8-K

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): January 31, 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:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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. ☐

Item 2.02 Results of Operations and Financial Condition.

On January 31, 2024, Benchmark Electronics, Inc. (the “Company”) issued a press release announcing its results of operations for the quarter and year ended December 31, 2023. 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 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press release, dated January 31, 2024
99.2	Investor presentation, dated January 31, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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:	January 31, 2024	By:	/s/ Stephen J. Beaver
			Stephen J. Beaver, Esq. Senior Vice President, General Counsel and Chief Legal Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

BENCHMARK REPORTS FOURTH QUARTER AND FISCAL YEAR 2023 RESULTS

Fourth quarter 2023 results:

•Revenue of $691 million

•Generated net cash provided by operations of $137 million and positive free cash flow(1) of $126 million

•GAAP and non-GAAP(1) gross margin of 10.3%

•GAAP operating margin of 4.6% and non-GAAP(1) operating margin of 5.1%

•GAAP and non-GAAP(1) earnings per share of $0.49 and $0.58, respectively

Full year 2023 results:

•Revenue of $2.8 billion

•Delivered net cash provided by operations of $174 million and positive free cash flow(1) of $97 million

•GAAP and non-GAAP(1) gross margin of 9.5%, up 70 basis points year-over-year

•GAAP operating margin of 3.9% and non-GAAP(1) operating margin of 4.4%

•GAAP and non-GAAP(1) earnings per share of $1.79 and $2.04, respectively

TEMPE, AZ, January 31, 2024 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the fourth quarter and year ended December 31, 2023.

	Three Months Ended
	December 31,			September 30,			December 31,
(Amounts in millions, except per share data)	2023			2023			2022
Sales	$	691		$	720		$	751
Net income	$	18		$	20		$	21
Income from operations	$	32		$	30		$	27
Net income – non-GAAP(1)	$	21		$	21		$	21
Income from operations – non-GAAP(1)	$	35		$	34		$	33
Diluted earnings per share	$	0.49		$	0.57		$	0.60
Diluted earnings per share – non-GAAP(1)	$	0.58		$	0.57		$	0.60
Operating margin		4.6	%		4.2	%		3.6	%
Operating margin – non-GAAP(1)		5.1	%		4.7	%		4.3	%

	Year Ended
	December 31,
(Amounts in millions, except per share data)	2023			2022
Sales	$	2,839		$	2,886
Net income	$	64		$	68
Income from operations	$	110		$	90
Net income – non-GAAP(1)	$	73		$	75
Income from operations – non-GAAP(1)	$	124		$	104
Diluted earnings per share	$	1.79		$	1.91
Diluted earnings per share – non-GAAP(1)	$	2.04		$	2.09
Operating margin		3.9	%		3.1	%
Operating margin – non-GAAP(1)		4.4	%		3.6	%

(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 is included below.

1

“Benchmark delivered another solid year of performance in 2023 as we continued to execute to our strategic plan. I’m particularly pleased with our free cash flow performance which was aided by inventory reductions. At the same time, our operational discipline allowed us to expand both gross and operating margin despite the dynamic environment,” said Jeff Benck, Benchmark’s President and CEO.

Benck continued “Looking forward, we expect the current demand softness across several of our end-markets will likely persist through the first half of 2024, driven by customers closely managing inventories. However, as demonstrated by our performance this past year, I am confident in our ability to deliver further margin expansion and positive free cash flow in 2024.”

Cash Conversion Cycle

	December 31,			September 30,			December 31,
	2023			2023			2022
Accounts receivable days		59			60			59
Contract asset days		23			24			22
Inventory days		99			100			97
Accounts payable days		(53	)		(53	)		(56	)
Advance payments from customers days		(30	)		(26	)		(26	)
Cash conversion cycle days		98			105			96

Fourth Quarter 2023 Industry Sector Update

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

	December 31,				September 30,				December 31,
(In millions)	2023				2023				2022
Medical	$	126	18	%	$	149	21	%	$	144	19	%
Semi-Cap		168	24			165	23			178	24
A&D		102	15			100	14			90	12
Industrials		132	19			154	21			143	19
Advanced Computing		95	14			66	9			92	12
Next Gen Communications		68	10			86	12			104	14
Total	$	691	100	%	$	720	100	%	$	751	100	%

Revenue decreased year over year primarily due to a decrease in Next Gen Communications of 35% and a decrease in Medical of 13%, partially offset by an increase in A&D of 13%.

