Plexus Corp Financial Insights for Third Quarter 2025

Plexus Corporation Reports Strong Third Quarter Earnings

Plexus Corp (NASDAQ: PLXS), known for its excellence in manufacturing and engineering services, has reported impressive financial results for its fiscal third quarter. The revenue for the quarter reached an impressive $1.018 billion, demonstrating resilience and performance in a competitive market.

Revenue and EPS Highlights

Plexus achieved a GAAP operating margin of 5.3%, with a diluted earnings per share (EPS) of $1.64. When adjusted for non-GAAP factors, the company revealed a non-GAAP operating margin of 6.0%, yielding an EPS of $1.90. This non-GAAP figure provides a clearer picture of Plexus’s financial performance by excluding certain expenses, including stock-based compensation.

Guidance for the Upcoming Quarter

Looking forward, Plexus has initiated guidance for the fourth quarter of 2025, projecting revenues between $1.025 to $1.065 billion. Additionally, the company expects a GAAP diluted EPS ranging from $1.57 to $1.72, reflecting robust growth potential. Non-GAAP EPS guidance for the fourth quarter has been set between $1.82 and $1.97, excluding similar stock-based compensation adjustments.

Cash Flow and Share Repurchase Updates

The company generated $13.2 million in free cash flow during the third quarter, contributing to a year-to-date free cash flow total of $56.8 million. This positive cash generation momentum supports Plexus's ongoing commitment to enhancing shareholder value. Furthermore, during the quarter, Plexus repurchased shares worth $18.4 million at an average price of $128.70. The board of directors has also approved a new $100 million share repurchase program.

Stakeholder Commentary

CEO Todd Kelsey commented on the strong execution of Plexus’s operational strategies, emphasizing the exceptional performance in driving efficiency initiatives. The increased revenue is aligned with the company’s guidance, and the operational margins indicate strong underlying business health.

CFO Patrick Jermain further noted that the cash cycle remained consistent, maintaining a 69-day duration which supports financial stability and operational efficiency. This included a reduction in gross inventory over the sixth consecutive quarter, showcasing effective inventory management practices.

Recent Wins and Market Strategy

Plexus’s sales strategy has proven effective, with 41 new manufacturing programs secured during the quarter. These programs reflect an anticipated annualized revenue of $250 million once fully ramped into production. Each program emphasizes Plexus’s commitment to zero defects and perfect delivery, positioning the company as a trusted partner across various industry sectors.

Market Position and Future Outlook

Plexus projects continued success in the fourth quarter despite facing challenges like muted demand in certain markets and evolving ramp timelines. The company anticipates that the combination of new program gains and customer growth will drive further revenue expansion. With strong operational performance, Plexus is poised to deliver robust FDA growth, aiming for 26% non-GAAP EPS growth by the year's end.

Frequently Asked Questions

What were Plexus's third quarter revenues?

Plexus reported revenues of $1.018 billion for the fiscal third quarter of 2025.

What did Plexus anticipate for fourth quarter revenue?

The company projected fourth quarter revenues between $1.025 to $1.065 billion.

How did the diluted EPS perform?

Plexus achieved a GAAP diluted EPS of $1.64 for the third quarter.

What are the future growth projections for Plexus?

Plexus aims for robust growth, projecting a non-GAAP EPS growth of approximately 26% for fiscal 2025.

What is the focus of Plexus’s market strategy?

Plexus’s strategy emphasizes efficiency, quality service, and securing new manufacturing programs, ensuring sustained growth and operational excellence.

About The Author

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