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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 driven by strong Q1 2026 earnings, with revenue increasing nearly 10% year-over-year, backed by regional growth and new manufacturing program wins. The company's earnings per share (EPS) of $1.78 surpassed estimates, and management highlighted significant momentum, driven by program ramps across market sectors and ongoing market share gains. Additionally, Plexus' Q1 revenue of $1.07 billion met the midpoint of its guidance range, indicating a solid start to fiscal 2026. The company's strong fundamentals, including a 52-week high and a Zacks Rank #1 (Strong Buy), suggest continued growth potential.

1.c. Company Highlights

2. Plexus' Q1 2026 Earnings: Strong Revenue Growth and Margin Expansion

Plexus reported Q1 2026 revenue of $1.07 billion, a 10% year-over-year increase, meeting the midpoint of guidance. Non-GAAP EPS was $1.78, beating estimates of $1.77 and meeting the high end of guidance. The company's revenue growth was driven by strong demand and market share gains, with 22 new manufacturing programs worth $283 million in annualized revenue. Plexus expects fiscal second quarter revenue of $1.11 billion to $1.15 billion, representing 6% sequential and 15% year-over-year growth.

Publication Date: Feb -09

📋 Highlights
  • Revenue Growth & Guidance Alignment: Q1 revenue of $1.07B met midpoint guidance, reflecting a 10% YoY increase and aligning with the 9-12% fiscal 2026 growth target.
  • Non-GAAP EPS Performance: Non-GAAP EPS reached $1.78, hitting the high end of guidance, with Q2 guidance of $1.80–$1.95.
  • Program Wins & Revenue Pipeline: Secured 22 new manufacturing programs ($283M annualized) and a $3.6B qualified funnel, including record Aerospace & Defense engineering opportunities.
  • Q2 Revenue Outlook: Expected revenue of $1.11B–$1.15B (6% sequential, 15% YoY growth), driven by demand in semicap and Healthcare sectors.
  • Automation & Operational Efficiency: Shift to AI-driven automation (e.g., material deployment robots, WIP reduction) aims to cut costs and boost margins, with capex of $100M–$120M for fiscal 2026.

Segment Performance

The Aerospace and Defense sector saw revenue increase 3% sequentially, with wins of $220 million, nearly matching prior record annual wins. The Healthcare/Life Sciences sector revenue increased 10% sequentially, with wins of $40 million. The Industrial sector revenue declined 8% sequentially, but is expected to grow in the fiscal second quarter due to demand strength and program ramps. As Patrick Jermain stated, "program ramps are going well, and we're seeing demand improvement in semicap, although it's still early days."

Operational Efficiency and Margin Expansion

Plexus expects to deliver strong operating performance, driven by robust revenue growth and operational efficiency initiatives. The company is focused on automation and efficiency initiatives, including AI-driven activities, which are expected to benefit both margins and revenue. The company expects to maintain capital spending at around 2.5% of revenue, with a focus on AI and machine learning. As a result, Plexus is overcoming 50-60 basis points of headwind to maintain operating margins consistent with Q1.

Valuation and Outlook

With a P/E Ratio of 31.22 and an EV/EBITDA of 20.75, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 8.2%. Given Plexus' strong track record of delivering on its guidance and its robust pipeline of qualified manufacturing opportunities, the company is well-positioned to drive significant operating profit expansion and robust free cash flow for fiscal 2026. The expected free cash flow yield of 2.02% is also attractive, considering the company's growth prospects.

Taxes and Capital Spending

Plexus is maintaining a tax rate range of 16% to 18%, with the Street estimate at 17%. The increase from last year's 8% rate is due to the global minimum tax taking effect in certain jurisdictions. Capital spending is expected to be in the range of $100 million to $120 million, with a focus on automation investments. The company's ROIC of 11.06% and ROE of 12.39% indicate a strong return on investment.

3. NewsRoom

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Victory Capital Management Inc. Sells 29,007 Shares of Plexus Corp. $PLXS

08:24

Source: defenseworld.net

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American Century Companies Inc. Buys 338,119 Shares of Plexus Corp. $PLXS

Mar -02

Source: defenseworld.net

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Plexus Corp. (NASDAQ:PLXS) Receives $189.20 Average Target Price from Analysts

Feb -13

Source: defenseworld.net

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Plexus Corp. (PLXS) Soars to 52-Week High, Time to Cash Out?

Feb -10

Source: zacks.com

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Plexus (PLXS) Upgraded to Strong Buy: What Does It Mean for the Stock?

Feb -09

Source: zacks.com

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Best Momentum Stock to Buy for February 9th

Feb -09

Source:

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Insider Selling: Plexus (NASDAQ:PLXS) CEO Sells $1,669,878.00 in Stock

Feb -06

Source: defenseworld.net

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Plexus Q1 Earnings Call Highlights

Jan -31

Source: defenseworld.net

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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ESCO Technologies

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Growth: 7.7

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 7.3

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Quality: 5.7

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Value: 5.5

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Quality: 6.4

Yield: 0.0

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Quality: 6.1

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Plexus

A-Score: 4.2/10

Value: 4.0

Growth: 6.2

Quality: 5.5

Yield: 0.0

Momentum: 3.5

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

196.19$

Current Price

196.19$

Potential

-0.00%

Expected Cash-Flows