Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 29, 2025 ...

FISCAL SECOND QUARTER 2025 HIGHLIGHTS April 23, 2025 PLEXUS CONFIDENTIAL SAFE HARBOR AND FAIR DISCLOSURE STATEMENT Some of the statements made and information provided during our call as well as information included in the supporting materials will be forward looking statements, including, without limitation, those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense, taxes, cash cycle, capital allocation and future business outlook. Forward-looking ...

Plexus (PLXS) Q2 2025 Earnings Call April 25, 2025 12:48 AM ET Company Participants Shawn Harrison - Vice President - IRTodd Kelsey - President & CEOOliver Mihm - Executive VP & COOPatrick Jermain - EVP & CFOMelissa Fairbanks - Vice PresidentSteven Fox - Founder & CEORuben Roy - Managing Director - Equity ResearchChris Grenga - Equity Research AssociateSteve Barger - Managing Director - Equity Research Conference Call Participants David Williams - Equity Research AnalystAnja Soderstrom - Senior Equity Resea ...

Plexus Corp. (NASDAQ:PLXS) Q2 2025 Earnings Conference Call April 24, 2025 8:30 AM ET Company Participants Shawn Harrison - Vice President, Investor Relations Todd Kelsey - President & Chief Executive Officer Oliver Mihm - Executive Vice President & Chief Operating Officer Pat Jermain - Executive Vice President & Chief Financial Officer Conference Call Participants David Williams – Benchmark Melissa Fairbanks - Raymond James Steven Fox - Fox Advisors LLC Ruben Roy - Stifel Jim Ricchiuti - Needham & Company ...

Core Viewpoint - Plexus Corp reported strong adjusted earnings per share (EPS) for the second quarter of fiscal 2025, exceeding expectations, but revenues slightly missed estimates due to mixed performance across sectors [1][2]. Financial Performance - Adjusted EPS for Q2 fiscal 2025 was $1.66, up from $1.19 in the same quarter last year, surpassing the Zacks Consensus Estimate of $1.54 [1]. - Revenues reached $980.2 million, a 1.4% year-over-year increase, but fell short of the Zacks Consensus Estimate of $980.5 million [2]. - Gross profit on a GAAP basis increased 11% year over year to $97.8 million, with a gross margin of 10%, up from 9.1% [6]. Revenue Breakdown - Healthcare/Life Sciences revenues rose 8.4% year over year to $411 million, contributing 42% to total revenues [5]. - Industrial sector revenues decreased 5% year over year to $397 million, accounting for 40% of total revenues [4]. - Revenues from Asia-Pacific increased by 12.5% to $587 million, while EMEA sales declined by 32% [2]. Operational Highlights - Plexus secured 42 manufacturing program wins in the quarter, expected to generate $205 million in annualized revenues once fully ramped [3]. - Selling and administrative expenses rose 3% year over year to $49 million, while adjusted operating margin expanded by 80 basis points to 5.7% [8]. Balance Sheet and Cash Flow - As of March 29, 2025, cash and cash equivalents were $310.5 million, down from $317.2 million as of December 28, 2024 [9]. - Free cash flow for the quarter was reported at $16.5 million [9]. Share Repurchase and Future Outlook - The company repurchased $12.2 million of shares at an average price of $141.18, with $25 million remaining under its $50 million buyback authorization [10]. - For Q3 fiscal 2025, revenues are anticipated to be between $1 billion and $1.04 billion, with non-GAAP EPS expected in the range of $1.65-$1.80 [11].

Core Insights - Plexus reported revenue of $980.17 million for the quarter ended March 2025, reflecting a year-over-year increase of 1.4% [1] - The company's EPS was $1.66, significantly higher than the $0.94 reported in the same quarter last year, indicating strong earnings growth [1] - The revenue slightly missed the Zacks Consensus Estimate of $980.47 million by 0.03%, while the EPS exceeded the consensus estimate of $1.54 by 7.79% [1] Revenue Performance by Sector - Healthcare/Life Sciences sector generated revenue of $411 million, surpassing the average estimate of $407.10 million, with a year-over-year increase of 8.4% [4] - Aerospace/Defense sector reported revenue of $172 million, slightly below the estimated $174.10 million, marking a year-over-year increase of 1.2% [4] - Industrial sector revenue was $397 million, falling short of the estimated $399.55 million, representing a year-over-year decrease of 5% [4] Stock Performance - Plexus shares have returned -6.1% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Plexus reported quarterly earnings of $1.66 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing a significant increase from $0.94 per share a year ago, representing an earnings surprise of 7.79% [1] - The company posted revenues of $980.17 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.03%, but showing growth from $966.9 million year-over-year [2] - Plexus has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once during the same period [2] Group 2 - The stock has underperformed, losing about 20.7% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.74 on revenues of $1.03 billion, and for the current fiscal year, it is $6.90 on revenues of $4.08 billion [7] - The Zacks Industry Rank for Electronics - Manufacturing Services is in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] Group 3 - The estimate revisions trend for Plexus is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] - Celestica, another company in the same industry, is expected to report quarterly earnings of $1.11 per share, reflecting a year-over-year increase of 29.1%, with revenues projected at $2.55 billion, up 15.3% from the previous year [9][10]

