Plexus Corp. Reports Q2 Fiscal 2025 Financial Results with Increased Net Sales and Profitability

Plexus Corp. reported its financial results for the second quarter of fiscal 2025, revealing a modest increase in net sales and significant growth in profitability compared to the same period last year. For the three months ended March 29, 2025, the company achieved net sales of $980.2 million, a 1.4% increase from $966.9 million in the prior year. Gross profit rose to $97.8 million, up 11.0% from $88.1 million, resulting in a gross margin of 10.0%, an increase of 90 basis points year-over-year. Operating income surged to $48.8 million, a 65.4% increase from $29.5 million, while net income reached $39.1 million, up 141.4% from $16.2 million. Diluted earnings per share also saw a significant rise, increasing to $1.41 from $0.58.

The company noted several operational changes that contributed to its improved financial performance. Notably, Plexus experienced a positive shift in customer mix and a decrease in fixed costs due to operational efficiency initiatives. The reduction in restructuring and other charges, which were $11.0 million in the prior year, also played a crucial role in enhancing profitability. The company did not incur any restructuring charges in the latest quarter, contrasting with the previous year’s expenses related to workforce reductions and site closures.

Plexus's performance varied across its geographic segments. The Americas (AMER) segment reported a slight decline in sales, down 0.3% to $295.2 million, primarily due to decreased customer demand and disengagements. In contrast, the Asia-Pacific (APAC) segment saw a notable increase of 12.5%, reaching $587.0 million, driven by heightened customer demand and production ramps for existing customers. The Europe, Middle East, and Africa (EMEA) segment faced a significant decline, with sales dropping 32.6% to $102.6 million, attributed to reduced customer demand.

Looking ahead, Plexus remains optimistic about its financial outlook, supported by its strong cash position of $310.6 million as of March 29, 2025, down from $347.5 million at the end of the previous fiscal year. The company anticipates that its cash flows from operations, along with available credit facilities, will be sufficient to meet its working capital and capital expenditure needs over the next twelve months. Additionally, Plexus plans to continue its share repurchase program, having repurchased $12.2 million worth of shares in the latest quarter. The company is also preparing for the maturity of its $100 million Senior Notes in June 2025, considering market conditions for potential refinancing options.