Plexus — Fiscal 2026 Earnings Summary

Financial Performance:

• Fiscal 2026 revenue reached $4.965 billion, representing 23% year-over-year growth compared to $4.033 billion in fiscal 2025.
• Fiscal fourth quarter 2026 revenue was $1.427 billion, up from $1.058 billion in the same quarter of fiscal 2025.
• Fiscal 2026 GAAP operating margin was 5.3% (vs. 5.0% in fiscal 2025); non-GAAP adjusted operating margin was 6.2% (vs. 5.9% in fiscal 2025).
• Fiscal fourth quarter 2026 GAAP operating margin was 6.0% (vs. 5.0% in fiscal 2025); non-GAAP adjusted operating margin was 6.7% (vs. 5.8% in fiscal 2025).
• Fiscal 2026 GAAP diluted EPS was $7.41 (vs. $6.26 in fiscal 2025); non-GAAP adjusted diluted EPS was $8.97 (vs. $7.43 in fiscal 2025).
• Fiscal fourth quarter 2026 GAAP diluted EPS was $2.51 (vs. $1.87 in fiscal 2025); non-GAAP adjusted diluted EPS was $2.84 (vs. $2.14 in fiscal 2025).
• Return on invested capital (ROIC) for fiscal 2026 was 15.8%, exceeding the 15% enduring goal, with an economic return of 6.8% above the 9.0% weighted average cost of capital.
• Fiscal 2026 free cash flow usage was $28.9 million (cash flows from operations of $68.2 million less capital expenditures of $97.1 million).
• Fiscal fourth quarter 2026 free cash flow was $6.4 million (cash flows from operations of $29.2 million less capital expenditures of $22.8 million).
• Fiscal 2026 cash cycle was 62 days; fiscal fourth quarter 2026 cash cycle was 62 days.
• Top 10 customers comprised 54% of fiscal 2026 revenue and 56% of fiscal fourth quarter 2026 revenue.

Guidance and Future Outlook:

• Fiscal first quarter 2027 revenue guidance is $1.410 billion to $1.460 billion.
• Fiscal first quarter 2027 GAAP diluted EPS guidance is $2.16 to $2.32.
• Fiscal first quarter 2027 non-GAAP adjusted diluted EPS guidance is $2.46 to $2.62.
• Fiscal first quarter 2027 non-GAAP adjusted operating margin guidance is 6.0% to 6.4%.
• Management anticipates fiscal 2027 revenue growth in the mid- to upper-teens range.
• Management expects fiscal 2027 non-GAAP operating margin to increase and sustain working capital efficiency.
• Management expects to generate at least $100 million in fiscal 2027 free cash flow.
• Management targets a fiscal 2027 cash cycle in the low to mid-60s days.
• Management introduced a new non-GAAP operating margin goal of 6.5% to 7.0% for future periods.

Business Segments and Product Lines:

• Fiscal 2026 revenue by segment: Americas ($1.626 billion), Asia-Pacific ($2.898 billion), and Europe, Middle East and Africa ($458 million).
• Fiscal fourth quarter 2026 revenue by segment: Americas ($456 million), Asia-Pacific ($861 million), and Europe, Middle East and Africa ($115 million).
• Fiscal 2026 revenue by market sector: Industrial ($2.185 billion), Healthcare/Life Sciences ($1.933 billion), and Aerospace/Defense ($847 million).
• Fiscal fourth quarter 2026 revenue by market sector: Industrial ($691 million), Healthcare/Life Sciences ($512 million), and Aerospace/Defense ($224 million).
• Won 36 manufacturing programs in fiscal fourth quarter 2026, representing $290 million in annualized revenue when fully ramped.
• Qualified opportunities funnel expanded by $1.2 billion year-over-year (33%) to reach a record $4.9 billion.
• Global team contributed approximately 35,000 paid volunteer time off hours in fiscal 2026.
• Plexus Community Foundation donated $1.5 million to non-profits globally in fiscal 2026.
• Reduced absolute Scope 1 and 2 emissions by more than 50% across global manufacturing sites versus fiscal 2023 baseline.

Market and Competitive Landscape:

• All market sectors (Aerospace/Defense, Healthcare/Life Sciences, Industrial) delivered strong performance in fiscal 2026.
• The company secured exciting new customer programs and relationships across all market sectors.
• Top 10 customer concentration increased by 5 percentage points in fiscal 2026 compared to fiscal 2025.

Risks and Challenges:

• Forward-looking statements involve risks including tariffs, trade disputes, and trade protection measures.
• Risks include component shortages, delays, price fluctuations, and capacity constraints.
• Risks include customer delays, changes, cancellations, or forecast inaccuracies.
• Risks include the inability to execute new programs, start-up costs, and lack of track record for new customers.
• Risks include inventory write-offs due to excess and obsolete inventory or customer non-consumption.
• Risks include concentration of work for certain customers.
• Risks include geopolitical tensions, conflicts (Russia/Ukraine, Middle East, China/Taiwan), and global health epidemics.
• Risks include currency fluctuations, raw material cost fluctuations, and regulatory compliance requirements.

Management Commentary and Tone:

• CEO Todd Kelsey described fiscal 2026 as "outstanding" and exceeding expectations, citing record revenue and ROIC surpassing the 15% goal.
• CFO David Abuhl highlighted "significant revenue growth" and "dividends from ongoing operational efficiency investments" driving margins.
• Management expressed confidence in "sustaining our diversified and accelerating growth momentum."
• Management emphasized a "balanced ongoing approach toward investments in growth, people and technology."
• Management noted "exceptional working capital performance" and "outstanding" working capital discipline.
• Management stated the company is "scaling the company for the future" and developing "substantial long-term efficiencies."

Other Key Points:

• Completed the 2026 Share Repurchase Program by purchasing $21.4 million of shares at an average price of $254.32 per share.
• Board of Directors approved a 2027 Share Repurchase Program for an additional $100 million in August 2026, available to begin fiscal 2027.
• Fiscal 2026 total share repurchases were $85.0 million at an average price of $199.68 per share.
• Fiscal 2026 included $14.0 million of accelerated stock-based compensation expense related to executive retirement agreements.
• Fiscal 2025 included $4.7 million in restructuring costs primarily for employee severance in EMEA and AMER regions.
• Fiscal 2026 capital expenditures were $97.1 million.
• Fiscal 2026 debt and finance lease obligations increased, with current portion rising to $179.5 million from $45.8 million in fiscal 2025.