First Quarter 2024 Guidance

•Revenue between $625 million - $665 million

•Diluted GAAP earnings per share between $0.32 - $0.38

•Diluted non-GAAP earnings per share between $0.42 - $0.48 (excluding restructuring charges and other costs and amortization of intangibles)

Restructuring charges are expected to range between $3.1 million and $3.5 million in the first quarter of 2024 and the amortization of intangibles is expected to be $1.2 million in the first quarter.

Fourth Quarter 2023 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.

2

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: commercial aerospace, defense, advanced computing, next generation telecommunications, complex industrials, medical, and semiconductor capital equipment. 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

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 first 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 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, 2022, 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.

3

Non-GAAP Financial Measures

Management discloses non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. 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.

###

4

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2023			2022			2023			2022
Sales	$	691,354		$	750,644		$	2,838,976		$	2,886,331
Cost of sales		620,350			678,517			2,567,906			2,631,096
Gross profit		71,004			72,127			271,070			255,235
Selling, general and administrative expenses		35,646			39,540			147,025			150,215
Amortization of intangible assets		1,204			1,592			5,979			6,384
Restructuring charges and other costs		2,054			4,049			8,402			8,567
Income from operations		32,100			26,946			109,664			90,069
Interest expense		(8,692	)		(5,466	)		(31,875	)		(12,894	)
Interest income		2,033			887			6,256			1,730
Other (expense) income, net		(3,105	)		3,860			(2,825	)		5,437
Income before income taxes		22,336			26,227			81,220			84,342
Income tax expense		4,784			5,008			16,905			16,113
Net income	$	17,552		$	21,219		$	64,315		$	68,229
Earnings per share:
Basic	$	0.49		$	0.60		$	1.81		$	1.94
Diluted	$	0.49		$	0.60		$	1.79		$	1.91
Weighted-average number of shares used in    calculating earnings per share:
Basic		35,658			35,166			35,566			35,179
Diluted		35,956			35,630			35,973			35,718

5

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands)

(UNAUDITED)

	December 31,
	2023		2022
Assets
Current assets:
Cash and cash equivalents	$	277,391	$	207,430
Restricted cash		5,822		—
Accounts receivable, net		449,404		491,957
Contract assets		174,979		183,613
Inventories		683,801		727,749
Other current assets		44,350		41,400
Total current assets		1,635,747		1,652,149
Property, plant and equipment, net		227,698		211,478
Operating lease right-of-use assets		130,830		93,081
Goodwill and other, net		280,480		270,623
Total assets	$	2,274,755	$	2,227,331
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt	$	4,283	$	4,275
Accounts payable		367,480		424,272
Advance payments from customers		204,883		197,937
Accrued liabilities		136,901		122,652
Total current liabilities		713,547		749,136
Long-term debt, less current installments		326,674		320,675
Operating lease liabilities		123,385		86,687
Other long-term liabilities		32,064		44,417
Shareholders’ equity		1,079,085		1,026,416
Total liabilities and shareholders’ equity	$	2,274,755	$	2,227,331

6

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(UNAUDITED)

	Year Ended
	December 31,
	2023			2022
Cash flows from operating activities:
Net income	$	64,315		$	68,229
Depreciation and amortization		45,410			44,252
Stock-based compensation expense		15,286			18,485
Accounts receivable		42,050			(136,455	)
Contract assets		8,634			(28,370	)
Inventories		45,071			(206,247	)
Accounts payable		(35,320	)		(16,656	)
Advance payments from customers		6,946			79,813
Other changes in working capital and other, net		(18,098	)		(518	)
Net cash provided by (used in) operating activities		174,294			(177,467	)
Cash flows from investing activities:
Additions to property, plant and equipment and software		(77,739	)		(46,774	)
Other investing activities, net		601			5,600
Net cash used in investing activities		(77,138	)		(41,174	)
Cash flows from financing activities:
Share repurchases		—			(9,391	)
Net debt activity		5,509			194,261
Other financing activities, net		(29,087	)		(25,641	)
Net cash provided by (used in) financing activities		(23,578	)		159,229
Effect of exchange rate changes		2,205			(4,907	)
Net increase (decrease) in cash and cash equivalents and restricted cash		75,783			(64,319	)
Cash and cash equivalents and restricted cash at beginning of year		207,430			271,749
Cash and cash equivalents and restricted cash at end of year	$	283,213		$	207,430

