Summary
Plexus Corp (PLXS, Financial) announced its financial results for the fiscal second quarter ending March 29, 2025, and provided guidance for the fiscal third quarter ending June 28, 2025. The company reported a Q2 revenue of $980 million, a GAAP operating margin of 5.0%, and a GAAP diluted EPS of $1.41. Non-GAAP figures showed an operating margin of 5.7% and diluted EPS of $1.66. For Q3, Plexus projects revenue between $1.00 billion and $1.04 billion, with a GAAP diluted EPS range of $1.40 to $1.55.
Positive Highlights
- Q2 revenue of $980 million met guidance expectations.
- Non-GAAP operating margin of 5.7% was at the high end of guidance.
- Non-GAAP EPS of $1.66 exceeded guidance.
- 42 new manufacturing program wins, representing $205 million in annualized revenue.
- Generated $16.5 million in free cash flow for Q2.
- Repurchased $12.2 million of shares, supporting shareholder value.
Negative Highlights
- GAAP operating margin slightly lower than non-GAAP due to stock-based compensation expenses.
- Free cash flow, while positive, was partially offset by share repurchases.
Financial Analyst Perspective
From a financial analyst's viewpoint, Plexus Corp's Q2 performance demonstrates strong operational efficiency and effective cost management, as evidenced by the high non-GAAP operating margin and EPS. The company's ability to meet or exceed guidance in key financial metrics suggests robust internal controls and strategic execution. The positive cash flow and strategic share repurchases indicate a commitment to enhancing shareholder value, which is a favorable sign for investors.
Market Research Analyst Perspective
As a market research analyst, Plexus Corp's results highlight its competitive positioning in the market, particularly in the healthcare and industrial sectors. The significant number of new program wins, including a major healthcare contract, underscores the company's ability to secure and expand its customer base. The guidance for Q3 suggests continued growth and resilience, despite potential market uncertainties such as tariffs and economic fluctuations.
FAQ
Q: What was Plexus Corp's revenue for Q2 2025?
A: Plexus Corp reported a Q2 2025 revenue of $980 million.
Q: What is the guidance for Q3 2025 revenue?
A: The company projects Q3 2025 revenue between $1.00 billion and $1.04 billion.
Q: How many new manufacturing programs did Plexus win in Q2?
A: Plexus won 42 new manufacturing programs in Q2, representing $205 million in annualized revenue.
Q: What was the free cash flow for Q2 2025?
A: Plexus generated $16.5 million in free cash flow for Q2 2025.
Read the original press release here.
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