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]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Revenue for fiscal 2025 was $1.058 billion, marking the third consecutive quarter of sequential growth and approaching the high end of guidance [7] - Non-GAAP EPS grew over 30% to $2.14, substantially exceeding guidance due to favorable discrete tax items [7][25] - Non-GAAP operating margin expanded by 40 basis points to 5.8% [8][24] - Free cash flow for fiscal 2025 was $154 million, significantly exceeding projections, with a total of $495 million generated over the past two fiscal years [8][25] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue decreased 6% sequentially in Q4, with flat revenue for fiscal 2025 due to delays in new product launches [16][18] - Healthcare Life Sciences sector revenue increased 1% sequentially in Q4 and 5% for fiscal 2025, driven by strength in imaging and monitoring subsectors [18][19] - Industrial sector revenue was up 11% sequentially in Q4, but flat for fiscal 2025, with strong wins of $165 million in Q4 [20][22] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased by 2% sequentially to $3.7 billion, with a record high in aerospace and defense sector opportunities [22] - The company expects mid-single-digit growth in the Aerospace and Defense sector for Q1, driven by new program ramps [17] - The Healthcare Life Sciences sector is anticipated to grow high single to low double digits in Q1 due to ongoing program ramps [18] Company Strategy and Development Direction - The company aims for revenue growth in excess of 9%-12% in fiscal 2026, supported by new program ramps and market share gains [7][13] - Investments will focus on talent, technology, and facilities to enhance operational efficiency and support sustained revenue growth [7][12] - The company is committed to driving positive change and promoting sustainability through its operations and community engagement [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth potential, citing substantial new program ramps and modest improvements in end markets [40] - The company is monitoring the impact of government shutdowns but has not seen any indications of slowdown in major market verticals [48] - There is optimism regarding the defense sector's growth, with expectations of increased military spending in the U.S. and Europe [114] Other Important Information - The company achieved a gross margin of 9.9% in Q4, consistent with guidance, and experienced improved fixed cost leverage [24] - The cash cycle improved to 63 days, the best result in five years, due to reduced inventory days and improved working capital management [27] Q&A Session Summary Question: Growth trajectory and investments - Management indicated increased confidence in growth trajectory due to substantial new program ramps and modest market improvements [36][40] Question: AI opportunities - The company is seeing opportunities in AI, particularly in power generation and healthcare, with several programs leveraging AI technology [41][44] Question: Impact of government shutdown - No indications of slowdown due to the government shutdown have been observed, and customer conversations remain stable [48][49] Question: Semicap and energy growth - The outlook for semicap remains similar to previous forecasts, with expectations of share gains, while energy growth is driven by infrastructure and power generation [51][52] Question: Healthcare life sciences strength - Strength in the healthcare sector is attributed to both new program ramps and the resolution of inventory overhang [55][56] Question: Customer visibility and tariffs - Customer visibility is stable, with ongoing focus on mitigating tariff-related challenges [66] Question: Margin expansion outlook - Management expects to overcome near-term headwinds and achieve better fixed cost leverage with revenue growth [102] Question: Program ramp timing - Minor delays in defense programs contributed to Q4 results, but growth is expected in Q1 and beyond [109][110]

Financial Data and Key Metrics Changes - Revenue for fiscal 2025 was $1.058 billion, marking the third consecutive quarter of sequential growth and approaching the high end of guidance [8][9] - Non-GAAP EPS grew over 30% to $2.14, substantially exceeding guidance due to favorable discrete tax items [8][9] - Non-GAAP operating margin expanded by 40 basis points to 5.8% [9][25] - Free cash flow for fiscal 2025 was $154 million, significantly exceeding projections, with a total of $495 million generated over the past two fiscal years [9][26] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue decreased 6% sequentially in Q4, with flat revenue for fiscal 2025 due to delays in new product launches [17][18] - Healthcare Life Sciences sector revenue increased 1% sequentially in Q4, with a 5% increase for fiscal 2025 driven by imaging and monitoring subsectors [19][20] - Industrial sector revenue was up 11% sequentially in Q4, but flat for fiscal 2025, with strong wins of $165 million in Q4 [21][22] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased by 2% sequentially to $3.7 billion, with a record high in aerospace and defense sector opportunities [23] - The company expects revenue growth in excess of end markets for fiscal 2026, driven by ongoing program ramps and market share gains [24][14] Company Strategy and Development Direction - The company aims for revenue growth of 9% to 12% in fiscal 2026, focusing on investments in talent, technology, and operational efficiency [8][14] - Continued emphasis on sustainability and responsible innovation, with significant achievements in waste reduction and community engagement [12][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth potential, citing new program ramps and modest improvements in end markets [41][39] - The company is monitoring the impact of government shutdowns but has not seen any indications of slowdown in major market verticals [49][50] Other Important Information - The company reduced debt by over $100 million in fiscal 2025 while returning cash to shareholders through an expanded share repurchase program [26][27] - The cash cycle improved to 63 days, the best result in five years, with significant reductions in gross inventory [28] Q&A Session Summary Question: Growth trajectory and confidence in future investments - Management indicated increased confidence in growth trajectory due to substantial new program ramps and modest market improvements [39][41] Question: AI opportunities and new product developments - The company is seeing opportunities in AI, particularly in power generation and healthcare, with ongoing programs leveraging AI technology [45][46] Question: Impact of government shutdown on defense and other markets - No indications of slowdown due to the government shutdown have been observed, and management is closely monitoring the situation [49][50] Question: Strength in semicap and energy sectors - Management expects similar performance in semicap for fiscal 2026, with significant share gains anticipated [52][53] Question: Healthcare Life Sciences growth drivers - Growth in this sector is attributed to both new program ramps and the resolution of inventory overhang [56][57] Question: Customer visibility and market stability - Visibility from customers appears stable, with ongoing programs progressing well despite previous volatility [66][67] Question: Capacity and expansion plans for Penang facility - The Penang facility has significant expansion capacity, and efficiency improvements are expected to drive profitability [80][81] Question: Commercial aerospace demand signals - Management is optimistic about potential tailwinds in commercial aerospace but has not yet seen demand signal changes [83][85]

