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Plexus Announces Fiscal Fourth Quarter and Fiscal Year 2025 Financial Results
NEENAH, WI – October 22, 2025 - Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal fourth quarter and fiscal year ended September 27, 2025, and guidance for our fiscal first quarter ending January 3, 2026.
•Reports fiscal fourth quarter revenue of $1.058 billion, GAAP operating margin of 5.0% and GAAP diluted EPS of $1.87.
•Reports fiscal 2025 revenue of $4.033 billion, GAAP operating margin of 5.0% and GAAP diluted EPS of $6.26.
•Reports fiscal fourth quarter non-GAAP operating margin of 5.8% and non-GAAP diluted EPS of $2.14, excluding $0.27 of stock-based compensation expense.
•Reports fiscal 2025 non-GAAP operating margin of 5.9% and non-GAAP diluted EPS of $7.43, excluding $1.02 of stock-based compensation expense and $0.15 of restructuring and other charges.
•Initiates fiscal first quarter 2026 revenue guidance of $1.050 billion to $1.090 billion with GAAP diluted EPS of $1.40 to $1.55, including $0.26 of stock-based compensation expense. Fiscal first quarter non-GAAP EPS guidance of $1.66 to $1.81 excludes stock-based compensation expense.
Three Months Ended
Sep 27, 2025Sep 27, 2025Jan 3, 2026
Q4F25 Results
Q4F25 Guidance
Q1F26 Guidance
Summary GAAP Items
Revenue (in billions)$1.058$1.025 to $1.065$1.050 to $1.090
Operating margin5.0 %5.0% to 5.4%4.9% to 5.3%
Diluted EPS$1.87$1.57 to $1.72$1.40 to $1.55
Summary Non-GAAP Items (1)
Adjusted operating margin (2)5.8 %5.7% to 6.1%5.6% to 6.0%
Adjusted EPS (3)$2.14$1.82 to $1.97$1.66 to $1.81
Return on invested capital (ROIC)14.6 %
Economic return 5.7 %
(1)Refer to Non-GAAP Supplemental Information tables for additional information regarding non-GAAP financial measures.
(2)Excludes stock-based compensation expense of approximately 80 bps for Q4F25 results as well as 70 bps for Q4F25 guidance and Q1F26 guidance.
(3)
Excludes stock-based compensation expense, net of tax, of $0.27 for Q4F25 results, $0.25 for Q4F25 guidance and $0.26 for Q1F26 guidance.
Fiscal Fourth Quarter 2025 Information
•Won 28 manufacturing programs representing $274 million in annualized revenue when fully ramped into production.
•Generated free cash flow of $97 million.
•Purchased $21.5 million of our shares at an average price of $134.07 per share under our share repurchase programs. Under our current $100.0 million repurchase authorization, $85.0 million remains available.


Fiscal Year 2025 Information
•Generated free cash flow of $154 million.
•Produced ROIC of 14.6%, representing an economic return of 570 basis points above our weighted average cost of capital of 8.9%.
•Purchased $65.0 million of our shares at an average price of $136.80 per share.

Todd Kelsey, President and Chief Executive Officer, commented, “The Plexus team continues to deliver a differentiated value proposition for our customers, and generated strong fiscal fourth quarter results. I am particularly pleased with our non-GAAP EPS of $2.14, which exceeded guidance, and our free cash flow, which again exceeded projections.”

Mr. Kelsey continued, “Our go-to-market team generated 28 fiscal fourth quarter manufacturing wins, representing $274 million in annualized revenue. For fiscal 2025, the team generated 141 manufacturing wins representing $941 million in annualized revenue, which supports revenue growth exceeding that of our end markets. In addition, efforts to diversify our engineering solutions engagements successfully drove increased wins for fiscal 2025, while our sustaining services team achieved record wins for the fiscal year.”

Patrick Jermain, Executive Vice President and Chief Financial Officer, commented, "For the seventh consecutive quarter, our team drove a reduction in our gross inventory balance, ending the fiscal year $82 million lower than fiscal 2024. Fiscal fourth quarter cash cycle of 63 days was favorable to our expectations and sequentially lower by 6 days as we benefited from increased revenue and continued progress on our working capital initiatives. This level of cash cycle was the best result delivered in the past five years. Our favorable cash cycle combined with our strong operating performance produced fiscal 2025 return on invested capital of 14.6%, which exceeded our cost of capital by 570 basis points."

