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1. Company Snapshot

1.a. Company Description

Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.It offers design and development, supply chain, new product introduction, and manufacturing solutions, as well as aftermarket services to companies in the healthcare/life sciences, industrial/commercial, aerospace/defense, and communications market sectors.Plexus Corp.


was founded in 1979 and is headquartered in Neenah, Wisconsin.

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1.b. Last Insights on PLXS

Plexus Corp.'s recent performance was positively driven by its Q4 earnings beat, with quarterly earnings of $2.14 per share exceeding the Zacks Consensus Estimate of $1.84 per share. Solid Americas growth and new program wins boosted the outlook. Additionally, the company reported strong cash flow and marginal revenue growth year-over-year. A consensus rating of "Hold" from five research firms, with two issuing a buy recommendation, supports the stock. Institutional investors, such as Commonwealth of Pennsylvania Public School Empls Retrmt SYS, have also shown confidence by increasing their stake.

1.c. Company Highlights

2. Plexus' Fiscal 2025 Earnings: Strong Performance and Promising Outlook

Plexus Corp reported revenue of $1.058 billion for its fiscal fourth quarter 2025, near the high end of guidance, and non-GAAP EPS of $2.14, surpassing expectations due to favorable discrete tax items. For the full fiscal year 2025, the company achieved a 40 basis point expansion of non-GAAP operating margin and 30% non-GAAP EPS growth. Revenue growth was primarily driven by strong performance in semi-cap and energy customers, with 28 new manufacturing programs secured, worth $274 million in annual revenue. The company's free cash flow was $97 million in the fourth quarter and $154 million for fiscal 2025, with a return on invested capital of 14.6%, significantly above its weighted average cost of capital.

Publication Date: Oct -26

📋 Highlights
  • Revenue Growth and Guidance: Q4 FY2025 revenue of $1.058 billion near high end of guidance, with non-GAAP EPS of $2.14 surpassing guidance due to tax benefits.
  • Margin Expansion and EPS Growth: Non-GAAP operating margin expanded 40 bps to 6.1%, driving 30% non-GAAP EPS growth for FY2025.
  • New Program Wins: Secured 28 new manufacturing programs in FY2025, adding $274 million in annual revenue, with $941 million from 141 total wins.
  • Free Cash Flow and ROIC: Generated $97 million in Q4 FY2025 free cash flow (up 82% YoY) and $154 million annually, achieving 14.6% ROIC (570 bps above WACC).
  • CapEx and Automation Efficiency: FY2026 CapEx guided to $90–$110 million, with warehouse automation pilot reducing space by 60% and labor costs, driving 300% increase in PIK rate.

Guidance and Outlook

For the fiscal first quarter 2026, Plexus guides revenue of $1.05 billion to $1.09 billion, with a non-GAAP operating margin of 5.6% to 6.0%, and non-GAAP EPS of $1.66 to $1.81. The company expects to deliver revenue growth in excess of end markets through new program ramps and market share gains, driven by strength in semi-cap and energy subsectors. Analysts estimate next year's revenue growth at 8.9%, indicating a positive outlook for the company's future performance.

Segment Performance

Aerospace and Defense revenue decreased 6% sequentially, while Healthcare/Life Sciences revenue was up 1%. The Industrial sector saw an 11% sequential revenue increase, driven by semi-cap and energy subsectors. The company is focused on power and thermal management within AI and believes it can capitalize on demand in the data center and power generation spaces. Plexus expects strong growth in Defense in fiscal 2026, driven by new wins and investments in technology and cybersecurity.

Valuation and Financial Metrics

With a P/E Ratio of 22.39, P/S Ratio of 0.96, and EV/EBITDA of 14.54, the market appears to have priced in a significant level of growth and profitability. The company's actual EPS of $2.14 beat estimates of $1.84, indicating a positive surprise. Plexus' ROIC of 14.6% and ROE of 12.47% (as per the latest available data, the reported ROIC is actually higher than the given metric of 11.13%) suggest a strong ability to generate returns on capital and equity. The company's focus on improving operational efficiency and driving margin expansion is expected to continue, with investments in automation and continuous improvement efforts.

Operational Efficiency and Margin Expansion

Plexus is investing in automation and continuous improvement efforts to drive margin improvement, with a focus on improving operational efficiency. The company has seen significant benefits from its warehouse automation pilot, including a 300% increase in PIK rate and a 60% reduction in space and labor. Plexus expects to capture about half of its opportunity across its sites by the end of 2026, driving margin expansion and improving its competitive position.

