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]

Core Viewpoint - Plexus Corp. is set to release its fiscal second quarter 2025 results on April 23, 2025, followed by a conference call on April 24, 2025, to discuss the results [1]. Company Information - Plexus Corp. has been in operation since 1979, focusing on partnering with companies to create innovative products [3]. - The company employs over 20,000 individuals and specializes in Design and Development, Supply Chain Solutions, New Product Introduction, Manufacturing, and Sustaining Services [3]. - Plexus is recognized as a global leader in serving customers in industries that require highly complex products and adhere to demanding regulatory environments [3]. Event Details - The fiscal 2025 Q2 earnings conference call will take place on April 24, 2025, at 8:30 a.m. Eastern Time [4]. - Participants can join the live webcast through the investor relations section of the Plexus website [4].

Core Viewpoint - Plexus Corporation (PLXS) has experienced a significant decline in its stock price, down 16.8% year to date, which is notably worse than the Electronic Manufacturing Industry's decline of 3.6% and the S&P 500's loss of 3.3% [1][5]. Price Performance - The stock is currently trading below its 50-day moving average, indicating bearish sentiment among investors, with a recent closing price of $130.24, down 24.7% from its 52-week high of $172.89 [9]. Reasons for Decline - Continued demand weakness in the industrial market sector is a major concern, with revenues for the fiscal second quarter expected to decline by 4.3% year over year to $400.4 million [5]. - The Aerospace/Defense sector is also expected to see subdued growth in fiscal 2025, with revenues projected to increase by only 2% due to challenges in the commercial aerospace subsector [6]. - Geopolitical tensions and uncertainty in global trade policies may disrupt supply chains, increase costs, and delay production, negatively impacting revenues and margins [7]. - Analysts have revised earnings estimates downward, with a 0.7% decrease for the current quarter to $1.54 [8]. Long-Term Outlook - Plexus has secured 30 manufacturing programs in the fiscal first quarter, which could generate $212 million in annualized revenues once fully ramped up, including $130 million from the Healthcare/Life Sciences sector [10]. - The company has a strong pipeline of qualified manufacturing opportunities valued at $3.6 billion, which is expected to support revenue growth in fiscal 2025 [11]. - Plexus generated $27 million in free cash flow in the last reported quarter, exceeding expectations, and now anticipates generating $100 million in free cash flow for fiscal 2025 [12]. Investment Considerations - Despite a positive long-term outlook, the near-term expectations are uncertain due to bearish technical indicators and cautious management outlook for 2025, leading to a Zacks Rank 4 (Sell) [13]. - Other stocks in the same industry with better rankings include Celestica Inc (CLS), Jabil Inc. (JBL), and Sanmina Corporation (SANM), each carrying a Zacks Rank 2 (Buy) [14].

Core Points - Plexus Corp. will participate in the Raymond James 46th Annual Institutional Investors Conference on March 3, 2025, featuring a fireside chat with its management team [1][3] - The fireside chat is scheduled for 2:50 p.m. Eastern Time and will be available via live webcast [1][3] - A replay of the webcast will be accessible for 90 days after the live event [3] Company Overview - Plexus has been operational since 1979, focusing on designing, manufacturing, and servicing complex products in regulated environments [2] - The company serves various sectors, including Aerospace/Defense, Healthcare/Life Sciences, and Industrial, with a workforce of over 20,000 across 26 facilities globally [2] - Plexus emphasizes innovative solutions that merge advanced technology with human impact, catering to both market-leading and disruptive global companies [2]

