Plexus Corp 10-Q for FY2025 Q3

Plexus Corp (PLXS)

10-Q 2025-08-01 For: 2025-06-28

Added on April 12, 2026

About this 10-Q

Plexus Corp filed this 10-Q on August 1, 2025, covering the quarter ended June 28, 2025 (FY2025 Q3).

Headline figures

Quarter ended June 28, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.02M; up 6.0% from $960.75K a year earlier
Net income: $45.12M; up 79.5% from net income of $25.14M a year earlier
Diluted EPS: $1.64; up 80.2% from $0.91 a year earlier

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Wisconsin						39-1344447
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	PLXS	The Nasdaq Global Select Market



PART I. FINANCIAL INFORMATION			3
ITEM 1. FINANCIAL STATEMENTS (Unaudited)			3
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Shareholders' Equity			5
Condensed Consolidated Statements of Cash Flows			6
Notes to Condensed Consolidated Financial Statements			7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			19
"Safe Harbor" Cautionary Statement Under the Private Securities Litigation Reform Act of 1995			19
Overview			19
Results of Operations			20
Liquidity and Capital Resources			25
Disclosure About Critical Accounting Estimates			28
New Accounting Pronouncements			28
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			28
ITEM 4. CONTROLS AND PROCEDURES			29
PART II. OTHER INFORMATION			30
ITEM 1A. Risk Factors			30
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			30
ITEM 5. Other Information			30
ITEM 6. Exhibits			31
SIGNATURES			32


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net sales	$	1,018,308	$	960,751	$	2,974,600	$	2,910,258
Cost of sales	915,020		866,336		2,672,869		2,639,640
Gross profit	103,288		94,415		301,731		270,618
Selling and administrative expenses	49,680		45,950		147,789		136,487
Restructuring and other charges, net	—		9,219		4,683		20,257
Operating income	53,608		39,246		149,259		113,874
Other income (expense):
Interest expense	(2,501)		(7,389)		(9,192)		(23,299)
Interest income	934		1,015		3,039		2,640
Miscellaneous, net	(2,205)		(2,568)		(4,753)		(9,097)
Income before income taxes	49,836		30,304		138,353		84,118
Income tax expense	4,720		5,164		16,897		13,524
Net income	$	45,116	$	25,140	$	121,456	$	70,594
Earnings per share:
Basic	$	1.67	$	0.92	$	4.48	$	2.57
Diluted	$	1.64	$	0.91	$	4.39	$	2.53
Weighted average shares outstanding:
Basic	27,059		27,364		27,084		27,463
Diluted	27,532		27,765		27,670		27,918
Comprehensive income:
Net income	$	45,116	$	25,140	$	121,456	$	70,594
Other comprehensive income (loss):
Derivative instrument and other fair value adjustments	15,034		(5,397)		(859)		1,391
Foreign currency translation adjustments	18,579		(1,637)		10,104		7,207
Other comprehensive income (loss)	33,613		(7,034)		9,245		8,598
Total comprehensive income	$	78,729	$	18,106	$	130,701	$	79,192


	June 28, 2025		September 28, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	237,567	$	345,109
Restricted cash	50		2,353
Accounts receivable, net of allowances of $2,353 and $3,189, respectively	663,549		622,366
Contract assets	145,145		120,560
Inventories	1,278,219		1,311,434
Prepaid expenses and other	70,538		75,328
Total current assets	2,395,068		2,477,150
Property, plant and equipment, net	534,560		501,112
Operating lease right-of-use assets	74,741		74,360
Deferred income taxes	73,550		73,919
Other assets	27,714		27,280
Total non-current assets	710,565		676,671
Total assets	$	3,105,633	$	3,153,821

