Benchmark Electronics, Inc.

call and webcast. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, April 29, 2025. I would now like to turn the conference over to Paul Mansk, Investor Relations at Benchmark. Sir, please go ahead.

Thank you, Constantine, and thanks, everyone, for joining us today for Benchmark's first quarter 2025 earnings call. Joining us today are Jeff Bank, our CEO and president, and Brian Shoemaker, our CFO. After the market closed, we issued an earnings release pertaining to our financial performance for the first quarter ending March 2025, and we have prepared a presentation which we'll reference on this call. Both the press release and presentation are available under the investor relations section on our website at bench.com. This call is being webcast live and a replay will be available online following the conclusion of today's call. The company has provided a reconciliation of our gap to non-gap measures in the earnings release as well as in the appendix to the presentation. Please take a moment to review the forward-looking statements disclosure on slide two in the presentation materials. During our call, we will discuss forward-looking information. As a reminder, any of today's remarks which are not statements of historical fact are forward-looking statements, which involve risks and uncertainties as described in our press releases and SEC filings. Actual results may differ materially from those statements. Benchmark undertakes no obligation to update any forward-looking statements. For today's call, Jeff will start with an overview following by Brian's deeper dive into the results in our first quarter guidance. As usual, we will conclude with Jeff sharing more insight into demand trends by sector, new business wins, and some final remarks. If you will please turn to slide four, I will turn the call over to our CEO, Jeff Bank.

Thank you, Paul. Good afternoon, and thanks to everyone for joining today's call. Our first quarter 2025 results demonstrated our continued operational focus despite the tariff-related market uncertainty that we faced late in the quarter. While some customer decisions may be temporarily impacted by today's fluid environment, they have never needed our partnership, advice, and capabilities more. These challenges create opportunities for us as we help them navigate this turbulence and optimize their global supply chain for the most efficient distribution of their products around the world. Let me step through a few highlights on the quarter. First quarter revenue of $632 million was led, again, by double-digit growth in our semi-cap and A&D sectors. At the same time, we delivered our sixth consecutive quarter of greater than 10% non-GAAP gross margin and eighth quarter of positive free cash flow. Non-GAAP operating margin was down sequentially and year on year due to the decrease in revenue but we're confident in our ability to drive margins to 5% and above as we return to revenue growth. Lastly, non-GAAP earnings per share of 52 cents was above the midpoint of our guidance range, continuing our trend of protecting profitability even in the face of revenue headwinds in part of our business. Turning to slide five, looking at the quarter, we were pleased by the performance in SEMICAP which was up 18% year over year in the quarter, as we continue to gain share from our competitors in this market. Our A&D sector also performed well in Q1, up 15% year over year, led by our defense program, where we're in the middle of several new ramps, while also benefiting from strength in traditional products. At the same time, we generated another $27 million in free cash flow in the quarter, totaling slightly more than $140 million on a trailing 12-month basis. As for the current demand environment we face in Q2, we've already seen customers pause some shipments while others are looking to pull in specific products, given the dynamic nature of the global tariff executive orders taking place. However, with our significant U.S. manufacturing footprint at 36%, and our broader North American footprint representing over 55% of our total global manufacturing capacity, I believe we're exceptionally well positioned to help our customers optimize their supply chain. I would also like to take a minute to thank our global trade compliance team for the amazing results they delivered over the last few weeks, ensuring that we continue to deliver on our commitments. With that, I'd now like to turn it over to Brian for more detail on the quarter and our 2Q guidance.