Plexus(US:PLXS)2025-04-23 20:24Financial 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]