Benchmark Electronics Inc (BHE) 2025 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Benchmark second-quarter 2025 earnings conference call and webcast. (Operator Instructions) This call is being recorded on July 30, 2025.

女士們、先生們，下午好，歡迎參加 Benchmark 2025 年第二季財報電話會議和網路廣播。（操作員指示）此通話於 2025 年 7 月 30 日錄音。

I would now like to turn the conference over to Paul Mansky. Please go ahead.

現在我想將會議交給保羅·曼斯基。請繼續。

Thank you, Constantine, and thanks, everyone, for joining us today for Benchmark's second-quarter 2025 earnings call. With us today are Jeff Benck; our CEO and president, Bryan Schumaker, our CFO; and David Moezidis, our Chief Commercial Officer.

謝謝康斯坦丁，也謝謝大家今天參加 Benchmark 2025 年第二季財報電話會議。今天和我們在一起的有我們的執行長兼總裁 Jeff Benck、我們的財務長 Bryan Schumaker 以及我們的首席商務長 David Moezidis。

After the market closed, we issued an earnings release pertaining to our financial performance for the second quarter ending June 2025. And we have prepared a presentation which we will reference on this call. Both the press release and presentation are available under the Investor Relations section of our website at Bench.com.

市場收盤後，我們發布了一份有關截至 2025 年 6 月的第二季財務業績的收益報告。我們已經準備好一份演示文稿，將在本次電話會議上參考。新聞稿和簡報均可在我們的網站 Bench.com 的投資者關係部分找到。

This call is being webcast live, and a replay will be available online approximately one hour after we conclude. The company has provided a reconciliation of our GAAP to non-GAAP measures in the earnings release as well as in the appendix to the presentation. Please take a minute to review the forward-looking statements disclosure on slide 2 in the presentation.

本次電話會議將進行網路直播，會議結束後約一小時將提供線上重播。本公司在收益報告以及簡報附錄中提供了 GAAP 與非 GAAP 指標的對帳表。請花一點時間查看簡報第 2 張投影片上的前瞻性陳述揭露。

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 the risks and uncertainties as described in our press releases and FCC filings. Actual results may differ materially from these statements. Benchmark undertakes no obligation to update any forward-looking statements.

在通話期間，我們將討論前瞻性資訊。提醒一下，今天的任何言論都不是歷史事實的陳述，而是前瞻性的陳述，涉及我們的新聞稿和 FCC 文件中描述的風險和不確定性。實際結果可能與這些陳述有重大差異。Benchmark 不承擔更新任何前瞻性聲明的義務。

For today's call, Jeff will start with an overview, followed by Bryan's detail of our Q2 results and forward guidance. We will then turn the call over to David, who will discuss demand trends by sector and some additional color on recent wins. Jeff will conclude with some final remarks before opening the call for Q&A.

在今天的電話會議上，傑夫將首先進行概述，然後布萊恩將詳細介紹我們的第二季業績和前瞻性指引。然後，我們將把電話轉給 David，他將討論各行業的需求趨勢以及近期勝利的一些額外細節。在開始問答環節之前，傑夫將發表一些最後的演講。

If you will please turn to slide 4, I'll turn the call over to our CEO, Jeff Benck.

請翻到幻燈片 4，我將把電話轉給我們的執行長 Jeff Benck。

Thank you, Paul. Good afternoon, and thanks to everyone for joining today's call. Before I get started, I'd like to welcome David Moezidis to the call. Since joining Benchmark two years ago in the new role on our team as Chief Commercial Officer, David's brought a wealth of industry experience and operational knowledge to the company. Our second-quarter 2025 results once again demonstrated consistent execution with revenue of $642 million and non-GAAP EPS of $0.55, both at the midpoint of our prior guidance.

謝謝你，保羅。下午好，感謝大家參加今天的電話會議。在開始之前，我想歡迎 David Moezidis 參加電話會議。自從兩年前加入 Benchmark 並擔任我們團隊的首席商務官以來，David 為公司帶來了豐富的行業經驗和營運知識。我們的 2025 年第二季業績再次證明了一致的執行力，營收為 6.42 億美元，非 GAAP 每股收益為 0.55 美元，均處於我們先前指引的中間值。

From a highlight perspective, this past quarter represented the seventh consecutive quarter of greater than 10% gross margin. We also experienced double-digit annual revenue growth in two sectors and grew sequentially in three of five in the quarter. As we'll discuss more later in the call, we expect this sequential momentum to continue in Q3 and bodes well for our return to annual growth in fourth quarter. This outlook is further bolstered by our multi-year record brokings in the quarter led by Medical and AC&C, two sectors that have been slower to recover.

從亮點來看，本季已是毛利率連續第七個季度超過10%。我們還有兩個部門實現了兩位數的年收入成長，並且本季五個部門中有三個部門實現了環比成長。正如我們稍後在電話會議中討論的那樣，我們預計這種連續的勢頭將在第三季度繼續下去，並預示著我們將在第四季度恢復年度增長。本季度，我們以醫療和 AC&C 兩個復甦較慢的行業為首的多年創紀錄的經紀業務進一步增強了這一前景。

Turning to slide 5, let's review the progress we made toward our strategic objectives in the quarter. Year-over-year sector revenue performance was again led by Semicap and A&D. We're targeting and winning the right business and delivering increasing value-add to our customers, which is driving our gross margin performance. At the same time, with our globally diversified manufacturing footprint, we can offer our customers flexibility as they consider tariff implications and look to optimize their global supply chain.

翻到第 5 張投影片，讓我們回顧一下本季我們在實現策略目標方面的進展。與去年同期相比，Semicap 和 A&D 再次引領該產業的營收表現。我們瞄準並贏得正確的業務，並為我們的客戶提供越來越多的附加價值，從而推動我們的毛利率表現。同時，憑藉我們全球多元化的製造足跡，我們可以為客戶提供靈活性，幫助他們考慮關稅影響並優化全球供應鏈。

Our value proposition is clearly resonating, and we are encouraged by our strong bookings and new deal pipeline. I'm also encouraged by the number of current customers that are choosing to award more programs to us, which is a testament to our operations team's strong performance. Before I wrap, I'm pleased to highlight that we also successfully refinanced our debt in the quarter at attractive rates as well as repatriated a significant amount of cash from China and Thailand in the quarter.

