Plexus Announces Fiscal Q4, Fiscal Year 2025 Financial Results

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Plexus Corp 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.

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.”

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.

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.