Plexus (PLXS) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 delivered strong results with three consecutive quarters of sequential revenue growth, Q4 revenue at $1.058 billion, and robust new program wins totaling $941 million in annualized revenue.

• Non-GAAP EPS grew 30% year-over-year to $7.43, with non-GAAP operating margin expanding by 40 basis points to 5.9%.

• Free cash flow for fiscal 2025 totaled $154 million, exceeding projections and supporting debt reduction and share repurchases.

• Investments in talent, technology, and facilities, along with sustainability initiatives such as a 30% reduction in waste-to-landfill and over 10% cut in Scope 1 & 2 emissions, are positioning the company for accelerated growth in fiscal 2026.

• Achieved over 32,000 volunteer hours and granted $1.4 million to nonprofits in fiscal 2025.

Financial highlights

• Fiscal 2025 revenue reached $4.033 billion, with Q4 revenue at $1.058 billion, near the high end of guidance and marking the third straight quarter of sequential growth.

• Non-GAAP EPS for Q4 was $2.14, substantially above guidance, aided by favorable tax items.

• Gross margin for Q4 was 9.9%, consistent with guidance; non-GAAP operating margin was 5.8%.

• Fiscal 2025 net income was $172.9 million, with ROIC at 14.6%, 570 basis points above the weighted average cost of capital.

• Free cash flow for fiscal 2025 totaled $154 million, with $495 million generated over the past two years.

Outlook and guidance

• Fiscal Q1 2026 guidance: revenue of $1.05–$1.09 billion, non-GAAP operating margin of 5.6%–6.0%, and non-GAAP EPS of $1.66–$1.81.

• Fiscal 2026 expected to deliver revenue growth above end markets, targeting 9%–12% growth and robust free cash flow of approximately $100 million.

• Gross margin for Q1 2026 expected at 9.8%–10.1%; SG&A expense projected at $51.5–$52.5 million.

• Effective tax rate for fiscal 2026 estimated at 16%–18%.

• Capital spending for fiscal 2026 planned at $90–$110 million, consistent with prior year.