Plexus(US:PLXS)2026-01-28 21:17Financial Performance - Plexus reported fiscal first quarter 2026 revenue of $1.070 billion, a 1% sequential increase and a 10% year-over-year growth[5]. - The company achieved a GAAP operating margin of 5.1% and a diluted EPS of $1.51 for the first quarter[5]. - Non-GAAP operating margin was reported at 5.8% with an adjusted EPS of $1.78, excluding $0.27 of stock-based compensation expense[5]. - Plexus reported negative free cash flow of $50.6 million for the first quarter, with cash flows used in operations at $15.4 million and capital expenditures at $35.2 million[13]. - Net sales for the three months ended January 3, 2026, increased to $1,069,852 thousand, up 9.6% from $976,122 thousand for the same period in 2024[19]. - Gross profit for the same period was $106,138 thousand, representing a gross margin of 9.9%, compared to $100,692 thousand and a gross margin of 10.3% in the prior year[19]. - Operating income rose to $54,464 thousand, with an operating margin of 5.1%, compared to $46,860 thousand and an operating margin of 4.8% in the previous year[19]. - Net income for the quarter was $41,182 thousand, an increase of 10.4% from $37,267 thousand year-over-year[19]. - Diluted earnings per share increased to $1.51, up from $1.34 in the same quarter last year, reflecting a growth of 12.7%[19]. - Adjusted net income for the quarter was $48,559 thousand, compared to $48,098 thousand in the same quarter last year, showing a year-over-year increase of 1.0%[24]. Revenue Guidance and Market Performance - Plexus initiated fiscal second quarter 2026 revenue guidance of $1.110 billion to $1.150 billion, representing a 6% sequential and 15% year-over-year growth at the midpoint[7]. - The company won 22 manufacturing programs during the quarter, representing $283 million in annualized revenue when fully ramped into production[6]. - The Aerospace/Defense market sector generated $178 million in revenue, accounting for 17% of total revenue for the quarter[10]. - Top 10 customers comprised 52% of revenue during the first quarter, an increase of 3 percentage points from the previous quarter[9]. Capital and Investment Metrics - Return on invested capital (ROIC) for the first quarter was 13.2%, exceeding the weighted average cost of capital by 420 basis points[7]. - The company reported a return on invested capital (ROIC) of 13.2% for the quarter, down from 14.6% in the previous year[27]. - The fiscal first quarter cash cycle was 69 days, reflecting working capital investments to support significant program ramps and increased customer demand[7]. Balance Sheet Highlights - Total assets as of January 3, 2026, were $3,185,967 thousand, a slight increase from $3,137,110 thousand as of September 27, 2025[22]. - Current liabilities increased to $1,543,632 thousand from $1,518,683 thousand in the previous quarter, indicating a rise of 1.6%[22]. - Total shareholders' equity reached $1,481,063 thousand, up from $1,454,588 thousand, reflecting a growth of 1.8%[22].