Mr. Jermain continued, "We delivered $154 million in free cash flow for fiscal 2025, a result well above our projections. Utilizing our exceptional free cash flow, we continued to execute upon our expanded share repurchase program and reduce our borrowing, ending the year in a net cash position. Finally, while we expect increased investments in support of future revenue growth and operational efficiency initiatives, we anticipate delivering robust fiscal 2026 free cash flow of approximately $100 million and deploying excess cash to create additional shareholder value."

Mr. Kelsey added, “We remain dedicated to our Plexus Value of Innovating Responsibly to help create the products that build a better world. For fiscal 2025, our global team contributed more than 32,000 paid volunteer hours to our local communities, a 47% year-over-year increase, Plexus donated $1.4 million to global non-profits through our Plexus Community Foundation and our team reduced waste to landfill by more than 30% globally, with eight Plexus sites now operating at zero waste to landfill. In addition, we reduced our absolute Scope 1 and 2 emissions by more than 10% across our global manufacturing sites versus our fiscal 2023 baseline.”

Mr. Kelsey continued, “We are guiding fiscal first quarter revenue of $1.050 to $1.090 billion, non-GAAP operating margin of 5.6% to 6.0% and non-GAAP EPS of $1.66 to $1.81. New program ramps, inclusive of share gains, continue to drive our revenue growth in excess of modest end-market growth. In addition, during the fiscal first quarter, we will continue to invest in talent, technology, facilities and advanced capabilities to expand our industry-leading solutions, drive greater long-term operational efficiency and prepare for expected fiscal 2026 revenue growth.”


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Mr. Kelsey concluded, “Fiscal 2025 was an outstanding year for Plexus. Our team delivered excellent operational execution, strong financial performance, including 40 basis points of non-GAAP operating margin expansion and 30% non-GAAP EPS growth, and robust and well-balanced new program wins across our solutions. These results provide momentum and position us well in fiscal 2026 to accelerate revenue growth toward our 9% to 12% goal and sustain strong financial performance.”
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Quarterly & Annual ComparisonThree Months EndedTwelve Months Ended
(in thousands, except EPS)Sep 27, 2025Jun 28, 2025Sep 28, 2024Sep 27, 2025Sep 28, 2024
Revenue$1,058,366 $1,018,308 $1,050,569 $4,032,966 $3,960,827 
Gross profit104,783 103,288 107,912 406,514 378,530 
Operating income53,112 53,608 53,858 202,371 167,732 
Net income51,429 45,116 41,221 172,885 111,815 
Diluted EPS$1.87 $1.64 $1.48 $6.26 $4.01 
Gross margin9.9 %10.1 %10.3 %10.1 %9.6 %
Operating margin5.0 %5.3 %5.1 %5.0 %4.2 %
ROIC (1)14.6 %14.1 %11.8 %14.6 %11.8 %
Economic return (1)5.7 %5.2 %3.6 %5.7 %3.6 %
(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 49% of revenue during the fourth quarter of fiscal 2025. This is up 1 percentage point from the third quarter of fiscal 2025 and down 3 percentage points from the fourth quarter of fiscal 2024. For fiscal 2025, top 10 customers comprised 49% of revenue, up 1 percentage point from fiscal 2024.

Business Segments ($ in millions)Three Months EndedTwelve Months Ended
Sep 27, 2025Jun 28, 2025Sep 28, 2024Sep 27, 2025Sep 28, 2024
Americas$336 $312 $307 $1,217 $1,219 
Asia-Pacific605 594 618 2,393 2,213 
Europe, Middle East and Africa119 117 128 440 538 
Elimination of inter-segment sales(2)(5)(2)(17)(9)
Total Revenue$1,058 $1,018 $1,051 $4,033 $3,961 

Market Sectors ($ in millions)Three Months EndedTwelve Months Ended
Sep 27, 2025Jun 28, 2025Sep 28, 2024Sep 27, 2025Sep 28, 2024
Aerospace/Defense$173 16 %$183 18 %$184 18 %$689 17 %$698 19 %
Healthcare/Life Sciences424 40 %420 41 %415 39 %1,629 40 %1,555 38 %
Industrial461 44 %415 41 %452 43 %1,715 43 %1,708 43 %
Total Revenue$1,058 $1,018 $1,051 $4,033 $3,961 

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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 fiscal year 2025 was 14.6%. Plexus defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a five-quarter period for the fiscal year. 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 was 8.9%. ROIC for fiscal year 2025 less Plexus’ weighted average cost of capital resulted in an economic return of 5.7%.

