Slides
Page 1
PLEXUS CONFIDENTIAL FISCAL SECOND QUARTER 2025 HIGHLIGHTS April 23, 2025
Page 2
PLEXUS CONFIDENTIAL Some of the statements made and information provided during our call as well as information included in the supporting materials 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 since 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 to differ materially from those discussed, please refer to the Companyʼs periodic SEC filings, particularly the risk factors in our Form 10K filing for the fiscal year ended September 28, 2024, as supplemented by the Safe Harbor and Fair Disclosure statement in our press release detailing our quarterly results. SAFE HARBOR AND FAIR DISCLOSURE STATEMENT 2
Page 3
PLEXUS CONFIDENTIAL OUR VISION WE HELP CREATE THE PRODUCTS THAT BUILD A BETTER WORLD OUR MISSION THE LEADER IN HIGHLY COMPLEX PRODUCTS AND DEMANDING REGULATORY ENVIRONMENTS FISCAL SECOND QUARTER THEMES Investments in talent, technology, facilities and tools enabling customer success and driving an increasing breadth of new program wins across Plexusʼ solutions. Robust fiscal second quarter financial performance, including better than expected non-GAAP EPS and free cash flow. Expect meaningful F25 EPS growth resulting from revenue growth in all market sectors, strong operating margin performance and free cash flow deployment. 3
Page 4
PLEXUS CONFIDENTIAL FINANCIAL RESULTS * ** Excludes approximately 70 bps of stock-based compensation expense Excludes $0.25 of stock-based compensation expense ● Signs of recovery in Healthcare/Life Sciences and early Industrial green shoots ● Non-GAAP operating margin met high end of guidance ● Non-GAAP EPS exceeded guidance ● Better than anticipated FCF performance 4
Page 5
PLEXUS CONFIDENTIAL WINS AND FUNNEL HIGHLIGHTS ● Largest ever win for Sustaining Services, enabling success for an industry-leading healthcare customer ● Exciting share gains and opportunities to support growth technologies across all market sectors ● Highest quarterly Engineering Solutions wins performance since Q4F19 5
Page 6
PLEXUS CONFIDENTIAL SUSTAINABILITY | Q2 Highlights ● Selected as Manufacturer of the Year - Mega Category 500+ employees) by Wisconsin Manufacturers & Commerce ● Partnered with GE HealthCare China in the Green Supply Chain Ecosphere initiative ● Celebrated Earth Day with our customer, Bevi, whose mission is to “unbottle the futureˮ ● Plexus Oradea, Romania team joined the Planting Hope initiative, working with over 100 volunteers to plant 1,000 trees ● In Q3F25, we will release our annual Sustainability Report, highlighting our continued commitment to advancing sustainable business practices OUR PEOPLE OUR SOLUTIONS OUR OPERATIONS TRUST & TRANSPARENCY
Page 7
PLEXUS CONFIDENTIAL FISCAL 2025 THIRD QUARTER GUIDANCE ● Q3F25 revenue of $1.00 billion to $1.04 billion ● Non-GAAP EPS of $1.65 to $1.80 ● Anticipate sequential revenue growth for Q4F25 ● Expect strong operating margin performance for F25 ● Continue to forecast up to $100M in F25 FCF Represents midpoint of guidance Non-GAAP operating margin guidance excludes approximately 70 bps of stock-based compensation expense Non-GAAP EPS guidance excludes $0.25 of stock-based compensation expense 7
Page 8
PLEXUS CONFIDENTIAL MARKET SECTOR PERFORMANCE AEROSPACE/DEFENSE ● Q2F25 wins highlights: ○ Continued strong wins performance in defense ○ Space partner of choice ○ Largest ever Engineering Solutions win Q3F25 Expectations Up mid single ● Q2F25 met expectations as defense and space demand increases offset softness in commercial aerospace ● Expect strong Q3F25 growth on broad demand increases ● F25 view unchanged: Strength in defense and space supports modest growth8 Q2F25 vs. Q1F25 + 8%
