Benchmark Electronics Lifts 2026 Growth Outlook To About 16% After Record $811 Million Quarter
Adjusted earnings per share rose 35% to $0.84, and fourth-quarter revenue is guided to $815 million to $855 million.
Benchmark Electronics, which builds electronic and precision metal products for other companies, posted record third-quarter revenue of $811 million, up 19% from a year earlier, and now expects 2026 revenue growth of approximately 16%. The company released the results Wednesday in an 8-K filing.
Profit outgrew sales
Diluted earnings per share on a standard accounting basis were $0.47, up 21% from a year earlier. On an adjusted basis, which strips out items such as stock-based pay, restructuring and amortization of acquired intangibles, earnings per share rose 35% to $0.84.
Operating cash flow was $30 million and free cash flow $14 million. Adjusted operating margin was 5.5%, against 4.8% a year earlier and 5.2% in the second quarter.
CEO David Moezidis said the company "grew earnings at nearly twice the rate of sales." He added that "demand is broadening across our portfolio, bookings momentum remains healthy." The new outlook goes beyond the $3 billion annual revenue level the company set last quarter, he said.
Chip-equipment work leads the mix
Benchmark's customers are equipment makers in semiconductor equipment, industrial, medical, aerospace and defense, and advanced computing and communications. Semiconductor equipment was the biggest sector at $241 million, or 30% of sales, up from 27% a year earlier.
Industrial sales were $172 million, medical $138 million, advanced computing and communications $132 million and aerospace and defense $128 million.
Cash cycle shortens to 54 days
The cash conversion cycle, the time it takes to turn money spent on inventory into cash, fell to 54 days from 77 days a year earlier. It was 59 days in the second quarter.
For the fourth quarter, Benchmark guided to revenue of $815 million to $855 million. It expects adjusted earnings per share of $0.85 to $0.91 and standard earnings per share of $0.58 to $0.64.
Management discussed the results on a 5:00 p.m. Eastern call Wednesday; the fourth-quarter guidance is the next benchmark for the company's figures.