我們的價值主張顯然引起了共鳴，強勁的預訂量和新的交易管道也令我們感到鼓舞。我也對選擇將更多專案授予我們的現有客戶數量感到鼓舞，這證明了我們營運團隊的出色表現。在結束之前，我很高興地強調，我們還在本季度以有吸引力的利率成功完成了債務再融資，並且在本季度從中國和泰國匯回了大量現金。

I'd like to now turn the call over to Bryan for more detail on the quarter and our Q3 guidance.

現在我想將電話轉給布萊恩，以了解有關本季和第三季指引的更多詳細資訊。

Thank you, Jeff. And good afternoon, everyone. Please turn to slide 6. Revenue in the quarter of $642 million was up 2% sequentially, in line with our prior guidance. Our non-GAAP EPS was $0.55, also at the midpoint of our prior guidance of $0.52 to $0.58. As a reminder, our non-GAAP results excluded stock-based compensation, amortization of intangible assets, restructuring, and other expenses.

謝謝你，傑夫。大家下午好。請翻到幻燈片 6。本季營收為 6.42 億美元，季增 2%，符合我們先前的預期。我們的非公認會計準則每股收益為0.55美元，也處於我們先前預期0.52美元至0.58美元的中間值。需要提醒的是，我們的非公認會計準則績效不包括股票薪資、無形資產攤提、重組和其他費用。

For Q2, our non-GAAP gross margin was 10.2% of 10 basis points sequentially and flat year over year. Non-GAAP operating margin was 4.7% up 10 basis points sequentially, driven by our improvement in gross margin. Our second-quarter non-GAAP effective tax rate was 24%, driven by geographic mix. Please turn to slide 7 for our second-quarter 2025 revenue performance by sector.

第二季度，我們的非公認會計準則毛利率為 10.2%，較上季成長 10 個基點，與去年同期持平。非公認會計準則營業利潤率為 4.7%，比上一季上升 10 個基點，這得益於毛利率的提高。受地理分佈影響，我們的第二季非公認會計準則有效稅率為 24%。請翻到投影片 7，查看我們 2025 年第二季各行業營收表現。

Semi-Cap revenue decreased 2% quarter over quarter but grew 11% year over year. Industrial revenue was up 4% quarter over quarter and flat year over year. In A&D, revenue was up 4% quarter over quarter and 16% year over year. Within Medical, revenue was up 6% versus the prior quarter and down low single digits year over year. Finally, AC&C revenue was flat quarter over quarter while still down considerably year over year. Please turn to slide 8 for trended non-GAAP financials.

半導體營收季減 2%，但年增 11%。工業收入季增4%，較去年同期持平。在 A&D 領域，營收季增 4%，年增 16%。在醫療領域，營收較上一季成長 6%，年減個位數。最後，AC&C 營收季持平，但年比仍大幅下降。請翻到投影片 8 看非 GAAP 財務趨勢。

As you see, despite our flattish revenue performance over the past year, we have consistently delivered non-GAAP gross margin of 10% or more, which we expect to continue. With our anticipated revenue growth in the back half of the year, we are forecasting non-GAAP operating margin to again exceed 5%. Please refer to slides 9 and 10 for discussion of our balance sheet, cash flow, and working capital trends.

如您所見，儘管我們過去一年的收入表現平平，但我們的非 GAAP 毛利率一直保持在 10% 或以上，預計這一水平將持續下去。由於我們預計下半年營收將成長，我們預測非 GAAP 營業利潤率將再次超過 5%。請參閱投影片 9 和 10，以了解有關我們的資產負債表、現金流量和營運資金趨勢的討論。

Our cash balance on June 30 was $265 million, a decrease of $90 million from Q1 driven by the following factors. During our Q1 earnings call, we highlighted that our Q2 free cash flow would be impacted by a couple of one-time events related to customs and transition tax payments related to prior years, the net effect of which would be a temporary pause in our free cash flow generation.

截至 6 月 30 日，我們的現金餘額為 2.65 億美元，較第一季減少 9,000 萬美元，主要原因如下。在我們的第一季財報電話會議上，我們強調，我們的第二季自由現金流將受到與前幾年相關的關稅和過渡稅支付相關的幾個一次性事件的影響，其淨效應將是我們自由現金流產生的暫時停止。

These charges, combined with our other working capital items and capital expenditures, resulted in a $15 million free cash outflow during the quarter. As a reminder, we generated over $80 million in free cash flow over the trailing 12 months into June 2025. We expect to return to positive free cash flow through the remainder of the year.

這些費用加上我們的其他營運資本項目和資本支出，導致本季的自由現金流出量為 1,500 萬美元。提醒一下，截至 2025 年 6 月的過去 12 個月中，我們產生了超過 8,000 萬美元的自由現金流。我們預計今年剩餘時間內自由現金流將恢復正值。

During Q2 2025, we repatriated $152 million of cash from China and Thailand, $95 million of which we used to further pay down our revolver. In connection with this repatriation, we paid foreign withholding taxes of $15 million, the majority of which we anticipate recovering in 2026. As Jeff mentioned, the company completed a debt refinancing in June, which extended the maturity of our term loan and revolver to June 2030. It also increased our term loan to $150 million from $121 million. All other terms were consistent with our prior debt agreements.

