Plexus Announces Fiscal Second Quarter Financial Results

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].