BHE Benchmark Electronics Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2024

 

 

BENCHMARK ELECTRONICS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Texas			001-10560	74-2211011
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
56 South Rockford Drive
Tempe, Arizona				85288
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (623) 300-7000

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.10 per share		BHE		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On July 30, 2024, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter ended June 30, 2024. A copy of the press release and accompanying investor presentation are attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein. The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On July 30, 2024, the Company announced that its Board of Directors have approved a quarterly dividend increase, raising the quarterly dividend from 16.5 cents to 17 cents per common share.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press release, dated July 30, 2024
99.2		Investor presentation, dated July 30, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			BENCHMARK ELECTRONICS, INC.
Date:	July 30, 2024	By:	/s/ Stephen J. Beaver
			Stephen J. Beaver, Esq. Senior Vice President, General Counsel and Chief Legal Officer

 

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Exhibit 99.1

FOR IMMEDIATE RELEASE

 

BENCHMARK REPORTS SECOND QUARTER 2024 RESULTS

 

TEMPE, AZ, July 30, 2024 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30, 2024. Additionally, the company’s Board of Directors have authorized an increase in the quarterly dividend from $0.165 to $0.17 per share, effective immediately.

 

Second quarter 2024 results(1):

 

		Three Months Ended
		June 30,				March 31,				June 30,
(Amounts in millions, except per share data)		2024				2024				2023
Sales		$	666			$	676			$	733
Net income		$	16			$	14			$	14
Income from operations		$	27			$	26			$	24
Net income – non-GAAP(1)		$	21			$	20			$	20
Income from operations – non-GAAP(1)		$	34			$	33			$	33
Diluted earnings per share		$	0.43			$	0.38			$	0.39
Diluted earnings per share – non-GAAP(1)		$	0.57			$	0.55			$	0.56
Operating margin			4.1	%			3.8	%			3.3	%
Operating margin – non-GAAP(1)			5.1	%			4.9	%			4.5	%

(1) A reconciliation of non-GAAP results to the most directly comparable GAAP measures and a discussion of why management believes these non-GAAP results are useful are included below.

 

“Once again Benchmark delivered solid results, demonstrating consistent progress toward achieving our longer-term operational objectives,” said Jeff Benck, Benchmark’s President and CEO.

 

Benck continued “While market uncertainty persists across a number of our sectors, we remain focused on executing for our customers while protecting margins, driving down inventories and delivering positive free cash flow, which we now expect to exceed $120 million in fiscal year 2024.”

 

Cash Conversion Cycle

 

		June 30,				March 31,				June 30,
		2024				2024				2023
Accounts receivable days			51				56				59
Contract asset days			25				24				23
Inventory days			90				94				102
Accounts payable days			(52	)			(52	)			(56	)
Advance payments from customers days			(24	)			(28	)			(25	)
Cash conversion cycle days			90				94				103

 

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Second Quarter 2024 Industry Sector Update

Revenue and percentage of sales by industry sector were as follows.

 

		June 30,								March 31,								June 30,
(In millions)		2024								2024								2023
Semi-Cap		$	172				26	%		$	166				25	%		$	164				22	%
Complex Industrials			142				21	%			141				21	%			167				23	%
Medical			111				17	%			115				17	%			145				20	%
A&D			109				16	%			106				16	%			80				11	%
AC&C			132				20	%			148				21	%			177				24	%
Total		$	666				100	%		$	676				100	%		$	733				100	%

 

Revenue decreased quarter over quarter primarily due to decreases in Medical and Advanced Computing and Communications (AC&C) sales, which were partially offset by an increase in Semi-Cap sales. Revenue decreased year-over-year primarily due to decreases in Complex Industrials, Medical, and AC&C sales, which were partially offset by increases in Semi-Cap and A&D sales.

 

Third Quarter 2024 Guidance

 

In the third quarter of 2024, restructuring charges are expected to be approximately $1.0 million, stock-based compensation expense is expected to be $4.5 million and the amortization of intangible assets is expected to be $1.2 million.

 

Second Quarter 2024 Earnings Conference Call

The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company’s website at www.bench.com. A replay of the broadcast will also be available on the Company’s website.

 

About Benchmark Electronics, Inc.