2025 年第二季度，我們從中國和泰國匯回了 1.52 億美元現金，其中 9,500 萬美元用於進一步償還循環信貸。在此次匯回過程中，我們支付了 1,500 萬美元的國外預扣稅，其中大部分預計將在 2026 年收回。正如傑夫所提到的，該公司在 6 月完成了債務再融資，將我們的定期貸款和循環信貸的到期日延長至 2030 年 6 月。我們的定期貸款也從 1.21 億美元增加到 1.5 億美元。所有其他條款與我們先前的債務協議一致。

As of June 30, we had $150 million outstanding on our term loan and $60 million outstanding against our revolver, from which we had $486 million available to borrow. Our Q2 2025 liquidity ratio, as calculated by our debt covenants, was 0.3 down from 0.7 in the prior-year period. We invested approximately $12 million in capital expenditures during the quarter, primarily to enhance capabilities and infrastructure at our Americas and Asia facilities, supporting long-term growth and operational efficiency.

截至 6 月 30 日，我們的定期貸款未償還金額為 1.5 億美元，循環貸款未償還金額為 6,000 萬美元，其中可供借款金額為 4.86 億美元。根據我們的債務契約計算，我們的 2025 年第二季流動比率為 0.3，低於去年同期的 0.7。本季度，我們投資了約 1,200 萬美元的資本支出，主要用於增強美洲和亞洲工廠的能力和基礎設施，以支持長期成長和營運效率。

Demonstrating our ongoing commitment to return value to shareholders, we returned $6 million in cash dividends and repurchased $8 million in stock during the quarter. At the end of the quarter, we had approximately $134 million remaining in our existing share repurchase authorization. Our cash conversion cycle in the quarter was 85 days, improving one and five days sequentially and year over year, respectively. Inventory days were down six days sequentially as we continue to actively manage our inventory. Please advance to slide 11.

為了體現我們持續致力於為股東帶來回報的承諾，我們在本季度返還了 600 萬美元的現金股息，並回購了價值 800 萬美元的股票。截至本季末，我們現有的股票回購授權餘額約為 1.34 億美元。本季我們的現金轉換週期為 85 天，比上一季和去年同期分別縮短了 1 天和 5 天。由於我們繼續積極管理庫存，庫存天數連續減少了六天。請翻到第 11 張投影片。

Let me now turn to our guidance for our third quarter of 2025. We expect revenue to be within a range of $635 million to $685 million, up low single digits sequentially. We continue to anticipate year-over-year growth of low to mid-single digits in the second half. We expect non-GAAP gross margin to be between 10.2% and 10.4%. With those assumptions, we would expect non-GAAP operating margin to be between 5% and 5.2%.

現在讓我來談談我們對 2025 年第三季的預測。我們預計營收將在 6.35 億美元至 6.85 億美元之間，季增個位數。我們繼續預計下半年的年成長將達到低至中個位數。我們預計非公認會計準則毛利率在 10.2% 至 10.4% 之間。根據這些假設，我們預計非公認會計準則營業利潤率將在 5% 至 5.2% 之間。

On a GAAP basis, we expect expenses to include approximately $5.3 million of stock-based compensation and $6.1 million to $6.3 million of non-operating expenses, including amortization, restructuring, and other charges. Our non-GAAP diluted earnings per share is expected to be in the range of $0.56 to $0.62. Interest and other expenses are expected to be approximately $5.5 million. We expect our Q3 effective tax rate will be between 23% and 25%. Our weighted average share count is expected to be approximately $36.3 million.

根據 GAAP 計算，我們預計費用包括約 530 萬美元的股票薪酬和 610 萬至 630 萬美元的非營業費用，包括攤提、重組和其他費用。我們的非公認會計準則稀釋每股收益預計在0.56美元至0.62美元之間。利息及其他支出預計約550萬美元。我們預計第三季有效稅率將在 23% 至 25% 之間。我們的加權平均股數預計約為 3,630 萬美元。

With that, I would like to turn the call over to David to discuss market sector performance and outlook. David?

因此，我想將電話轉給大衛，討論市場部門的表現和前景。戴維？

Thanks, Bryan. And hello, everyone. Let's please turn to slide 12 for a discussion of our performance and outlook by sector. In the quarter, our Semi-Cap revenue again grew double digits year over year, consistent with our expectations. This performance was driven by ramping wins and share gains that we achieved. The broader industry recovery is taking longer than expected due to continued trade restrictions and tariff uncertainties.

謝謝，布萊恩。大家好。請翻到第 12 張投影片來討論我們各部門的表現和前景。本季度，我們的半導體營收再次實現兩位數年成長，符合我們的預期。這一業績得益於我們所取得的勝利和份額的不斷增長。由於持續的貿易限制和關稅不確定性，更廣泛的行業復甦所需的時間比預期的要長。

Looking into Q3 and the back half of the year, we expect to see continued softness in this sector while still outperforming the overall market's rate of growth. That said, the mid- to longer-term secular trends in the sector support our ongoing investments, and we expect to continue gaining market share given our unique vertical integration advantages. Furthermore, in speaking with customers, their conviction around $1 trillion Semi-Cap industry by 2030 remains intact.

展望第三季及下半年，我們預期該產業將繼續疲軟，但仍將超過整體市場的成長率。話雖如此，該行業的中長期長期趨勢支持我們持續投資，並且憑藉我們獨特的垂直整合優勢，我們預計將繼續獲得市場份額。此外，在與客戶交談時，他們仍然堅信到 2030 年半導體產業將達到 1 兆美元。

Turning to our Industrial sector, revenue performance was flat year over year but up mid-single digits sequentially. In the quarter, we saw improvements in test and measurement and controls. I was pleased by the Industrial sector's bookings in the quarter, which included both a manufacturing takeaway in the instrumentation space, along with several key engineering wins. Looking forward, we would expect sequential growth throughout the balance of the year as end markets recover and new programs begin to ramp.

