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]

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