Benchmark Electronics, Inc. reported a revenue of $2.7 billion for the fiscal year ending December 31, 2024, reflecting a 6% decrease from $2.8 billion in 2023. The decline was primarily attributed to significant drops in sales within the medical and advanced computing and communications (AC&C) sectors, which fell by 19% and 30%, respectively. In contrast, the semiconductor capital equipment (semi-cap) and aerospace and defense (A&D) sectors saw increases of 12% and 20%, respectively. The company's net income for 2024 was $63.3 million, or $1.72 per diluted share, slightly down from $64.3 million, or $1.79 per diluted share, in the previous year.
The company's operational performance showed notable shifts across its market sectors. Sales to its ten largest customers accounted for 50% of total sales in 2024, consistent with 52% in 2023. The largest customer, Applied Materials, represented 14% of total sales, up from 12% the previous year. Benchmark's international operations contributed 62% of total sales, with the Americas experiencing a 17% decline in revenue, while Asia and Europe reported increases of 3% and 13%, respectively.
In terms of strategic developments, Benchmark has focused on restructuring its operations to enhance efficiency and reduce costs, incurring $6.3 million in restructuring charges in 2024. This included workforce reductions and capacity adjustments primarily in the Americas. The company has also been investing in its manufacturing capabilities, with capital expenditures totaling $33.3 million in 2024, aimed at increasing production capacity to meet anticipated demand.
Looking ahead, Benchmark anticipates continued challenges due to market conditions, including supply chain constraints and inflationary pressures. The company has expressed a commitment to optimizing its global footprint and enhancing operational excellence through lean initiatives. Additionally, Benchmark plans to maintain its focus on cash conversion and working capital management while continuing to evaluate potential strategic acquisitions to expand its core technology capabilities.
Overall, Benchmark Electronics, Inc. is navigating a complex landscape marked by fluctuating demand across its sectors, while strategically positioning itself for future growth through operational improvements and careful capital management.
About BENCHMARK ELECTRONICS INC
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