Financial Analysis

Note 15 Contingencies On December 31, 2025, the Companys subsidiaries Benchmark Electronics Phoenix, Inc. and Benchmark electronics Tijuana S. de R.L. C.V. (Claimants) commenced an arbitration action against CommScope Holding Company, Inc., CommScope, Inc., CommScope, LLC, ARRIS Technology, Inc. and their affiliated entities (Respondents). The Claimants contend that Respondents are liable for excess and obsolete inventory for electronic components procured at Respondents request and for their benefit under the parties manufacturing services agreement. Efforts to settle the dispute amicably were unsuccessful and demand was made for payment for the excess and obsolete inventory the Claimants procured on Respondents behalf pursuant to the parties' manufacturing services agreement, plus carrying charges, prejudgment and post judgment interest, interim, preliminary or provisional remedies, declaratory relief, and costs. Respondents filed their answer and a counterclaim for breach of contract on January 14, 2026 and Claimants filed a motion to dismiss Respondents counterclaim on February 2, 2026. On March 30, 2026, Respondents agreed to dismiss their counterclaim voluntarily. The dispute is in its initial legal stages and the parties have just commenced discovery. The nature and extent of any potential recoveries, counterclaims, defenses or set offs are unknown at this time. While the Company is unable to provide any assurances as to the ultimate outcome of this matter, the Claiman …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 Borrowing Facilities Long-term debt consists of the following: June 30, December 31, (in thousands) 2026 2025 Revolving credit facility $ 37,000 $ 65,000 Term loan 146,250 148,125 Less: unamortized debt issuance costs ( 2,266 ) ( 2,549 ) Total long-term debt, including current installments $ 180,984 $ 210,576 On June 27, 2025, the Company entered into a $ 700 million second amended and restated credit agreement (the Credit Agreement) by and among the Company, certain of its subsidiaries (the Guarantors), the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swingline Lender and an L/C Issuer (Bank of America). The Credit Agreement is comprised of a five-year $ 550 million revolving credit facility (the Revolving Credit Facility) and a five-year $ 150 million term loan facility (the Term Loan Facility), both with a maturity date of June 27, 2030 . In addition, the Credit Agreement permits the Companys Malaysian subsidiary to enter into a term loan facility in the future for an additional principal aggregate amount not to exceed $ 50 million. The Credit Agreement amended and restated in its entirety the Companys previous $ 681.25 million amended and restated credit agreement, dated as of December 21, 2021, by and among the Company, the Guarantors, the lenders party thereto and Bank of America, as amended by Amendment No. 1, dated as of May 20, 2022, Amendment No. 2, dated as of February 3, 2023, and Amendment No. 3, dated as of May 1, 2023. As par …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables provide a summary of the Company s revenue disaggregated by market sector and a reconciliation of the disaggregated revenue to the Companys revenue by reportable operating segment: Three Months Ended June 30, 2026 (in thousands) Americas Asia Europe Total Market sector: Semi-Cap $ 46,972 $ 144,251 $ 32,254 $ 223,477 Industrial 36,817 99,333 24,447 160,597 A&D 84,256 12,158 14,805 111,219 Medical 74,439 41,756 17,361 133,556 AC&C 89,584 37,547 127,131 External revenue 332,068 335,045 88,867 755,980 Elimination of intersegment sales 8,392 10,473 2,650 21,515 Segment revenue $ 340,460 $ 345,518 $ 91,517 $ 777,495 Six Months Ended June 30, 2026 (in thousands) Americas Asia Europe Total Market sector: Semi-Cap $ 90,357 $ 263,858 $ 59,927 $ 414,142 Industrial 58,544 186,636 48,705 293,885 A&D 179,988 22,137 28,873 230,998 Medical 151,851 78,344 31,837 262,032 AC&C 152,928 79,275 232,203 External revenue 633,668 630,250 169,342 1,433,260 Elimination of intersegment sales 18,087 18,389 5,463 41,939 Segment revenue $ 651,755 $ 648,639 $ 174,805 $ 1,475,199 Three Months Ended June 30, 2025 (in thousands) Americas Asia Europe Total Market sector: Semi-Cap $ 47,415 $ 119,134 $ 23,833 $ 190,382 Industrial 28,181 84,789 28,659 141,629 A&D 105,031 5,044 16,180 126,255 Medical 60,743 35,936 12,891 109,570 AC&C 42,840 31,659 74,499 External revenue 284,210 276,562 81,563 642,335 Elimination of intersegment sales 11,007 10,504 1,836 23,347 Segment r …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 4 Goodwill and Other Intangible Assets Goodwill allocated to the Companys reportable operating segments follows: (in thousands) Americas Asia Total Goodwill as of June 30, 2026 and December 31, 2025 $ 154,014 $ 38,102 $ 192,116 A summary of the Companys acquired identifiable intangible assets and capitalized purchased software costs follows: (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 100,152 $ ( 83,967 ) $ 16,185 Capitalized purchased software costs 43,917 ( 32,454 ) 11,463 Technology licenses 15,500 ( 15,500 ) Trade names and trademarks 7,800 7,800 Other 868 ( 464 ) 404 Total intangible assets as of June 30, 2026 $ 168,237 $ ( 132,385 ) $ 35,852 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 100,176 $ ( 81,603 ) $ 18,573 Capitalized purchased software costs 42,105 ( 30,121 ) 11,984 Technology licenses 15,500 ( 15,500 ) Trade names and trademarks 7,800 7,800 Other 868 ( 452 ) 416 Total intangible assets as of December 31, 2025 $ 166,449 $ ( 127,676 ) $ 38,773 A summary of the components of amortization expense, as presented in the consolidated statements of cash flows, follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Amortization of intangible assets $ 1,204 $ 1,204 $ 2,408 $ 2,408 Amortization of capitalized purchased software costs 1,186 1,097 2,359 2,369 Amortization of debt costs 142 354 283 484 T …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 9 Income Taxes Income tax expense consists of the following: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Income before income taxes $ 28,715 $ 16,607 $ 47,137 $ 25,001 Income tax expense $ 8,833 $ 15,635 $ 14,232 $ 20,385 Effective tax rate 30.8 % 94.1 % 30.2 % 81.5 % The Companys effective income tax rate was 30.8 % and 30.2 % for the three and six months ended June 30, 2026 , respectively, compared with the U.S. federal statutory income tax rate of 21 %. The higher effective tax rates were primarily