Financial Performance - Plexus reported fiscal second quarter 2025 revenue of $980 million, with a GAAP operating margin of 5.0% and diluted EPS of $1.41[5] - Non-GAAP operating margin for the second quarter was 5.7%, and adjusted diluted EPS was $1.66, excluding $0.25 of stock-based compensation expense[5] - Net sales for the three months ended March 29, 2025, were $980.17 million, a 1.3% increase from $966.90 million for the same period in 2024[20] - Gross profit for the three months ended March 29, 2025, was $97.75 million, compared to $88.06 million for the same period in 2024, reflecting a 10.5% increase[20] - Operating income for the three months ended March 29, 2025, was $48.79 million, up 65.5% from $29.47 million in the same period last year[20] - Net income for the three months ended March 29, 2025, was $39.07 million, significantly higher than $16.24 million for the same period in 2024, representing a 140.5% increase[20] - Basic earnings per share for the three months ended March 29, 2025, were $1.44, compared to $0.59 for the same period in 2024, marking a 144.1% increase[20] - Adjusted operating income for the six months ended March 29, 2025, was $100.33 million, compared to $51.54 million for the same period in 2024[29] - Adjusted diluted earnings per share for the six months ended March 29, 2025, were $3.39, up from $2.42 for the same period in 2024, reflecting a 40.2% increase[24] Guidance and Future Outlook - The company initiated fiscal third quarter 2025 revenue guidance of $1.00 billion to $1.04 billion, with GAAP diluted EPS guidance of $1.40 to $1.55[5] Cash Flow and Capital Management - Free cash flow for the second quarter was $16.5 million, contributing to year-to-date free cash flow of $43.6 million[6] - The cash cycle for the second quarter was 68 days, consistent with the first quarter and showing improvement in inventory management[7] - Return on invested capital (ROIC) for the second quarter was 13.7%, exceeding the weighted average cost of capital by 480 basis points[12] - Return on invested capital (ROIC) for the six months ended March 29, 2025, was 13.7%, compared to 9.9% for the same period in 2024[29] Shareholder Actions - The company repurchased $12.2 million of its shares at an average price of $141.18 per share, with $25 million remaining under the share repurchase authorization[6] Revenue Composition - Revenue from the Aerospace/Defense sector was $172 million, accounting for 18% of total revenue, while Healthcare/Life Sciences contributed $411 million, or 42%[10] - Top 10 customers comprised 51% of revenue during the second quarter, an increase of 3 percentage points from the same quarter in the previous year[9] Balance Sheet Highlights - Total current assets decreased to $2,396.31 million as of March 29, 2025, from $2,477.15 million as of September 28, 2024[22] - Total liabilities decreased to $1,734.07 million as of March 29, 2025, from $1,828.99 million as of September 28, 2024[22]

Core Viewpoint - Plexus Corp. reported strong financial performance for the fiscal second quarter of 2025, achieving revenue of $980 million, exceeding guidance, and demonstrating operational efficiency [4][5]. Financial Performance - Revenue for Q2F25 was $980 million, with guidance for Q3F25 set between $1.00 billion and $1.04 billion [2][5]. - GAAP operating margin was 5.0%, while non-GAAP operating margin was 5.7%, exceeding guidance [5][6]. - Diluted EPS for Q2F25 was $1.41, with non-GAAP diluted EPS at $1.66, also exceeding guidance [5][6]. - Free cash flow for Q2F25 was $16.5 million, contributing to a year-to-date total of $43.6 million [6][13]. Business Wins and Market Segments - The company won 42 manufacturing programs during the quarter, representing $205 million in annualized revenue when fully ramped [6][7]. - Revenue breakdown by market sectors for Q2F25 included Aerospace/Defense at $172 million (18%), Healthcare/Life Sciences at $411 million (42%), and Industrial at $397 million (40%) [10]. Operational Efficiency - The cash cycle for Q2F25 was 68 days, consistent with the previous quarter and favorable compared to expectations [4][14]. - Return on invested capital (ROIC) was reported at 13.7%, exceeding the weighted average cost of capital by 480 basis points [7][12]. Shareholder Returns - The company repurchased $12.2 million of its shares at an average price of $141.18 per share, with $25 million remaining under the existing $50 million authorization [6][7]. Guidance and Future Outlook - For Q3F25, Plexus is guiding revenue of $1.00 billion to $1.04 billion, with non-GAAP operating margin expected between 5.7% and 6.1% and non-GAAP EPS between $1.65 and $1.80 [5][6]. - The company anticipates meaningful EPS growth for fiscal 2025, driven by revenue growth across market sectors and robust operating margin performance [4][7].

Core Viewpoint - Plexus Corp (PLXS) is expected to report second-quarter fiscal 2025 earnings on April 23, with revenue estimates of $980.5 million, reflecting a 1.4% year-over-year increase, and an EPS estimate of $1.54, indicating a 63.8% increase from the previous year [1] Revenue and Earnings Estimates - The company anticipates revenues between $960 million and $1 billion for the second quarter, with non-GAAP EPS expected in the range of $1.46 to $1.61 [2] - The Zacks Consensus Estimate for PLXS's revenues is $980.5 million, with an EPS estimate of $1.54 [1][2] Recent Performance and Growth Drivers - Plexus has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 12.77% [2] - The company secured 30 new manufacturing programs in the fiscal first quarter, projected to generate $212 million in annualized revenues, with $130 million from the Healthcare/Life Sciences sector [2] Segment Performance Expectations - Aerospace/Defense revenues are expected to increase by 2.1% year-over-year to $173.8 million, driven by broad-based demand increases [4] - Healthcare/Life Sciences revenues are anticipated to rise by 7.4% year-over-year to $406.5 million, supported by new program ramps [4] - The Industrial sector is forecasted to see a revenue decline of 4.3% year-over-year to $400.4 million, attributed to demand instability across several subsectors [5] Earnings Prediction Model - The current model does not predict an earnings beat for Plexus, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 [6][7]