Breaking Down Plexus Corp. (PLXS) Financial Health: Key Insights for Investors

You're looking at Plexus Corp. (PLXS), and the headline numbers from their fiscal year 2025 results, released in October 2025, defintely paint a picture of operational discipline in a tough market. The core takeaway is that the company delivered, with full-year revenue hitting $4.033 billion and non-GAAP diluted earnings per share (EPS) at $7.43, showing a solid trajectory that beat expectations. Here's the quick math: their Return on Invested Capital (ROIC) for the year was strong at 14.6%, which is a healthy 570 basis points above their cost of capital, plus they generated $154 million in free cash flow, giving them real flexibility. But the real opportunity map is in the pipeline: they secured 141 new manufacturing programs in the fiscal year, representing $941 million in future annualized revenue, which is the engine for growth beyond the current cycle. Still, near-term, the guidance for Q1 fiscal 2026 is tight-revenue is projected between $1.050 billion and $1.090 billion-so we need to break down how those new program ramps will translate into actual cash flow and what their cost management looks like in the face of muted end market demand.

Revenue Analysis

You need a clear picture of where Plexus Corp. (PLXS) is making its money, and the simple takeaway is that their revenue growth is currently modest but underpinned by strong future program wins. For the fiscal year ending September 27, 2025, Plexus Corp. reported total annual revenue of $4.033 billion. That's a year-over-year growth rate of just 1.8% from fiscal 2024, which tells you the near-term environment has been a bit muted.

The company's primary revenue streams come from its Electronic Manufacturing Services (EMS) model, which includes manufacturing, engineering solutions, and sustaining services. They track performance by market sector, and this is where the diversification strength lies. Honestly, it's a well-balanced portfolio, which is defintely a good sign for stability.

Here's the quick math on how their core business segments contributed to the overall revenue in the fourth quarter of fiscal 2025, which is a solid proxy for the full year:

• Industrial: Accounted for 44% of total revenue.
• Healthcare/Life Sciences: Contributed 40% to the total.
• Aerospace/Defense: Made up the remaining 16%.

What this segment breakdown hides is the geographic shift and the future pipeline. Regionally, the Americas segment saw a strong increase of 9.4% in the fourth quarter of fiscal 2025, but that was partially offset by revenue declines in EMEA (Europe, Middle East, and Africa) and Asia-Pacific, which fell 7% and 2.1%, respectively. That's a key detail: you're seeing strength in the US and surrounding markets, but some softness internationally.

The most significant change and opportunity is the new business pipeline. Plexus Corp. secured 141 manufacturing wins throughout fiscal 2025, representing an estimated $941 million in annualized revenue once these programs are fully ramped up. That new business is why management is guiding for a much more robust revenue growth target of 9% to 12% for fiscal 2026. Also, their top 10 customers now account for 49% of fiscal 2025 revenue, up one percentage point from fiscal 2024, which means their concentration risk is still something to watch. If you want to dig deeper into who those key customers are, you should check out Exploring Plexus Corp. (PLXS) Investor Profile: Who's Buying and Why?

Profitability Metrics

You need to know if Plexus Corp. (PLXS) is translating its revenue into real profit, especially against a tough Electronic Manufacturing Services (EMS) backdrop. The direct takeaway from the fiscal year 2025 data is clear: Plexus is demonstrating strong operational efficiency, but its inherently low-margin business model means its profitability ratios significantly trail the broader industry average.

For the fiscal year ending September 27, 2025, Plexus Corp. reported total revenue of $4.033 billion. This revenue translated into a Trailing Twelve Months (TTM) Gross Margin of 10.08%, a TTM Operating Margin of 5.13%, and a TTM Net Profit Margin of 4.29%. Here's the quick math: that 10.08% Gross Margin means Plexus generated approximately $406.5 million in Gross Profit. The 5.13% Operating Margin nets out to about $206.9 million in Operating Profit, showing effective cost control, and the final Net Profit was around $173.0 million.

