CFO transition as Plexus (NASDAQ: PLXS) grows Q2 revenue 19%
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Plexus Corp. reported strong fiscal second quarter 2026 results, with revenue of $1.164 billion, up 19% year-over-year, and GAAP diluted EPS of $1.82. Non-GAAP diluted EPS was $2.05 and non-GAAP operating margin reached 6.0%.
The company generated $16.0 million of free cash flow and a return on invested capital of 13.8%, exceeding its 9.0% weighted average cost of capital. Plexus won a record $355 million in annualized manufacturing program revenue and repurchased $20.6 million of shares.
For fiscal third quarter 2026, Plexus guides revenue to $1.200–$1.250 billion and non-GAAP EPS to $2.02–$2.18. The company now expects fiscal 2026 free cash flow of $50–$75 million. Separately, long-time CFO Patrick J. Jermain will retire on July 31, 2026, with David Abuhl becoming CFO on May 11, 2026 under a compensation package that includes a $550,000 base salary and a variable incentive target equal to 80% of base salary.
Positive
- Fiscal Q2 2026 revenue reached $1.164 billion, up 19% year-over-year, with non-GAAP operating margin of 6.0% and adjusted EPS of $2.05, exceeding prior guidance.
- Plexus guides Q3 2026 revenue to $1.200–$1.250 billion, implying about 20% year-over-year growth at the midpoint, and now expects fiscal 2026 free cash flow of $50–$75 million.
- Record quarterly manufacturing wins of $355 million in annualized revenue and ROIC of 13.8%, above a 9.0% cost of capital, underscore strong demand and value creation.
Negative
- None.
Insights
Plexus delivered double-digit growth, margin strength and raised full-year cash flow expectations alongside an orderly CFO transition.
Plexus posted Q2 fiscal 2026 revenue of $1.164 billion, up 19% year-over-year, with non-GAAP operating margin at 6.0% and adjusted EPS of $2.05, above its prior Q2 guidance range. ROIC of 13.8% exceeded the stated 9.0% weighted average cost of capital.
Guidance for Q3 fiscal 2026 calls for revenue of $1.200–$1.250 billion and non-GAAP EPS of $2.02–$2.18, implying about 20% year-over-year revenue growth at the midpoint, supported by program ramps and improved end-market demand. The company also now expects fiscal 2026 free cash flow of $50–$75 million, compared with earlier qualitative commentary.
The record $355 million of new manufacturing program wins and continued strength across aerospace/defense, healthcare/life sciences and industrial sectors suggest a solid demand pipeline. The planned CFO retirement on July 31, 2026 and appointment of internal candidate David Abuhl as CFO on May 11, 2026 indicate a structured succession, reducing disruption risk.
8-K Event Classification
3 items: 2.02, 5.02, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 revenue: $1.164 billion
Q2 2026 GAAP diluted EPS: $1.82
Q2 2026 non-GAAP diluted EPS: $2.05
+5 more
8 metrics
Q2 2026 revenue
$1.164 billion
Fiscal second quarter 2026 net sales
Q2 2026 GAAP diluted EPS
$1.82
Three months ended April 4, 2026
Q2 2026 non-GAAP diluted EPS
$2.05
Adjusted EPS excluding $0.23 stock-based compensation, net of tax
Q2 2026 non-GAAP operating margin
6.0%
Adjusted operating margin excluding stock-based compensation
Return on invested capital
13.8%
Fiscal Q2 2026 ROIC vs 9.0% weighted average cost of capital
Free cash flow
$16.0 million
Three months ended April 4, 2026
New manufacturing wins
$355 million
Annualized revenue from 30 programs won in Q2 2026
Q3 2026 revenue guidance
$1.200–$1.250 billion
Fiscal third quarter 2026 outlook
Key Terms
non-GAAP operating margin, return on invested capital (ROIC), economic return, free cash flow, +2 more
6 terms
non-GAAP operating margin financial
"Reports fiscal second quarter 2026 non-GAAP operating margin of 6.0% and non-GAAP diluted EPS of $2.05"
Non-GAAP operating margin is a way companies show how much profit they make from their main business activities, excluding certain expenses or income they consider unusual or non-recurring. It helps investors see how well the company is performing in its normal operations, without the effects of one-time costs or gains that might distort the picture.
return on invested capital (ROIC) financial
"Return on invested capital (ROIC) | 13.8 % |"
Return on invested capital (ROIC) measures how much profit a company generates from the money put into its business, including debt and equity. Think of it like the harvest you get from seeds you planted: higher ROIC means the company uses its resources more efficiently to grow earnings. Investors care because ROIC shows whether a business is creating value above its cost of financing and helps compare operational effectiveness across companies.
economic return financial
"ROIC for the second quarter of fiscal 2026 less Plexus’ weighted average cost of capital resulted in an economic return of 4.8%."
