Plexus(US:PLXS)2025-10-22 20:25Financial Performance - Plexus reported fiscal fourth quarter revenue of $1.058 billion, with a GAAP operating margin of 5.0% and diluted EPS of $1.87[5]. - For fiscal year 2025, Plexus achieved revenue of $4.033 billion, maintaining a GAAP operating margin of 5.0% and diluted EPS of $6.26[5]. - The company generated free cash flow of $97 million in Q4 and $154 million for the fiscal year 2025, exceeding projections[6][8]. - Plexus won 28 manufacturing programs in Q4, representing $274 million in annualized revenue, and a total of 141 wins for fiscal 2025, amounting to $941 million[7]. - The fiscal fourth quarter cash cycle was 63 days, a reduction of 6 days sequentially, marking the best result in the past five years[7][16]. - Return on invested capital (ROIC) for fiscal year 2025 was 14.6%, exceeding the weighted average cost of capital by 570 basis points[8][14]. - The company initiated fiscal first quarter 2026 revenue guidance of $1.050 billion to $1.090 billion, with non-GAAP EPS guidance of $1.66 to $1.81[5][7]. - Plexus' non-GAAP diluted EPS for Q4 was $2.14, exceeding guidance, while fiscal 2025 non-GAAP diluted EPS was $7.43[5][7]. Customer and Revenue Concentration - The top 10 customers accounted for 49% of revenue in Q4, consistent with the previous quarter and fiscal year 2025[11]. Investment and Growth Strategy - Plexus plans to invest in talent, technology, and facilities to support future revenue growth and operational efficiency initiatives[7]. Quarterly Financial Metrics - Net sales for Q4 2025 reached $1,058,366, an increase from $1,050,569 in Q4 2024, representing a growth of 0.08%[21]. - Gross profit for Q4 2025 was $104,783, compared to $107,912 in Q4 2024, indicating a decrease of 2.1%[21]. - Operating income for Q4 2025 was $53,112, slightly down from $53,858 in Q4 2024, a decline of 1.4%[21]. - Net income for Q4 2025 increased to $51,429, up from $41,221 in Q4 2024, reflecting a growth of 24.5%[21]. - Diluted earnings per share for Q4 2025 were $1.87, compared to $1.48 in Q4 2024, marking an increase of 26.3%[21]. Balance Sheet Highlights - Total current assets decreased to $2,398,793 in Q4 2025 from $2,477,150 in Q4 2024, a decline of 3.2%[24]. - Total liabilities decreased to $1,682,522 in Q4 2025 from $1,828,996 in Q4 2024, a reduction of 8.0%[24]. - Total shareholders' equity increased to $1,454,588 in Q4 2025 from $1,324,825 in Q4 2024, an increase of 9.8%[24]. Non-GAAP Metrics - Non-GAAP operating income for Q4 2025 was $60,915, compared to $64,707 in Q4 2024, a decrease of 5.4%[26]. - Adjusted diluted earnings per share for Q4 2025 were $2.14, up from $1.85 in Q4 2024, reflecting a growth of 15.7%[26]. Tax and Economic Metrics - The adjusted effective tax rate decreased to 8% for the twelve months ended September 28, 2024, down from 13% in the previous year[31]. - Economic return improved to 5.7% for the twelve months ended September 28, 2024, compared to 3.6% in the previous year[31]. Executive Compensation and Charges - Accelerated stock-based compensation expense recorded was $5.1 million due to an executive retirement agreement[31]. - The company incurred restructuring and other charges of $20.257 million for the twelve months ended September 28, 2024[31].