Free Cash Flow
Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended September 27, 2025, cash flows provided by operations was $132.0 million, less capital expenditures of $34.8 million, resulting in free cash flow of $97.2 million. For the fiscal year ended September 27, 2025, cash flows provided by operations was $249.2 million, less capital expenditures of $95.2 million, resulting in free cash flow of $154.0 million.

Cash Cycle DaysThree Months Ended
Sep 27, 2025Jun 28, 2025Sep 28, 2024
Days in Accounts Receivable575954
Days in Contract Assets131310
Days in Inventory118128127
Days in Accounts Payable(70)(72)(59)
Days in Advanced Payments(55)(59)(68)
Annualized Cash Cycle (1)636964
(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 Q4 and Fiscal Year 2025 Earnings Conference Call and Webcast
When:
Thursday, October 23, 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/727582481
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 EndedTwelve Months Ended
Sep 27,Sep 28,Sep 27,Sep 28,
2025202420252024
Net sales$1,058,366 $1,050,569 $4,032,966 $3,960,827 
Cost of sales953,583 942,657 3,626,452 3,582,297 
Gross profit104,783 107,912 406,514 378,530 
Operating expenses:
Selling and administrative expenses51,671 54,054 199,460 190,541 
Restructuring and other charges, net— — 4,683 20,257 
Operating income53,112 53,858 202,371 167,732 
Other income (expense):
Interest expense(2,413)(5,577)(11,605)(28,876)
Interest income883 1,220 3,922 3,860 
Miscellaneous, net(1,917)(4,087)(6,670)(13,184)
Income before income taxes49,665 45,414 188,018 129,532 
Income tax (benefit) expense(1,764)4,193 15,133 17,717 
Net income
$51,429 $41,221 $172,885 $111,815 
Earnings per share:
Basic$1.91 $1.52 $6.39 $4.08 
Diluted$1.87 $1.48 $6.26 $4.01 
Weighted average shares outstanding:
Basic26,901 27,203 27,038 27,397 
Diluted27,444 27,783 27,616 27,909 


