, down from $126m a year earlier. Chief executive David Moezidis said results reflected increasing demand and disciplined execution, with revenue and earnings above the high end of prior guidance and the highest quarterly bookings to date. These are management's characterizations. The company's reliance on Semi-Cap leaves its results partly tied to cyclical end markets.
At 30 June 2026, Benchmark held $315m in cash and equivalents against total debt of about $181m, of which roughly $4m was current. Share repurchases totaled $5.8m in the first half, down from $16.0m a year earlier. A quarterly dividend of $0.17 per share was payable on 13 October 2026 to holders of record on 30 September 2026.
For the third quarter, Benchmark guided to revenue of $755m to $795m, GAAP EPS of $0.51 to $0.57, and non-GAAP EPS of $0.76 to $0.82. The revenue midpoint of $775m is about 2.5% above second-quarter revenue, and the non-GAAP EPS midpoint of $0.79 implies continued but moderate sequential growth. The company raised its full-year revenue growth expectation to about 13%, which would put annual revenue on track for $3bn, the highest to date. These figures are guidance rather than reported results.
Investors are likely to focus on whether third-quarter revenue lands within the guided range, whether non-GAAP operating margin holds near 5.2%, and whether Semi-Cap demand remains firm. Commentary on the Aerospace and Defense decline, bookings, and cash conversion will also be scrutinized, given that free cash flow of $22m trailed operating cash flow of $35m after capital spending.
By sector, semiconductor capital equipment generated $223m, or 29% of revenue, the largest share. Industrial contributed $161m (21%), Medical $134m (18%), Advanced Computing and Communications $127m (17%), and Aerospace and Defense $111m (15%). Aerospace and Defense was the only sector to decline, down from $126m a year earlier. Chief executive David Moezidis said results reflected increasing demand and disciplined execution, with revenue and earnings above the high end of prior guidance and the highest quarterly bookings to date. These are management's characterizations. The company's reliance on Semi-Cap leaves its results partly tied to cyclical end markets.
At 30 June 2026, Benchmark held $315m in cash and equivalents against total debt of about $181m, of which roughly $4m was current. Share repurchases totaled $5.8m in the first half, down from $16.0m a year earlier. A quarterly dividend of $0.17 per share was payable on 13 October 2026 to holders of record on 30 September 2026.
For the third quarter, Benchmark guided to revenue of $755m to $795m, GAAP EPS of $0.51 to $0.57, and non-GAAP EPS of $0.76 to $0.82. The revenue midpoint of $775m is about 2.5% above second-quarter revenue, and the non-GAAP EPS midpoint of $0.79 implies continued but moderate sequential growth. The company raised its full-year revenue growth expectation to about 13%, which would put annual revenue on track for $3bn, the highest to date. These figures are guidance rather than reported results.
Investors are likely to focus on whether third-quarter revenue lands within the guided range, whether non-GAAP operating margin holds near 5.2%, and whether Semi-Cap demand remains firm. Commentary on the Aerospace and Defense decline, bookings, and cash conversion will also be scrutinized, given that free cash flow of $22m trailed operating cash flow of $35m after capital spending.
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