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations	$	50,678	$	157,325
Accounts payable	722,270		606,378
Advanced payments from customers	592,512		709,152
Accrued salaries and wages	89,797		94,448
Other accrued liabilities	61,196		75,991
Total current liabilities	1,516,453		1,643,294
Long-term debt and finance lease obligations, net of current portion	92,215		89,993
Accrued income taxes payable	—		17,198
Long-term operating lease liabilities	31,192		32,275
Deferred income taxes	5,986		8,234
Other liabilities	40,702		38,002
Total non-current liabilities	170,095		185,702
Total liabilities	1,686,548		1,828,996
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 5,000 shares authorized, none issued or outstanding	—		—
Common stock, $0.01 par value, 200,000 shares authorized, 54,667 and 54,489 shares issued, respectively, and 26,985 and 27,122 shares outstanding, respectively	547		545
Additional paid-in capital	688,002		680,638
Common stock held in treasury, at cost, 27,682 and 27,367 shares, respectively	(1,233,922)		(1,190,115)
Retained earnings	1,944,599		1,823,143
Accumulated other comprehensive income	19,859		10,614
Total shareholders’ equity	1,419,085		1,324,825
Total liabilities and shareholders’ equity	$	3,105,633	$	3,153,821


☒						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐						TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	June 28, 2025		September 28, 2024
Raw materials	$	1,117,282	$	1,184,222
Work-in-process	56,529		49,513
Finished goods	104,408		77,699
Total inventories	$	1,278,219	$	1,311,434


	June 28, 2025		September 28, 2024
4.05% Senior Notes, due June 15, 2025	$	—	$	100,000
4.22% Senior Notes, due June 15, 2028	50,000		50,000
Borrowings under the Credit Facility	45,000		50,000
Finance lease and other financing obligations	48,458		48,142
Unamortized deferred financing fees	(565)		(824)
Total obligations	142,893		247,318
Less: current portion	(50,678)		(157,325)
Long-term debt, finance lease and other financing obligations, net of current portion	$	92,215	$	89,993


Fair Value Measurements Using Input Levels Asset (in thousands)
Fiscal period ended June 28, 2025	Level 1		Level 2		Level 3		Total
Derivatives
Foreign currency forward contracts	$	—	$	11,737	$	—	$	11,737

Fiscal period ended September 28, 2024
Derivatives
Foreign currency forward contracts	$	—	$	14,017	$	—	$	14,017


	Financial Statement Line Item	June 28, 2025		September 28, 2024
ASSETS
Finance lease assets	Property, plant and equipment, net	$	36,811	$	35,853
Operating lease assets	Operating lease right-of-use assets	74,741		74,360
Total lease assets		$	111,552	$	110,213

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Finance lease liabilities	Current portion of long-term debt and finance lease obligations	$	3,795	$	4,717
Operating lease liabilities	Other accrued liabilities	8,470		14,697
Non-current
Finance lease liabilities	Long-term debt and finance lease obligations, net of current portion	41,370		38,756
Operating lease liabilities	Long-term operating lease liabilities	31,192		32,275
Total lease liabilities		$	84,827	$	90,445


	Termination and Severance Costs		Fixed Asset and Operating ROU Asset Impairment		Total
Accrual balance, as of September 28, 2024	$	1,496	$	1,109	$	2,605
Restructuring and other charges	3,512		1,171		4,683
Amounts utilized	(2,770)		(1,325)		(4,095)
Accrual balance, as of December 28, 2024	$	2,238	$	955	$	3,193
Restructuring and other charges	—		—		—
Amounts utilized	(1,716)		(603)		(2,319)
Accrual balance, as of March 29, 2025	$	522	$	352	$	874
Restructuring and other charges	—		—		—
Amounts utilized	(355)		(208)		(563)
Accrual balance, as of June 28, 2025	$	167	$	144	$	311


	Termination and Severance Costs		Fixed Asset and Operating ROU Asset Impairment		Arbitration Recovery		Total
Accrual balance, as of December 30, 2023	$	—	$	—	$	—	$	—
Restructuring and other charges	9,865		3,423		(2,250)		11,038
Amounts utilized	(3,858)		(1,767)		2,250		(3,375)
Accrual balance, as of March 30, 2024	$	6,007	$	1,656	$	—	$	7,663
Restructuring and other charges	4,265		4,954		—		9,219
Amounts utilized	(5,795)		(4,887)		—		(10,682)
Accrual balance, as of June 29, 2024	$	4,477	$	1,723	$	—	$	6,200


Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum approximate dollar value of shares that may yet be purchased under the plans or programs (1)
March 30, 2025-April 26, 2025	32,397	$	120.59	32,397	$	21,093,873
April 27, 2025 - May 24, 2025	48,345	129.71		48,345	114,823,151
May 25, 2025- June 28, 2025	62,540	132.13		62,540	106,559,909
	143,282	$	128.70	143,282


Exhibit No.						Exhibit
31.1						Certification of President and Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
31.2						Certification of Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.
32.1						Certification of the CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2						Certification of the CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1						Reconciliation of ROIC to GAAP and Economic Return Financial Statements.
101						The following materials from Plexus Corp.’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 28, 2025, formatted in Inline Extensible Business Reporting Language ("XBRL"): (i) the Condensed Consolidated Statements of Comprehensive Income, (ii) the Condensed Consolidated Balance Sheets, (iii) the Condensed Consolidated Statements of Shareholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements.
101.INS						Inline XBRL Instance Document (the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document).
101.SCH						Inline XBRL Taxonomy Extension Schema Document.
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.
104						The cover page from the Company’s Quarterly Report on Form 10-Q for the fiscal third quarter ended June 28, 2025, formatted in Inline XBRL and contained in Exhibit 101.


	Nine Months Ended
	June 28, 2025		June 29, 2024
Cash flows from operating activities
Net income	$	121,456	$	70,594
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	58,509		58,249
Share-based compensation expense and related charges	22,466		19,759
Asset impairment charges	—		4,736
Deferred income taxes	(1,792)		7,450
Other, net	(6,589)		2,230
Changes in operating assets and liabilities, excluding impacts of currency:
Accounts receivable	(37,265)		19,020
Contract assets	(24,090)		26,049
Inventories	37,543		131,519
Other current and non-current assets	(1,262)		(30,984)
Accrued income taxes payable	(13,361)		(16,054)
Accounts payable	88,902		(39,217)
Advanced payments from customers	(118,276)		(25,297)
Other current and non-current liabilities	(9,028)		(11,683)
Cash flows provided by operating activities	117,213		216,371
Cash flows from investing activities
Payments for property, plant and equipment	(60,441)		(68,874)
Other, net	(412)		129
Cash flows used in investing activities	(60,853)		(68,745)
Cash flows from financing activities
Borrowings under debt agreements	293,500		452,000
Payments on debt and finance lease obligations	(402,875)		(539,332)
Repurchases of common stock	(43,807)		(36,145)
Proceeds from exercise of stock options	—		210
Payments related to tax withholding for share-based compensation	(15,100)		(11,038)
Cash flows used in financing activities	(168,282)		(134,305)
Effect of exchange rate changes on cash and cash equivalents	2,077		(85)
Net (decrease) increase in cash and cash equivalents and restricted cash	(109,845)		13,236
Cash and cash equivalents and restricted cash:
Beginning of period	347,462		256,654
End of period	$	237,617	$	269,890


	Three Months Ended						Nine Months Ended
	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
Net sales	$	1,018.3		$	960.8		$	2,974.6		$	2,910.3
Cost of sales	915.0			866.3			2,672.9			2,639.6
Gross profit	103.3			94.4			301.7			270.6
Gross margin	10.1		%	9.8		%	10.1		%	9.3		%
Operating income	53.6			39.2			149.3			113.9
Operating margin	5.3		%	4.1		%	5.0		%	3.9		%
Other expense	3.8			8.9			10.9			29.8
Income tax expense	4.7			5.2			16.9			13.5
Net income	45.1			25.1			121.5			70.6
Diluted earnings per share	$	1.64		$	0.91		$	4.39		$	2.53
Return on invested capital*							14.1		%	10.4		%
Economic return*							5.2		%	2.2		%
*Non-GAAP metric; refer to "Return on Invested Capital ("ROIC") and economic return" below and Exhibit 99.1 for more information.