Profitability vs. Industry Averages

The profitability ratios for Plexus, while solid for an EMS provider, look thin compared to the overall industry. This isn't a red flag, but a reflection of the EMS sector's business model-high volume, low margin. You need to focus on operational efficiency, not just the raw percentages. Plexus's TTM Gross Margin of 10.08% is dwarfed by the industry average of 31.64%, which includes higher-margin technology companies.

The same pattern holds for the other metrics. Plexus's TTM Operating Margin of 5.13% is well below the industry's 7.85% average, and its Net Profit Margin of 4.29% lags the average of 5.2%. Still, the company's focus on complex, high-reliability sectors like Healthcare/Life Sciences and Aerospace/Defense is what keeps its margins at the higher end for a pure-play EMS company. You're looking for stability and improvement here, not parity with a software firm.

• Gross Margin: 10.08% vs. Industry 31.64%
• Operating Margin: 5.13% vs. Industry 7.85%
• Net Profit Margin: 4.29% vs. Industry 5.2%

Operational Efficiency and Margin Trends

Plexus is defintely executing well on cost management. The company's Net Profit Margin of 4.29% for the TTM period is a significant jump from its 5-year average of 3.63%, and a notable improvement from the prior year's 3.30%. This margin expansion is a direct result of operational efficiency initiatives and a strategic shift toward higher-value contracts, which is a key theme in their Mission Statement, Vision, & Core Values of Plexus Corp. (PLXS).

The strong performance is also visible in the earnings per share (EPS) growth, which was up 54.6% over the prior year. This shows that the company is effectively translating revenue growth into bottom-line results. For investors, this trend of expanding margins in a competitive industry is a powerful signal of management's ability to control costs and choose profitable business. The GAAP Operating Margin for the full fiscal year was 5.0%, with a non-GAAP figure of 5.9%, indicating that core operations are performing at a very high level.

Here is a snapshot of the core profitability metrics for fiscal year 2025:

Debt vs. Equity Structure

When you look at Plexus Corp. (PLXS)'s balance sheet, the immediate takeaway is a conservative, equity-focused financing strategy. The company is defintely not leaning on debt to fuel its operations, which is a significant de-risking factor for investors.

The company's approach to capital structure-how it balances debt versus shareholder equity-is extremely prudent. For the trailing twelve months (TTM) of fiscal year 2025, Plexus Corp. (PLXS) reported a Debt-to-Equity (D/E) ratio of just 0.12. This means for every dollar of shareholder equity, the company uses only about 12 cents of debt, a clear sign of financial strength and minimal leverage risk. To put that in perspective, the average D/E ratio for the Electronics Manufacturing Services (EMS) industry is around 0.5124. Plexus Corp. (PLXS) runs a much tighter ship than its peers, relying more on retained earnings and shareholder capital than on external borrowing.

Here's the quick math on their leverage position, based on the fiscal third quarter of 2025 data:

Looking at the breakdown, the company's total debt of $174.09 million is manageable. The current portion of long-term debt and finance lease obligations was approximately $50.678 million as of the fiscal third quarter ended June 28, 2025. This split shows a low reliance on short-term credit, which is a positive for liquidity. They are not scrambling to pay off near-term obligations.

In fiscal year 2025, Plexus Corp. (PLXS) actively managed its liabilities, reducing its debt by over $100 million. This debt reduction was paired with an accelerated return of capital to shareholders. The company's board approved a new $100.0 million share repurchase program in May 2025, demonstrating their preference for using strong free cash flow-which hit $154.0 million for the full fiscal year 2025-to fund equity actions over taking on new debt. This balance of debt paydown and share buybacks is a sign of a mature, shareholder-friendly capital allocation strategy. If you want to dive deeper into what drives this strategy, you should check out their Mission Statement, Vision, & Core Values of Plexus Corp. (PLXS).

The company is using its operating efficiency, which resulted in a robust Return on Invested Capital (ROIC) of 14.6% for fiscal 2025, to fund growth internally and return capital, rather than issuing new debt or equity. This is how a company builds long-term, sustainable value.