Benchmark provides comprehensive solutions across the entire product life cycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain and delivering world-class manufacturing services in the following industries: semiconductor capital equipment, complex industrials, medical, commercial aerospace, defense, and advanced computing and communications. Benchmark’s global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.

 

For More Information, Please Contact:

Paul Mansky, Investor Relations and Corporate Development

1-623-300-7052 or paul.mansky@bench.com

 

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Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as “anticipate,” “believe,” “intend,” “plan,” “project,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” “could,” “predict,” and similar expressions of the negative or other variations thereof. In particular, statements, express or implied, concerning the Company’s outlook and guidance for third quarter and fiscal year 2024 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company’s business strategy and strategic initiatives, the Company’s repurchases of shares of its common stock, the Company’s expectations regarding restructuring charges, stock-based compensation expense and amortization of intangibles, and the Company’s intentions concerning the payment of dividends, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond the Company’s ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, or the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, may have resulting impacts on the Company’s business, financial condition, results of operations, and the Company’s ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company’s operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and the Company assumes no obligation to update.

 

Non-GAAP Financial Measures

Management discloses certain non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. These non-GAAP financial measures exclude restructuring charges, stock-based compensation expense, amortization of intangible assets acquired in business combinations, certain legal and other settlement losses (gains), customer insolvency losses (recoveries), asset impairments, other significant non-recurring costs and the related tax impacts of all of the above. A detailed reconciliation between GAAP results and results excluding certain items (“non-GAAP”) is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. This document also references “free cash flow”, a non-GAAP measure, which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software. The Company’s non‐GAAP information is not necessarily comparable to the non‐GAAP information used by other companies. Non‐GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company’s profitability or liquidity. Readers should consider the types of events and transactions for which adjustments have been made.

 

 

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Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2024				2023				2024				2023
Sales		$	665,896			$	733,232			$	1,341,471			$	1,427,927
Cost of sales			597,946				666,201				1,206,113				1,296,938
Gross profit			67,950				67,031				135,358				130,989
Selling, general and administrative expenses			38,022				37,672				75,354				75,870
Amortization of intangible assets			1,204				1,591				2,408				3,183
Restructuring charges and other costs			1,471				3,287				4,814				4,713
Income from operations			27,253				24,481				52,782				47,223
Interest expense			(6,933	)			(8,258	)			(14,178	)			(14,708	)
Interest income			2,526				1,622				4,518				2,880
Other (expense) income, net			(2,323	)			61				(3,500	)			(2,104	)
Income before income taxes			20,523				17,906				39,622				33,291
Income tax expense			4,995				3,915				10,092				6,940
Net income		$	15,528			$	13,991			$	29,530			$	26,351
Earnings per share:
Basic		$	0.43			$	0.39			$	0.82			$	0.74
Diluted		$	0.43			$	0.39			$	0.81			$	0.74
Weighted-average number of shares used in    calculating earnings per share:
Basic			36,047				35,618				35,929				35,478
Diluted			36,497				35,676				36,388				35,730

 

 

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Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands)

(UNAUDITED)

 

		June 30,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	309,287			$	277,391
Restricted cash			578				5,822
Accounts receivable, net			376,568				449,404
Contract assets			182,090				174,979
Inventories			599,842				683,801
Prepaid expenses and other current assets			42,286				44,350
Total current assets			1,510,651				1,635,747
Property, plant and equipment, net			225,888				227,698
Operating lease right-of-use assets			125,082				130,830
Goodwill and other long-term assets			293,118				280,480
Total assets		$	2,154,739			$	2,274,755
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt		$	5,928			$	4,283
Accounts payable			346,153				367,480
Advance payments from customers			157,156				204,883
Accrued liabilities			133,823				136,901
Total current liabilities			643,060				713,547
Long-term debt, net of current installments			283,559				326,674
Operating lease liabilities			116,637				123,385
Other long-term liabilities			16,379				32,064
Total liabilities			1,059,635				1,195,670
Shareholders’ equity			1,095,104				1,079,085
Total liabilities and shareholders’ equity		$	2,154,739			$	2,274,755

 

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Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(UNAUDITED)

 

