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Plexus Announces Fiscal Second Quarter Financial Results
NEENAH, WI – April 23, 2025 - Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal second quarter ended March 29, 2025, and guidance for our fiscal third quarter ending June 28, 2025.
•Reports fiscal second quarter 2025 revenue of $980 million, GAAP operating margin of 5.0% and GAAP diluted EPS of $1.41.
•Reports fiscal second quarter 2025 non-GAAP operating margin of 5.7% and non-GAAP diluted EPS of $1.66, excluding $0.25 of stock-based compensation expense.
•Initiates fiscal third quarter 2025 revenue guidance of $1.00 billion to $1.04 billion with GAAP diluted EPS of $1.40 to $1.55, including $0.25 of stock-based compensation expense. Fiscal third quarter non-GAAP EPS guidance of $1.65 to $1.80 excludes stock-based compensation expense.
Three Months Ended
Mar 29, 2025Mar 29, 2025Jun 28, 2025
Q2F25 Results
Q2F25 Guidance
Q3F25 Guidance
Summary GAAP Items
Revenue (in millions)$980$960 to $1,000$1,000 to $1,040
Operating margin5.0 %4.6% to 5.0%5.0% to 5.4%
Diluted EPS$1.41$1.22 to $1.37$1.40 to $1.55
Summary Non-GAAP Items (1)
Adjusted operating margin (2)5.7 %5.3% to 5.7%5.7% to 6.1%
Adjusted EPS (3)$1.66$1.46 to $1.61$1.65 to $1.80
Return on invested capital (ROIC)13.7 %
Economic return 4.8 %
(1)Refer to Non-GAAP Supplemental Information tables for additional information regarding non-GAAP financial measures.
(2)
Excludes stock-based compensation expense of approximately 70 bps for Q2F25 results, Q2F25 guidance and Q3F25 guidance.
(3)
Excludes stock-based compensation expense, net of tax, of $0.25 for Q2F25 results, $0.24 for Q2F25 guidance and $0.25 for Q3F25 guidance.
Fiscal Second Quarter 2025 Information
•Won 42 manufacturing programs during the quarter representing $205 million in annualized revenue when fully ramped into production.
•Generated fiscal second quarter free cash flow of $16.5 million, contributing to fiscal year-to-date free cash flow of $43.6 million.
•Purchased $12.2 million of our shares at an average price of $141.18 per share under our 2025 Share Repurchase Program, leaving $25.0 million available under our existing $50.0 million authorization.








Todd Kelsey, President and Chief Executive Officer, commented, "Plexus generated strong fiscal second quarter financial performance, demonstrating the continued momentum of our operational and working capital efficiency initiatives. We achieved revenue of $980 million, in-line with guidance, with non-GAAP operating margin of 5.7% at the high-end of guidance and non-GAAP EPS of $1.66 exceeding guidance. In addition, free cash flow exceeded our expectations."

Patrick Jermain, Executive Vice President and Chief Financial Officer, commented, "Fiscal second quarter cash cycle of 68 days was favorable to expectations and consistent with the fiscal first quarter. We continue to drive reductions in our gross inventory balance, with this quarter representing the fifth consecutive quarter of improvement. Our favorable cash cycle performance benefited our fiscal second quarter return on invested capital of 13.7%, which exceeded our weighted average cost of capital by 480 basis points. Finally, we delivered better than expected free cash flow of $16.5 million, which we utilized to repurchase $12.2 million of our shares during the fiscal second quarter in support of our commitment to return cash to shareholders."

Mr. Kelsey added, "We delivered 42 fiscal second quarter manufacturing wins, representing $205 million in annualized revenue. Notably, this result included our largest ever sustaining services win in support of creating success for an industry-leading healthcare customer. Additionally, our engineering solutions team delivered its best quarterly wins performance in more than 5 years, highlighting the breadth of our global capabilities and the effectiveness of our diversification efforts."

Mr. Kelsey continued, "We are guiding fiscal third quarter revenue of $1.00 to $1.04 billion, non-GAAP operating margin of 5.7% to 6.1% and non-GAAP EPS of $1.65 to $1.80. Furthermore, while conservatively assessing the remainder of the fiscal year and acknowledging the uncertainty associated with tariffs, we continue to anticipate achieving meaningful EPS growth in fiscal 2025, capitalizing upon revenue growth in each of our market sectors, robust operating margin performance and ongoing free cash flow deployment."

Mr. Kelsey concluded, "Plexus uniquely supports customer success, leveraging our comprehensive product lifecycle solutions and passion for operational excellence delivered through our globally united team. Our ongoing strategic investments in talent, technology, facilities and advanced capabilities position Plexus to proactively navigate evolving landscapes and dynamic environments to enable our customers’ success."