Liquidity and Solvency

You need to know if Plexus Corp. (PLXS) can cover its short-term bills, and the answer for fiscal year 2025 is a solid, if not spectacular, yes. The company's liquidity position is healthy, driven by strong operational cash generation and a focus on working capital efficiency.

The core measure of immediate financial strength-the current ratio (current assets divided by current liabilities)-stands at approximately 1.58:1 for the fiscal year ended September 27, 2025. This means Plexus Corp. has about $1.58 in liquid assets for every dollar of short-term debt, which is a comfortable margin for a manufacturing services company. To be fair, a quick ratio (acid-test ratio) is a better measure of immediate cash-on-hand liquidity because it strips out inventory, which can be slow to sell.

Here's the quick math on the balance sheet:

• Current Assets (CA): ~$2.4 billion [cite: 3 in step 1]
• Current Liabilities (CL): ~$1.52 billion [cite: 3 in step 1]
• Current Ratio: $2.4B / $1.52B = 1.58:1

Working Capital and Inventory Trends

The real story isn't just the ratio, but the trend in working capital (CA minus CL). Plexus Corp. has made significant progress in managing its cash conversion cycle, which is a key indicator of operational health. They achieved a fiscal fourth quarter cash cycle of just 63 days, which is a 6-day sequential decrease and the best result they've delivered in the past five years.

This efficiency is largely due to inventory management. The team drove a reduction in their gross inventory balance, ending the fiscal year $82 million lower than fiscal 2024. This reduction frees up capital that would otherwise be tied up in materials and finished goods, which defintely strengthens the quick ratio even without a specific calculation.

Cash Flow Statement Overview

Cash flow is the lifeblood of any business, and Plexus Corp.'s fiscal 2025 cash flow statement shows robust generation from operations, which is what you want to see. The company delivered a total free cash flow (FCF) of $154.0 million for the fiscal year, well above their initial projections.

Here is the breakdown of the three main cash flow activities for the fiscal year ended September 27, 2025 (in millions USD):

The financing activities show a disciplined approach: the positive cash from operations and free cash flow were used to reduce borrowing and execute a share repurchase program, reinforcing the commitment to shareholder value. They ended the year in a net cash position, which is a strong sign of solvency and financial flexibility for future investments or market volatility.

For a deeper dive into their long-term strategy, you can read their Mission Statement, Vision, & Core Values of Plexus Corp. (PLXS).

The key takeaway is that Plexus Corp. is not facing any near-term liquidity concerns; they are converting sales into cash efficiently and using that cash to strengthen the balance sheet and reward shareholders.

Valuation Analysis

You're looking at Plexus Corp. (PLXS) and wondering if the market is giving you a fair deal. The direct takeaway is that, based on trailing metrics, the stock is priced slightly above the industry average, but its forward-looking ratios and strong analyst consensus suggest it's defintely not overvalued, especially considering its fiscal year 2025 performance. The current valuation points to a company with solid, albeit slowing, growth expectations already baked into the price.

For the fiscal year ending September 27, 2025, Plexus Corp. delivered strong financials, including revenue of $4.033 billion and GAAP diluted Earnings Per Share (EPS) of $6.26. The stock's valuation ratios, which help us gauge if it's cheap or expensive relative to its earnings and assets, tell a nuanced story.

Here's the quick math on key valuation multiples (based on the latest data as of November 2025):

• Price-to-Earnings (P/E) Ratio (Trailing): 22.00.
• Price-to-Earnings (P/E) Ratio (Forward): 18.69.
• Price-to-Book (P/B) Ratio: 2.54.
• Enterprise Value-to-EBITDA (EV/EBITDA): 12.49.

The trailing P/E of 22.00 is higher than some peers in the Electronic Manufacturing Services (EMS) space, but the forward P/E of 18.69 suggests analysts expect earnings to jump, making the stock look cheaper a year out. This is a sign of anticipated operational improvement. The EV/EBITDA of 12.49, which looks at the total value of the company (Enterprise Value) against its operating cash flow proxy (EBITDA), is reasonable for a company that just saw a 54.62% increase in earnings for the 2025 fiscal year.