Financial Performance - For the three months ended December 28, 2024, net sales decreased by $6.5 million, or 0.7%, compared to the same period in 2023, totaling $976.1 million[92] - Gross profit increased by $12.6 million, or 14.3%, with a gross margin of 10.3%, up 130 basis points from 9.0% in the prior year[102] - Operating income rose by $1.7 million, or 3.8%, with an operating margin of 4.8%, an increase of 20 basis points compared to the previous year[103] - Net sales in the AMER segment decreased by $35.9 million, or 11.6%, primarily due to decreased customer end-market demand[95] - APAC segment net sales increased by $54.3 million, or 9.8%, driven by production ramps of new products and increased customer demand[96] - EMEA segment net sales decreased by $20.1 million, or 16.6%, also due to decreased customer end-market demand[97] - Net income for the three months ended December 28, 2024 increased by $8.1 million, or 27.7%, to $37.3 million compared to the same period in 2023[110] - Diluted earnings per share rose to $1.34 for the three months ended December 28, 2024, up from $1.04 for the same period in 2023[111] Cash Flow and Capital Expenditures - Free cash flow (FCF) was $27.1 million for the three months ended December 28, 2024, an increase of $58.8 million compared to $(31.7) million for the same period in 2023[128] - Cash flows provided by operating activities were $53.6 million for the three months ended December 28, 2024, compared to cash flows used in operating activities of $3.0 million for the same period in 2023[121] - Cash and cash equivalents decreased to $317.8 million as of December 28, 2024, down from $347.5 million as of September 28, 2024[117] - Capital expenditures for fiscal 2025 are estimated to be approximately $120.0 million to $150.0 million, including $60.0 million for footprint expansion in Penang, Malaysia[131] Tax and Income - Income tax expense for the three months ended December 28, 2024, was $6.2 million, up from $5.6 million in the prior year, reflecting an increase in pre-tax book income[108] - The annual effective tax rate for fiscal 2025 is expected to be approximately 14.0% to 16.0% assuming no changes to tax laws[110] Return on Investment - The return on invested capital (ROIC) improved to 13.8% from 10.3% year-over-year[92] - Economic return increased to 4.9% from 2.1% in the previous year[92] - Return on Invested Capital (ROIC) for the three months ended December 28, 2024 was 13.8%, reflecting an economic return of 4.9% based on a weighted average cost of capital (WACC) of 8.9%[115] Inventory and Share Repurchase - Days in inventory decreased by 27 days to 134 days for the three months ended December 28, 2024, compared to 161 days for the same period in 2023[125] - The company repurchased 84,823 shares for $12.8 million at an average price of $151.19 per share during the three months ended December 28, 2024[135] Financial Position and Risks - As of the end of Q1 fiscal 2025, cash and cash equivalents were $318 million, while total debt and financing obligations amounted to $211 million[140] - The company anticipates that its cash flows from operations and available cash will be sufficient to meet working capital and fixed capital requirements for the next twelve months[140] - The company has evaluated its foreign currency exposure, with 10% of net sales and 16% of total costs denominated in currencies other than the U.S. dollar as of December 28, 2024[146] - A 10% change in the value of the U.S. dollar relative to other currencies would not have a material effect on the company's financial position or cash flows[146] - The primary interest rate risk is associated with the Credit Facility, with a borrowing rate of SOFR plus 1.00% as of December 28, 2024[149] - A 10% change in interest rates would not have a material effect on the company's financial position or cash flows[149] - The company may need to arrange additional debt or equity financing if future financing needs increase[140] - The company selectively hedges foreign currency transactions to mitigate potential foreign exchange risks[145] - There were no material changes in market risk exposure from foreign exchange and interest rates compared to the previous fiscal year[144] - The company continuously evaluates various financing alternatives to supplement its financial resources[140]

Financial Data and Key Metrics - The company will discuss forward-looking statements regarding revenue, gross margin, selling and administrative expenses, operating margin, other income and expense, taxes, cash cycle, capital allocation, and future business outlook during the call [3] - Forward-looking statements are not guarantees as actual results could differ materially due to inherent difficulties in predicting future results [4] Business Lines and Key Metrics - No specific data provided in the content Market Data and Key Metrics - No specific data provided in the content Company Strategy and Industry Competition - No specific data provided in the content Management Commentary on Operating Environment and Future Outlook - No specific data provided in the content Other Important Information - The company advises referring to its periodic SEC filings, particularly the risk factors in the Form 10-K for the fiscal year ended September 28, 2024, for factors that could cause actual results to differ materially from forward-looking statements [4] Q&A Session - No Q&A session details provided in the content

FISCAL FIRST QUARTER 2025 HIGHLIGHTS January 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. Forward-lookin ...