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Quarterly ComparisonThree Months Ended
(in thousands, except EPS)Mar 29, 2025Dec 28, 2024Mar 30, 2024
Revenue$980,170 $976,122 $966,900 
Gross profit97,751 100,692 88,063 
Operating income48,791 46,860 29,470 
Net income39,073 37,267 16,239 
Diluted EPS$1.41 $1.34 $0.58 
Gross margin10.0 %10.3 %9.1 %
Operating margin5.0 %4.8 %3.0 %
ROIC (1)13.7 %13.8 %9.9 %
Economic return (1)4.8 %4.9 %1.7 %
(1) Refer to Non-GAAP Supplemental Information tables for non-GAAP financial measures discussed and/or disclosed in this release, such as adjusted operating margin, adjusted net income, adjusted diluted EPS, ROIC and economic return.
Business Segment and Market Sector Revenue
Plexus measures operational performance and allocates resources on a geographic segment basis. Plexus also reports revenue based on the market sector breakout set forth in the table below, which reflects Plexus’ market sector focused strategy. Top 10 customers comprised 51% of revenue during both the first and second quarter of fiscal 2025. This is up 3 percentage points from the second quarter of fiscal 2024.

Business Segments ($ in millions)Three Months Ended
Mar 29, 2025Dec 28, 2024Mar 30, 2024
Americas$295 $274 $296 
Asia-Pacific587 607 522 
Europe, Middle East and Africa103 101 152 
Elimination of inter-segment sales(5)(6)(3)
Total Revenue$980 $976 $967 

Market Sectors ($ in millions)Three Months Ended
Mar 29, 2025Dec 28, 2024Mar 30, 2024
Aerospace/Defense$172 18 %$160 16 %$170 18 %
Healthcare/Life Sciences411 42 %374 38 %379 39 %
Industrial397 40 %442 46 %418 43 %
Total Revenue$980 $976 $967 

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Non-GAAP Supplemental Information
Plexus provides non-GAAP supplemental information, such as ROIC, economic return and free cash flow, because such measures are used for internal management goals and decision-making, and because they provide management and investors with additional insight into financial performance. In addition, management uses these and other non-GAAP measures, such as adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted EPS, to provide a better understanding of core performance for purposes of period-to-period comparisons. Plexus believes that these measures are also useful to investors because they provide further insight by eliminating the effect of non-recurring items that are not reflective of continuing operations. For additional information on non-GAAP measures, please refer to the attached Non-GAAP Supplemental Information tables.

ROIC and Economic Return
ROIC for the second quarter of fiscal 2025 was 13.7%. Plexus defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a three-quarter period for the second fiscal quarter. Invested capital is defined as equity plus debt and operating lease obligations, less cash and cash equivalents. Plexus' weighted average cost of capital for fiscal 2025 is 8.9%. ROIC for the second quarter of fiscal 2025 less Plexus’ weighted average cost of capital resulted in an economic return of 4.8%.

Free Cash Flow
Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended March 29, 2025, cash flows provided by operations was $36.7 million, less capital expenditures of $20.2 million, resulting in free cash flow of $16.5 million.

Cash Cycle DaysThree Months Ended
Mar 29, 2025Dec 28, 2024Mar 30, 2024
Days in Accounts Receivable575661
Days in Contract Assets121212
Days in Inventory132134158
Days in Accounts Payable(70)(69)(65)
Days in Advanced Payments(63)(65)(75)
Annualized Cash Cycle (1)686891
(1)Plexus calculates cash cycle as the sum of days in accounts receivable, days in contract assets and days in inventory, less days in accounts payable and days in advanced payments.


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Conference Call and Webcast Information
What:
Plexus Fiscal 2025 Q2 Earnings Conference Call and Webcast
When:
Thursday, April 24, 2025 at 8:30 a.m. Eastern Time
Where:
Participants are encouraged to join the live webcast at the investor relations section of the Plexus website, plexus.com. Participants can also join utilizing the links below:

