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 ...

近期市场反应的焦点，主要围绕"撤销消费税"的政策揣测，相关讨论推动日元转弱，并令长期政府债券 收益率上升。不过，日本整体财政状况仍相对稳健，预算赤字仅占当地生产总值约0.2%，远低于多数 已发展市场。即使撤销为期两年的消费税，其财政影响亦仅相当于当地生产总值约1%，并可透过其他 政策措施抵销。因此，在选举结果及政策方向正式明朗前，较审慎的做法是避免过度解读市场揣测。 普徕仕日本及环球股票投资组合专家就日本提前大选表示，从日本股票的角度看，宣布提前大选的消息 引发日元及日本国债市场的波动明显加剧。尽管市场杂音与揣测升温，但相关波动并未改变该行核心投 资观点。市场普遍仍预期自民党可望稳胜，甚至毋须依赖执政联盟伙伴，便可取得多数议席。 整体而言，普徕仕对日本股票维持正面看法，并认为市场对宏观不确定性的忧虑或有所高估。市场 对"高市交易"的关注，尤其集中于国防及核能相关股份，相关利好因素在很大程度上已经反映。事实 上，这些板块在选举结果公布前已处于偏高估值水平，主要受地缘政治风险升温，以及北约成员国增加 国防开支等结构性因素支持。 普徕仕认为，具吸引力的投资机会或将出现在可受惠于日元转强或潜在消费税宽免的板块，包括部 ...

Core Insights - China's new licensing requirements for rare earth metal exports are creating uncertainty in the semiconductor industry, particularly affecting chip equipment manufacturers [1][2] - Major companies like Applied Materials, Lam Research, and KLA Corp are identified as particularly vulnerable to supply chain disruptions and cost inflation due to their reliance on rare earth materials [2][4] Group 1: Applied Materials Inc (AMAT) - Applied Materials is heavily reliant on rare earths for its semiconductor capital equipment, particularly for maintaining ultra-clean vacuum environments [3] - The company could face delays in tool shipments or increased costs if sourcing becomes constrained due to China's export licensing regime [4] - Despite a 35% increase in stock year-to-date, potential supply chain risks may dampen investor enthusiasm moving into 2026 [4] Group 2: Lam Research Corp (LRCX) - Lam Research has seen a 90% surge in stock in 2025, but its dependence on rare earths for etching and deposition tools poses a risk [5] - The company’s production timelines could be affected by disruptions in rare earth supply, as China controls over 90% of global rare earth processing capacity [6] - Even minor supply chain issues could lead to significant volatility in LRCX shares, which are already priced for perfection [7] Group 3: KLA Corp (KLAC) - KLA's metrology and inspection systems require rare-earth-based magnets for precision, making it vulnerable to China's export restrictions [8] - The stock has increased over 60% this year, but reliance on rare earth-dependent components could complicate future product rollouts [9] - The timing of China's restrictions adds unpredictability, and investors may need to reassess valuations if supply chain risks materialize [9]

Financial Data and Key Metrics Changes - For Q4, the company reported approximately $8.3 billion in revenue, exceeding guidance by roughly $800 million, with core operating income at $519 million and a core operating margin of 6.3%, a 50 basis point improvement year-over-year [9][12][17] - Core diluted earnings per share was $3.29, while GAAP diluted earnings per share came in at $1.99 [9][12] - Full-year adjusted free cash flow exceeded $1.3 billion, with a debt-to-core EBITDA ratio of 1.3 times and cash balances of approximately $1.9 billion [12][13] Segment Performance Changes - Regulated Industries revenue was $3.1 billion, with a year-over-year increase of approximately 3% and a core operating margin of 6.5% [10] - Intelligent Infrastructure revenue reached $3.7 billion, $400 million above expectations, with a core operating margin of 5.9% [10][11] - Connected Living and Digital Commerce revenue totaled $1.4 billion, reflecting a year-over-year decline of approximately 14%, but with a core operating margin of 6.6%, up 210 basis points year-over-year [11][12] Market Data and Key Metrics Changes - The automotive and transportation market is expected to decline by 5% in FY26, while healthcare outsourcing is entering a growth phase, particularly in drug delivery systems [49][50] - AI-related revenue is projected to grow by roughly 25% in FY26, reaching about $11.2 billion, driven by strong demand in cloud and data center infrastructure [53][54] Company Strategy and Industry Competition - The company is focusing on system-level integration across its segments, particularly in Intelligent Infrastructure, to enhance speed and reduce costs for customers [51][52] - A deliberate shift is being made in Connected Living and Digital Commerce to exit lower-margin programs while investing in higher-margin opportunities [55][56] - The company aims to maintain a disciplined capital allocation strategy, returning approximately 80% of free cash flow to shareholders [57] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified portfolio despite mixed market dynamics, with strong performance in AI-related sectors offsetting weaknesses in automotive and renewables [35][36] - The company is well-positioned for sustainable growth, targeting 6% plus core operating margins and over $1.5 billion in adjusted free cash flow over time [57][58] Other Important Information - The company completed a $1 billion share repurchase authorization and has a new $1 billion program authorized for FY26 [14][15] - The company is investing in AI and automation across its operations to enhance efficiency and competitiveness [39][43] Q&A Session Summary Question: Can you provide details on growth areas in AI? - The company expects 25% year-on-year growth in AI revenue, with significant growth in capital equipment and cloud and data center infrastructure, while maintaining strong positions in existing markets [64][65] Question: What is the outlook for healthcare growth? - Growth is anticipated in drug delivery systems and devices, with a healthy pipeline of new business awarded, contributing to margin expansion [66]