		Six Months Ended
		June 30,
		2024				2023
Cash flows from operating activities:
Net income		$	29,530			$	26,351
Depreciation and amortization			23,026				22,549
Stock-based compensation expense			6,361				8,657
Accounts receivable			71,346				6,359
Contract assets			(7,111	)			(2,264	)
Inventories			82,717				(28,096	)
Accounts payable			(25,550	)			9,499
Advance payments from customers			(47,727	)			(12,260	)
Other changes in working capital and other, net			(28,318	)			(31,163	)
Net cash provided by (used in) operating activities			104,274				(368	)
Cash flows from investing activities:
Additions to property, plant and equipment and software			(14,407	)			(47,049	)
Other investing activities, net			(1,405	)			585
Net cash used in investing activities			(15,812	)			(46,464	)
Cash flows from financing activities:
Net debt activity			(41,731	)			102,237
Other financing activities, net			(17,161	)			(17,296	)
Net cash (used in) provided by financing activities			(58,892	)			84,941
Effect of exchange rate changes			(2,918	)			(209	)
Net increase in cash and cash equivalents and restricted cash			26,652				37,900
Cash and cash equivalents and restricted cash at beginning of year			283,213				207,430
Cash and cash equivalents and restricted cash at end of period		$	309,865			$	245,330

 

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Benchmark Electronics, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
		2024				2024				2023				2024				2023
Income from operations (GAAP)		$	27,253			$	25,529			$	24,481			$	52,782			$	47,223
Restructuring charges and other costs			1,471				3,343				2,364				4,814				3,790
Stock-based compensation expense			4,185				2,176				3,867				6,361				8,657
Amortization of intangible assets			1,204				1,204				1,591				2,408				3,183
Asset impairment			—				—				923				—				923
Legal and other settlement loss (gain)			317				855				—				1,172				—
Customer insolvency (recovery)			(316	)			—				—				(316	)			—
Non-GAAP income from operations		$	34,114			$	33,107			$	33,226			$	67,221			$	63,776
GAAP operating margin			4.1	%			3.8	%			3.3	%			3.9	%			3.3	%
Non-GAAP operating margin			5.1	%			4.9	%			4.5	%			5.0	%			4.5	%
Gross profit (GAAP)		$	67,950			$	67,408			$	67,031			$	135,358			$	130,989
Stock-based compensation expense			326				426				423				752				819
Customer insolvency (recovery)			(316	)			—				—				(316	)			—
Non-GAAP gross profit		$	67,960			$	67,834			$	67,454			$	135,794			$	131,808
GAAP gross margin			10.2	%			10.0	%			9.1	%			10.1	%			9.2	%
Non-GAAP gross margin			10.2	%			10.0	%			9.2	%			10.1	%			9.2	%
Selling, general and administrative expenses		$	38,022			$	37,332			$	37,672			$	75,354			$	75,870
Stock-based compensation expense			(3,858	)			(1,750	)			(3,444	)			(5,608	)			(7,838	)
Legal and other settlement (loss) gain			(317	)			(855	)			—				(1,172	)			—
Non-GAAP selling, general and administrative expenses		$	33,847			$	34,727			$	34,228			$	68,574			$	68,032
Net income (GAAP)		$	15,528			$	14,002			$	13,991			$	29,530			$	26,351
Restructuring charges and other costs			1,471				3,343				2,364				4,814				3,790
Stock-based compensation expense			4,185				2,176				3,867				6,361				8,657
Amortization of intangible assets			1,204				1,204				1,591				2,408				3,183
Asset impairment			—				—				923				—				923
Legal and other settlement loss (gain)			317				855				(1,155	)			1,172				(1,155	)
Customer insolvency (recovery)			(316	)			—				—				(316	)			—
Income tax adjustments(1)			(1,437	)			(1,393	)			(1,484	)			(2,830	)			(3,007	)
Non-GAAP net income		$	20,952			$	20,187			$	20,097			$	41,139			$	38,742
Diluted earnings per share:
Diluted (GAAP)		$	0.43			$	0.38			$	0.39			$	0.81			$	0.74
Diluted (Non-GAAP)		$	0.57			$	0.55			$	0.56			$	1.13			$	1.08
Weighted-average number of shares used in    calculating diluted earnings per share:
Diluted (GAAP)			36,497				36,401				35,676				36,388				35,730
Diluted (Non-GAAP)			36,497				36,401				35,676				36,388				35,730
Net cash provided by (used in) operations		$	55,816			$	48,457			$	24,538			$	104,274			$	(368	)
Additions to property, plant and    equipment and software			(8,504	)			(5,903	)			(8,318	)			(14,407	)			(47,049	)
Free cash flow (used)		$	47,312			$	42,554			$	16,220			$	89,867			$	(47,417	)

 

(1) This amount represents the tax impact of the non-GAAP adjustments using the applicable effective tax rates.