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net sales:
AMER	$	311.7	$	306.5	$	880.8	$	912.5
APAC	593.5		521.0		1,787.7		1,595.5
EMEA	117.1		136.7		321.0		410.2
Elimination of inter-segment sales	(4.0)		(3.4)		(14.9)		(7.9)
Total net sales	$	1,018.3	$	960.8	$	2,974.6	$	2,910.3


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Operating income:
AMER	$	28.7	$	23.9	$	71.0	$	58.4
APAC	83.8		75.3		253.8		225.3
EMEA	5.9		9.3		14.2		22.2
Corporate and other costs	(64.8)		(69.3)		(189.7)		(192.0)
Total operating income	$	53.6	$	39.2	$	149.3	$	113.9



			/s/ Todd P. Kelsey
			Todd P. Kelsey
			President and Chief Executive Officer


			/s/ Patrick J. Jermain
			Patrick J. Jermain
			Executive Vice President and Chief Financial Officer


										Exhibit 99.1
Return on Invested Capital ("ROIC") and Economic Return Calculations GAAP to non-GAAP reconciliation (dollars in thousands):

	Nine Months Ended				Six Months Ended				Nine Months Ended
	Jun 28,				Mar 29,				Jun 29,
	2025				2025				2024
Operating income, as reported		$	149,259			$	95,651			$	113,874
Restructuring and other charges		4,683				4,683				20,257
Accelerated stock-based compensation (1)	+	—			+	—			+	892
Adjusted operating income		153,942				100,334				135,023
	÷	3			x	2			÷	3
		51,314								45,008
	x	4							x	4
Adjusted annualized operating income		205,256				200,668				180,032
Adjusted effective tax rate	x	11		%	x	13		%	x	16		%
Tax impact		22,578				26,087				28,805
Adjusted operating income (tax-effected)		$	182,678			$	174,581			$	151,227

Average invested capital		$	1,298,575			$	1,276,742			$	1,454,871

ROIC		14.1		%		13.7		%		10.4		%
WACC	-	8.9		%	-	8.9		%	-	8.2		%
Economic Return		5.2		%		4.8		%		2.2		%


	Jun 28,		Mar 29,		Dec 28,		Sep 28,
	2025		2025		2024		2024
Equity	$	1,419,085	$	1,351,675	$	1,319,069	$	1,324,825
Plus:
Debt and finance lease obligations - current	50,678		121,014		121,977		157,325
Operating lease obligations - current (2)	8,470		9,968		14,875		14,697
Debt and finance lease obligations - long-term	92,215		88,761		88,728		89,993
Operating lease obligations - long-term	31,192		32,720		35,124		32,275
Less: Cash and cash equivalents	(237,567)		(310,531)		(317,161)		(345,109)
	$	1,364,073	$	1,293,607	$	1,262,612	$	1,274,006

	Jun 29,		Mar 30,		Dec 30,		Sep 30,
	2024		2024		2023		2023
Equity	$	1,266,360	$	1,259,762	$	1,266,755	$	1,214,382
Plus:
Debt and finance lease obligations - current	258,175		245,964		251,119		240,205
Operating lease obligations - current (2)	7,990		8,281		9,172		8,363
Debt and finance lease obligations - long-term	90,715		192,025		192,118		190,853
Operating lease obligations - long-term	31,923		33,915		35,989		38,552
Less: Cash and cash equivalents	(269,868)		(265,053)		(231,982)		(256,233)
	$	1,385,295	$	1,474,894	$	1,523,171	$	1,436,122


(1)			During the nine months ended June 29, 2024, $0.9 million of accelerated stock-based compensation expense was recorded in selling and administrative expense in the accompanying Condensed Consolidated Statements of Operations as a result of a previously announced executive retirement agreement.
(2)			Included in other accrued liabilities on the Condensed Consolidated Balance Sheets.