Near-Term Stock Performance and Analyst View

Looking at the stock price trend, you've seen some volatility. The stock closed at $137.08 on November 18, 2025. Over the last 12 months, Plexus Corp.'s stock price has actually decreased by about 13.15%. The 52-week trading range shows a low of $103.43 and a high of $172.89. This drop, while concerning, might be the market resetting expectations after a strong run, offering a potential entry point.

What this estimate hides is the market's reaction to a broader industrial slowdown. Still, the analyst community remains bullish. The consensus rating from 4 analysts is a clear 'Buy'. Their average 12-month price target is $157.50. That implies an upside of about 15% from the current price, which is a strong vote of confidence in the company's ability to execute its fiscal 2026 plan.

Dividend Policy and Investor Profile

A note on shareholder return: Plexus Corp. is a growth-focused company, not an income stock. It does not currently pay a dividend, meaning its dividend yield is 0.00% and the payout ratio is not applicable. This is common for companies that prioritize reinvesting cash flow back into the business to fuel future expansion and secure new manufacturing programs, like the 41 new programs secured in Q3 2025. The focus is on capital appreciation, not quarterly income.

To understand who is buying and selling this growth story, you should review Exploring Plexus Corp. (PLXS) Investor Profile: Who's Buying and Why?

The key takeaway is that the stock is reasonably valued, not cheap, but with a clear path to growth that analysts support. Your next step is to check if your own growth expectations align with the analyst target of $157.50.

Risk Factors

You need to understand that even with Plexus Corp.'s (PLXS) strong fiscal 2025 performance-total revenue hit $4.033 billion with non-GAAP diluted earnings per share (EPS) of $7.43-the business is not immune to significant risks. The core challenges for Plexus are a mix of external market volatility and internal customer concentration.

The most immediate financial risk is the reliance on a concentrated customer base. For the full fiscal year 2025, Plexus's top 10 customers accounted for 49% of total revenue. This means a significant contract reduction or cancellation from just one or two major clients could immediately impact the company's revenue and profitability, despite the fact that no single customer accounted for over 10% of sales.

External factors continue to create headwinds, which is a reality for any global electronic manufacturing services (EMS) provider. These are the macro-level risks that are difficult to control, but which you must factor into your valuation models:

• Trade and Tariffs: Ongoing trade disputes and protectionist measures, like tariffs, can increase component costs and disrupt the global supply chain, squeezing the operating margin.
• Inflationary Pressures: The effect of persistent inflation on production costs remains a concern, which could erode the non-GAAP operating margin of 5.9% achieved in fiscal 2025.
• Global Economic Weakness: Muted end-market demand, especially in technology-dependent sectors, creates volatility and can lead to customer delays, changes, or cancellations in new programs.

Operational risks are also present, particularly in managing a complex, global supply chain (supply chain management). For instance, the Aerospace/Defense sector saw a sequential decline of 6% in the fourth quarter of fiscal 2025, missing expectations due to program ramp timing issues. This highlights the risk of customer delays and forecast inaccuracies in both new and ongoing programs. You have to watch inventory management, too, as the risk of excess or obsolete inventory-especially if a customer doesn't pay for it-can lead to write-offs.

Here's the quick math on capital efficiency: Plexus's Return on Invested Capital (ROIC) for fiscal 2025 was 14.6%, which is a strong result, exceeding their weighted average cost of capital of 8.9% by 570 basis points. The risk is that a significant inventory write-off or a margin compression from tariffs could quickly narrow that favorable economic return of 5.7%.

