Plexus Announces Fiscal Third Quarter Financial Results

NEENAH, WI, July 23, 2025 (GLOBE NEWSWIRE) -- Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal third quarter ended June 28, 2025, and guidance for our fiscal fourth quarter ending September 27, 2025.

• Reports fiscal third quarter 2025 revenue of $1.018 billion, GAAP operating margin of 5.3% and GAAP diluted EPS of $1.64.
• Reports fiscal third quarter 2025 non-GAAP operating margin of 6.0% and non-GAAP diluted EPS of $1.90, excluding $0.26 of stock-based compensation expense.
• Initiates fiscal fourth quarter 2025 revenue guidance of $1.025 billion to $1.065 billion with GAAP diluted EPS of $1.57 to $1.72, including $0.25 of stock-based compensation expense. Fiscal fourth quarter non-GAAP EPS guidance of $1.82 to $1.97 excludes stock-based compensation expense.
  
  

Fiscal Third Quarter 2025 Information

• Won 41 manufacturing programs during the quarter representing $250 million in annualized revenue when fully ramped into production.
• Generated fiscal third quarter free cash flow of $13.2 million, contributing to fiscal year-to-date free cash flow of $56.8 million.
• Purchased $18.4 million of our shares at an average price of $128.70 per share during the quarter.
• As previously announced on May 14, 2025, Plexus’ Board of Directors approved a new $100.0 million share repurchase program. Plexus has recently begun repurchasing shares under this $100.0 million program as the previous $50.0 million program has been fulfilled.

Todd Kelsey, President and Chief Executive Officer, commented, “Our Plexus team continues to execute at a high level in driving numerous efficiency initiatives, which resulted in another strong quarter of financial performance. Fiscal third quarter revenue of $1.018 billion grew sequentially and was in-line with guidance, non-GAAP operating margin of 6.0% was near the high end of guidance and non-GAAP EPS of $1.90 exceeded guidance. Furthermore, free cash flow again surpassed our expectations.”

Patrick Jermain, Executive Vice President and Chief Financial Officer, commented, "Fiscal third quarter cash cycle of 69 days was consistent with expectations and one day higher than the fiscal second quarter. For the sixth consecutive quarter, we drove a reduction in our gross inventory balance. This result, combined with other improvements to our cash cycle and our strong operating performance, produced fiscal third quarter return on invested capital of 14.1%, which exceeded our weighted average cost of capital by 520 basis points. We also delivered better than anticipated free cash flow of $13.2 million in support of our expectation to achieve approximately $100 million in free cash flow for fiscal 2025. Finally, furthering our commitment to return cash to our shareholders, we repurchased $18.4 million of our shares during the fiscal third quarter, while adding a $100 million share repurchase program to our previous, now fully-utilized, $50 million program."

Mr. Kelsey added, “Our go-to-market team secured 41 fiscal third quarter manufacturing wins with well-balanced market sector diversification, representing $250 million in annualized revenue. Included in these wins are share gains resulting from our sustained focus on zero defects and perfect delivery as well as new customers in each of our market sectors with products aligned to exciting growth technologies.”

Mr. Kelsey continued, “We expect to deliver strong fiscal fourth quarter financial results, including further sequential revenue growth. We anticipate generating this revenue expansion through share gains, new program ramps and growth with new customers, while overcoming muted end market demand, evolving new program ramp timelines and uncertainties created by tariffs. We are guiding revenue of $1.025 to $1.065 billion, non-GAAP operating margin of 5.7% to 6.1% and non-GAAP EPS of $1.82 to $1.97. At the midpoint, our fiscal fourth quarter guidance would result in robust non-GAAP fiscal 2025 EPS growth of 26%.”

Mr. Kelsey concluded, “We are committed to creating long-term shareholder value through enabling customer success and focused initiatives that drive organizational and operational efficiency. We are bullish on the growth opportunities our solutions and market sectors provide. Our strategy is creating opportunities to gain share and capture new outsourcing opportunities in support of delivering sustained strong financial performance and growth exceeding that of our end markets.”

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 48% of revenue during the third quarter of both fiscal 2025 and 2024, which is down three percentage points from the second quarter of fiscal 2025.

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 third quarter of fiscal 2025 was 14.1%. Plexus defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a four-quarter period for the third 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 third quarter of fiscal 2025 less Plexus’ weighted average cost of capital resulted in an economic return of 5.2%.

Free Cash Flow

Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended June 28, 2025, cash flows provided by operations was $26.9 million, less capital expenditures of $13.7 million, resulting in free cash flow of $13.2 million.

Conference Call and Webcast Information

Investor and Media Contact

Shawn Harrison

+1.920.969.6325

 

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 . 

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.