Plexus Q4 Earnings Surpass Estimates, Revenues Up Marginally Y/Y

Core Insights - Plexus Corp (PLXS) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.14, an increase from $1.85 in the same quarter last year, surpassing the Zacks Consensus Estimate of $1.84 per share [1][7] - Revenues for the quarter reached $1.058 billion, reflecting a year-over-year increase of nearly 0.7%, exceeding the Zacks Consensus Estimate of $1.046 billion [1][7] - For fiscal 2025, PLXS reported total revenues of $4.03 billion, up 1.8% from fiscal 2024, and adjusted EPS of $7.43, marking a 29.9% increase [3] Revenue Breakdown - Revenues from the Americas increased by 9.4% to $336 million, while revenues from EMEA and Asia-Pacific declined by 7% and 2.1%, respectively [2] - The Industrial sector's revenues rose by 2% year over year to $461 million, contributing 44% to total revenues, with expectations for low single-digit growth in the current quarter [4] - Healthcare/Life Sciences revenues increased by 2.2% to $424 million, accounting for 40% of total revenues, with anticipated low single-digit growth [5] - Aerospace/Defense revenues fell by 6% year over year to $173 million, contributing 16% to total revenues, with management guiding for flat revenue growth in this sector [8] Operational Performance - Gross profit on a GAAP basis decreased by 2.9% year over year to $104.8 million, with a gross margin of 9.9%, down from 10.3% in the previous year [10] - Selling and administrative expenses declined by 4.4% to $51.7 million, while adjusted operating margin contracted by 40 basis points to 5.8% [10] Cash Flow and Balance Sheet - As of September 27, 2025, Plexus had cash and cash equivalents of $307 million, up from $237.6 million as of June 28 [11] - Long-term debt and finance lease obligations were $91.9 million, slightly down from $92.2 million [11] - Cash flows from operations for the quarter were $132 million, with free cash flow reported at $97.2 million [11] Share Repurchase - The company repurchased $21.5 million worth of shares at an average price of $134.07 per share, with a total of $65 million repurchased in fiscal 2025 [12] Q1 Outlook - For the first quarter of fiscal 2025, revenues are expected to be between $1.05 billion and $1.09 billion, with non-GAAP EPS anticipated in the range of $1.66 to $1.81 [13]