Financial Data and Key Metrics Changes - Revenue for fiscal 2025 was $1.058 billion, marking the third consecutive quarter of sequential growth and approaching the high end of guidance [6][7] - Non-GAAP EPS for fiscal 2025 was $2.14, exceeding guidance due to favorable discrete tax items, with a non-GAAP operating margin of 5.8% [6][25] - Free cash flow for fiscal 2025 was $154 million, significantly exceeding projections, with a total of $495 million generated over the past two fiscal years [7][25] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue decreased 6% sequentially in Q4, with flat revenue for fiscal 2025 due to delays in new product launches [16][17] - Healthcare Life Sciences sector revenue increased 1% sequentially in Q4, with a 5% increase for fiscal 2025 driven by imaging and monitoring subsectors [18][19] - Industrial sector revenue was up 11% sequentially in Q4, but flat for fiscal 2025, with strong wins of $165 million in Q4 [20][21] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased 2% sequentially to $3.7 billion, with a record high in aerospace and defense sector opportunities [22][23] - The company expects mid-single-digit revenue growth in the Aerospace and Defense sector for Q1, driven by new program ramps [17] - The Healthcare Life Sciences sector is expected to see high single to low double-digit growth in Q1, supported by ongoing program ramps [18] Company Strategy and Development Direction - The company aims for revenue growth in excess of end markets, targeting a 9% to 12% growth goal for fiscal 2026 [6][13] - Investments will continue in talent, technology, and facilities to support long-term operational efficiency and revenue growth [13][28] - The company is focused on diversifying engineering solutions and expanding market share in key sectors [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth potential, citing substantial new program ramps and modest improvements in end markets [38][40] - The company is monitoring the impact of government shutdowns but has not seen any indications of slowdown in major market verticals [50][51] - There is optimism regarding the defense sector, with expectations of increased military spending in the U.S. and Europe [141] Other Important Information - The company achieved a 40 basis point expansion in non-GAAP operating margin and 30% non-GAAP EPS growth compared to fiscal 2024 [5][7] - The cash cycle improved to 63 days, the best result in five years, with significant reductions in gross inventory [27][28] - The company plans to maintain capital spending in the range of $90 million to $110 million for fiscal 2026 [32][116] Q&A Session Summary Question: Growth trajectory and confidence in future investments - Management indicated increased confidence in growth trajectory due to substantial new program ramps and modest market improvements [36][38] Question: AI opportunities and new product developments - The company is seeing opportunities in AI, particularly in power generation and thermal management, with new AI-powered products being developed [42][45] Question: Impact of government shutdown on major market verticals - No indications of slowdown due to the government shutdown have been observed, and customer conversations remain stable [50][51] Question: Strength in semicap and energy sectors - The company expects similar growth in semicap for fiscal 2026, with significant share gains anticipated [56][57] Question: Healthcare Life Sciences sector performance - Strength in the Healthcare Life Sciences sector is attributed to both new program ramps and the resolution of inventory overhang [60][62] Question: Customer visibility and market stability - Visibility from customers is stable, with programs ramping well and markets trending upwards [76][78] Question: Margin expansion and investment impacts - Management expects to overcome near-term margin drags from investments and continue driving productivity improvements [125][126]