Webcast link:
https://events.q4inc.com/attendee/242810884
Replay:
The webcast will be archived on the Plexus website and will be available as on-demand for 12 months
Investor and Media Contact
Shawn Harrison
+1.920.969.6325
shawn.harrison@plexus.com
About Plexus
Since 1979, Plexus has helped create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments. From life-saving medical devices and mission-critical aerospace and defense products to industrial automation systems and semiconductor capital equipment, our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect. We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors, supported by a global team of over 20,000 members across our 26 facilities in the Americas ("AMER"), Asia-Pacific ("APAC") and Europe, Middle East and Africa ("EMEA") regions. For more information about Plexus, visit our website at www.plexus.com.
Safe Harbor and Fair Disclosure Statement
The statements contained in this press release that are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, plan, anticipate, goal, target and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include the effects of tariffs, trade disputes, trade agreements and other trade protection measures; the effect of inflationary pressures on our costs of production, profitability, and on the economic outlook of our markets; the effects of shortages and delays in obtaining components as a result of economic cycles, natural disasters or otherwise; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the outcome of litigation and regulatory investigations and proceedings, including the results of any challenges with regard to such outcomes; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customer base and deliver product on a timely basis; the risks of concentration of work for certain customers; the particular risks relative to new or recent customers, programs or services, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate terms of agreements, and the lack of a track record of order volume and timing; the effects of start-up costs of new programs and facilities or the costs associated with the closure or consolidation of facilities; possible unexpected costs and operating disruption in transitioning programs, including transitions between Company facilities; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the fact that customer orders may not lead to long-term relationships; our ability to manage successfully and execute a complex business model characterized by high product mix and demanding quality, regulatory, and other requirements; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by the customer, resulting in an inventory write-off; risks related to information technology systems and data security; increasing regulatory and compliance requirements; any tax law changes and related foreign jurisdiction tax developments; current or potential future barriers to the repatriation of funds that are currently held outside of the United States as a result of actions taken by other countries or otherwise; the potential effects of jurisdictional results on our taxes, tax rates, and our ability to use deferred tax assets and net operating losses; the weakness of areas of the global economy; the effect of changes in the pricing and margins of products; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; the effects of changes in economic conditions, political conditions and regulatory matters in the United States and in the other countries in which we do business; the potential effect of other world or local events or other events outside our control (such as the conflict between Russia and Ukraine, conflict in the Middle East, escalating tensions between China and Taiwan or China and the United States, changes in energy prices, terrorism, global health epidemics and weather events); the impact of increased competition; an inability to successfully manage human capital; changes in financial accounting standards; and other risks detailed herein and in our other Securities and Exchange Commission filings, particularly in Risk Factors contained in our fiscal 2024 Form 10-K.
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PLEXUS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months EndedSix Months Ended
Mar 29,Mar 30,Mar 29,Mar 30,
2025202420252024
Net sales$980,170 $966,900 $1,956,292 $1,949,507 
Cost of sales882,419 878,837 1,757,849 1,773,304 
Gross profit97,751 88,063 198,443 176,203 
Operating expenses:
Selling and administrative expenses48,960 47,555 98,109 90,537 
Restructuring and other charges, net— 11,038 4,683 11,038 
Operating income48,791 29,470 95,651 74,628 
Other income (expense):
Interest expense(3,137)(8,293)(6,691)(15,910)
Interest income871 817 2,105 1,625 
Miscellaneous, net(1,502)(3,027)(2,548)(6,529)
Income before income taxes45,023 18,967 88,517 53,814 
Income tax expense5,950 2,728 12,177 8,360 
Net income
$39,073 $16,239 $76,340 $45,454 
Earnings per share:
Basic$1.44 $0.59 $2.82 $1.65 
Diluted$1.41 $0.58 $2.75 $1.62 
Weighted average shares outstanding:
Basic27,109 27,542 27,098 27,513 
Diluted27,662 27,929 27,726 27,982 


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PLEXUS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
Mar 29,Sep 28,
20252024
ASSETS
Current assets:
Cash and cash equivalents$310,531 $345,109 
Restricted cash31 2,353 
Accounts receivable609,493 622,366 
Contract assets136,131 120,560 
Inventories1,280,385 1,311,434 
Prepaid expenses and other59,740 75,328 
Total current assets2,396,311 2,477,150 
Property, plant and equipment, net511,865 501,112 
Operating lease right-of-use assets76,217 74,360 
Deferred income taxes73,841 73,919 
Other assets27,506 27,280 
Total non-current assets689,429 676,671 
Total assets$3,085,740 $3,153,821 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations$121,014 $157,325 
Accounts payable680,078 606,378 
Advanced payments from customers611,590 709,152 
Accrued salaries and wages83,650 94,448 
Other accrued liabilities69,499 75,991 
Total current liabilities1,565,831 1,643,294 
Long-term debt and finance lease obligations, net of current portion 88,761 89,993 
Accrued income taxes payable— 17,198 
Long-term operating lease liabilities32,720 32,275 
Deferred income taxes7,224 8,234 
Other liabilities39,529 38,002 
Total non-current liabilities168,234 185,702 
Total liabilities1,734,065 1,828,996 
Shareholders’ equity:
Common stock547 545 
Additional paid-in-capital680,880 680,638 
Common stock held in treasury(1,215,481)(1,190,115)
Retained earnings1,899,483 1,823,143 
Accumulated other comprehensive (loss) income(13,754)10,614 
Total shareholders’ equity1,351,675 1,324,825 
Total liabilities and shareholders’ equity$3,085,740 $3,153,821 