7

Benchmark Electronics, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2023			2023			2022			2023			2022
Income from operations (GAAP)	$	32,100		$	30,341		$	26,946		$	109,664		$	90,069
Amortization of intangible assets		1,204			1,592			1,592			5,979			6,384
Restructuring charges and other costs		2,054			1,437			799			7,281			5,710
Gain on assets held for sale		—			—			—			—			(393	)
Asset impairment		—			198			—			1,121			—
Settlement		—			—			3,250			—			3,250
Customer insolvency (recovery)		—			—			—			—			(599	)
Non-GAAP income from operations	$	35,358		$	33,568		$	32,587		$	124,045		$	104,421
GAAP operating margin		4.6	%		4.2	%		3.6	%		3.9	%		3.1	%
Non-GAAP operating margin		5.1	%		4.7	%		4.3	%		4.4	%		3.6	%
Gross Profit (GAAP)	$	71,004		$	69,077		$	72,127		$	271,070		$	255,235
Customer insolvency (recovery)		—			—			—			—			(425	)
Non-GAAP gross profit	$	71,004		$	69,077		$	72,127		$	271,070		$	254,810
GAAP gross margin		10.3	%		9.6	%		9.6	%		9.5	%		8.8	%
Non-GAAP gross margin		10.3	%		9.6	%		9.6	%		9.5	%		8.8	%
Selling, general and administrative expenses	$	35,646		$	35,509		$	39,540		$	147,025		$	150,215
Customer insolvency (recovery)		—			—			—			—			174
Non-GAAP selling, general and administrative expenses	$	35,646		$	35,509		$	39,540		$	147,025		$	150,389
Net income (GAAP)	$	17,552		$	20,412		$	21,219		$	64,315		$	68,229
Amortization of intangible assets		1,204			1,592			1,592			5,979			6,384
Restructuring charges and other costs		2,899			1,437			799			8,126			5,710
Gain on assets held for sale		—			—			—			—			(393	)
Asset impairment		—			198			—			1,121			—
Settlement		(37	)		(3,375	)		(2,344	)		(4,567	)		(2,955	)
Customer insolvency (recovery)		—			—			—			—			(599	)
Income tax adjustments(1)		(657	)		245			(5	)		(1,598	)		(1,644	)
Non-GAAP net income	$	20,961		$	20,509		$	21,261		$	73,376		$	74,732
Diluted earnings per share:
Diluted (GAAP)	$	0.49		$	0.57		$	0.60		$	1.79		$	1.91
Diluted (Non-GAAP)	$	0.58		$	0.57		$	0.60		$	2.04		$	2.09
Weighted-average number of shares used in calculating diluted earnings per share:
Diluted (GAAP)		35,956			35,876			35,630			35,973			35,718
Diluted (Non-GAAP)		35,956			35,876			35,630			35,973			35,718
Net cash provided by (used in) operations	$	137,080		$	37,583		$	(52,749	)	$	174,294		$	(177,467	)
Additions to property, plant and equipment and software		(11,026	)		(19,664	)		(13,180	)		(77,739	)		(46,774	)
Free cash flow (used)	$	126,054		$	17,919		$	(65,929	)	$	96,555		$	(224,241	)

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

8

EX-99.2

Benchmark Electronics Fourth Quarter and Fiscal Year 2023 Financial Results January 31, 2024

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 first 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 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, 2022, 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, 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 our 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 non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. 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.

Fourth Quarter 2023 Results Revenue of $691 million Total revenue impacted by $38 million reduction in supply chain premiums (SCP)* versus the prior year GAAP and non-GAAP** gross margin of 10.3%, expanded 70 basis points year-over-year GAAP operating margin of 4.6% with non-GAAP** of 5.1%, expanded 80 basis points year-over-year GAAP EPS of $0.49 and non-GAAP** EPS of $0.58, above mid-point of guidance range Free Cash Flow of $126 million aided by $57 million sequential reduction in inventory and contract assets Net Debt reduced to $48 million, a $124 million, or 72%, sequential decrease * Component pass-through revenue for supply chain premiums (SCP) with no impact on non-GAAP operating income or EPS ** See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results

Fiscal Year 2023 Results Revenue of $2.8 billion Total revenue impacted by $209 million reduction in supply chain premiums (SCP)* versus prior year GAAP and non-GAAP** gross margin of 9.5%, expanded 70 basis points year-over-year GAAP operating margin of 3.9% with non-GAAP** of 4.4%, up 80 basis points year-over-year GAAP EPS of $1.79 and non-GAAP** EPS of $2.04 Delivered $97 million in Free Cash Flow, exceeding our annual target range of $70 - $80 million * Component pass-through revenue for supply chain premiums (SCP) with no impact on non-GAAP operating income or EPS ** See APPENDIX 1 for a reconciliation of GAAP to non-GAAP Financial Results

