Benchmark Electronics (NYSE: BHE) raised its full-year 2026 revenue guidance for a third time this year to more than $3 billion, marking a new company record, and said operating income and earnings are expected to grow at 1.5 to 2 times the rate of revenue growth.
The electronics manufacturing services provider shared the updated outlook during a presentation at the Sidoti Small-Cap Virtual Conference on Thursday, September 24, 2026. Executives also reported that gross margin has stayed above 10% for several years and is expected to remain there, while capital expenditures are rising to 2% to 2.5% of revenue in 2026 from a historical range of 1.5% to 2%.
Benchmark’s business is now heavily diversified away from legacy telecommunications and compute. Those segments now account for roughly half their former share of about 50% of revenue. Semiconductor capital equipment is the largest segment at approximately 30% of total revenue and is expected to grow in the low 20% range in 2026, with a stronger second half. Industrial, medical, advanced computing and communications, and aerospace and defense each represent about 20% of the mix.
Advanced computing and communications grew more than 70% in the previous quarter, driven by supercomputing, communications and a newly ramping on-premises AI infrastructure business. Aerospace and defense has grown about 20% annually over the past two years but is expected to be flattish in 2026 before resuming growth in 2027.
Component shortages spanning memory chips, other semiconductors and board-level components have stretched lead times from 9 to 10 months to 12 to 16 or even 18 months. Paul Mansky, senior director of investor relations and business development, said contracts allow the company to pass through price increases to customers in almost all cases. The company is expanding capacity in Penang through a project designated PT4 to support semiconductor capital equipment demand and is consolidating its network, including closing a Phoenix-area site.
On the balance sheet, Benchmark reported inventory turns of 5 times or better, a current ratio of 1.99 and a debt-to-equity ratio of 0.26. The stock has returned 95% year-to-date and 113% over the past year. Market capitalization stands at $2.93 billion with a P/E ratio of 55.89. Benchmark celebrated its 40th year listed on the NYSE in January 2026 and said its manufacturing footprint can support well over $3 billion in annual revenue.
