Benchmark 2025 Q2 Earnings Misses Targets as Net Income Drops 93.7%

Benchmark (BHE) reported its fiscal 2025 Q2 earnings on July 31st, 2025. Benchmark Electronics missed expectations with a 3.5% decline in revenue year-over-year to $642.34 million, compared to $665.90 million in 2024 Q2. The company's guidance for the next quarter is between $635 million and $685 million, slightly below analysts' estimates. The diluted GAAP earnings per share are expected to range from $0.28 to $0.34, while non-GAAP earnings are projected between $0.56 and $0.62, excluding certain expenses.

Revenue

Benchmark's total revenue for 2025 Q2 decreased by 3.5% to $642.34 million from the previous year's $665.90 million. The Semi-Cap segment generated $190.38 million, the Industrial segment contributed $141.63 million, and the A&D sector added $126.25 million. The Medical sector recorded $109.57 million, while the AC&C segment provided $74.50 million, aligning with the external revenue total of $642.34 million.

Earnings/Net Income

Benchmark experienced a significant decline in earnings, with EPS dropping 93.0% to $0.03 in 2025 Q2 from $0.43 in 2024 Q2. Net income fell to $972,000, down 93.7% from $15.53 million in the previous year. The substantial decrease in EPS indicates a challenging quarter for the company.

Price Action

The stock price of Benchmark edged up by 2.72% during the latest trading day, decreased by 0.18% during the most recent full trading week, and declined by 0.85% month-to-date.

Post-Earnings Price Action Review

A strategy of purchasing Benchmark shares after a quarter-over-quarter revenue increase and holding for 30 days has generally yielded moderate returns but underperformed the benchmark index. The compound annual growth rate (CAGR) of this strategy was 11.05%, trailing the benchmark by 17.31 percentage points. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.32, indicating a low-risk profile, the strategy's 34.20% volatility suggests significant fluctuations. Overall, while the approach shows some promise, it fails to outperform the broader market consistently.

CEO Commentary

“Benchmark’s second quarter results continue to validate our strategy. We are the partner of choice for complex product execution, from concept through design to global delivery and support. Our second quarter progress was measured by sequential growth across most of our sectors with continued strength in A&D and solid recovery in the Industrial and Medical sectors. My conviction in our strategy and execution has never been higher. I am confident our accelerating momentum will drive growth and operational leverage in the coming quarters,” said Jeff Benck, President and CEO of Benchmark Electronics, Inc.

Guidance

“We expect third quarter revenue to be between $635 million and $685 million. Diluted GAAP earnings per share are anticipated to be between $0.28 and $0.34, while diluted non-GAAP earnings per share are projected to be between $0.56 and $0.62. Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $5.3 million and other non-operating expenses of $6.1 million to $6.3 million, including restructuring and amortization of intangibles.”

Additional News

In recent weeks, Benchmark Electronics announced the completion of a key role in U.S. manufacturing and testing for Intel’s Aurora Exascale Supercomputer, highlighting its contribution to advanced computing projects. Additionally, the company celebrated the grand opening of an advanced manufacturing facility in Guadalajara, Jalisco, strengthening its presence in the region. Furthermore, Benchmark appointed Glynis A. Bryan to its Board of Directors, enhancing the company's leadership team. These developments underscore Benchmark's strategic initiatives to expand its capabilities and influence in the technology and manufacturing sectors.