Plexus is taking clear, concrete actions to mitigate these risks. They are focusing on enhancing supply chain resilience and operational efficiency, plus making strategic investments in technology and talent. They are also actively diversifying their business; in fiscal 2025, they secured 141 new manufacturing wins, representing $941 million in estimated annualized revenue when fully ramped. That's a defintely solid buffer against customer concentration. They are also managing working capital well, evidenced by a reduction in their cash cycle to 63 days in the fourth quarter of 2025, the best result in five years.

For a deeper dive into the company's performance metrics and strategic outlook, you can find more analysis in Breaking Down Plexus Corp. (PLXS) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for a clear map of where Plexus Corp. (PLXS) is heading, not just where it's been. The direct takeaway is this: the company is positioned for accelerated revenue growth in fiscal year 2026, driven by a record pipeline of new business and a laser focus on high-complexity, high-margin sectors. They're not waiting for the market to improve; they're taking market share.

The company's fiscal 2025 results set a strong foundation, with total revenue hitting $4.033 billion and non-GAAP diluted Earnings Per Share (EPS) reaching $7.43. That's serious profitability, especially when you consider their Return on Invested Capital (ROIC) for the year was 14.6%, creating an economic return of 570 basis points above their weighted average cost of capital. That's how you know management is using your capital wisely.

Key Growth Drivers and Strategic Focus

Plexus Corp. isn't a generalist; their growth is rooted in being the best at what they call 'mid-to-low volume, higher complexity' products. This specialization in regulated and demanding markets is their core competitive advantage. They focus on three key sectors, and the momentum from new wins is defintely the biggest driver right now:

• Aerospace/Defense: Supported by robust demand for defense and commercial space products.
• Healthcare/Life Sciences: Continued growth from new project wins, like those in atrial fibrillation and cardiovascular platforms.
• Industrial: Share gains and new program ramps, even while navigating muted end-market demand.

In fiscal 2025, the team secured 141 new manufacturing programs, which are expected to generate $941 million in annualized revenue once they are fully ramped into production. That pipeline is the engine for the next two years. Also, their customer base is highly diversified, with no single client accounting for more than 10% of total sales, which de-risks their revenue stream.

Future Projections and Strategic Investments

Management is confident in their ability to outpace their end markets. For fiscal year 2026, they are targeting revenue growth in the range of 9% to 12%, which is a significant acceleration. Here's the quick math: hitting the midpoint of that range would push their revenue well over the $4.4 billion mark. They are also guiding for a strong start to fiscal 2026, with non-GAAP EPS projected between $1.66 and $1.81 for the first quarter.

To make this growth happen, they are actively investing in operational efficiency and global capacity. This includes the ongoing ramp-up of their new facility in Malaysia. Another key initiative is their focus on product lifecycle solutions-from design and development to sustaining services-which locks in customer relationships for the long term. This focus on long-term value creation is why you should read about their Mission Statement, Vision, & Core Values of Plexus Corp. (PLXS).

Near-term, watch their ability to convert their record new program wins into revenue on schedule. That's the main execution risk. The company's commitment to continuous operational improvement is clear, as evidenced by their non-GAAP operating margin expanding by 40 basis points in fiscal 2025, reaching 5.9% for the full year. They are focused on achieving their 6% non-GAAP operating margin goal.

Strategic Partnerships and Innovation

Strategic partnerships are also a quiet but powerful growth lever. For example, the November 2025 announcement of Evolv Technology selecting Plexus Corp. as a new strategic contract manufacturing partner for their security screening solutions shows their ability to win in high-tech, high-impact areas. They also partnered with GE Healthcare China to advance a green supply chain initiative, focusing on maximizing the recycling and reuse of valuable medical equipment. These wins demonstrate a value proposition that extends beyond just manufacturing, encompassing design, supply chain, and sustainability. That's the kind of comprehensive product lifecycle solution (PLS) that builds a moat around the business.

The company also generated $154 million in free cash flow in fiscal 2025, which they deployed to reduce debt by over $100 million and continue their share repurchase program. Robust cash generation gives them the flexibility to invest in new capabilities or make strategic acquisitions, though none were announced recently. They're focused on organic growth through new program wins and operational excellence for now.