Plexus(US:PLXS)2026-02-05 21:32Financial Performance - Net sales for the three months ended January 3, 2026, increased by $93.8 million, or 9.6%, compared to the same period in 2024, reaching $1,069.9 million[83]. - Operating income for the three months ended January 3, 2026, increased by $7.6 million, or 16.2%, to $54.5 million, with an operating margin of 5.1%[94]. - Net income for the three months ended January 3, 2026, rose by $3.9 million, or 10.5%, to $41.2 million, primarily due to increased operating income[99]. - Diluted earnings per share increased to $1.51 for the three months ended January 3, 2026, up from $1.34 in the prior year[100]. Segment Performance - In the AMER segment, net sales increased by $70.9 million, or 25.9%, driven by production ramps of new products and increased customer demand[86]. - In the APAC segment, net sales increased by $4.6 million, or 0.8%, with production ramps partially offset by customer disengagements[87]. - In the EMEA segment, net sales increased by $17.2 million, or 17.0%, attributed to production ramps of new products[88]. Profitability and Margins - Gross profit for the three months ended January 3, 2026, increased by $5.4 million, or 5.4%, with a gross margin of 9.9%, down 40 basis points from the previous year[93]. - Cost of sales increased by $88.3 million, or 10.1%, primarily due to higher material and component costs[91]. Cash Flow and Liquidity - Cash and cash equivalents as of January 3, 2026, were $249.4 million, down from $306.8 million as of September 27, 2025[106]. - Cash flows used in operating activities for the three months ended January 3, 2026, were $(15.4) million, compared to $53.6 million for the same period in 2024[108]. - Free Cash Flow (FCF) for the three months ended January 3, 2026, was $(50.6) million, a decrease of $77.7 million compared to $27.1 million for the same period in 2024[114]. - Cash flows used in investing activities increased to $35.1 million for the three months ended January 3, 2026, from $26.4 million in the same period in 2024[117]. - Cash flows used in financing activities were $8.0 million for the three months ended January 3, 2026, compared to $52.8 million for the same period in 2024[119]. Capital Expenditures and Investments - Capital expenditures for fiscal 2026 are estimated to be approximately $100.0 million to $120.0 million to support new program ramps and replace older equipment[118]. - As of January 3, 2026, 91% of cash and cash equivalents were held outside the U.S. by foreign subsidiaries[107]. - The company has a share repurchase program with $62.6 million of authority remaining under the 2026 Program as of January 3, 2026[121]. Currency and Interest Rate Risks - As of January 3, 2026, 10% of net sales and 17% of total costs were denominated in currencies other than the U.S. dollar[132]. - A 10.0% change in the value of the U.S. dollar relative to other transactional currencies would not have a material effect on the company's financial position, results of operations, or cash flows[132]. - The only material interest rate risk as of January 3, 2026, was associated with the Credit Facility, which has various interest rate options based on different benchmarks[134]. - The borrowing rate under the Credit Facility was SOFR plus 1.00% as of January 3, 2026[135]. - Borrowings under the 2018 NPA are based on a fixed interest rate, mitigating much of the company's interest rate risk[135]. - A 10.0% change in interest rates would not have a material effect on the company's financial position, results of operations, or cash flows[135].