Plexus' Q3 Earnings Surpass Estimates, Revenues Miss Marginally

Core Insights - Plexus Corp. reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.90, an increase from $1.45 in the same quarter last year, surpassing the Zacks Consensus Estimate of $1.71 per share [1][7] - Revenues reached $1.018 billion, a nearly 6% year-over-year increase, but slightly missed the Zacks Consensus Estimate of $1.021 billion [2][7] Revenue Breakdown - Revenues from the Americas increased by 2%, while EMEA sales declined by 14.6%. Asia-Pacific revenues surged by 14% to $594 million [2] - The Industrial sector's revenues rose by 3% year over year to $415 million, contributing 41% to total revenues. The Healthcare/Life Sciences sector saw a 10.5% increase to $420 million, also contributing 41% [4][5] - Aerospace/Defense revenues inched up by 2.8% year over year to $183 million, contributing 18% to total revenues [8] Operational Highlights - Plexus secured 41 new manufacturing program wins, expected to generate $250 million in annualized revenues once fully ramped into production [3][7] - Gross profit on a GAAP basis increased by 9.4% year over year to $103.3 million, with a gross margin of 10.1% [10] Cash Flow and Balance Sheet - As of June 28, 2025, Plexus had cash and cash equivalents of $237.6 million, down from $310.5 million as of March 29 [11] - The company reported cash flows from operations of $26.9 million and free cash flow of $13.2 million for the quarter [11] Share Repurchase Program - Plexus repurchased $18.4 million worth of shares at an average price of $128.70 per share and added another $100 million to its existing buyback authorization [12] Q4 Outlook - For the fourth quarter of fiscal 2025, Plexus anticipates revenues between $1.025 billion and $1.065 billion, with non-GAAP EPS expected in the range of $1.82 to $1.97 [13]