談到我們的工業部門，收入表現與去年同期持平，但環比增長了中等個位數。在本季度，我們看到了測試、測量和控制方面的改進。我對本季度工業部門的訂單感到滿意，其中包括儀器儀表領域的製造業訂單以及幾項關鍵的工程訂單。展望未來，隨著終端市場的復甦和新專案的開始加速，我們預計全年將持續成長。

Moving to A&D, we had another strong double-digit year-over-year revenue performance in the quarter, which we expect to remain the case throughout the balance of the year. We continue to see a stable commercial air environment with defense demand remaining strong. At the same time, we're encouraged by our growing momentum in satellite and space applications. Given our broad exposure in the sector, we again had a solid quarter of bookings across manufacturing, precision technology, engineering, and solutions.

至於 A&D 業務，本季我們的營收再次實現了強勁的兩位數年增長，我們預計今年全年仍將保持這一勢頭。我們持續看到商業航空環境穩定，國防需求依然強勁。同時，我們在衛星和太空應用領域的成長動能也令我們感到鼓舞。鑑於我們在該領域的廣泛影響力，我們再次在製造、精密技術、工程和解決方案領域獲得了穩健的訂單。

In Medical, from a revenue perspective, we believe we have turned a corner and are anticipating sustained growth through the second half of the year. As we have shared with you on prior calls, customer inventory-related challenges impacted our growth over the last several quarters. We believe these are behind us now.

在醫療領域，從收入角度來看，我們相信我們已經度過了一個轉折點，並預計今年下半年將持續成長。正如我們在先前的電話會議中與您分享的那樣，與客戶庫存相關的挑戰影響了我們過去幾個季度的成長。我們相信這些都已成為過去。

To add to our positive sentiment, we have been winning new programs during this inventory correction period, and this continued in the second quarter with a very strong set of Medical bookings across both manufacturing and engineering, including a competitive lift and shift takeaway program. As you can probably tell, we are excited by these results and our return to both year over year and sequential revenue growth.

為了增強我們的積極情緒，我們在此庫存調整期間贏得了新的項目，並且這種情況在第二季度繼續延續，在製造和工程領域獲得了非常強勁的醫療訂單，其中包括具有競爭力的提升和轉移外賣計劃。您可能已經看出來了，我們對這些結果以及收入同比和環比增長的回歸感到非常興奮。

Finally, our AC&C revenue performed largely as expected in the quarter, down year over year and flat sequentially. As we've highlighted in the past, there have been a couple of unique dynamics that have weighed on AC&C revenue over the past number of quarters. We currently anticipate a return to growth within AC&C later in 2025 and into 2026. Specifically, within compute, we're seeing increased opportunities as customers look to leverage our water-cooling expertise. This was a key differentiator in our role as the trusted partner for Intel's Aurora Exascale supercomputer deployment, which we announced last week.

最後，我們的 AC&C 營收在本季表現基本符合預期，較去年同期下降，較上季持平。正如我們過去所強調的那樣，在過去幾個季度中，有幾個獨特的動態對 AC&C 收入產生了影響。我們目前預計 AC&C 將在 2025 年下半年和 2026 年恢復成長。具體來說，在計算領域，隨著客戶尋求利用我們的水冷專業知識，我們看到了越來越多的機會。這是我們作為英特爾 Aurora Exascale 超級電腦部署值得信賴的合作夥伴的關鍵區別因素，我們上週宣布了這一消息。

I'm particularly pleased to report we're also winning in AI data center builds, which leverages the same complex assembly capabilities and water cooling expertise that helps us win in HVC. Over just the last couple of quarters, we have won a few opportunities that will start contributing to AC&C's performance by end of the year. We believe this gives us line of sight to a return to sequential and year-over-year revenue growth in AC&C by late this year and into 2026.

我特別高興地報告，我們在 AI 資料中心建設中也取得了勝利，它利用了相同的複雜組裝能力和水冷專業知識，幫助我們在 HVC 中獲勝。僅在過去幾個季度，我們就贏得了一些機會，這些機會將在年底前開始為 AC&C 的業績做出貢獻。我們相信，這將使我們預計在今年年底至 2026 年恢復 AC&C 的連續和同比增長。

With that, I'd like to turn the call back over to Jeff for his summary of thoughts.

說完這些，我想把電話轉回給傑夫，讓他總結自己的想法。

Thanks, David. In summary, please turn to slide 13. Our second quarter represents another quarter of solid performance, further reinforced by exceptionally strong bookings despite a dynamic macro environment. Looking at our revenue performance, we remain encouraged by the early signs of recovery and are more optimistic about a return to growth for the company in the second half of 2025. Throughout, we will continue to prudently manage our spending to protect profitability and free cash flow while at the same time support our regular dividend and share repurchases.

謝謝，大衛。總結一下，請翻到第 13 張投影片。我們第二季的業績再次表現穩健，儘管宏觀環境充滿變數，但異常強勁的預訂量進一步鞏固了這一業績。從我們的營收表現來看，我們仍然對早期復甦跡象感到鼓舞，並對公司在 2025 年下半年恢復成長更加樂觀。自始至終，我們將繼續審慎管理支出，以保護獲利能力和自由現金流，同時支持我們的定期股利和股票回購。

Before turning over to Q&A, let me close with this. Regardless of the market environment, Benchmark will stay true to our vision and mission, which is all about partnering with customers to create leadership products and delivering solutions that matter in the world. Our customer-first approach is central to this and is something we'll continue to hold as our core ethos. Coupled with our disciplined approach to served markets and financial management, We're confident in our ability to increasingly enable customer success while driving shareholder value for our stakeholders. I look forward to updating you on our continued progress in the quarters to come.

在進入問答環節之前，請容許我先做總結。無論市場環境如何，Benchmark 都將堅持我們的願景和使命，那就是與客戶合作創造領先的產品並提供對世界重要的解決方案。我們的客戶至上方法是我們的核心理念，我們將繼續堅持這項核心精神。加上我們對服務市場和財務管理的嚴謹態度，我們有信心我們有能力持續幫助客戶成功，同時為我們的利害關係人創造股東價值。我期待在未來幾季向您通報我們持續取得的進展。

With that, I'll now turn the call over to the operator to conduct our Q&A session.

