plxs-20241228

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________________________________________________________________________

FORM 10-Q

____________________________________________________________________________________________________________________________________

(Mark One)


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

For the quarterly period ended December 28, 2024


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

For the transition period from ______ to ______

Commission File Number 001-14423

____________________________________________________________________________________________________________________________________

PLEXUS CORP.

(Exact name of registrant as specified in charter)

____________________________________________________________________________________________________________________________________


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

One Plexus Way

Neenah, Wisconsin 54957

(Address of principal executive offices) (Zip Code)

Telephone Number (920) 969-6000

(Registrant’s telephone number, including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of January 28, 2025, there were 27,040,158 shares of common stock outstanding.



PART I. FINANCIAL INFORMATION			3
ITEM 1. FINANCIAL STATEMENTS			3
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Balance Shee ts			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			23
Disclosure About Critical Accounting Estimates			27
New Accounting Pronouncements			27
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			27
ITEM 4. CONTROLS AND PROCEDURES			28
ITEM 5. OTHER INFORMATION			28
PART II. OTHER INFORMATION			29
ITEM 1A. Risk Factors			29
ITEM 2. Unregistered Sales of Equity Securities and Use of Procee ds			29
ITEM 6. Exhibits			30
SIGNATURES			31


	Three Months Ended
	December 28, 2024		December 30, 2023
Net sales	$	976,122	$	982,607
Cost of sales	875,430		894,467
Gross profit	100,692		88,140
Selling and administrative expenses	49,149		42,982
Restructuring and other charges	4,683		—
Operating income	46,860		45,158
Other income (expense):
Interest expense	(3,554)		(7,617)
Interest income	1,234		808
Miscellaneous, net	(1,046)		(3,502)
Income before income taxes	43,494		34,847
Income tax expense	6,227		5,632
Net income	$	37,267	$	29,215
Earnings per share:
Basic	$	1.38	$	1.06
Diluted	$	1.34	$	1.04
Weighted average shares outstanding:
Basic	27,087		27,485
Diluted	27,763		28,013
Comprehensive income:
Net income	$	37,267	$	29,215
Other comprehensive (loss) income:
Derivative instrument and other fair value adjustments	(16,756)		8,397
Foreign currency translation adjustments	(17,360)		12,489
Other comprehensive (loss) income	(34,116)		20,886
Total comprehensive income	$	3,151	$	50,101


	December 28, 2024		September 28, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	317,161	$	345,109
Restricted cash	688		2,353
Accounts receivable, net of allowances of $3,045 and $3,189, respectively	597,470		622,366
Contract assets	128,086		120,560
Inventories	1,290,179		1,311,434
Prepaid expenses and other	53,739		75,328
Total current assets	2,387,323		2,477,150
Property, plant and equipment, net	505,108		501,112
Operating lease right-of-use assets	78,045		74,360
Deferred income taxes	73,832		73,919
Other assets	27,009		27,280
Total non-current assets	683,994		676,671
Total assets	$	3,071,317	$	3,153,821

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations	$	121,977	$	157,325
Accounts payable	666,118		606,378
Advanced payments from customers	625,315		709,152
Accrued salaries and wages	78,458		94,448
Other accrued liabilities	73,507		75,991
Total current liabilities	1,565,375		1,643,294
Long-term debt and finance lease obligations, net of current portion	88,728		89,993
Accrued income taxes payable	17,198		17,198
Long-term operating lease liabilities	35,124		32,275
Deferred income taxes	7,233		8,234
Other liabilities	38,590		38,002
Total non-current liabilities	186,873		185,702
Total liabilities	1,752,248		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, 54,514 and 54,489 shares issued, respectively, and 27,062 and 27,122 shares outstanding, respectively	545		545
Additional paid-in capital	684,555		680,638
Common stock held in treasury, at cost, 27,452 and 27,367 shares, respectively	(1,202,939)		(1,190,115)
Retained earnings	1,860,410		1,823,143
Accumulated other comprehensive (loss) income	(23,502)		10,614
Total shareholders’ equity	1,319,069		1,324,825
Total liabilities and shareholders’ equity	$	3,071,317	$	3,153,821


