Benchmark 2025 Q3 Earnings Beats Expectations, Net Income Declines 7.2%

Benchmark (BHE) reported Q3 2025 results exceeding revenue and EPS expectations, with management guiding for strong growth in AI and enterprise opportunities. The stock gained 2.89% in the latest trading day, reflecting optimism around sector diversification and strategic positioning.

Revenue

Benchmark’s total revenue rose 3.5% year-over-year to $680.68 million, driven by robust performance across key segments. The Semi-Cap division generated $185.16 million, while Industrial and A&D contributed $152.35 million and $128.66 million, respectively. Medical revenue reached $126.28 million, and AC&C added $88.23 million. External revenue, encompassing all segments, totaled $680.68 million, underscoring broad-based demand.

Earnings/Net Income

The company’s EPS declined 7.0% to $0.40 in Q3 2025 from $0.43 in Q3 2024, while net income fell 7.2% to $14.26 million from $15.37 million. The earnings contraction highlights margin pressures despite top-line growth.

Post-Earnings Price Action Review

Following the earnings release, Benchmark’s stock edged up 2.89% during the latest trading day, climbed 6.67% over the past week, and surged 21.02% month-to-date. The positive momentum aligns with management’s emphasis on AI and enterprise growth, though the decline in EPS and net income suggests near-term challenges. Investors appear focused on the company’s long-term strategic bets, particularly in high-performance computing and defense sectors, which could drive future upside.

CEO Commentary

CEO Jeff Benck highlighted strong Q3 performance, achieving the high end of revenue and non-GAAP EPS guidance. He noted improved year-over-year results across most sectors and expressed optimism about “stronger growth as we exit the year,” citing early-stage enterprise AI opportunities. President David Moezidis underscored robust bookings momentum, reinforcing confidence in sustained growth into 2026.

Guidance

Benchmark provided Q4 2025 guidance: revenue of $670–720 million, diluted GAAP EPS of $0.44–0.50, and diluted non-GAAP EPS of $0.62–0.68. Non-GAAP guidance excludes $2.3 million in stock-based compensation and $4.9–5.3 million in other non-operating expenses. The company reiterated expectations for enterprise AI growth and continued bookings strength, aligning with its strategic focus on long-term market expansion.

Additional News

Benchmark announced a leadership transition, promoting David Moezidis to President and designating him as the next CEO effective March 31, 2026, following Jeff Benck’s retirement. The company also reported $25 million in free cash flow for Q3, with $124 million remaining in buyback authorization after repurchasing $10 million in stock. Additionally, it highlighted strategic investments in Malaysia’s PT4 facility, supporting capacity expansion and AI-related manufacturing capabilities.

The stock’s post-earnings rally reflects confidence in Benchmark’s diversified sector exposure and AI growth initiatives. While near-term margin pressures persist, the company’s focus on high-margin opportunities and operational efficiency could drive long-term value creation.