說完這些，我現在將電話轉給接線生，進行我們的問答環節。

(Operator Instructions) Steven Fox, Fox Advisors.

（操作員指示）史蒂文·福克斯，福克斯顧問。

Hi, good morning. Good afternoon, sorry. Long week. Yes. I guess, Jeff, maybe can you start off giving us a little bit more perspective on the recovery you're seeing in AC&C from two aspects? One, the liquid cooling you guys have had a lot of experience with over the years, and it seems like others are still learning the process and builds there. So maybe your advantages, the experience you bring there.

嗨，早安。下午好，抱歉。漫長的一周。是的。我想，傑夫，也許您可以從兩個方面開始，向我們稍微介紹一下您所看到的 AC&C 的復甦情況？首先，多年來，你們在液體冷卻方面已經積累了豐富的經驗，但其他人似乎仍在學習過程並進行建造。所以也許是你的優勢，你在那裡帶來的經驗。

And then secondly, it's hard to get a sense for how big a recovery you're talking about. You've had some massive wins in the past that have rolled off. How do we think about just sort of the timing and strength of this rebound in AC&C? And then I had a follow up.

其次，很難理解您所說的復甦有多大。您過去曾經取得過一些巨大的勝利。我們如何看待 AC&C 這次反彈的時機和力道？然後我進行了跟進。

Yes, that's fine. Good to hear from you. Good question. Yes, we talked a little bit about the water-cooling capability and the complexity of the HPC platform like Intel's Aurora that we talked about. Pretty complex board build and water-cooled system in general. So we always felt that there was an opportunity for us to be discriminating but participate in some of the AI activity knowing that those systems also share similar characteristics and are pretty sophisticated but also require an infrastructure that we've already kind of built out given the large system exascale platform stuff we've done.

是的，很好。很高興收到你的來信。好問題。是的，我們稍微討論了水冷能力以及我們所討論的英特爾 Aurora 等 HPC 平台的複雜性。整體而言，電路板構造和水冷系統相當複雜。因此，我們始終認為，我們有機會在參與一些人工智慧活動的同時，進行甄別，因為我們知道這些系統也具有相似的特徵，而且相當複雜，但也需要我們已經建立好的基礎設施，因為我們已經完成了大型系統百億億次平台的工作。

We see that starting to bear fruit, and we do have a couple wins there, as David mentioned, and we really see that starting to ramp in fourth quarter. It's a little early to say how large that could be, but we know there's a lot of spending going on there across a whole set of the -- the whole ecosystem. But we would kind of expect that to grow into '26, so we don't think that it's necessarily a one-time deal. And it will augment the HPC business nicely.

我們看到這開始取得成果，正如大衛所提到的那樣，我們確實取得了幾場勝利，我們確實看到這在第四季度開始加速。現在談論這個數字有多大還為時過早，但我們知道整個生態系統中都投入了大量資金。但我們預計這個數字會成長到 26 年，所以我們認為這不一定是一次性交易。它將很好地增強 HPC 業務。

The one thing on the HPC side, with the next-generation platform moving out, we've talked about that and how that was a bit of a headwind and partly what was weighing on it. We do see some smaller platforms kind of filling in on HPC and maybe not something that would put itself in the number one, two, or three spot on the top 500. But we have seen some backfill there as well. So all of that is really leading us to say we really expect good year-over-year growth in the fourth quarter. And it bodes well for growth in AC&C in '26.

在 HPC 方面，隨著下一代平台的推出，我們已經討論過這個問題，以及它如何帶來一些阻力，以及它對 HPC 造成的影響。我們確實看到一些較小的平台在 HPC 領域填補了空缺，但可能無法在前 500 名中佔據第一、第二或第三的位置。但我們也看到那裡有一些回填。所以，所有這些都讓我們確信，我們確實預計第四季將實現良好的同比增長。這也預示著 AC&C 在 26 年將實現良好成長。

Great. That's very helpful. And then on the Semi-Cap market, I'm trying to discern between politics and actual end market questions. How much is sort of versus 90 days ago is related to China restrictions versus other things you're seeing at the customers? Is there any way you could sort of talk about that and give us a sense for how much you think you're outgrowing the markets now? Thanks a lot.

偉大的。這非常有幫助。然後在半導體市場上，我試著辨別政治和實際的終端市場問題。與 90 天前相比，與中國的限制以及您在客戶那裡看到的其他情況相比，有多少關係？您能否談談這個問題並讓我們了解一下您認為現在您的成長速度在多大程度上超越了市場？多謝。

Yes, it is a bit of a -- it's a little bit of both. In other words, there's some certainly fab buildout and the timing on that and folks adjusting their capital spending, which I think is weighing some on our customers selling in there. But then also with the government restrictions about not selling into China, if you watch some of the OEMs, it's been a big piece of their business for the last several years, particularly in front of some of those restrictions. So I think both are combining to put pressure on that recovery that we sort of -- we still believe will come, but it's certainly taking longer.

是的，有點——兩者都有一點。換句話說，肯定有一些工廠的建設和時間安排，而且人們正在調整他們的資本支出，我認為這對我們的客戶在那裡的銷售產生了一些影響。但是，由於政府限制向中國銷售產品，如果你觀察一些原始設備製造商，你會發現過去幾年這一直是他們業務的重要組成部分，尤其是在面臨這些限制的情況下。所以我認為這兩個因素結合起來會對復甦造成壓力，我們仍然相信復甦會到來，但肯定需要更長的時間。

We have one business, had a really good year last year, and a lot of those platforms have been ramping. And that's why we continue to believe we'll see growth through '25. A little early yet to say what '26 holds. We're hearing different -- we're hearing a little bit different indications from a variety of customers that we have in the space. So I think I'm going to hold off a little on '26. But we believe that we have a very differentiated position in the space, and we continue to invest for incremental capacity. It's what we talked about that David mentioned, the trillion-dollar market in 2030.

