Plexus (NasdaqGS:PLXS) FY Conference March 02, 2026 10:25 AM ET Company ParticipantsDavid Abuhl - SVP of FinanceMelissa Fairbanks - VP of Equity ResearchShawn M. Harrison - VP of Investor RelationsTodd Kelsey - President and CEOMelissa FairbanksAll right, I think we're live. Good morning, everyone. Welcome to the conference. I am Melissa Fairbanks. I cover analog semis and IT supply chain, including the EMS guys with our guest this morning, Plexus. Today from Plexus, we've got Chief Executive Officer Todd K ...

Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Canada, Mexico draw record foreign investment in 2025; TexAmericas Center hosts Tokyo delegation to boost Japan-Texas investment pipeline; and Twin Eagle expands rail capacity at Big Spring transload terminal. Canada, Mexico draw record foreign investment in 2025 Canada and Mexico attracted record levels of foreign direct investment (FDI) in 2025, underscoring North America’s ...

来源：求是网 百年变局加速演进，世界经济版图深度调整，全球产业格局正经历一场系统性重构。这一进程中，以美国为代表 推行的单边主义与保护主义政策加剧了全球经贸体系的不确定性，迫使许多国家重新审视并调整其产业布局，纷 纷推动产业本土化以规避外部风险，特别是主要经济体之间围绕半导体、人工智能等新兴产业的战略性竞赛日趋 白热化。深入剖析当前全球产业格局重构的核心特征、深层动因，进而制定精准有效的应对策略，对于我国统筹 发展和安全、实现产业高质量发展具有重大战略意义。 2025年7月16日至20日，第三届中国国际供应链促进博览会在北京举行，30余家中外企业和机构在智能汽车链展区 集中展示产业链上中下游的关键技术和产品。图为7月19日，参观者在观看展出的辅助驾驶芯片产品。 新华社记 者 鞠焕宗/摄 当前产业格局重构，绝非局部环节的调整，而是涵盖空间布局、价值结构、技术迭代、组织模式的多维度变革， 其本质是对经济全球化分工的调整，呈现出四大鲜明特征。 空间之变：从全球一体化到区域化与"1+N"多点布局。传统"哪里成本低就布局哪里"的全球化生产网络，在日益 凸显的地缘政治冲突与突发性供应链中断风险面前，其脆弱性暴露无遗。一些 ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is presented as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][7] - This company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and positioned to capitalize on the onshoring trend driven by tariffs [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened by debt [8][10] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9][10] Market Trends - The article discusses the broader trends of AI, energy, tariffs, and onshoring, suggesting that this company is uniquely positioned to benefit from these interconnected developments [6][14] - The influx of talent into the AI sector is expected to drive rapid advancements, reinforcing the notion that investing in AI is a strategic move for future growth [12] Conclusion - The narrative concludes with a strong call to action for investors to engage in the AI market, emphasizing the potential for significant returns within a 12 to 24-month timeframe [15][19]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are significant, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is highlighted as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is positioned to profit from the surge in electricity demand driven by AI data centers [3][6] Market Position - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from American LNG exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses a unique footprint in nuclear energy, which is crucial for America's future power strategy, and is capable of executing large-scale engineering projects across various energy sectors [7][8] Financial Health - The company is noted for being completely debt-free and holding cash reserves equivalent to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened by debt [8][10] - It also has a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth engines without the associated premium costs [9][10] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued, trading at less than seven times earnings excluding cash and investments [10][11] - The company is recognized for delivering real cash flows and owning critical infrastructure, making it an attractive investment opportunity in the context of the AI revolution [11][12]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7] Investment Opportunity - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI data centers, making it a potentially lucrative investment [3][8] Energy Infrastructure - The company owns significant nuclear energy infrastructure assets, which are crucial for America's future power strategy [7] - It is one of the few global firms capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, amounting to nearly one-third of its market capitalization [8] - It also has a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9] Market Perception - The company is described as undervalued, trading at less than seven times earnings, which is attractive given its ties to the rapidly growing AI and energy sectors [10] - There is a growing interest from hedge fund managers, indicating that this stock is gaining attention among sophisticated investors [9][10] Future Trends - The article emphasizes the importance of AI as a disruptive force in traditional industries, suggesting that companies that adapt to AI will thrive [11][12] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the case for investment in AI-related companies [12][13] Strategic Context - The current geopolitical landscape, including tariffs and onshoring trends, is creating a favorable environment for the company to capitalize on its energy infrastructure capabilities [5][14] - The anticipated surge in U.S. LNG exports under the "America First" energy doctrine is expected to further enhance the company's market position [7][14]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for investment in AI technologies [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy sector, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] - This company is described as a "toll booth" operator in the AI energy boom, profiting from the surge in electricity demand driven by AI advancements [4][5] Market Position - The company is noted for its unique capabilities in executing large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy, oil, gas, and renewables [7][8] - It is completely debt-free and has a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other heavily indebted energy firms [8][10] Strategic Advantages - The company holds a substantial equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth opportunities in the AI sector without the associated premium costs [9][10] - The company is benefiting from the onshoring trend driven by tariffs, which is expected to enhance its operational capabilities and market presence [6][14] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, making investments in AI a strategic move for future growth [12] - The potential for significant returns is emphasized, with projections suggesting a possible 100% return within 12 to 24 months for investors who act now [15][19]

Financial Data and Key Metrics Changes - Sales in Q4 were $1.1 billion, representing an increase of 5% in local currency or 8% on a reported basis [7][11] - Adjusted EPS for the quarter was $13.36, an 8% increase over the prior year, while reported EPS was $13.98 compared to $11.96 in the prior year [10][11] - Gross margin was 59.8%, a decrease of 140 basis points, impacted by unfavorable foreign currency and tariff costs [8][12] Business Line Data and Key Metrics Changes - Laboratory sales increased 3%, industrial sales increased 7%, and food retail sales grew 19% in the quarter [7][8] - Service revenue grew 8% in the quarter, including a 2% benefit from acquisitions [8] - For the full year, local currency sales increased 3%, with adjusted operating profit declining 1% and adjusted EPS increasing 4% [11][12] Market Data and Key Metrics Changes - Local currency sales in the Americas increased 7%, Europe increased 4%, and Asia increased 4% [7] - Local currency sales in China increased 3% during the quarter, with modest growth expected in 2026 [7][25] - Emerging markets outside of China accounted for 18% of sales in 2025 and grew above the company average [25] Company Strategy and Development Direction - The company is focused on driving growth through its Spinnaker sales and marketing program and innovative product portfolio [6] - Strategic initiatives include capitalizing on automation, digitalization, and onshoring investments globally [6][26] - The company aims to maintain its competitive advantage through continuous innovation and operational excellence [6][19] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are expected to be cautious with investments at the start of the year due to geopolitical tensions and market uncertainties [14][31] - The company anticipates gradual improvements throughout the year, with a local currency sales growth forecast of approximately 4% for 2026 [15][16] - Management expressed confidence in their ability to execute growth initiatives and gain market share despite macroeconomic challenges [15][26] Other Important Information - Free cash flow for 2025 was $878 million, with a conversion ratio of 99% of adjusted net income [12] - The company expects total amortization for 2026 to be approximately $78 million and interest expense to be around $70 million [17][18] - Share repurchases are expected to be in the range of $825 million to $875 million [18] Q&A Session Summary Question: Customer caution in Q1 guidance - Management acknowledged that while there are positive headlines in pharma and life sciences, they expect customers to be cautious at the start of the year, which has been factored into their guidance [31][33] Question: Components of guidance regarding pricing and volume - Management indicated that pricing is expected to be around 3.5% for Q1, with a full-year expectation of 2.5% [34][36] Question: Food retail performance and outlook - Management noted that food retail is a lumpy business with project-based revenue, and while they are pleased