Economic return is the actual financial gain an investment or project delivers after paying all costs and accounting for lost opportunities, inflation, and taxes. Think of it like the net harvest from a field after you subtract seeds, labor and the value of other crops you could have grown; it tells investors whether money truly grew or would have been better used elsewhere. Investors use it to compare choices and decide if a venture creates real value.
free cash flow financial
"For the three months ended April 4, 2026, cash flows provided by operations was $28.5 million and capital expenditures were $12.5 million, which resulted in free cash flow of $16.0 million."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Variable Incentive Compensation Plan (VICP) financial
"Mr. Jermain’s base salary will cease on the Retirement Date... and fiscal 2026 compensation under Plexus’ Variable Incentive Compensation Plan (the “VICP”)."
stock-based compensation expense financial
"non-GAAP diluted EPS of $2.05, excluding $0.23 of stock-based compensation expense."
Stock-based compensation expense is the value that a company records when it gives employees or executives shares or options to buy shares as part of their pay. It matters because it shows the true cost of paying employees this way, which can affect the company's profits and how investors see its financial health.
Earnings Snapshot
Revenue: $1.164 billion · Guidance included
Q2 fiscal 2026
Revenue
$1.164 billion
19% year-over-year
GAAP diluted EPS
$1.82
up from $1.41 in prior-year quarter
Non-GAAP diluted EPS
$2.05
above Q2 2026 guidance range of $1.80–$1.95
Non-GAAP operating margin
6.0%
at high end of 5.6%–6.0% guidance
ROIC
13.8%
exceeds 9.0% weighted average cost of capital
Guidance
For Q3 fiscal 2026, Plexus guides revenue to $1.200–$1.250 billion, GAAP diluted EPS to $1.25–$1.41, and non-GAAP EPS to $2.02–$2.18, and now expects fiscal 2026 free cash flow of $50–$75 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
____________________________________________________________________________________________________________________________________
Date of Report (Date of earliest event reported): April 28, 2026
____________________________________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
____________________________________________________________________________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Telephone Number (920 ) 969-6000
(Registrant’s telephone number, including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Plexus Corp. (“we” or the “Company”) announced results for the fiscal second quarter ended April 4, 2026. A copy of the Company’s related press release is furnished as Exhibit 99.1 to this report.
Item 5.02 Departure of Director or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On April 27, 2026, Patrick J. Jermain, the Executive Vice President and Chief Financial Officer of Plexus Corp. (“Plexus” or the “Company”), informed the Company of his intent to retire from his employment with the Company at midnight on July 31, 2026 (the "Retirement Date"). Mr. Jermain will continue in his role as Executive Vice President and Chief Financial Officer, and as the principal financial and accounting officer and an executive officer of the Company, until midnight on May 10, 2026. Between May 11 and July 31, 2026, Mr. Jermain will continue to be employed by the Company, serving in an advisory capacity to support a seamless transition of the finance function.
In connection with the foregoing, the Company entered into a retirement and transition agreement with Mr. Jermain on April 28, 2026 (the "Retirement Agreement"). Under the terms of the Retirement Agreement, Mr. Jermain’s base salary will cease on the Retirement Date, and he will no longer be eligible to receive grants of any additional equity awards. Mr. Jermain will receive a pro-rata portion of fiscal 2026 compensation under Plexus’ Variable Incentive Compensation Plan (the “VICP”) based on the number of days of his employment during fiscal 2026 and actual performance on the VICP’s underlying metrics and objectives. The Company will also transfer to Mr. Jermain title to his company vehicle on his Retirement Date, and Mr. Jermain will continue to receive subsidized health benefits from the Company (equal to the employer portion of his currently selected health plan premiums) for a period of 18 months after the Retirement Date if he elects COBRA in a timely manner and remains eligible for it.
In consideration of Mr. Jermain’s 15 years of service to Plexus and his agreement to the restrictive covenants contained in the Retirement Agreement, including those relating to non-competition, non-interference and non-disparagement, as well as Mr. Jermain’s general release of claims against the Company, Mr. Jermain’s unvested restricted stock units ("RSUs") and unvested performance stock units ("PSUs") that exist as of the Retirement Date will continue to vest. His unvested RSUs will continue to vest on the existing vesting schedules as identified in the original grant agreements, and his unvested PSUs will vest based on final performance results for the performance periods that are identified in the original grant agreements. Mr. Jermain will forfeit the right to continue to vest in the RSUs and PSUs if he breaches the terms of the Retirement Agreement.