我們有一個業務，去年表現非常好，很多平台都在蓬勃發展。這就是為什麼我們仍然相信到25年我們會看到成長。現在談論 26 年會發生什麼還為時過早。我們聽到了不同的聲音——我們從該領域的各種客戶那裡聽到了略有不同的跡象。所以我想我會在 26 年稍微推遲一下。但我們相信，我們在該領域擁有非常差異化的地位，並且我們將繼續投資以增加產能。這就是我們剛才大衛提到的，2030年的兆美元市場。

We still believe that it's going to be a long-term secular growth play. And we're using some of this time to move more into some vertically integrated solutions where we're not just machining metal, but obviously we've been able to do complex assembly and clean rooms for that segment. We're also bringing in-house some cleaning processes and other things. So we're leveraging this opportunity to do more vertical integration for that sector and further really differentiating us.

我們仍然相信這將是一場長期的成長遊戲。我們利用這段時間更多地轉向一些垂直整合的解決方案，我們不僅加工金屬，而且顯然我們已經能夠為該領域進行複雜的組裝和無塵室。我們還將一些清潔流程和其他東西引入公司內部。因此，我們正在利用這個機會為該領域進行更多的垂直整合，並進一步真正實現我們的差異化。

Great. That's helpful. Thank you so much.

偉大的。這很有幫助。太感謝了。

No worries.

不用擔心。

Melissa Fairbanks, Raymond James.

梅麗莎·費爾班克斯、雷蒙德·詹姆斯。

Hey, guys. Thanks very much. Really great quarter. Really good to see progress on several fronts. David, welcome to the call. It's great to hear you.

嘿，大家好。非常感謝。真是一個很棒的季度。很高興看到多個方面都取得了進展。大衛，歡迎來電。很高興聽到你的消息。

Thank you.

謝謝。

You said the magic words. Yes, you said the magic words, AI data center, so get ready for that. I was maybe a little bit -- just a quick question on that. Obviously, you're coming from the HPC side of things, moving into some of these applications as the systems become much more complicated on kind of traditional hyperscalers. Are you seeing also any pull-through from what we're kind of calling like the next level of AI data center builds for some of like the enterprise AI, or is it really still the highest performance type of systems?

你說出了神奇的話語。是的，您說出了神奇的單字“AI 資料中心”，所以請做好準備。我可能有點——只是想問一個簡單的問題。顯然，您是從 HPC 方面入手的，隨著系統在傳統超大規模上變得更加複雜，您將轉向其中一些應用程式。您是否也看到了我們所說的下一級人工智慧資料中心為某些企業人工智慧所建構的任何影響，或者它仍然是性能最高的系統類型？

Yes, I think it's -- I believe it's going to be more of the former for us, right? So I think you do see enterprise apps and you see that the opportunity is growing beyond just the hyperscalers. So when you look at our participation, it's more in that realm.

是的，我認為——我相信對我們來說，前者會更多，對嗎？所以我認為你確實看到了企業應用程序，並且你看到機會正在超越超大規模企業。因此，當你看我們的參與時，它更多的是在那個領域。

Okay, great. Thank you. And you're probably going to get a million more questions about that in the future. Maybe pivoting to the Medical side of things, really great to see an inflection in that business. it has been challenged for quite some time. I know that you've been winning a lot of new business there. Are you able to kind of break out how much of the sequential growth that you saw in the quarter was existing programs where the inventory overhang was maybe easing versus new programs where this is brand-new business and it's all incremental for you?

好的，太好了。謝謝。將來你很可能還會遇到上百萬個與此相關的問題。也許轉向醫療方面，很高興看到該業務發生轉變。它已經面臨挑戰很長一段時間了。我知道你們在那裡贏得了許多新業務。您能否詳細說明本季看到的連續成長中有多少是來自現有項目（庫存過剩可能有所緩解）與新項目（這是全新的業務，對您來說都是增量）？

Yes, I'll take that one, Melissa. I would say, for the most part, it's the base business starting to come back, and we're seeing it from the inventory that we said was built up in the channels to dissipate. However, that said, we've had significant bookings, and I pointed out that we had a competitive lift-and-shift takeaway. Just to illustrate that on lift and shift, time to revenue is a lot shorter than the typical 2.5- to 3-year cycles. So we've got a number of programs that are in the ramp zone; and hopefully, we'll start seeing those contributing by next year.

是的，我會接受這個，梅麗莎。我想說，在很大程度上，基礎業務開始復甦，我們從通路中累積的庫存中看到這一點正在消散。然而，話雖如此，我們已經有大量的預訂，而且我指出，我們有一個有競爭力的直接交付。僅舉例來說，在提升和轉變過程中，收入實現時間比典型的 2.5 到 3 年周期要短得多。因此，我們有許多處於斜坡區的項目；希望到明年我們就能開始看到這些項目的貢獻。

That's great. Congratulations on that. I have one more question, if I can sneak it in, if that's all right?

那太棒了。恭喜你。我還有一個問題，我可以偷偷帶進去嗎？

Sure.

當然。

Okay. Bryan, I don't want to leave you out. Really nice progress still on the cash cycle days. Can you remind us, what does each day reduction in cash cycle equal on the cash flow front?

好的。布萊恩，我不想把你排除在外。現金週期日數仍然取得了很好的進展。您能否提醒我們，現金週期每天的減少在現金流量方面相當於什麼？

Yes, on the cash flow front, that would be about $7 million for each day cycle. So at 85 days, where we're at today, you can imagine one day over the last period. So it's significant progress on the inventory, which we're excited about. So with the six days down.

是的，就現金流而言，每個週期約為 700 萬美元。因此，在今天我們所處的 85 天，你可以想像過去一天的情況。因此，這是庫存方面的重大進展，我們對此感到非常興奮。六天已經過去了。

For sure. Do you have a longer-term target for the cash cycle days, or is it just going to kind of depend on the macro?