Page 9
PLEXUS CONFIDENTIAL MARKET SECTOR PERFORMANCE HEALTHCARE/LIFE SCIENCES Q3F25 Expectations Up mid single Q2F25 vs. Q1F25 + 10% ● Q2F25 beat expectations on stronger demand ● Q3F25 benefiting from stronger demand and new program ramps ● Improved F25 growth outlook driven by new program ramps, some healthcare market recovery 9 ● Q2F25 wins highlights: ○ Largest ever Sustaining Services win ○ Robotic-assisted surgical platform
Page 10
PLEXUS CONFIDENTIAL ● Q2F25 met expectations ● Q3F25 reflects SemiCap and new program ramp strength ● F25 modest growth outlook unchanged: SemiCap strength sustains, with early Industrial green shoots MARKET SECTOR PERFORMANCE INDUSTRIAL Q3F25 Expectations Up low single Q2F25 vs. Q1F25 - 10% 10 ● Q2F25 wins highlights: ○ Expanded engagement with leading construction and mining equipment customer ○ Another strong SemiCap wins performance
Page 11
PLEXUS CONFIDENTIAL Funnel Supports Continued Strength in Manufacturing Wins QUALIFIED MANUFACTURING FUNNEL TRENDS 11
Page 12
PLEXUS CONFIDENTIAL INCOME STATEMENT Q2F24 Q1F25 Q2F25 Actual Q2F25 Guidance Revenue $967 million $976 million $980 million $960 million to $1.00 billion Gross margin 9.1% 10.3% 10.0% 9.7% to 10.0% Selling & administrative expense $47.6 million $49.1 million $49.0 million $48.5 to $49.5 million GAAP operating margin 3.0% 4.8% 5.0% 4.6% to 5.0% Non-GAAP operating margin 4.9% 6.0% 5.7% 5.3% to 5.7% Non-operating expense $10.5 million $3.4 million $3.8 million Approximately $4.5 million GAAP diluted EPS $0.58 $1.34 $1.41 $1.22 to $1.37 Non-GAAP diluted EPS $1.19 $1.73 $1.66 $1.46 to $1.61 Includes approximately 70 bps of stock-based compensation expense Includes $0.25 of stock-based compensation expense 12
Page 13
PLEXUS CONFIDENTIAL CASH FLOW AND BALANCE SHEET Q2F24 Q1F25 Q2F25 Free cash flow $64.9 million $27.1 million $16.5 million Share repurchases $17.6 million $12.8 million $12.2 million Cash balance $265 million $318 million $311 million Total debt $438 million $211 million $210 million Return on invested capital 9.9% 13.8% 13.7% Cash cycle days 91 days 68 days 68 days 13
Page 14
PLEXUS CONFIDENTIAL WORKING CAPITAL TRENDS Q2F24 Q3F24 Q4F24 Q1F25 Q2F25 Days in Accounts Receivable 61 61 54 56 57 Days in Contract Assets 12 11 10 12 12 Days in Inventory 158 151 127 134 132 Days in Accounts Payable 65 62 59 69 70 Days in Advanced Payments 75 78 68 65 63 Net Cash Cycle Days 91 83 64 68 68 14
Page 15
PLEXUS CONFIDENTIAL FISCAL THIRD QUARTER 2025 GUIDANCE Q3F24 Q2F25 Q3F25 Guidance Revenue $961 million $980 million $1.00 billion to $1.04 billion GAAP diluted EPS $0.91 $1.41 $1.40 to $1.55 Non-GAAP diluted EPS $1.45 $1.66 $1.65 to $1.80 Gross margin 9.8% 10.0% 9.9% to 10.2% Selling & administrative expense* $46.0 million $49.0 million $50.0 to $51.0 million GAAP operating margin 4.1% 5.0% 5.0% to 5.4% Non-GAAP operating margin 5.8% 5.7% 5.7% to 6.1% Depreciation and amortization $19.7 million $19.5 million Approximately $20 million Non-operating expense $8.9 million $3.8 million Approximately $4.5 million Effective tax rate 17% 13% 14% to 16% Diluted weighted average shares outstanding 27.8 million 27.7 million 27.6 million Cash cycle days 83 68 66 to 70 days Includes stock-based compensation expense15
Page 16
PLEXUS CONFIDENTIAL Q&A Thank you.