Key Highlights

  • Second-quarter 2026 Revenue was $756m, up 18% from $642m, with non-GAAP diluted EPS of $0.75, up 36%.
  • Semiconductor Capital equipment generated $223m, or 29% of revenue, the largest sector share.
  • The company guided to third-quarter revenue of $755m to $795m and raised its full-year revenue growth expectation to about 13%.

The latest reported quarter

Benchmark Electronics, Inc. (NYSE:BHE), a provider of electronics Manufacturing services, reported second-quarter 2026 results on 29 July 2026. Revenue was $756m, up 18% from $642m a year earlier. GAAP Diluted Earnings per Share were $0.55, compared with $0.03 in the second quarter of 2025, and non-GAAP diluted earnings per share were $0.75, up 36% from $0.55.

Gross Margin was 10.4% on a GAAP basis and 10.5% non-GAAP. Operating Margin was 4.0% GAAP and 5.2% non-GAAP. Operating Cash Flow was $35m and free cash flow was $22m. For the first six months, revenue totalled $1.43bn, with GAAP diluted earnings per share of $0.91 and non-GAAP earnings per share of $1.33.

Where the growth is coming from

By sector, semiconductor capital equipment (Semi-Cap) generated $223m, or 29% of revenue, the largest share. Industrial contributed $161m (21%), Medical $134m (18%), Advanced Computing and Communications $127m (17%), and Aerospace and Defense $111m (15%). Aerospace and Defense was the one sector shown with a decline, from $126m a year earlier.

Chief executive David Moezidis said results reflected increasing Demand and disciplined execution, with revenue and earnings above the high end of prior guidance and the highest quarterly bookings to date. Those are management's characterisations. The reliance on Semi-Cap means that the fortunes of the company are partly tied to a cyclical customer base.

Balance sheet and capital returns

At 30 June 2026 the company held $315m of cash and equivalents against total Debt of about $181m, of which roughly $4m was current. It repurchased $5.8m of shares in the first half, down from $16.0m a year earlier. A quarterly Dividend of $0.17 per share was payable on 13 October 2026 to holders of record on 30 September 2026.

A net cash position of roughly $134m, which is a subtraction of the reported figures, gives the company financial flexibility for Investment or other purposes, although the reduced pace of Buybacks suggests that management is balancing capital returns against other uses of cash.

Guidance

The outlook is guidance, not reported results. For the third quarter, Benchmark guided to revenue of $755m to $795m, GAAP earnings per share of $0.51 to $0.57 and non-GAAP earnings per share of $0.76 to $0.82. It raised its full-year revenue growth expectation to about 13%, which would put annual revenue on track for $3bn, the highest to date.

The midpoint of the third-quarter revenue range is $775m, about 2.5% above the second quarter's $756m, and the midpoint of non-GAAP earnings per share is $0.79, against $0.75 reported. They imply continued but moderate sequential growth rather than a step change, provided guidance is met.

What to watch

Investors may focus on whether revenue meets the guided $755m to $795m range, whether non-GAAP operating margin holds near the 5.2% reported, and whether Semi-Cap demand remains firm. Any update to the roughly 13% full-year growth outlook will also be closely read, as will commentary on the Aerospace and Defense decline, bookings and cash conversion, since free cash flow of $22m was lower than operating cash flow of $35m after capital spending.