Plexus Corp. Reports 6% Increase in Q3 Net Sales to $1,018.3 Million

Plexus Corp. reported a significant increase in financial performance for the third quarter of fiscal 2025, with net sales reaching $1,018.3 million, a 6.0% increase from $960.8 million in the same period last year. For the nine months ending June 28, 2025, net sales totaled $2,974.6 million, up 2.2% from $2,910.3 million in the prior year. The company's gross profit also saw an increase, rising to $103.3 million for the quarter, compared to $94.4 million a year earlier, resulting in a gross margin of 10.1%, up from 9.8%. Operating income for the quarter was $53.6 million, a 36.7% increase from $39.2 million in the previous year.

The company experienced notable changes in its operational segments. The Americas (AMER) segment saw a slight increase in sales, while the Asia-Pacific (APAC) segment reported a 13.9% increase, driven by heightened customer demand and production ramps for new products. Conversely, the Europe, Middle East, and Africa (EMEA) segment faced a decline in sales, attributed to decreased customer demand. The overall increase in net sales was supported by improved operational efficiencies and a favorable shift in customer mix, particularly in the APAC region.

Plexus also made strategic moves during the quarter, including the implementation of a new internal management reporting system that focuses on value-add sales across regions. This change did not affect consolidated net sales or operating income but aimed to enhance resource allocation and performance evaluation. The company continued its share repurchase program, purchasing 143,282 shares for $18.4 million during the quarter, and has authorized a new program for up to $100 million in share repurchases.

Operationally, Plexus reported a decrease in cash and cash equivalents to $237.6 million as of June 28, 2025, down from $347.5 million at the end of the previous fiscal year. The company’s cash flows from operating activities were $117.2 million for the nine months ended June 28, 2025, a decrease from $216.4 million in the prior year, primarily due to changes in inventory and customer payments. The company’s total liabilities decreased to $1,686.5 million from $1,829.0 million, reflecting a reduction in the current portion of long-term debt.

Looking ahead, Plexus remains cautiously optimistic about its financial outlook, anticipating continued demand in key sectors such as healthcare and aerospace. The company is focused on managing its operational efficiencies and navigating potential macroeconomic challenges, including supply chain constraints and rising costs. The effective tax rate for fiscal 2025 is projected to be between 10% and 12%, and Plexus is evaluating the impact of recent tax law changes on its financial statements.