attributable to losses incurred in certain jurisdictions for which no tax benefit was recognized, the geographic mix of earnings among the jurisdictions in which the Company operates, and the impact of the Organization for Economic Co-operation and Development (OECD) Pillar Two Global Minimum Tax. These impacts were partially offset by tax incentives available in certain foreign jurisdictions. The Company's effective income tax rate was 94.1 % and 81.5 % for the three and six months ended June 30, 2025 , respectively, and differed from the U.S. federal statutory income tax rate of 21 % primarily due to a discrete tax expense related to foreign withholding taxes on repatriated dividends and the recognition of deferred tax liabilities associated with unremitted earnings in China, as well as losses incurred in jurisdictions for which no tax benefit was recognized. The Company has been granted certain tax incentives, including tax ho …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-10, Accounting for Government Grants (ASU 2025-10), which adds guidance to Accounting Standards Codification (ASC) Topic 832. It requires business entities to recognize government grants when it is probable that conditions will be met and the grant will be received. It applies to for-profit entities, requiring recognition of income-related grants systematically over related costs and asset-related grants via deferred income or net reduction methods. The guidance is effective for fiscal years beginning after December 15, 2028, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the guidance and its impact to the financial statements. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06), which removes references to project stages, and requires capitalization of software costs to begin when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the intended function. The guidance is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. The Compa …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 16 Restructuring Charges and Other Costs The Company has undertaken initiatives to restructure its business operations to improve utilization and realize cost savings. These initiatives have included changing the number and location of production facilities, largely to align capacity and infrastructure with current and anticipated customer demand. This alignment includes transferring programs from higher cost geographies to lower cost geographies. The Companys restructuring process entails moving production between facilities, reducing staff levels, realigning business processes, reorganizing management and other activities. During the six months ended June 30, 2026, the Company recognized $ 4.9 million of restructuring charges, which primarily related to a planned closure of our site in Phoenix, Arizona and other smaller activities involving capacity reductions and reductions in workforce in certain facilities across various regions. Phoenix, Arizona operations ceased during the second quarter of 2026 and all related restructuring activity is expected to be substantially complete in 2026. Additionally, the Company recorded a $ 0.3 million net recovery related to the settlement of a tax assessment in the Americas. During the six months ended June 30, 2025, the Company recognized $ 3.3 million of restructuring charges, which primarily related to capacity and workforce reductions at its sites in the Americas. Additionally, the Company agreed to a $ 10.7 million settlement …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Note 10 Revenue The Companys revenues are generated primarily from its manufacturing services, which entails the sale of manufactured products built to customer specifications. The Company also generates revenue from design, development and engineering services, in addition to the sale of other inventory. Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a manufactured product to a customer. The Companys contracts with customers are generally short-term in nature. Customers are generally billed when the product is shipped or as services are performed. Under the majority of the Companys manufacturing contracts with customers, the customer controls all of the work-in-progress as products are being built. Revenues under these contracts are recognized progressively based on the cost-to-cost method. For other manufacturing contracts, the customer does not take control of the product until it is completed. Under these contracts, the Company recognizes revenue upon transfer of control of the product to the customer, which is generally when goods are shipped. Revenue from design, development and engineering services is recognized over time as the services are performed. The Company assumes no significant obligations after shipment as it typically warrants workmanship only. Therefore, warranty provisions are generally not significant. If the Comp …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 11 Segment and Geographic Information The Companys Chief Executive Officer is our Chief Operating Decision Maker (CODM) who evaluates how resources are allocated, assesses performance and makes strategic and operational decisions. The Company currently has manufacturing facilities in the Americas, Asia and Europe to serve its customers. The Company is operat ed and managed geographically, and management evaluates performance and allocates the Companys resources on a geographic basis. We provide manufacturing services, design and engineering services, and technology solutions in the Americas, Asia and Europe. Intersegment sales are generally recorded at prices that approximate arms length transactions. Operating segments measure of profitability is based on income from operations. Corporate and intersegment eliminations include (1) corporate expenses not allocated to the Companys three reporting segments, which are primarily general and administrative expenses such as corporate employee payroll and benefit costs and corporate facility costs, and (2) income from operations on intersegment sales between reporting segments. Corporate functions include legal, finance, tax, treasury, information technology, risk management, human resources, business development and other administrative functions. The accounting policies for the reportable operating segments are the same as for the Company taken as a whole. The Company has three reportable operating segments: Americas, Asia, an …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing