FISCAL FIRST QUARTER 2026 HIGHLIGHTS January 28, 2026 PLEXUS CONFIDENTIAL FISCAL FIRST QUARTER THEMES Program wins, share gains and improving market demand position Plexus in F26 to meet or exceed high end of 912% revenue growth goal. Forecast strong F26 operating leverage inclusive of investments in talent, technology, facilities and advanced capabilities. PLEXUS CONFIDENTIAL SAFE HARBOR AND FAIR DISCLOSURE STATEMENT Some of the statements made and information provided during our call as well as informatio ...

Plexus (PLXS) came out with quarterly earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.77 per share. This compares to earnings of $1.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.57%. A quarter ago, it was expected that this electronic manufacturing services company would post earnings of $1.84 per share when it actually produced earnings of $2.14, delivering a surprise of +16.3%.Over the last fo ...

Plexus Announces Fiscal First Quarter Financial Results NEENAH, WI – January 28, 2026 - Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal first quarter ended January 3, 2026, and guidance for our fiscal second quarter ending April 4, 2026. | | | Three Months Ended | | | --- | --- | --- | --- | | | Jan 3, 2026 | Jan 3, 2026 | Apr 4, 2026 | | | Q1F26 Results | Q1F26 Guidance | Q2F26 Guidance | | Summary GAAP Items | | | | | Revenue (in billions) | $1.070 | $1.050 to $1.090 | $1.110 ...

Group 1 - Plexus Corp. will release its fiscal first quarter 2026 results after market close on January 28, 2026 [1] - A conference call to discuss the results is scheduled for January 29, 2026, at 8:30 a.m. Eastern Time [2] - An audio webcast of the call will be available on the investor relations section of the Plexus website [1][2] Group 2 - Plexus Corp. specializes in designing, manufacturing, and servicing complex products in regulated environments [3] - The company operates in sectors such as Aerospace/Defense, Healthcare/Life Sciences, and Industrial [3] - Plexus has a global workforce of over 20,000 members across 26 facilities [3]

Core Viewpoint - Plexus (PLXS) shares experienced a significant increase of 7.5%, closing at $172.35, driven by strong trading volume and broader strength in the electronics manufacturing services (EMS) sector related to AI and industrial demand [1][2]. Group 1: Company Performance - Plexus ended fiscal 2025 with 141 manufacturing wins, translating to $941 million in annualized revenues, and anticipates new program ramps across all segments to support revenue growth in fiscal 2026 [2]. - The company is projected to report quarterly earnings of $1.77 per share, reflecting a year-over-year increase of 2.3%, with expected revenues of $1.07 billion, marking a 9.7% rise from the previous year [3]. Group 2: Market Context - Elevated global geopolitical tensions have led to increased defense budgets, which bolster long-cycle demand for mission-critical electronics, an area where Plexus excels [3]. - The consensus EPS estimate for Plexus has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5]. Group 3: Industry Comparison - Plexus is part of the Zacks Electronics - Manufacturing Services industry, where Celestica (CLS) also operates, having closed 4.4% higher at $328.56, with a 3.9% return over the past month [6]. - Celestica's consensus EPS estimate has increased by 1.2% over the past month to $1.73, representing a substantial year-over-year change of 55.9% [7].

Core Insights - Plexus Corporation's share performance has been underwhelming, with a 14.5% gain over the past six months, significantly lagging behind the Electronic Manufacturing Industry's 47.5% growth and the S&P 500's 16.2% return [1][7] Price Performance - Other competitors in the electronics manufacturing services sector, such as Jabil, Sanmina, and Flex, have shown gains of 9.5%, 61.9%, and 30.1%, respectively, raising questions about Plexus's potential for a rebound in 2026 [3] Tailwinds for Plexus - Plexus is expected to benefit from new program ramps, focusing on high-demand sectors like healthcare, aerospace, and industrial markets, with 28 manufacturing program wins projected to contribute $274 million to annualized revenues [4][5] - The company has a strong pipeline with a funnel of qualified manufacturing opportunities valued at $3.7 billion, supporting its revenue growth target of 9-12% for fiscal 2026 [5] - In fiscal 2025, Plexus generated $154 million in free cash flow, allowing for debt reduction and share repurchases, with expectations to generate $100 million in free cash flow for fiscal 2026 [10][11] Sector Performance - The aerospace sector, particularly defense and space, experienced double-digit growth, while healthcare and life sciences revenues increased by 5% for the fiscal year, with expectations for further acceleration [8][9] Headwinds for Plexus - Revenue growth for fiscal 2026 is contingent on modest improvements in end-market demand, with challenges in the industrial sector due to weaknesses in industrial equipment and vehicle electrification [12] - Plexus relies heavily on a few large customers, with the top 10 customers accounting for 49% of revenues, exposing the company to customer concentration risks [13] - Macro uncertainties from shifting trade policies and competition from other electronics manufacturers pose additional challenges [14] Valuation - Plexus is trading at a forward 12-month price/sales ratio of 0.93, slightly above the sector's average of 0.89, while competitors like Flex, Jabil, and Sanmina have lower multiples [17][18] Investment Outlook - While Plexus has a healthy long-term outlook, near-term expectations are uncertain, suggesting that new investors should wait for a better entry point, while existing investors may consider holding the stock [19]

Core Insights - Evolv Technologies Holdings Inc. has entered a strategic partnership with Plexus Corp to enhance its manufacturing and supply chain capabilities, aiming to meet the increasing demand for its security screening products [1][2]. Group 1: Partnership Details - The collaboration combines Evolv's product expertise with Plexus' design, supply chain, and manufacturing capabilities, facilitating large-scale production and distribution [2]. - The partnership is expected to provide increased capacity, a scalable platform for global expansion, and long-term cost-saving opportunities through Plexus' manufacturing scale and procurement efficiencies [2][3]. Group 2: Market Opportunities and Support - The partnership will open new market opportunities through Plexus' sustaining services solution and enhance resiliency with geographic coverage, redundancy, and 24/7 global support [3]. - Evolv currently has sufficient inventory and committed production capacity to ensure uninterrupted service and consistent delivery to customers during the integration with Plexus [3]. Group 3: Company Background - Evolv Technologies specializes in AI-based weapons detection for security screening both in the US and internationally [4]. - Plexus Corp provides electronic manufacturing services across various regions including the US, Asia-Pacific, Europe, the Middle East, and Africa [4].

Financial Performance - Net sales for fiscal 2025 increased by $72.2 million, or 1.8%, to $4,033.0 million compared to fiscal 2024[171] - Gross profit for fiscal 2025 increased by $28.0 million, or 7.4%, with a gross margin of 10.1%, up 50 basis points from fiscal 2024[181] - Operating income for fiscal 2025 rose by $34.7 million, or 20.7%, to $202.4 million, with an operating margin of 5.0%, an increase of 80 basis points[182] - Net income for fiscal 2025 increased by $61.1 million, or 54.7%, to $172.9 million, driven by higher operating income and lower other expenses[190] - Diluted earnings per share increased to $6.26 in fiscal 2025 from $4.01 in fiscal 2024[190] - The company's return on invested capital (ROIC) for fiscal 2025 was 14.6%, reflecting an economic return of 5.7%[194] - Cash and cash equivalents decreased to $306.8 million as of September 27, 2025, from $347.5 million as of September 28, 2024[197] - Cash flows provided by operating activities decreased to $249.2 million in fiscal 2025 from $436.5 million in fiscal 2024, a decline of 42.9%[200] - Free cash flow (FCF) for fiscal 2025 was $154.0 million, down from $341.3 million in fiscal 2024, representing a decrease of $187.3 million[207] - Cash flows used in financing activities decreased to $196.4 million in fiscal 2025 from $255.6 million in fiscal 2024, a reduction of 23.1%[211] Market and Customer Base - In fiscal 2025, Plexus served approximately 190 customers, with no single customer accounting for over 10% of total sales[24] - The distribution of net sales by market sectors in fiscal 2025 was 17% Aerospace/Defense, 40% Healthcare/Life Sciences, and 43% Industrial[25] - The company's 10 largest customers accounted for 49.1% and 47.8% of net sales in fiscal 2025 and 2024, respectively, indicating a high customer concentration risk[74] Operational Strategy - Plexus aims for a long-term revenue growth rate of 9-12% and a return on invested capital (ROIC) of 15%, exceeding its weighted average cost of capital (WACC) of 8.9% for fiscal 2025[17] - Plexus operates 26 facilities totaling approximately 5.0 million square feet, strategically located to support global supply chains[23] - The company has a dedicated team for new product introduction, focusing on decreasing time to market and transitioning products to full volume manufacturing[26] - The company maintains a flexible workforce strategy, utilizing skilled temporary labor alongside full-time employees to maximize efficiency[56] - The company conducts regular talent reviews to assess performance, potential, and retention rates, ensuring a strong leadership pipeline[45] Sustainability and Compliance - The company focuses on reducing emissions, waste, and water usage while transitioning to renewable energy and optimizing operations through new technologies[37] - The company has 17 out of 18 manufacturing facilities certified to ISO 14001 Environmental Management standards, and 3 certified to ISO 45001 Occupational Health and Safety Management standards[53] - The company is committed to human rights, prohibiting discrimination, child labor, and forced labor, while supporting fair wages and humane treatment of workers[44] - The company’s operations are subject to various compliance obligations, including environmental and product safety regulations, to mitigate risks of non-compliance[60] - Compliance with evolving data privacy regulations, such as GDPR, is critical, with potential legal and reputational risks for non-compliance[103] Risks and Challenges - The company faces significant competition, which may lead to price reductions, reduced sales, and loss of market share due to competitors with greater resources and market presence[73] - The company relies on timely payments from major customers, and any failure to meet obligations could adversely affect its financial condition and results[77] - The Healthcare/Life Sciences sector is significantly impacted by government reimbursement rates and health crises, which could affect customer purchasing behavior and margins[82] - The company has experienced component shortages and delays, which can reduce revenue and operating profit due to supply chain constraints[93] - Operations outside the U.S. represent a majority of net sales and operating income, particularly concentrated in Malaysia, exposing the company to geopolitical risks[86] - Cybersecurity threats pose significant risks, including potential data breaches that could disrupt operations and lead to financial liabilities[101] - Labor availability issues, including wage pressure and high turnover rates, may adversely affect operations and financial results[119] - Inflationary pressures and increased personnel costs could materially impact operating results and cash flows if not offset by price increases or operational efficiencies[120] Shareholder and Financial Management - As of September 27, 2025, the company repurchased a total of 160,582 shares at an average price of $134.07 per share[164] - The company has authorized a share repurchase program of up to $100.0 million under the 2026 Program, which became effective upon completion of the 2025 Program[165] - The cumulative total return on Plexus common stock increased from $100 in 2020 to $202 in 2025, outperforming the S&P MidCap 400 Index and Nasdaq-Electronic Components Index[161] - The company anticipates retaining the majority of earnings for capital expenditures and working capital requirements, with no cash dividends paid in the past[163] - The effective tax rate for fiscal 2026 is expected to be approximately 17.0% to 19.0%[189] Inventory and Cash Management - Days in inventory decreased by nine days to 118 days for the three months ended September 27, 2025, compared to 127 days for the same period in 2024[204] - Days in accounts receivable increased by three days to 57 days for the three months ended September 27, 2025, compared to 54 days for the same period in 2024[201] - The annualized cash cycle days decreased by one day to 63 days as of September 27, 2025, compared to 64 days as of September 28, 2024[202]

