Benchmark Electronics, Inc. announced its financial results for the first quarter ended March 31, 2025. The company reported revenue of $631.8 million, a 6% decrease compared to $675.6 million in Q1 2024. GAAP diluted earnings per share (EPS) was $0.10, a significant drop from $0.38 in the prior year quarter, while non-GAAP diluted EPS was $0.52, missing analysts' consensus estimates.
The revenue decline was primarily driven by significant softness in the Advanced Computing and Communications (AC&C) sector, which decreased by 50% year-over-year, and a 10% decrease in Medical revenue. Despite these headwinds, the Semiconductor Capital Equipment (Semi-Cap) sector grew by 18% year-over-year, and Aerospace & Defense (A&D) increased by 15% year-over-year. The non-GAAP gross profit margin remained stable at 10.1%, marking the sixth consecutive quarter above 10%.
Income from operations decreased significantly to $11.8 million in Q1 2025 from $25.5 million in Q1 2024, partly due to $11.4 million in restructuring charges and other costs, including a $10.1 million tax assessment settlement in the Americas. The company generated $27 million in free cash flow during the quarter. For the second quarter of 2025, Benchmark guided revenue to a range of $615 million to $665 million, with non-GAAP diluted EPS expected between $0.52 and $0.58.
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