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Benchmark Electronics Second Quarter 2024 Financial Results July 30, 2024

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Forward-Looking 2024 Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as “anticipate,” “believe,” “intend,” “plan,” “project,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” “could,” “predict,” and similar expressions of the negative or other variations thereof. In particular, statements, express or implied, concerning the Company’s outlook and guidance for third quarter and fiscal year 2024 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company’s business strategy and strategic initiatives, the Company’s repurchases of shares of its common stock, the Company’s expectations regarding restructuring charges, stock-based compensation expense and amortization of intangibles, and the Company’s intentions concerning the payment of dividends, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond the Company’s ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, or the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, may have resulting impacts on the Company’s business, financial condition, results of operations, and the Company’s ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company’s operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and the Company assumes no obligation to update. Non-GAAP Financial Information Management discloses certain non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. These non-GAAP financial measures exclude restructuring charges, stock-based compensation expense, amortization of intangible assets acquired in business combinations, certain legal and other settlement losses (gains), customer insolvency losses (recoveries), asset impairments, other significant non-recurring costs and the related tax impacts of all of the above. A detailed reconciliation between GAAP results and results excluding certain items (“non-GAAP”) is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. This document also references “free cash flow”, a non-GAAP measure, which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software. The Company’s non‐GAAP information is not necessarily comparable to the non‐GAAP information used by other companies. Non‐GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company’s profitability or liquidity. Readers should consider the types of events and transactions for which adjustments have been made.

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Second Quarter 2024 Results Revenue of $666M was above guidance; roughly flat sequentially and down 9% year-over-year - Year-over-year strength in Semi-Cap and A&D - Offset by anticipated softness in Medical, AC&C and Industrials GAAP EPS of $0.43 and non-GAAP* EPS of $0.57, above the high end of guidance GAAP and non-GAAP gross margin of 10.2%, each up 100 bps or more year-over-year GAAP operating margin of 4.1% with non-GAAP of 5.1% Generated positive Free Cash Flow of $47 million, totaling greater than $230M over the last 4 quarters * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results

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Arvind Kamal Interim Chief Financial Officer

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Second Quarter 2024 Revenue by Market Sector Q2-24 Jun 30, 2024 Revenue by Mix and Market Sector Mar 31, 2024 Jun 30, 2023 For the Three Months Ended (Dollars in Millions) Sector   Mix % Revenue   Mix % Revenue Q/Q   Mix % Revenue Y/Y Semi-Cap   26% $172   25% $166 4%   22% $164 5% Complex Industrials   21% $142   21% $141 -%   23% $167 (15%) Medical   17% $111   17% $115 (3%)   20% $145 (23%) A&D   16% $109   16% $106 3%   11% $80 36% AC&C   20% $132   21% $148 (11%)   24% $177 (26%) Total Revenue 100% $666 100% $676 (1%) 100% $733 (9%)

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Second Quarter 2024 Financial Summary (Dollars in Millions, except EPS) Jun 30, 2024 Mar 31, 2024 Q/Q Jun 30, 2023 Y/Y Net Sales $666 $676 (1%) $733 (9%) GAAP Gross Margin 10.2% 10.0% 20 bps 9.1% 110 bps GAAP SG&A $38.0 $37.3 2% $37.7 1% GAAP Operating Margin 4.1% 3.8% 30 bps 3.3% 80 bps GAAP Diluted EPS $0.43 $0.38 13% $0.39 10% GAAP ROIC 7.7% 8.6% (90) bps 7.1% 60 bps Non-GAAP Gross Margin 10.2% 10.0% 20 bps 9.2% 100 bps Non-GAAP SG&A $33.8 $34.7 (3%) $34.2 (1%) Non-GAAP Operating Margin 5.1% 4.9% 20 bps 4.5% 60 bps Non-GAAP Diluted EPS $0.57 $0.55 4% $0.56 1% Non-GAAP ROIC 9.9% 9.6% 30 bps 9.5% 40 bps See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results GAAP ROIC = (GAAP TTM income from operations – GAAP Tax Impact) / (Average Invested Capital for last 5 quarters) Non-GAAP ROIC = (non-GAAP TTM income from operations + Stock-based compensation – non-GAAP Tax Impact) ÷ [Average Invested Capital for last 5 quarters]