一定。您對現金週期天數有長期目標嗎，還是只取決於宏觀因素？

Yes, if you look at -- our big thing is on inventory. Right now we're at 4.3 turns, and we're really looking to drive that 5 to 5.5 is our goal. That is what we're looking to do. So maybe on inventory, looking a little different from just the days to moving to that. Because as we shift and ramp up some of these programs, it's going to cause slower kind of days on that front, but we're going to drive the turns to get that up to the 5 and 5.5

是的，如果你看一下——我們的重點是庫存。現在我們的轉彎次數是 4.3 次，我們的目標是將轉彎次數提高到 5 到 5.5 次。這正是我們想要做的。因此，就庫存而言，可能看起來與轉移到庫存的日子略有不同。因為隨著我們轉變和加強這些項目，這方面的工作速度可能會變慢，但我們會推動轉變，將其提高到 5 和 5.5

Okay, perfect.

好的，完美。

I might just add to his comment. We have done a lot of work to bring inventory down. I think we're over $100 million just this quarter, year over year, in the third quarter. We are still holding quite a bit of customer advance payments. And so If you net that, our terms are actually quite a bit higher. But we know over time that will dissipate as excess inventory is consumed. So what Bryan said is absolutely the case that we're focused on the terms, but we're doing actually better than that if you consider the cash on hand.

我可能只是補充他的評論。我們做了很多工作來降低庫存。我認為，光是本季，我們的營收就超過了 1 億美元，與去年同期相比，也就是第三季。我們仍扣留了相當一部分客戶預付款。因此，如果扣除這些費用，我們的條款實際上要高得多。但我們知道，隨著時間的推移，隨著過剩庫存的消耗，這種現象將會消失。因此，布萊恩所說的絕對是我們關注條款的情況，但如果考慮到手頭上的現金，我們實際上做得更好。

Okay, perfect. That's all for me for now. Thanks very much, guys. Appreciate it.

好的，完美。就我目前的情況來說，就是這樣。非常感謝，大家。非常感謝。

Thank you.

謝謝。

Anja Soderstrom, Sidoti.

安雅·索德斯特羅姆，西多蒂。

Hi, and thank you for taking my questions. I have a couple of follow ups and then some other questions. Just on the inventory improvement here, how do you expect to achieve that? Is that through implementing better systems, or what other puts and takes there?

您好，感謝您回答我的問題。我有幾個後續問題以及其他一些問題。就這裡的庫存改善而言，您期望如何實現這一目標？這是透過實施更好的系統，還是透過其他方式？

Yes, I mean, there's just a lot of focus on that as we're looking at kind of the customer demand and optimizing kind of the day's inventory. So I mean, we have a group of individuals that are focusing on basically driving this day's inventory down. There's a lot of focus on that. Of course, the systems will continue to improve that to do that.

是的，我的意思是，我們非常關注這一點，因為我們正在關注客戶需求並優化當天的庫存。所以我的意思是，我們有一群人致力於降低當天的庫存。人們對此非常關注。當然，系統將繼續改進以實現這一目標。

I know as you look at the six days we had this period, I mean, it's maintaining that and improving upon that and then moving to the days from the 4.3 inventory on hand to the 5.5 is kind of what we're targeting. And again, there's a lot of focus on that across the organization and working with our customers and demand.

我知道，當你回顧我們這段時期的六天時，我的意思是，我們要保持這種狀態，並在此基礎上進行改進，然後將庫存天數從 4.3 天增加到 5.5 天，這正是我們的目標。再次強調，整個組織都非常關注這一點，並與我們的客戶和需求合作。

I mean, operational focus is key for us and really involving all of our general managers and looking at each site and where they are in inventory along with each customer, and working with our commercial team on just making sure that we're being super disciplined on it. And I think it's certainly something we established about a 1.5, 2 years ago when inventory was a much bigger challenge. And we've just -- some brute force, some process, but discipline has been key to the progress we've made.

我的意思是，營運重點對我們來說至關重要，真正讓所有總經理都參與進來，查看每個站點以及每個客戶的庫存情況，並與我們的商業團隊合作，確保我們對此保持高度自律。我認為這確實是我們在大約 1.5 到 2 年前就建立的，當時庫存是一個更大的挑戰。我們只是──使用了一些蠻力，採取了一些措施，但紀律是我們進步的關鍵。

Okay, thank you. And I'm also curious, in the Medical, you mentioned competitive leadership program you want. How did you win that?

好的，謝謝。我也很好奇，在醫學方面，您提到了您想要的競爭性領導力計劃。你是怎麼贏得勝利的？

So when I joined a couple years ago, we revamped our go-to-market strategy. And fundamentally, we took a different approach with regards to servicing our base customers much more diligently and paying much more attention to them and growing those customers. What we've built is we've built a proactive proposal team that goes out to our customers and brings forward new creative solutions.

因此，當我幾年前加入時，我們修改了我們的行銷策略。從根本上來說，我們採取了不同的方法，更加勤勉地為基礎客戶提供服務，更加關注他們並發展這些客戶。我們已經建立了一個積極主動的提案團隊，專門為客戶提供新的創意解決方案。

Okay, that sounds good. I mean, I know it's hard to win those over, so it's encouraging to hear that.

好的，聽起來不錯。我的意思是，我知道贏得他們的支持很難，所以聽到這個消息我很受鼓舞。

As the team executes, well, it's the best driver of incremental business from our existing customers. So it's nice to see the balance of not only growing our wallet share or our footprint with existing customers, but also bringing on new clients.

隨著團隊的執行，它將成為我們現有客戶業務增量的最佳驅動力。因此，我們很高興看到，我們不僅能擴大錢包份額或現有客戶的佔有率，還能吸引新客戶。

Yes, that sounds good. And also, I'm just curious within the aerospace and defense, you said commercial air is stabilizing. What are you seeing there, and what do you see -- how do you see that build up now with Boeing and Airbus taking off a bit?

