Plexus Announces Fiscal First Quarter Financial Results

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PLEXUS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	Jan 3,			Dec 28,
	2026			2024
Net sales	$	1,069,852		$	976,122
Cost of sales		963,714			875,430
Gross profit		106,138			100,692
Operating expenses:
Selling and administrative expenses		51,674			49,149
Restructuring and other charges, net		—			4,683
Operating income		54,464			46,860
Other income (expense):
Interest expense		(2,888	)		(3,554	)
Interest income		984			1,234
Miscellaneous, net		(1,528	)		(1,046	)
Income before income taxes		51,032			43,494
Income tax expense		9,850			6,227
Net income	$	41,182		$	37,267
Earnings per share:
Basic	$	1.54		$	1.38
Diluted	$	1.51		$	1.34
Weighted average shares outstanding:
Basic		26,766			27,087
Diluted		27,349			27,763

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PLEXUS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
	Jan 3,			Sep 27,
	2026			2025
ASSETS
Current assets:
Cash and cash equivalents	$	248,825		$	306,464
Restricted cash		598			294
Accounts receivable		679,660			656,573
Contract assets		152,682			150,654
Inventories		1,305,339			1,229,839
Prepaid expenses and other		69,534			54,969
Total current assets		2,456,638			2,398,793
Property, plant and equipment, net		538,648			546,052
Operating lease right-of-use assets		70,346			72,863
Deferred income taxes		91,339			91,349
Other assets		28,996			28,053
Total non-current assets		729,329			738,317
Total assets	$	3,185,967		$	3,137,110

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations	$	66,837		$	45,793
Accounts payable		745,641			726,597
Advanced payments from customers		580,370			575,850
Accrued salaries and wages		82,303			109,076
Other accrued liabilities		68,481			61,367
Total current liabilities		1,543,632			1,518,683
Long-term debt and finance lease obligations, net of current portion		91,139			91,987
Long-term operating lease liabilities		27,327			29,422
Deferred income taxes		5,156			6,000
Other liabilities		37,650			36,430
Total non-current liabilities		161,272			163,839
Total liabilities		1,704,904			1,682,522
Shareholders’ equity:
Common stock		547			547
Additional paid-in-capital		699,374			695,653
Common stock held in treasury		(1,277,842	)		(1,255,451	)
Retained earnings		2,037,210			1,996,028
Accumulated other comprehensive income		21,774			17,811
Total shareholders’ equity		1,481,063			1,454,588
Total liabilities and shareholders’ equity	$	3,185,967		$	3,137,110

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PLEXUS CORP. AND SUBSIDIARIES
NON-GAAP SUPPLEMENTAL INFORMATION Table 1
(in thousands, except per share data)
(unaudited)

	Three Months Ended
	Jan 3,			Sep 27,			Dec 28,
	2026			2025			2024
Operating income, as reported	$	54,464		$	53,112		$	46,860
Operating margin, as reported		5.1	%		5.0	%		4.8	%

Non-GAAP adjustments:
Restructuring costs (1)		—			—			4,683
Stock-based compensation		7,765			7,803			6,990
Non-GAAP operating income	$	62,229		$	60,915		$	58,533
Non-GAAP operating margin		5.8	%		5.8	%		6.0	%

Net income, as reported	$	41,182		$	51,429		$	37,267

Non-GAAP adjustments:
Restructuring costs, net of tax (1)		—			—			4,191
Stock-based compensation, net of tax		7,377			7,414			6,640
Adjusted net income	$	48,559		$	58,843		$	48,098

Diluted earnings per share, as reported	$	1.51		$	1.87		$	1.34

Non-GAAP per share adjustments:
Restructuring costs, net of tax (1)		—			—			0.15
Stock-based compensation, net of tax		0.27			0.27			0.24
Adjusted diluted earnings per share	$	1.78		$	2.14		$	1.73

(1) During the three months ended December 28, 2024, restructuring costs of $4.7 million, or $4.2 million net of taxes, were incurred primarily for employee severance costs associated with a reduction in the Company’s workforce in the EMEA and AMER regions.

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PLEXUS CORP. AND SUBSIDIARIES
NON-GAAP SUPPLEMENTAL INFORMATION Table 2
(in thousands)
(unaudited)

ROIC and Economic Return Calculations	Three Months Ended				Twelve Months Ended				Three Months Ended
	Jan 3,				Sep 27,				Dec 28,
	2026				2025				2024
Operating income, as reported		$	54,464			$	202,371			$	46,860
Restructuring and other charges, net	+		—		+		4,683		+		4,683
Adjusted operating income		$	54,464			$	207,054			$	51,543
	x		4						x		4

Adjusted annualized operating income		$	217,856			$	207,054			$	206,172
Adjusted effective tax rate	x		17	%	x		8	%	x		15	%
Tax impact			37,036				16,564				30,926
Adjusted operating income (tax-effected)		$	180,820			$	190,490			$	175,246

Average invested capital	÷	$	1,374,532		÷	$	1,303,575		÷	$	1,268,309
ROIC			13.2	%			14.6	%			13.8	%
Weighted average cost of capital	–		9.0	%	–		8.9	%	–		8.9	%
Economic return			4.2	%			5.7	%			4.9	%

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Average Invested Capital Calculations	Jan 3,			Sep 27,			Jun 28,			Mar 29,			Dec 28,			Sep 28,
	2026			2025			2025			2025			2024			2024
Equity	$	1,481,063		$	1,454,588		$	1,419,085		$	1,351,675		$	1,319,069		$	1,324,825
Plus:
Debt and finance lease obligations – current		66,837			45,793			50,678			121,014			121,977			157,325
Operating lease obligations – current (1)		7,943			8,253			8,470			9,968			14,875			14,697
Debt and finance lease obligations – long-term		91,139			91,987			92,215			88,761			88,728			89,993
Operating lease obligations – long-term		27,327			29,422			31,192			32,720			35,124			32,275
Less: Cash and cash equivalents		(248,825	)		(306,464	)		(237,567	)		(310,531	)		(317,161	)		(345,109	)
	$	1,425,484		$	1,323,579		$	1,364,073		$	1,293,607		$	1,262,612		$	1,274,006

(1) Included in other accrued liabilities on the Condensed Consolidated Balance Sheets.