Roop Lakkaraju Chief Financial Officer

Fourth Quarter 2023 GAAP Revenue by Market Sector Q4-23 Dec 31, 2023 Revenue by Mix and Market Sector Sep 30, 2023 Dec 31, 2022 For the Three Months Ended (Dollars in Millions) Sector   Mix % Revenue   Mix % Revenue Q/Q   Mix % Revenue Y/Y Medical   18% $126   21% $149 (15)%   19% $144 (13%) Semi-Cap   24% $168   23% $165 2%   24% $178 (6%) Aerospace & Defense   15% $102   14% $100 2%   12% $90 13% Industrials   19% $132   21% $154 (14%)   19% $143 (8%) Advanced Computing   14% $95   9% $66 44%   12% $92 3% Next Gen Comms   10% $68   12% $86 (21%)   14% $104 (35%) Total Revenue 100% $691 100% $720 (4%) 100% $751 (8%)

Sector Results Excluding Supply Chain Premiums Q4 2023 (Dollars in Millions) Total Revenue Supply Chain Premiums (SCP) Revenue adjusted for SCP Y/Y adjusted for SCP Medical $126 ($2) $124 (7%) Semi-Cap $168 $0 $168 (5%) Aerospace & Defense $102 $0 $102 15% Industrials $132 ($4) $128 8% Advanced Computing $95 $0 $95 3% Next Gen Comms $68 ($2) $66 (31%) See APPENDIX 3 for a reconciliation of GAAP Sales to non-GAAP Sales Adjusted for Supply Chain Premiums

Fourth Quarter 2023 Financial Summary (Dollars in Millions, except EPS) Dec 31, 2023 Sep 30, 2023 Q/Q Dec 31, 2022 Y/Y Net Sales $691 $720 (4%) $751 (8%) GAAP Gross Margin 10.3% 9.6% 70 bps 9.6% 70 bps GAAP SG&A $35.6 $35.5 0% $39.5 (10%) GAAP Operating Margin 4.6% 4.2% 40 bps 3.6% 100 bps GAAP Diluted EPS $0.49 $0.57 (14%) $0.60 (18%) GAAP ROIC 9.1% 7.1% 200 bps 7.4% 170 bps Net Sales $691 $720 (4%) $751 (8%) Non-GAAP Gross Margin 10.3% 9.6% 70 bps 9.6% 70 bps Non-GAAP SG&A $35.6 $35.5 0% $39.5 (10%) Non-GAAP Operating Margin 5.1% 4.7% 40 bps 4.3% 80 bps Non-GAAP Diluted EPS $0.58 $0.57 2% $0.60 (3%) Non-GAAP ROIC 9.3% 9.4% (10) bps 9.9% (60) 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]

Fiscal Year 2023 Reported Revenue by Market Sector FY-23 Revenue by Mix and Market Sector For the Twelve Months Ended Dollars in Millions Dec 31, 2023 Dec 31, 2022 Sector   Mix % Revenue   Mix % Revenue Y/Y Medical 20% $557 21% $593 (6%) Semi-Cap   23% $646 25% $722 (11%) Aerospace & Defense   13% $362 12% $348 4% Industrials 21% $596 21% $593 1% Advanced Computing 12% $338 10% $310 9% Next Gen Comms   12% $340 11% $320 6% Total Revenue 100% $2,839 100% $2,886 (2%)

Sector Results Excluding Supply Chain Premiums Fiscal Year 2023 (Dollars in Millions) Total Revenue Supply Chain Premiums (SCP) Revenue adjusted for SCP Y/Y adjusted for SCP Medical $557 ($12) $545 9% Semi-Cap $646 ($3) $643 (9%) Aerospace & Defense $362 ($1) $361 6% Industrials $596 ($32) $564 17% Advanced Computing $338 $0 $338 10% Next Gen Comms $340 ($11) $329 16% See APPENDIX 3 for a reconciliation of GAAP Sales to non-GAAP Sales Adjusted for Supply Chain Premiums

Fiscal Year 2023 Financial Summary (Dollars in Millions, except EPS) Dec 31, 2023 Dec 31, 2022 Y/Y (%) Net Sales $2,839 $2,886 (2%) GAAP Gross Margin 9.5% 8.8% 70 bps GAAP SG&A $147.0 $150.2 (2%) GAAP Operating Margin 3.9% 3.1% 80 bps GAAP Diluted EPS $1.79 $1.91 (6%) GAAP ROIC 9.1% 7.4% 170 bps Net Sales $2,839 $2,886 (2%) Non-GAAP Gross Margin 9.5% 8.8% 70 bps Non-GAAP SG&A $147.0 $150.4 (2%) Non-GAAP Operating Margin 4.4% 3.6% 80 bps Non-GAAP Diluted EPS $2.04 $2.09 (2%) Non-GAAP ROIC 9.3% 9.9% (60) 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]