Core Insights - Plexus Corp (PLXS) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.14, an increase from $1.85 in the same quarter last year, surpassing the Zacks Consensus Estimate of $1.84 per share [1][7] - Revenues for the quarter reached $1.058 billion, reflecting a year-over-year increase of nearly 0.7%, exceeding the Zacks Consensus Estimate of $1.046 billion [1][7] - For fiscal 2025, PLXS reported total revenues of $4.03 billion, up 1.8% from fiscal 2024, and adjusted EPS of $7.43, marking a 29.9% increase [3] Revenue Breakdown - Revenues from the Americas increased by 9.4% to $336 million, while revenues from EMEA and Asia-Pacific declined by 7% and 2.1%, respectively [2] - The Industrial sector's revenues rose by 2% year over year to $461 million, contributing 44% to total revenues, with expectations for low single-digit growth in the current quarter [4] - Healthcare/Life Sciences revenues increased by 2.2% to $424 million, accounting for 40% of total revenues, with anticipated low single-digit growth [5] - Aerospace/Defense revenues fell by 6% year over year to $173 million, contributing 16% to total revenues, with management guiding for flat revenue growth in this sector [8] Operational Performance - Gross profit on a GAAP basis decreased by 2.9% year over year to $104.8 million, with a gross margin of 9.9%, down from 10.3% in the previous year [10] - Selling and administrative expenses declined by 4.4% to $51.7 million, while adjusted operating margin contracted by 40 basis points to 5.8% [10] Cash Flow and Balance Sheet - As of September 27, 2025, Plexus had cash and cash equivalents of $307 million, up from $237.6 million as of June 28 [11] - Long-term debt and finance lease obligations were $91.9 million, slightly down from $92.2 million [11] - Cash flows from operations for the quarter were $132 million, with free cash flow reported at $97.2 million [11] Share Repurchase - The company repurchased $21.5 million worth of shares at an average price of $134.07 per share, with a total of $65 million repurchased in fiscal 2025 [12] Q1 Outlook - For the first quarter of fiscal 2025, revenues are expected to be between $1.05 billion and $1.09 billion, with non-GAAP EPS anticipated in the range of $1.66 to $1.81 [13]

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