Benchmark Electronics (BHE) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 revenue was $2.7 billion, down 6% year-over-year, with Semi-Cap and A&D sectors driving growth, while Medical and AC&C lagged.

• Q4 2024 revenue was $657 million, flat sequentially and down 5% year-over-year, in line with guidance.

• Non-GAAP gross and operating margins expanded for the fourth consecutive year, with Q4 non-GAAP gross margin at 10.4% and operating margin at 5.1%.

• Free cash flow for 2024 was $156 million, supported by inventory reduction and marking the 7th consecutive quarter of positive free cash flow.

• Management remains focused on operational excellence, cost control, and strategic investments, including a new facility in Penang, Malaysia.

Financial highlights

• Q4 GAAP gross margin was 10.3%, non-GAAP gross margin 10.4%; Q4 GAAP operating margin 4.3%, non-GAAP 5.1%.

• Q4 GAAP EPS was $0.50; non-GAAP EPS was $0.61, both above guidance.

• FY 2024 GAAP and non-GAAP gross margin were 10.2%, up 70 and 60 basis points year-over-year.

• FY 2024 GAAP EPS was $1.72; non-GAAP EPS was $2.29.

• Cash and restricted cash at year-end was $328 million; Q4 cash conversion cycle improved to 89 days.

Outlook and guidance

• Q1 2025 revenue expected between $620–$660 million; non-GAAP gross margin 10–10.2%; non-GAAP operating margin 4.5–4.7%.

• Q1 2025 non-GAAP EPS guidance is $0.48–$0.54.

• Full-year 2025 CapEx planned at $65–$75 million, with $15–$20 million in Q1, mainly for Penang IV building.

• Free cash flow for 2025 expected at $50–$80 million, inclusive of elevated CapEx.

• Semi-Cap and A&D sectors expected to lead growth in 2025, with Medical sector anticipating gradual recovery in the second half.