Non-GAAP Financial Summary Excluding Supply Chain Premiums (Dollars in Millions, except EPS) See APPENDIX 1 and APPENDIX 2 for reconciliations of GAAP to non-GAAP Financial Results

Cash Conversion Cycle Update Q4-23 Q3-23 Q2-23 Q1-23 Q4-22 Accounts Receivable Days 59 60 59 60 59 Contract Asset Days 23 24 23 25 22 Inventory Days 99 100 102 111 97 Accounts Payable Days (53) (53) (56) (60) (56) Advance Payments from Customer Days (30) (26) (25) (27) (26) Cash Conversion Cycle Days 98 105 103 109 96

Liquidity Update (1) Free Cash Flow (FCF) is defined as net cash provided by (used in) operations less capex Debt Structure (In Millions) Dec 31, 2023 Senior Secured Term Loan $127 Revolving Credit Facility Drawn Amount $205 * Leverage ratio is Net Debt / LTM Adjusted EBITDA, as defined in the credit facility, which are non-GAAP measures Strong balance sheet and leverage ratio Working down inventory to help drive free cash flow Significantly reduced net debt position in the quarter For the Twelve Months Ended For the Three Months Ended (In Millions) Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Sep 30, 2023 Dec 30, 2022 Cash Flows from (used in) Operations $174 ($177) $137 $38 ($53) FCF (1) $97 ($224) $126 $18 ($66) Cash $283 $207 $283 $261 $207 International $270 $168 $270 $238 $168 US $13 $39 $13 $23 $39

Capital Allocation Update Capital Expenditures Share Repurchases In FY 2023, paid $78 million in capital expenditures Since 2018, invested $305 million in additions to property, plant and equipment and software Capital expenditures tightly aligned to future organic growth objectives Cash Dividends In FY 2023, paid cash dividends of $23 million Since 2018, paid cumulative cash dividends of $136 million Committed to supporting return of capital via consistent dividend payments No share repurchases in FY 2023 but plan to resume in FY 2024 Since 2018, 15.7 million shares repurchased for $409 million Approximately $155 million remains available under Board authorized share repurchase program Capex for Fiscal Year 2024 expected to be $55 - $65 million Continuing to support current dividend Will evaluate share repurchases opportunistically

First Quarter 2024 Guidance Q1 2024 Net Sales $625 - $665 million Gross Margin – non-GAAP 9.8% - 10.2% Operating Margin – non-GAAP 4.5% - 4.7% Other Expenses, Net $8.5 million Effective Tax Rate 23% – 25% Diluted EPS – GAAP $0.32 - $0.38 Diluted EPS – non-GAAP $0.42 - $0.48 Diluted Weighted-Average Shares ~ 36.0 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.

Business Trends Jeff Benck - CEO

Sector Outlook 1H 2024 Sector Commentary Semi-Cap Early signs of a potential recovery late 2024, but first half expected to remain consistent with recent levels We continue to out-perform the market and are winning new business Medical Seeing broad-based softness across the industry driven by inventory re-balancing and demand normalization New win momentum in recent quarters driven by near-shoring Industrials Demand reduction coupled with inventory rebalancing expected to weigh on performance in 1H 2024 Continuing to invest given the market opportunity Aerospace & Defense Commercial aerospace remains strong Defense is benefitting from ramp of existing programs and broadening of new wins within our customer base Next Gen Comms Reductions in capital spending are broadly impacting the sector Demand expected to remain challenged throughout 2024 Advanced Computing Large HPC build completing in Q1 2024 Working new opportunities to drive future revenue growth

Summary 2023 was a year of strong execution Generated $97 million in Free Cash Flow Invested to exploit the Semi-Cap secular growth opportunity Delivered on Gross and Operating Margin expansion Significantly reduced Net Debt 2024 objectives Manage volatility while continuing to progress to our target model profitability Continue to work down inventory, driving positive Free Cash Flow Return capital to investors in the form of continued dividends and opportunistic share repurchasing

Appendix

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

(Dollars in Millions) – (UNAUDITED) APPENDIX 2 - Reconciliation of Supply Chain Premiums

(Dollars in Millions) – (UNAUDITED) APPENDIX 3 - Reconciliation of Supply Chain Premiums by Sector

XML

Document And Entity Information	Jan. 31, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 31, 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