Benchmark Electronics, Inc. reported flat revenue of $2.7 billion for the fiscal year ending December 31, 2025, compared to the same figure in 2024. The company experienced varied performance across its market sectors, with notable increases in Aerospace and Defense (A&D) sales, which rose by 19% to $514.4 million, and Medical sales, which increased by 7% to $483.9 million. Conversely, sales in the Advanced Computing and Communications (AC&C) sector saw a significant decline of 27%, dropping to $344.9 million. Overall, sales to the company's ten largest customers accounted for 51% of total sales, with Applied Materials, Inc. being the largest customer, representing 14% of total sales.
In terms of profitability, Benchmark's net income decreased to $24.9 million, or $0.68 per diluted share, down from $61.1 million, or $1.66 per diluted share, in 2024. The decline in net income was attributed to increased restructuring charges and other costs, including an $11 million settlement related to an indirect tax assessment and $11.1 million in impairment charges. The gross profit margin remained stable at 10.2%, consistent with the previous year, despite fluctuations in operational efficiency and increased costs associated with supply chain constraints.
Strategically, Benchmark has focused on restructuring its operations to align capacity with customer demand, which included the closure of its Fremont, California facility and the transition of operations to a new facility in Guadalajara, Mexico. The company also reported a significant investment in capital expenditures, totaling $35.6 million, primarily for machinery and equipment to enhance production capacity. As of December 31, 2025, Benchmark employed approximately 11,840 people, with a contractor workforce of about 740.
Looking ahead, Benchmark anticipates continued challenges from global economic conditions, including inflation and supply chain disruptions, which may impact its ability to meet customer demand. The company remains committed to optimizing its operational footprint and enhancing its manufacturing capabilities to support anticipated revenue growth. Additionally, Benchmark's management expressed confidence in its liquidity position, with cash and cash equivalents totaling $322.4 million at year-end, which they believe will be sufficient to meet operational needs in the coming year.
About BENCHMARK ELECTRONICS INC
Benchmark Electronics, Inc. provides design engineering and advanced manufacturing services, including electronic manufacturing services (EMS) and precision technology (PT) solutions. Serving primarily aerospace & defense, medical, industrial, semiconductor capital equipment, and advanced computing markets, Benchmark supports OEMs through product lifecycle stages from concept to volume production. Its integrated model combines design, manufacturing, supply chain, and aftermarket services across a global footprint, emphasizing complex, high-reliability products in regulated industries.
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