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PLEXUS CORP. AND SUBSIDIARIES
NON-GAAP SUPPLEMENTAL INFORMATION Table 1
(in thousands, except per share data)
(unaudited)
Three Months EndedSix Months Ended
Mar 29,Dec 28,Mar 30,Mar 29,Mar 30,
20252024202420252024
Operating income, as reported$48,791 $46,860 $29,470 $95,651 $74,628 
Operating margin, as reported5.0 %4.8 %3.0 %4.9 %3.8 %
Non-GAAP adjustments:
Restructuring costs (1)— 4,683 13,288 4,683 13,288 
Other non-recurring income (2)— — (2,250)— (2,250)
Stock-based compensation7,132 6,990 7,096 14,122 12,431 
Non-GAAP operating income$55,923 $58,533 $47,604 $114,456 $98,097 
Non-GAAP operating margin5.7 %6.0 %4.9 %5.9 %5.0 %
Net income, as reported$39,073 $37,267 $16,239 $76,340 $45,454 
Non-GAAP adjustments:
Restructuring costs, net of tax (1)— 4,191 11,893 4,191 11,893 
Other non-recurring income, net of tax (2)— — (2,014)— (2,014)
Stock-based compensation, net of tax6,775 6,640 7,096 13,415 12,431 
Adjusted net income$45,848 $48,098 $33,214 $93,946 $67,764 
Diluted earnings per share, as reported$1.41 $1.34 $0.58 $2.75 $1.62 
Non-GAAP per share adjustments:
Restructuring costs, net of tax (1)— 0.15 0.43 0.15 0.43 
Other non-recurring income, net of tax (2)— — (0.07)— (0.07)
Stock-based compensation, net of tax0.25 0.24 0.25 0.49 0.44 
Adjusted diluted earnings per share$1.66 $1.73 $1.19 $3.39 $2.42 
(1)During the three months ended December 28, 2024, restructuring costs of $4.7 million, or $4.2 million net of taxes, were incurred primarily for employee severance costs associated with a reduction in the Company's workforce in the EMEA and AMER regions.

During the three and six months ended March 30, 2024, restructuring and impairment charges of $13.3 million, or $11.9 million net of taxes, were incurred for employee severance costs associated with a reduction in the Company's workforce as well as closure costs associated with a site in the Company's EMEA region.
(2)During the three and six months ended March 30, 2024, insurance proceeds of $2.3 million, or $2.0 million net of taxes, were received related to an arbitration decision associated with a contractual matter that occurred in the Company's EMEA region in fiscal 2023.
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PLEXUS CORP. AND SUBSIDIARIES
NON-GAAP SUPPLEMENTAL INFORMATION Table 2
 (in thousands)
(unaudited)
ROIC and Economic Return Calculations Six Months EndedThree Months EndedSix Months Ended
Mar 29,Dec 28,Mar 30,
202520242024
Operating income, as reported$95,651 $46,860 $74,628 
Restructuring and other charges, net+4,683 +4,683 +11,038 
Adjusted operating income$100,334 $51,543 $85,666 
x2x4x2
Adjusted annualized operating income$200,668 $206,172 $171,332 
Adjusted effective tax ratex13 %x15 %x15 %
Tax impact26,087 30,926 25,700 
Adjusted operating income (tax-effected)$174,581 $175,246 $145,632 
Average invested capital÷$1,276,742 ÷$1,268,309 ÷$1,478,062 
ROIC13.7 %13.8 %9.9 %
Weighted average cost of capital-8.9 %-8.9 %-8.2 %
Economic return4.8 %4.9 %1.7 %
Average Invested Capital CalculationsMar 29,Dec 28,Sep 28,Jun 29,Mar 30,Dec 30,Sep 30,
2025202420242024202420232023
Equity$1,351,675 $1,319,069 $1,324,825 $1,266,360 $1,259,762 $1,266,755 $1,214,382 
Plus:
Debt and finance lease obligations - current121,014 121,977 157,325 258,175 245,964 251,119 240,205 
Operating lease obligations - current (1)9,968 14,875 14,697 7,990 8,281 9,172 8,363 
Debt and finance lease obligations - long-term
88,761 88,728 89,993 90,715 192,025 192,118 190,853 
Operating lease obligations - long-term32,720 35,124 32,275 31,923 33,915 35,989 38,552 
Less:
Cash and cash equivalents(310,531)(317,161)(345,109)(269,868)(265,053)(231,982)(256,233)
$1,293,607 $1,262,612 $1,274,006 $1,385,295 $1,474,894 $1,523,171 $1,436,122 
(1)Included in other accrued liabilities on the Condensed Consolidated Balance Sheets.
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