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Trended Non-GAAP* Results (Dollars in Millions, except EPS) * See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results

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Cash Conversion Cycle Update

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Liquidity Update (1) Free Cash Flow (FCF) is defined as net cash provided by (used in) operations less capex Debt Structure (In Millions) Jun 30, 2024 Senior Secured Term Loan $126 Revolving Credit Facility Drawn Amount $165 * Leverage ratio is Net Debt / LTM Adjusted EBITDA, as defined in the credit facility, is a non-GAAP measure Achieved positive net cash in the quarter as we continue to pay down the revolver Continued inventory reductions supporting free cash flow Strong balance sheet and leverage ratio For the Three Months Ended (In Millions) Jun 30, 2024 Mar 31, 2024 Jun 30, 2023 Cash Flows from Operations $56 $48 $25 FCF (1) $47 $43 $16 Cash $310 $296 $245 International $291 $271 $236 US $19 $25 $9

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Capital Allocation Update Dividends Quarterly dividend of $0.165 per share totaling $5.9 million paid in April 2024 Recurring quarterly dividend of $0.165 per share paid to shareholders as of June 28, 2024 on July 12, 2024 Board authorized dividend increase to $0.17 per share, effective immediately Share Repurchases No share repurchases in Q2 2024 Share repurchase program remaining authorization of $155 million as of June 30, 2024

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Third Quarter 2024 Guidance Q3 2024 Net Sales $630 - $670 million Gross Margin – non-GAAP ~10% Operating Margin – non-GAAP 4.8% – 5.0% Other Expenses, Net ~$6 million Restructuring Charges $1.0 million Amortization of Intangibles $1.2 million Stock-Based Compensation Expense $4.5 million Effective Tax Rate 22% – 24% Diluted EPS – GAAP $0.36 – $0.42 Diluted EPS – non-GAAP $0.52 – $0.58 Diluted Weighted-Average Shares 36.5 million This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers.

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Business Trends Jeff Benck - CEO

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Sector Outlook Q3-24 Q/Q FY2024 Y/Y Sector Commentary Semi-Cap Expect high single to low double-digit growth in 2024 Memory market strength expected to be joined by logic in 2025 Grand Opening of new Penang site in September Complex Industrials Demand reduction coupled with inventory rebalancing weighing on growth; expect gradual improvement in 2H:24 Strong pipeline of new deals as we invest given the market opportunity Medical Seeing continued softness, specifically within medical devices as customers drive down inventories Continuing to see steady progress within bio-tech A&D Defense sector strength expected throughout the year Significant expansion business with existing customer in aerospace Added new business in the Space subsector AC&C HPC business down as several large projects are complete AC&C sector demand expected to remain challenged throughout 2024 Working on new product introductions (NPI) for several next-gen systems New significant win in wireless infrastructure ramping in 2025

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Summary Progress Toward 2025 Objectives Manage volatility while continuing to progress to our target model profitability Delivered year-on-year expansion of non-GAAP Gross and Operating Margins in each quarter since we introduced our 2025 target model in Q4 2022 Continue to work down inventory, driving positive Free Cash Flow - Reduced inventory by $38M sequentially and $157M year-over-year to $600M - Positively revised 2024 Free Cash Flow expectations to greater than $120M Return capital to investors - Increased our dividend by 3% to $0.17 per share

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Appendix

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(Dollars in Thousands, Except Per Share Data) – (UNAUDITED) APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial Results

v3.24.2

Document And Entity Information	Jul. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 30, 2024
Entity Registrant Name	BENCHMARK ELECTRONICS, INC.
Entity Central Index Key	0000863436
Entity Emerging Growth Company	false
Entity File Number	001-10560
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-2211011
Entity Address, Address Line One	56 South Rockford Drive
Entity Address, City or Town	Tempe
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85288
City Area Code	(623)
Local Phone Number	300-7000
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	BHE
Security Exchange Name	NYSE

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