Benchmark Electronics, Inc.

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 February 3rd, 2025.

Both the press release and presentation are available under the investor relations section of our website at bench.com. This call is being webcast live, a replay of which will be available on our website approximately one hour after we conclude. The company has provided a reconciliation of our gap to non-gap measures in the earnings release as well as the appendix to the presentation. Please take a moment to review the forward-looking statements disclosure on slide two of the presentation. 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 these statements. Benchmark undertakes no obligation to update any forward-looking statements. For today's call, Jeff will start with an overview, followed by Brian's detail of our Q4 and fiscal year 2025 results, as well as Q1 2021-2026 guidance. We will then turn the call over to David to share his perspective on sector trends, business direction, and closing remarks. This being his last conference call as CEO, after Q&A, we'll turn the call back to Jeff for some parting thoughts. If you please turn to slide four, I'll turn the call over to our CEO, Jeff Bank.

Thank you, Paul. Good afternoon, and thanks to everyone for joining today's call. Before I get started, I want to thank the entire benchmark team for their contribution to closing out 2025 on a high note with continued progress against our strategic objectives. This culminated in fourth quarter revenue of $704 million, which was up high single digits and included double-digit growth across three of our five focus sectors, AC&C, medical, and A&D. At the same time, our fourth quarter earnings of 71 cents exceeded the high end of our guidance range provided last November. Our semi-cap sector is showing nice signs of improvement heading into 2026 after a softer Q4 of 2025. Despite the expected semi-softness in the quarter, we still managed to deliver gross margin of 10.6 percent, which was above the high end of our guidance range. This, coupled with our continued operating expense discipline, drove operating margin to 5.5%, demonstrating leverage in our model. Again, great execution by the team across the board. Turning to the full year on slide five, 2025 revenue of $2.66 billion was in line with our prior year. However, it played out differently because instead of decelerating as in 2024, In 2025, we showed improving momentum, sequential growth, and better year-over-year performance as the year progressed, which enabled us to deliver year-over-year growth in the second half as we expected. At the same time, we drove sequential operating margin improvement throughout the year, expanding 90 basis points from Q1 to Q4. This improvement enabled us to deliver $2.40 in earnings representing our fifth consecutive year of bottom-line performance outpacing the top line. Regarding our 2025 business highlights on slide six, our strategy is clear. We target five core high-value markets by focusing on complex, high-mix opportunities that suit our strengths. We avoid commoditized markets and are pursuing an ODM approach, building vanilla solutions. If you look at our business today, you'll see a very evenly balanced portfolio, each sector representing long-term growth opportunities where we believe we can excel and differentiate. It is this focus that has led us to consistently deliver 10 percent or better gross margin. We are driving the same discipline in our internal operations as you see in our external go-to-market efforts. The past year demonstrated this with steady sequential progress and operating margin, even with sometimes challenging end market conditions. At the same time, we've been successful with our efforts to improve working capital efficiency, driving significant cash cycle improvement throughout the year. Combining this with our growth in net income, we were able to deliver another year of positive free cash flow at the high end of our target range. We did so while continuing to invest in the business. Looking forward, and David will click down on this more in a minute, we were very pleased by the momentum in our bookings over the course of 2025. This came from both new and existing customers and included some meaningful wins in higher growth subsectors for us, notably space, medtech, and enterprise AI. Our value proposition, resonates with customers, and we continue to improve our execution, making it easier to capture new business from our install base while attracting new customers because of the unique value we offer. We are investing proactively in the business given the significant number of new wins. This includes expansion of our global precision technology footprint, specifically adding a fourth building in Penang which is well-timed for the SEMICAP recovery cycle that's underway. We are also investing in production equipment in our factories around the world, aligned with the new business we have won. I'm very encouraged by the momentum we're seeing in the business across medical and AC&C, and now the SEMISPACE is poised for a strong recovery in 2026 as well. With that, I'd like to turn the call over to Brian to discuss our fourth quarter and fiscal year 2025 results in more detail, as well as provide our first quarter outlook.