	December 28, 2024		September 28, 2024
Raw materials	$	1,143,497	$	1,184,222
Work-in-process	56,487		49,513
Finished goods	90,195		77,699
Total inventories	$	1,290,179	$	1,311,434


	December 28, 2024		September 28, 2024
4.05% Senior Notes, due June 15, 2025	$	100,000	$	100,000
4.22% Senior Notes, due June 15, 2028	50,000		50,000
Borrowings under the Credit Facility	15,000		50,000
Finance lease and other financing obligations	46,442		48,142
Unamortized deferred financing fees	(737)		(824)
Total obligations	210,705		247,318
Less: current portion	(121,977)		(157,325)
Long-term debt, finance lease and other financing obligations, net of current portion	$	88,728	$	89,993


Fair Value Measurements Using Input Levels (Liability) Asset (in thousands)
Fiscal period ended December 28, 2024	Level 1		Level 2		Level 3		Total
Derivatives
Foreign currency forward contracts	$	—	$	(7,075)	$	—	$	(7,075)

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


	Financial Statement Line Item	December 28, 2024		September 28, 2024
ASSETS
Finance lease assets	Property, plant and equipment, net	$	34,856	$	35,853
Operating lease assets	Operating lease right-of-use assets	78,045		74,360
Total lease assets		$	112,901	$	110,213

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Finance lease liabilities	Current portion of long-term debt and finance lease obligations	$	4,758	$	4,717
Operating lease liabilities	Other accrued liabilities	14,875		14,697
Non-current
Finance lease liabilities	Long-term debt and finance lease obligations, net of current portion	38,055		38,756
Operating lease liabilities	Long-term operating lease liabilities	35,124		32,275
Total lease liabilities		$	92,812	$	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


	Three Months Ended
	December 28, 2024	December 30, 2023
Days in accounts receivable	56	61
Days in contract assets	12	12
Days in inventory	134	161
Days in accounts payable	(69)	(66)
Days in advanced payments	(65)	(73)
Annualized cash cycle	68	95


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)
September 29, 2024-October 26, 2024	30,251	$	136.54	30,251	$	45,869,668
October 27, 2024-November 23, 2024	28,224	153.95		28,224	41,524,636
November 24, 2024-December 28, 2024	26,348	165.06		26,348	37,175,750
	84,823	$	151.19	84,823


	Three Months Ended
	December 28, 2024			December 30, 2023
Net sales	$	976.1		$	982.6
Cost of sales	875.4			894.5
Gross profit	100.7			88.1
Gross margin	10.3		%	9.0		%
Operating income	46.9			45.2
Operating margin	4.8		%	4.6		%
Other expense	3.4			10.3
Income tax expense	6.2			5.6
Net income	37.3			29.2
Diluted earnings per share	$	1.34		$	1.04
Return on invested capital*	13.8		%	10.3		%
Economic return*	4.9		%	2.1		%
*Non-GAAP metric; refer to "Return on Invested Capital ("ROIC") and economic return" below and Exhibit 99.1 for more information.


	Three Months Ended
	December 28, 2024		December 30, 2023
Net sales:
AMER	$	273.9	$	309.8
APAC	607.1		552.8
EMEA	101.2		121.3
Elimination of inter-segment sales	(6.1)		(1.3)
Total net sales	$	976.1	$	982.6


	Three Months Ended
	December 28, 2024		December 30, 2023
Net sales:
Aerospace/Defense	$	159.7	$	167.1
Healthcare/Life Sciences	374.1		380.9
Industrial	442.3		434.6
Total net sales	$	976.1	$	982.6


	Three Months Ended
	December 28, 2024			December 30, 2023
Adjusted operating income (tax-effected)	$	175.2		$	151.7
Average invested capital	1,268.3			1,479.6
After-tax ROIC	13.8		%	10.3		%
WACC	8.9		%	8.2		%
Economic return	4.9		%	2.1		%


Exhibit No.						Exhibit
10.1						Form of Plexus Corp. Variable Incentive Compensation Plan - Plexus Leadership Team under the Plexus Corp. 2024 Omnibus Incentive Plan*.
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 December 28, 2024, 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 first quarter ended December 28, 2024, formatted in Inline XBRL and contained in Exhibit 101.

*						Designates management compensatory plans or agreements.

SEC Form 10-Q filed by Plexus Corp.