Plexus (PLXS) Q2 2025 earnings summary

Executive summary

• Fiscal Q2 2025 revenue reached $980 million, in line with guidance, with non-GAAP operating margin at 5.7% and non-GAAP EPS of $1.66, both at or above guidance.

• Achieved largest-ever sustaining services win in healthcare and best quarterly engineering solutions wins in over five years, signaling strong program momentum and future growth.

• Free cash flow for the quarter was $16.5 million, exceeding expectations, and $12.2 million was used for share repurchases.

• Investments in talent, technology, and facilities drove new program wins and sector growth.

• Gross margin improved to 10.0% from 9.1% year-over-year, and operating margin increased to 5.0% from 3.0% in the prior year quarter.

Financial highlights

• Revenue: $980 million for Q2 2025, up from $976 million in Q1 and $967 million in Q2 FY2024.

• Non-GAAP operating margin: 5.7%, at the high end of guidance; GAAP operating margin: 5.0%.

• Non-GAAP EPS: $1.66, exceeding guidance; GAAP diluted EPS: $1.41.

• Gross margin: 10.0%, at the top end of guidance, up from 9.1% year-over-year.

• Free cash flow: $16.5 million for the quarter, $43.6 million year-to-date; cash balance at $310.6 million; total debt at $210 million.

Outlook and guidance

• Q3 2025 revenue guidance: $1.00–$1.04 billion; non-GAAP EPS: $1.65–$1.80; GAAP diluted EPS: $1.40–$1.55.

• Fiscal 2025 free cash flow expected up to $100 million.

• Sequential revenue growth anticipated for Q4 2025 and meaningful EPS growth for the full year.

• Capital spending for 2025 expected at $110–$130 million, including $60 million for Penang, Malaysia expansion.

• Management expects annual effective tax rate for FY2025 to be 13.0%–15.0%.