with Q4 performance, they expect flat growth for the full year [55][56] Question: China market and pharmacopoeia opportunity - Management stated that while there is good engagement in China, the pharmacopoeia opportunity will support ongoing growth but is not expected to result in a significant step change [57][75] Question: Reshoring and onshoring opportunities - Management views reshoring as a longer-term opportunity, likely materializing in 2027 and beyond, as factories need to be built before orders can be realized [61][62] Question: European market performance - Management highlighted strong performance in Europe, particularly in product inspection, despite a softer economic backdrop [66][68] Question: Service business outlook - Management expects mid- to high-single-digit growth for the service business in 2026, with continued focus on penetrating the serviceable addressable market [71]

Financial Data and Key Metrics Changes - Sales in Q4 were $1.1 billion, representing an increase of 5% in local currency or 4% excluding acquisitions, and an 8% increase on a reported basis in US dollars [7] - Adjusted EPS for the quarter was $13.36, an 8% increase over the prior year, while reported EPS was $13.98 compared to $11.96 in the prior year [10][11] - Gross margin was 59.8%, a decrease of 140 basis points, impacted by unfavorable foreign currency and incremental gross tariff costs [8][9] - Adjusted operating profit amounted to $363 million, up 3% versus the prior year, with an adjusted operating margin of 32.1%, a decrease of 160 basis points [9][11] Business Line Data and Key Metrics Changes - Laboratory sales increased 3% in Q4, while industrial sales increased 7%, including a 3% benefit from acquisitions [7][8] - Food retail sales grew 19% in the quarter, and service revenue grew 8%, including a 2% benefit from acquisitions [8] - For the full year, local currency sales increased 3%, with adjusted operating profit declining 1% and adjusted EPS increasing 4% [11][12] Market Data and Key Metrics Changes - Local currency sales in the Americas increased 7%, Europe increased 4%, and Asia (rest of the world) also increased 4% [7] - Local currency sales in China increased 3% during the quarter, with modest growth expected in the lab and industrial segments [24][25] - Emerging markets outside of China accounted for 18% of sales in 2025 and grew above the company average due to dedicated resources and growth initiatives [25] Company Strategy and Development Direction - The company is focused on driving growth through the Spinnaker sales and marketing program and innovative product portfolio, capitalizing on automation, digitalization, and onshoring investments [6][19] - The company aims to maintain a strong culture of innovation and operational excellence to gain market share and deliver strong financial performance [6][26] - Future growth opportunities are anticipated from customer replacement cycles and investments in on- and nearshoring activities [26] Management's Comments on Operating Environment and Future Outlook - Management noted that while there have been favorable headlines in the pharma and life sciences markets, customers are expected to be cautious with investments at the start of the year [31][32] - The company does not anticipate significant improvement in market conditions in 2026 compared to the previous year, but remains confident in executing growth and productivity initiatives [14][15] - Management highlighted the importance of their innovative portfolio and strong global leadership positions in navigating ongoing market challenges [26] Other Important Information - Free cash flow for 2025 was $878 million, with a conversion ratio of 99% of adjusted net income [12] - Guidance for 2026 includes local currency sales growth forecast of approximately 4%, with adjusted EPS expected to be in the range of $46.05-$46.70, representing a growth rate of 8%-9% [15][18] Q&A Session Summary Question: Customer caution in pharma and life sciences - Management acknowledged that despite positive headlines, there is still uncertainty in the market leading to longer deal cycles and a cautious start to the year [31][32] Question: Components of guidance for pricing and volume - Management indicated that pricing is expected to start the year stronger due to mid-year pricing actions from the previous year, with a forecast of 3.5% for Q1 and 2.5% for the full year [34][35] Question: Growth in food retail - Management noted that food retail is a lumpy business with project-based revenue, and while they are pleased with Q4 performance, they expect flat growth for the full year 2026 due to tough comparisons [55][56] Question: Outlook for China and pharmacopoeia opportunity - Management stated that while there is good