Q4 2025 Plexus Corp Earnings Call Transcript
Key Points
- Plexus Corp (PLXS) reported a strong financial performance for fiscal 2025, with a 40-basis point expansion in non-GAAP operating margin and a 30% increase in non-GAAP EPS.
- The company generated $154 million in free cash flow for fiscal 2025, significantly exceeding projections, and has produced $495 million in free cash flow over the past two fiscal years.
- Plexus Corp (PLXS) secured 28 new manufacturing programs worth $274 million in annual revenue during the fiscal fourth quarter, indicating strong future growth potential.
- The company achieved record wins in its aerospace and defense sector, with $54 million in new program wins, marking the strongest performance since fiscal 2021.
- Plexus Corp (PLXS) is committed to sustainability, reducing waste to landfill by over 30% globally and achieving zero waste to landfill status at 8 sites, representing over 40% of its manufacturing sites.
- Revenue in the aerospace and defense sector decreased by 6% sequentially in the fiscal fourth quarter due to minor delays in new program ramps.
- The company anticipates higher incentive compensation expenses in fiscal 2026, which could impact operating margins.
- Plexus Corp (PLXS) expects a high single-digit decrease in revenue for the industrial sector in the fiscal first quarter due to seasonality and muted near-term demand.
- The company is facing challenges in the broadband communications subsector, which remains non-linear and difficult to predict.
- Plexus Corp (PLXS) anticipates a usage of cash for the fiscal first quarter due to higher working capital investments, a trend experienced in previous years.
Ladies and gentlemen, thank you for joining us and welcome to the Plexus fiscal 4th quarter and fiscal year end 2025 conference call. After today's prepared remarks, we will host a question-and-answer session. I will now hand the conference over to Shawn Harrison, Vice President of Investor Relations. Please go ahead.
Good morning and thank you for joining us today. Some of the statements made and information provided during our call today will be forward-looking statements, including without limitation, those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense, taxes, cash cycle, capital allocation, and future business outlook. Forward-looking statements are not guarantees that there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied in the forward-looking statements.
For a list of factors that could cause actual results that differ materially from those
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