Plexus Announces Fiscal Fourth Quarter and Fiscal Year 2025 Financial Results

NEENAH, WI, Oct. 22, 2025 (GLOBE NEWSWIRE) -- 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, 2025 Sep 27, 2025 Jan 3, 2026 Q4F25 Results Q4F25 Guidance Q1F26 GuidanceSummary GAAP Items Revenue (in billions)$1.058 $1.025 to $1.065 $1.050 to $1.090Operating 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 $1.81Return on invested capital (ROIC)14.6% Economic return5.7% (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.”

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.”

Quarterly & Annual ComparisonThree Months Ended Twelve Months Ended(in thousands, except EPS)Sep 27, 2025 Jun 28, 2025 Sep 28, 2024 Sep 27, 2025 Sep 28, 2024Revenue$1,058,366 $1,018,308 $1,050,569 $4,032,966 $3,960,827 Gross profit 104,783 103,288 107,912 406,514 378,530 Operating income 53,112 53,608 53,858 202,371 167,732 Net income 51,429 45,116 41,221 172,885 111,815 Diluted EPS$1.87 $1.64 $1.48 $6.26 $4.01 Gross margin 9.9% 10.1% 10.3% 10.1% 9.6%Operating margin 5.0% 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 Ended Twelve Months Ended Sep 27, 2025 Jun 28, 2025 Sep 28, 2024 Sep 27, 2025 Sep 28, 2024Americas$336 $312 $307 $1,217 $1,219 Asia-Pacific 605 594 618 2,393 2,213 Europe, Middle East and Africa 119 117 128 440 538 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 Ended Twelve Months Ended Sep 27, 2025 Jun 28, 2025 Sep 28, 2024 Sep 27, 2025 Sep 28, 2024Aerospace/Defense$17316% $18318% $18418% $68917% $69819%Healthcare/Life Sciences 42440% 42041% 41539% 1,62940% 1,55538%Industrial 46144% 41541% 45243% 1,71543% 1,70843%Total Revenue$1,058 $1,018 $1,051 $4,033 $3,961

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, 2025 Jun 28, 2025 Sep 28, 2024Days in Accounts Receivable57 59 54Days in Contract Assets13 13 10Days in Inventory118 128 127Days in Accounts Payable(70) (72) (59)Days in Advanced Payments(55) (59) (68)Annualized Cash Cycle (1)63 69 64 (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.

Conference Call and Webcast Information

What:Plexus Fiscal Q4 and Fiscal Year 2025 Earnings Conference Call and WebcastWhen:Thursday, October 23, 2025 at 8:30 a.m. Eastern TimeWhere: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/727582481Replay: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
[email protected]

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.

PLEXUS CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)(unaudited) Three Months Ended Twelve Months Ended Sep 27, Sep 28, Sep 27, Sep 28, 2025 2024 2025 2024 Net sales$1,058,366 $1,050,569 $4,032,966 $3,960,827 Cost of sales 953,583 942,657 3,626,452 3,582,297 Gross profit 104,783 107,912 406,514 378,530 Operating expenses: Selling and administrative expenses 51,671 54,054 199,460 190,541 Restructuring and other charges, net — — 4,683 20,257 Operating income 53,112 53,858 202,371 167,732 Other income (expense): Interest expense (2,413) (5,577) (11,605) (28,876)Interest income 883 1,220 3,922 3,860 Miscellaneous, net (1,917) (4,087) (6,670) (13,184)Income before income taxes 49,665 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: Basic 26,901 27,203 27,038 27,397 Diluted 27,444 27,783 27,616 27,909

PLEXUS CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except per share data)(unaudited) Sep 27, Sep 28, 2025 2024 ASSETS Current assets: Cash and cash equivalents$306,464 $345,109 Restricted cash 294 2,353 Accounts receivable 656,573 622,366 Contract assets 150,654 120,560 Inventories 1,229,839 1,311,434 Prepaid expenses and other 54,969 75,328 Total current assets 2,398,793 2,477,150 Property, plant and equipment, net 546,052 501,112 Operating lease right-of-use assets 72,863 74,360 Deferred income taxes 91,349 73,919 Other assets 28,053 27,280 Total non-current assets 738,317 676,671 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 payable 726,597 606,378 Advanced payments from customers 575,850 709,152 Accrued salaries and wages 109,076 94,448 Other accrued liabilities 61,367 75,991 Total current liabilities 1,518,683 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 liabilities 29,422 32,275 Deferred income taxes 6,000 8,234 Other liabilities 36,430 38,002 Total non-current liabilities 163,839 185,702 Total liabilities 1,682,522 1,828,996 Shareholders’ equity: Common stock 547 545 Additional paid-in-capital 695,653 680,638 Common stock held in treasury (1,255,451) (1,190,115)Retained earnings 1,996,028 1,823,143 Accumulated other comprehensive income 17,811 10,614 Total shareholders’ equity 1,454,588 1,324,825 Total liabilities and shareholders’ equity$3,137,110 $3,153,821

PLEXUS CORP. AND SUBSIDIARIES NON-GAAP SUPPLEMENTAL INFORMATION Table 1 (in thousands, except per share data) (unaudited) Three Months Ended Twelve Months Ended Sep 27, Jun 28, Sep 28, Sep 27, Sep 28, 2025 2025 2024 2025 2024 Operating income, as reported $53,112 $53,608 $53,858 $202,371 $167,732 Operating margin, as reported 5.0% 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 compensation 7,803 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 margin 5.8% 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 tax 7,414 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 tax 0.27 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 endedSeptember 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.

PLEXUS CORP. AND SUBSIDIARIESNON-GAAP SUPPLEMENTAL INFORMATION Table 2(in thousands)(unaudited) ROIC and Economic Return CalculationsTwelve Months Ended Nine Months Ended Twelve Months Ended Sep 27, Jun 28, Sep 28, 2025 2025 2024 Operating income, as reported $202,371 $149,259 $167,732 Restructuring and other charges, net 4,683 4,683 20,257 Accelerated stock-based compensation (1)+ — + — + 5,063 Adjusted operating income $207,054 $153,942 $193,052 ÷ 3 $51,314 x 4 Adjusted annualized operating income $207,054 $205,256 $193,052 Adjusted effective tax ratex 8% x 11% x 13%Tax impact 16,564 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 ROIC 14.6% 14.1% 11.8%Weighted average cost of capital- 8.9% - 8.9% - 8.2%Economic return 5.7% 5.2% 3.6%

Average Invested Capital CalculationsSep 27, Jun 28, Mar 29, Dec 28, Sep 28, 2025 2025 2025 2024 2024 Equity$1,454,588 $1,419,085 $1,351,675 $1,319,069 $1,324,825 Plus: Debt and finance lease obligations - current 45,793 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-term 29,422 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, 2024 2024 2023 2023 Equity$1,266,360 $1,259,762 $1,266,755 $1,214,382 Plus: Debt and finance lease obligations - current 258,175 245,964 251,119 240,205 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-term 31,923 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.