是的，聽起來不錯。而且，我只是好奇，在航空航太和國防領域，您說商用航空正在穩定下來。您在那裡看到了什麼？您看到了什麼—隨著波音和空中巴士的崛起，您如何看待這種成長？

What I would say there is that obviously, coming out of the pandemic, we were waiting for the international travel to pick up quite a bit. I think you see from the airlines that they're just generally, travel is back, right? And even business travel has recovered quite a bit. I think David was talking a bit about stabilization we've seen.

我想說的是，顯然，疫情過後，我們一直在等待國際旅行的回升。我想您從航空公司的情況可以看出，旅行總體上已經恢復了，對嗎？甚至商務旅行也已恢復不少。我認為大衛正在談論我們所看到的穩定性。

It may not be growing at the rate that it was; but certainly, that demand has been pretty solid for us. And we play pretty broadly across commercial in different parts of the planes. And so from that perspective, as that industry goes, we do as well. We have probably less exposure to Boeing, which is just where we sit and where our wins are at. From that standpoint, we have a lot of exposure across the rest of the industry.

它的成長速度可能不如以前；但毫無疑問，對我們來說，這種需求相當穩定。我們在飛機的不同部分的商業活動中發揮著相當廣泛的作用。從這個角度來看，隨著該行業的發展，我們也會這樣做。我們對波音的關注可能較少，這正是我們的現狀和勝利所在。從這個角度來看，我們在整個產業中都擁有很大的曝光率。

Okay, thank you. That was all for me.

好的，謝謝。對我來說這就是全部了。

Thanks, Anja.

謝謝，安雅。

(Operator Instructions) Jaeson Schmidt, Lake Street.

（操作員指示）Jaeson Schmidt，Lake Street。

Hey, guys, thanks for taking my questions. Just circling back to the Medical segment, it sounds like the inventory digestion period seems largely complete. Just curious if this was what you had expected three months ago, or if that has completed faster than expected, and hence why you're expecting this more optimistic outlook for the second half here within Medical.

嘿，夥計們，謝謝你們回答我的問題。回到醫療領域，聽起來庫存消化期似乎已基本完成。我只是好奇這是否是您三個月前所預期的，或者這是否比預期的完成得更快，以及為什麼您對醫療領域下半年的前景感到更加樂觀。

Yes, I'll take that. What I would say is we started seeing things slow down in late 2023. And quite honestly, we thought it was going to clear out a lot sooner, and it just took a little bit longer than we expected. But we're pleased to see it dissipated now. And during that whole inventory clearing period, as I mentioned in my commentary, we were really busy working to gain incremental new awards. So we're in a really good position now considering the market has stabilized and has turned a corner.

是的，我接受。我想說的是，我們從 2023 年底開始看到情況放緩。老實說，我們以為它會很快消散，但實際消散的時間比我們預期的要長一些。但我們很高興看到它現在已經消散了。正如我在評論中提到的那樣，在整個庫存清理期間，我們確實忙於努力獲得新的獎項。因此，考慮到市場已經穩定並出現轉機，我們現在處於非常有利的地位。

Got you. And then just as a follow up, within your A&D segment, you noted sort of the new space program ramping, but just curious how big that kind of space sector is within the A&D bucket these days.

明白了。然後作為後續問題，在您的 A&D 部門中，您注意到新的太空計劃正在加速發展，但只是好奇這種太空領域目前在 A&D 領域中佔比有多大。

Yes, we haven't really broken it out. We don't get into the -- necessarily to the sub-sector size. But I guess I'd go enough to say that if we're highlighting it, it's not $1 million or $2 million, you know what I mean? It's meaningful contributor and has the opportunity to be tens of millions. But depending on how that segment grows is going to really dictate how large that can get. But we haven't, as a subsector, said what that means to us.

是的，我們還沒有真正把它分解出來。我們不一定深入到子行業的規模。但我想我應該說，如果我們要強調這一點，那不是 100 萬美元或 200 萬美元，你明白我的意思嗎？這是一個有意義的貢獻者，並有機會達到數千萬。但真正決定其規模能達到多大的，還是要看該部分的成長。但作為一個子部門，我們還沒有說出這對我們意味著什麼。

We find it's interest based because it kind of leverages our RF know-how. It leverages our experience putting complex systems up into space and satellites. I think David highlighted. So it's a good area with significant value-add. But with some of the new entrants, you got to be nimble and be able to move quickly to the shifting needs. And so I think that plays to our strengths as well. And we're excited about our participation there.

我們發現它是基於興趣的，因為它在某種程度上利用了我們的射頻專業知識。它利用了我們將複雜系統放入太空和衛星的經驗。我認為大衛強調了這一點。所以這是一個具有顯著附加價值的良好領域。但對於一些新進入者，你必須靈活並且能夠快速適應不斷變化的需求。所以我認為這也發揮了我們的優勢。我們很高興能夠參與其中。

Okay, that's helpful. Thanks a lot, guys.

好的，這很有幫助。非常感謝大家。

Thanks, Jason.

謝謝，傑森。

There are no further questions at this time. I would like to turn the call over to Paul Mansky for closing comments. Sir, please go ahead.

目前沒有其他問題。我想將電話轉給保羅·曼斯基 (Paul Mansky) 來做最後評論。先生，請繼續。

Thank you, Constantine. And thank you, everyone, for participating in Benchmark's second-quarter 2025 earnings call. We will be participating in the Sidoti Small Cap Virtual Conference on September 17. For updates to this and other upcoming investor conferences and events, please refer to the Events section of our IR website at ir.bench.com. With that, we thank you all again for your support and look forward to speaking with you soon.

謝謝你，康斯坦丁。感謝大家參加 Benchmark 2025 年第二季財報電話會議。我們將參加 9 月 17 日的 Sidoti 小型股虛擬會議。有關本次及即將舉行的投資者會議和活動的最新消息，請訪問我們投資者關係網站 ir.bench.com 的「活動」板塊。再次感謝大家的支持，期待很快與您再次相見。

Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。非常感謝您的參與。您現在可以斷開連線。