engagement in China, the pharmacopoeia opportunity will support ongoing growth but is not expected to result in a significant step change [57][75] Question: Reshoring and onshoring opportunities - Management views reshoring as a longer-term opportunity, likely materializing in 2027 and beyond, as factories need to be built before orders can be realized [61][62] Question: Performance in Europe - Management highlighted strong performance in Europe despite a softer economy, driven by effective sales strategies and innovation in product offerings [66][68] Question: Service business outlook - Management expects mid- to high-single-digit growth for the service business in 2026, with continued focus on penetrating the serviceable addressable market [70][71]

Financial Data and Key Metrics Changes - Sales in Q4 2025 were $1.1 billion, representing an 8% increase on a reported basis and a 5% increase in local currency, or 4% excluding acquisitions [6][10] - Adjusted EPS for the quarter was $13.36, an 8% increase over the prior year, while reported EPS was $13.98 compared to $11.96 in the prior year [9][10] - Gross margin was 59.8%, a decrease of 140 basis points, impacted by unfavorable foreign currency and tariff costs [7][11] Business Line Data and Key Metrics Changes - Laboratory sales increased 3%, industrial sales increased 7% (including a 3% benefit from acquisitions), and food retail sales grew 19% in the quarter [6][7] - Service revenue grew 8% in the quarter, including a 2% benefit from acquisitions [7] - For the full year 2025, local currency sales increased 3%, with adjusted operating profit declining 1% and adjusted EPS increasing 4% [10][11] Market Data and Key Metrics Changes - Local currency sales in the Americas increased 7%, Europe increased 4%, and Asia (rest of the world) increased 4% [6] - Local currency sales in China increased 3% during the quarter, with modest growth expected in 2026 [6][23] - Emerging markets outside of China accounted for 18% of sales in 2025 and grew above the company average [23] Company Strategy and Development Direction - The company is focused on driving growth through its Spinnaker sales and marketing program and innovative product portfolio, capitalizing on automation, digitalization, and onshoring investments [5][24] - The company aims to maintain a strong culture of innovation and operational excellence to gain market share and deliver strong financial performance [5][24] - Future growth opportunities are anticipated from customer replacement cycles and investments in on- and nearshoring activities [24] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are expected to be cautious with investments at the start of the year due to ongoing geopolitical tensions and market uncertainties [12][28] - The company does not anticipate significant improvement in market conditions in 2026 compared to the previous year, but remains confident in its growth and productivity initiatives [12][13] - Management highlighted the importance of their innovative portfolio and strong global leadership positions in navigating market challenges [24] Other Important Information - Adjusted free cash flow for 2025 was $878 million, with a conversion ratio of 99% of adjusted net income [11] - Guidance for 2026 includes local currency sales growth of approximately 4%, adjusted EPS forecasted to be in the range of $46.05-$46.70, representing an 8%-9% growth rate [13][15] Q&A Session Summary Question: Customer caution in pharma and life sciences - Management acknowledged that while headlines have improved, there is still uncertainty leading to longer deal cycles, and customers are expected to start the year cautiously [28][30] Question: Components of guidance regarding pricing and volume - Management indicated that pricing is expected to start strong due to mid-year pricing actions from the previous year, with a forecast of 3.5% for Q1 and 2.5% for the full year [32][33] Question: Q1 guidance and market assumptions - Management provided insights into expected growth rates across different business lines, indicating a cautious outlook for Q1 compared to Q4 [40][41] Question: Food retail performance and outlook - Management noted that food retail is a lumpy business with project-based revenue, guiding for flat growth in 2026 after strong performance in 2025 [54][55] Question: China market and pharmacopoeia opportunity - Management expressed optimism about the ongoing growth in China, particularly in the pharmaceutical sector, but noted that significant changes are not expected immediately [56][74] Question: Reshoring and onshoring opportunities - Management sees reshoring as a longer-term opportunity, primarily beyond 2026, as factories need to be built before significant orders can be expected [60][62]