Financial Data and Key Metrics Changes - Revenue for the fiscal fourth quarter was $1,058 million, approaching the high end of guidance, marking the third consecutive quarter of sequential growth [4][6] - Non-GAAP EPS was $2.14, substantially exceeding guidance due to favorable discrete tax items, with a non-GAAP operating margin of 5.8% [5][23] - Free cash flow for the fiscal fourth quarter was $97 million, resulting in a total of $154 million for fiscal twenty twenty five, significantly exceeding projections [6][24] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue decreased 6% sequentially in the fiscal fourth quarter, with flat revenue for fiscal twenty twenty five due to delays in new program ramps [14] - Healthcare and Life Sciences sector revenue increased 1% sequentially in the fiscal fourth quarter, with a 5% increase for fiscal twenty twenty five driven by imaging and monitoring sub-sectors [15][16] - Industrial sector revenue was up 11% sequentially in the fiscal fourth quarter, with flat revenue for fiscal twenty twenty five [18] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased by 2% sequentially, reaching $3.7 billion, with a record high in aerospace and defense sector opportunities [20] - The company expects mid-single-digit revenue growth in the aerospace and defense sector for the fiscal first quarter, driven by new program ramps [14] - The industrial sector is expected to see a high single-digit decrease in revenue for the fiscal first quarter due to seasonality [18] Company Strategy and Development Direction - The company aims for revenue growth in excess of end markets, targeting a 9% to 12% growth goal while focusing on operational efficiency and shareholder value creation [4][11] - Investments will continue in talent, technology, and facilities to support sustained future revenue growth [11][32] - The company is committed to driving positive change and promoting sustainability through responsible innovation [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth potential, citing substantial new program ramps and modest improvements in end markets [39] - The company is monitoring the impact of government shutdowns but has not seen any indications of slowdown in customer demand [50] - There is optimism regarding the defense sector's growth outlook, supported by increased military spending in the U.S. and Europe [112] Other Important Information - The company achieved a 40 basis point expansion in non-GAAP operating margin and 30% non-GAAP EPS growth for fiscal twenty twenty five [4][116] - The company reduced debt by over $100 million while returning cash to shareholders through an expanded share repurchase program [24][25] - The cash cycle improved to 63 days, the best result in five years, due to reduced inventory and improved working capital management [26] Q&A Session Summary Question: Growth trajectory and investments - Management indicated increased confidence in growth trajectory due to substantial new program ramps and modest market improvements [36][39] Question: AI opportunities - The company is seeing opportunities in AI, particularly in power generation and healthcare, with new programs leveraging AI technology [43][44] Question: Impact of government shutdown - No indications of slowdown from the government shutdown have been observed, and customer demand remains stable [50] Question: Semi cap and energy growth - The outlook for semi cap remains stable, with expectations of share gains, while energy sector growth is driven by infrastructure and power generation [52][54] Question: Healthcare sector strength - Strength in the Healthcare sector is attributed to both new program ramps and the resolution of inventory overhang [58] Question: Customer visibility and tariffs - Customer visibility is stable, with ongoing focus on new program ramps and managing supply chain challenges related to tariffs [67] Question: Capacity and expansion in Malaysia - The new facility in Malaysia has significant expansion capacity, and efficiency improvements are expected to drive profitability [79] Question: Commercial aerospace demand - There is potential for commercial aerospace demand to increase, but visibility on timing remains uncertain [82][85]

FISCAL FOURTH QUARTER AND FISCAL 2025 HIGHLIGHTS October 22, 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. Fo ...

Core Insights - Plexus (PLXS) reported revenue of $1.06 billion for the quarter ended September 2025, marking a year-over-year increase of 0.7% and an EPS of $2.14, up from $1.85 a year ago, indicating strong earnings performance [1] - The revenue exceeded the Zacks Consensus Estimate of $1.05 billion by 1.16%, while the EPS surpassed the consensus estimate of $1.84 by 16.3% [1] Financial Performance Metrics - Plexus shares have returned +3.4% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change, with a current Zacks Rank of 3 (Hold), suggesting potential performance in line with the broader market [3] - Revenue breakdown by market sector includes: - Healthcare/Life Sciences: $424 million, below the average estimate of $433.16 million, with a year-over-year change of +2.2% [4] - Aerospace/Defense: $173 million, below the average estimate of $183.12 million, with a year-over-year change of -6% [4] - Industrial: $461 million, exceeding the average estimate of $430.41 million, with a year-over-year change of +2% [4]

Core Viewpoint - Plexus (PLXS) reported quarterly earnings of $2.14 per share, exceeding the Zacks Consensus Estimate of $1.84 per share, and showing an increase from $1.85 per share a year ago, resulting in an earnings surprise of +16.30% [1][2] Financial Performance - The company achieved revenues of $1.06 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.16%, compared to $1.05 billion in the same quarter last year [2] - Over the last four quarters, Plexus has exceeded consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Plexus shares have declined approximately 3.9% year-to-date, while the S&P 500 has gained 14.5% [3] - The future performance of Plexus stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.83 on revenues of $1.06 billion, and for the current fiscal year, it is $7.49 on revenues of $4.31 billion [7] - The estimate revisions trend for Plexus was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Electronics - Manufacturing Services industry, to which Plexus belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]