3. NewsRoom

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Plexus Corp. (NASDAQ:PLXS) Receives $159.00 Consensus PT from Brokerages

Nov -30

Source: defenseworld.net

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Purchases 484 Shares of Plexus Corp. $PLXS

Nov -24

Source: defenseworld.net

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Plexus Q4 Earnings Surpass Estimates, Revenues Up Marginally Y/Y

Oct -23

Source: zacks.com

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Plexus Corp. (PLXS) Q4 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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Plexus (PLXS) Reports Q4 Earnings: What Key Metrics Have to Say

Oct -23

Source: zacks.com

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Plexus (PLXS) Q4 Earnings and Revenues Top Estimates

Oct -22

Source: zacks.com

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Plexus Sets Fiscal Fourth Quarter and Fiscal Year 2025 Earnings Release Date

Oct -01

Source: globenewswire.com

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Plexus Corp. (PLXS) Q3 2025 Earnings Call Transcript

Jul -24

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.19%)

6. Segments

Healthcare/Life Sciences

Expected Growth: 12%

Plexus Corp's 12% growth in Healthcare/Life Sciences is driven by increasing demand for medical devices, rising healthcare expenditure, and an aging population. Additionally, advancements in medical technology, outsourcing trends, and growing need for miniaturization and precision engineering in medical devices are contributing to this growth.

Industrial

Expected Growth: 8%

Plexus Corp's Industrial segment growth is driven by increasing demand for industrial automation, IoT, and Industry 4.0 solutions. The company's expertise in design, manufacturing, and supply chain management enables it to capitalize on the trend towards smart manufacturing. Additionally, growth in electric vehicle charging infrastructure and renewable energy systems also contributes to the segment's growth.

Aerospace/Defense

Expected Growth: 11%

Plexus Corp's 11% growth in Aerospace/Defense is driven by increasing demand for advanced electronics in military and commercial aircraft, growing adoption of autonomous systems, and rising investments in space exploration. Additionally, the company's expertise in complex manufacturing and supply chain management enables it to capitalize on the trend towards outsourcing in the industry.

7. Detailed Products

Micro-Electromechanical Systems (MEMS)

Plexus Corp. designs and manufactures MEMS-based products, including microphones, accelerometers, and gyroscopes, used in various applications such as smartphones, gaming controllers, and industrial equipment.

Internet of Things (IoT) Devices

Plexus Corp. provides design, manufacturing, and testing services for IoT devices, including smart home devices, wearables, and industrial sensors.

Industrial Automation Solutions

Plexus Corp. offers design, manufacturing, and testing services for industrial automation solutions, including robotics, machine vision, and industrial networking.

Medical Devices

Plexus Corp. designs and manufactures medical devices, including patient monitoring systems, diagnostic equipment, and implantable devices.

Aerospace and Defense Solutions

Plexus Corp. provides design, manufacturing, and testing services for aerospace and defense applications, including communication systems, navigation systems, and electronic warfare systems.

Data Center and Storage Solutions

Plexus Corp. designs and manufactures data center and storage solutions, including servers, storage systems, and networking equipment.

Industrial and Commercial Buildings Automation

Plexus Corp. offers design, manufacturing, and testing services for industrial and commercial building automation systems, including HVAC, lighting, and security systems.

8. Plexus Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Plexus Corp. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Plexus Corp. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Plexus Corp. relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The barriers to entry in the electronics manufacturing services industry are relatively high, making it difficult for new entrants to compete with established players like Plexus Corp.

Intensity Of Rivalry

The electronics manufacturing services industry is highly competitive, with several established players competing for market share. Plexus Corp. must continually innovate and improve its operations to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.89%
Debt Cost 7.78%
Equity Weight 72.11%
Equity Cost 8.92%
WACC 8.60%
Leverage 38.67%

11. Quality Control: Plexus Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Teledyne Technologies

A-Score: 5.7/10

Value: 2.8

Growth: 6.3

Quality: 6.9

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

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ESCO Technologies

A-Score: 5.1/10

Value: 1.6

Growth: 6.1

Quality: 5.9

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

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Vontier

A-Score: 5.0/10

Value: 4.9

Growth: 3.8

Quality: 6.3

Yield: 0.0

Momentum: 7.5

Volatility: 7.3

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Sanmina

A-Score: 4.7/10

Value: 4.2

Growth: 5.0

Quality: 5.6

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

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Plexus

A-Score: 4.4/10

Value: 3.6

Growth: 4.7

Quality: 5.6

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Littelfuse

A-Score: 4.2/10

Value: 2.7

Growth: 4.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

150.37$

Current Price

150.37$

Potential

-0.00%

Expected Cash-Flows