Benchmark Electronics (BHE) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $704 million, up 7% year-over-year, with double-digit growth in AC&C, Medical, and A&D sectors.

• Full-year 2025 revenue was $2.66 billion, flat year-over-year, but with improving momentum and sequential growth in the second half.

• Non-GAAP EPS for Q4 was $0.71, exceeding guidance; full-year non-GAAP EPS rose to $2.40.

• Gross margin remained above 10% throughout the year, with Q4 at 10.6% and operating margin at 5.5%.

• Bookings momentum and sector diversification support confidence in 2026 revenue growth.

Financial highlights

• Q4 2025 non-GAAP gross margin was 10.6%, operating margin 5.5%, both at multi-year highs.

• Q4 2025 operating cash flow was $59 million; free cash flow was $48 million. Full-year free cash flow totaled $85 million.

• Cash balance at year-end was $322 million, with a net cash positive position of $111 million.

• FY 2025 non-GAAP EPS was $2.40, up from $2.29 in FY 2024.

• Inventory turns and cash cycles reached multi-year records.

Outlook and guidance

• Q1 2026 revenue expected between $655 million-$695 million, up 7% year-over-year at midpoint.

• Q1 non-GAAP gross margin guidance is 10%-10.4%; operating margin 4.7%-4.9%.

• Q1 non-GAAP EPS expected in the range of $0.53-$0.59.

• Effective tax rate for Q1 and full year anticipated at 26%-27%.

• Sector outlook for 2026 includes improved performance in Semi-Cap, Industrial, Medical, and continued momentum in AC&C.