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PLEXUS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
Sep 27,Sep 28,
20252024
ASSETS
Current assets:
Cash and cash equivalents$306,464 $345,109 
Restricted cash294 2,353 
Accounts receivable656,573 622,366 
Contract assets150,654 120,560 
Inventories1,229,839 1,311,434 
Prepaid expenses and other54,969 75,328 
Total current assets2,398,793 2,477,150 
Property, plant and equipment, net546,052 501,112 
Operating lease right-of-use assets72,863 74,360 
Deferred income taxes91,349 73,919 
Other assets28,053 27,280 
Total non-current assets738,317 676,671 
Total assets$3,137,110 $3,153,821 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations$45,793 $157,325 
Accounts payable726,597 606,378 
Advanced payments from customers575,850 709,152 
Accrued salaries and wages109,076 94,448 
Other accrued liabilities61,367 75,991 
Total current liabilities1,518,683 1,643,294 
Long-term debt and finance lease obligations, net of current portion 91,987 89,993 
Accrued income taxes payable— 17,198 
Long-term operating lease liabilities29,422 32,275 
Deferred income taxes6,000 8,234 
Other liabilities36,430 38,002 
Total non-current liabilities163,839 185,702 
Total liabilities1,682,522 1,828,996 
Shareholders’ equity:
Common stock547 545 
Additional paid-in-capital695,653 680,638 
Common stock held in treasury(1,255,451)(1,190,115)
Retained earnings1,996,028 1,823,143 
Accumulated other comprehensive income17,811 10,614 
Total shareholders’ equity1,454,588 1,324,825 
Total liabilities and shareholders’ equity$3,137,110 $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 EndedTwelve Months Ended
Sep 27,Jun 28,Sep 28,Sep 27,Sep 28,
20252025202420252024
Operating income, as reported$53,112 $53,608 $53,858 $202,371 $167,732 
Operating margin, as reported5.0 %5.3 %5.1 %5.0 %4.2 %
Non-GAAP adjustments:
Restructuring costs (1)— — — 4,683 22,507 
Other non-recurring income (2)— — — — (2,250)
Stock-based compensation7,803 7,691 10,849 29,616 30,485 
Non-GAAP operating income$60,915 $61,299 $64,707 $236,670 $218,474 
Non-GAAP operating margin5.8 %6.0 %6.2 %5.9 %5.5 %
Net income, as reported$51,429 $45,116 $41,221 $172,885 $111,815 
Non-GAAP adjustments:
Restructuring costs, net of tax (1)— — — 4,191 20,144 
Other non-recurring income, net of tax (2)— — — — (2,014)
Stock-based compensation, net of tax7,414 7,307 10,306 28,136 29,582 
Adjusted net income$58,843 $52,423 $51,527 $205,212 $159,527 
Diluted earnings per share, as reported$1.87 $1.64 $1.48 $6.26 $4.01 
Non-GAAP per share adjustments:
Restructuring costs, net of tax (1)— — — 0.15 0.72 
Other non-recurring income, net of tax (2)— — — — (0.07)
Stock-based compensation, net of tax0.27 0.26 0.37 1.02 1.06 
Adjusted diluted earnings per share$2.14 $1.90 $1.85 $7.43 $5.72 
(1)
During the twelve months ended September 27, 2025, 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 twelve months ended September 28, 2024, restructuring costs of $22.5 million, or $20.1 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 and with a site in the Company's AMER region.
(2)
During the twelve months ended September 28, 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 Twelve Months EndedNine Months EndedTwelve Months Ended
Sep 27,Jun 28,Sep 28,
202520252024
Operating income, as reported$202,371 $149,259 $167,732 
Restructuring and other charges, net4,683 4,683 20,257 
Accelerated stock-based compensation (1)+— +— +5,063 
Adjusted operating income$207,054 $153,942 $193,052 
÷3 
$51,314 
x4 
Adjusted annualized operating income$207,054 $205,256 $193,052 
Adjusted effective tax ratex8 %x11 %x13 %
Tax impact16,564 22,578 25,097 
Adjusted operating income (tax-effected)$190,490 $182,678 $167,955 
Average invested capital÷$1,303,575 ÷$1,298,575 ÷$1,418,698 
ROIC14.6 %14.1 %11.8 %
Weighted average cost of capital-8.9 %-8.9 %-8.2 %
Economic return5.7 %5.2 %3.6 %
Average Invested Capital CalculationsSep 27,Jun 28,Mar 29,Dec 28,Sep 28,
20252025202520242024
Equity$1,454,588 $1,419,085 $1,351,675 $1,319,069 $1,324,825 
Plus:
Debt and finance lease obligations - current45,793 50,678 121,014 121,977 157,325 
Operating lease obligations - current (2)8,253 8,470 9,968 14,875 14,697 
Debt and finance lease obligations - long-term
91,987 92,215 88,761 88,728 89,993 
Operating lease obligations - long-term29,422 31,192 32,720 35,124 32,275 
Less: Cash and cash equivalents(306,464)(237,567)(310,531)(317,161)(345,109)
$1,323,579 $1,364,073 $1,293,607 $1,262,612 $1,274,006 
Average Invested Capital CalculationsJun 29,Mar 30,Dec 30,Sep 30,
2024202420232023
Equity$1,266,360 $1,259,762 $1,266,755 $1,214,382 
Plus:
Debt and finance lease obligations - current258,175 245,964 251,119 240,205 
Operating lease obligations - current (2)7,990 8,281 9,172 8,363 
Debt and finance lease obligations - long-term
90,715 192,025 192,118 190,853 
Operating lease obligations - long-term31,923 33,915 35,989 38,552 
Less: Cash and cash equivalents(269,868)(265,053)(231,982)(256,233)
$1,385,295 $1,474,894 $1,523,171 $1,436,122 
(1)During the twelve months ended September 28, 2024, $5.1 million of accelerated stock-based compensation expense was recorded in selling and administrative expense in the accompanying Condensed Consolidated Statements of Operations as a result of a previously announced executive retirement agreement.
(2)Included in other accrued liabilities on the Condensed Consolidated Balance Sheets.
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