The foregoing summary of the material terms of the Retirement Agreement is qualified in its entirety by the terms of the Retirement Agreement, which is filed herewith as Exhibit 10.1 and incorporated herein by reference.
On May 11, 2026, in accordance with the Company’s succession plan, David Abuhl will assume the role of Senior Vice President, Chief Financial Officer and principal financial and accounting officer. Mr. Abuhl, age 43, has served as the Company’s Sr. Vice President of Finance since September, 2025. Prior to joining Plexus, Mr. Abuhl was Chief Financial Officer - Enterprise Supply Chain at Kimberly-Clark Corporation from May 2023 to September 2025, and was Finance Director and Chief Financial Officer of Kimberly-Clark Professional EMEA from October 2020 to April 2023. Mr. Abuhl earned a bachelor’s degree in business at Wheaton College and a master of business administration degree from Southern Methodist University Cox School of Business.
Mr. Abuhl’s base salary as Chief Financial Officer will be $550,000 and his annual targeted award under the VICP will be 80% of his base salary. Mr. Abuhl will also be eligible to participate in the Company’s various compensation programs, including the Company’s long-term incentive plan. For a description of these programs and other benefits available to the Company’s executive officers, please see the Company’s definitive proxy statement for its 2026 Annual Meeting of Shareholders, which was filed with the Securities and Exchange Commission on December 22, 2025.
There are no arrangements or understandings between Mr. Abuhl and any other person pursuant to which he was selected to serve in the roles described above. Mr. Abuhl does not have any familial relationship with any director or executive officer of the Company, and there are no transactions in which Mr. Abuhl has an interest requiring disclosure under Item 404(a) of Regulation S-K.
Item 9.01 Financial Statements and Exhibits
(d) The following exhibits are included herewith:
| Exhibit Number | Description | |||||||
| 10.1 | Retirement and Transition Agreement by and between Plexus Corp. and Patrick J. Jermain, dated April 28, 2026. | |||||||
| 99.1 | Financial press release issued by Plexus Corp., dated April 29, 2026 | |||||||
| 99.2 | Executive transition press release issued by Plexus Corp., dated April 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document) | |||||||
* * * * *
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 29, 2026 | PLEXUS CORP. | |||||||
| (Registrant) | ||||||||
By: /s/ Angelo Ninivaggi | ||||||||
| Angelo Ninivaggi | ||||||||
| Executive Vice President, Chief Legal and Public Affairs Officer | ||||||||
Plexus Announces Fiscal Second Quarter Financial Results
NEENAH, WI – April 29, 2026 - Plexus Corp. (NASDAQ: PLXS) today announced financial results for our fiscal second quarter ended April 4, 2026, and guidance for our fiscal third quarter ending July 4, 2026.
•Reports record fiscal second quarter 2026 revenue of $1.164 billion, GAAP operating margin of 5.3% and GAAP diluted EPS of $1.82.
•Reports fiscal second quarter 2026 non-GAAP operating margin of 6.0% and non-GAAP diluted EPS of $2.05, excluding $0.23 of stock-based compensation expense.
•Initiates fiscal third quarter 2026 revenue guidance of $1.200 billion to $1.250 billion with GAAP diluted EPS of $1.25 to $1.41, including $0.77 of stock-based compensation expense. Fiscal third quarter non-GAAP EPS guidance of $2.02 to $2.18 excludes stock-based compensation expense.
| Three Months Ended | ||||||||||||||||||||
| Apr 4, 2026 | Apr 4, 2026 | Jul 4, 2026 | ||||||||||||||||||
Q2F26 Results | Q2F26 Guidance | Q3F26 Guidance | ||||||||||||||||||
| Summary GAAP Items | ||||||||||||||||||||
| Revenue (in billions) | $1.164 | $1.110 to $1.150 | $1.200 to $1.250 | |||||||||||||||||
| Operating margin | 5.3 | % | 4.9% to 5.3% | 4.1% to 4.5% | ||||||||||||||||
| Diluted EPS | $1.82 | $1.53 to $1.68 | $1.25 to $1.41 | |||||||||||||||||
| Summary Non-GAAP Items (1) | ||||||||||||||||||||
| Adjusted operating margin (2) | 6.0 | % | 5.6% to 6.0% | 5.9% to 6.3% | ||||||||||||||||
| Adjusted EPS (3) | $2.05 | $1.80 to $1.95 | $2.02 to $2.18 | |||||||||||||||||
| Return on invested capital (ROIC) | 13.8 | % | ||||||||||||||||||
| Economic return | 4.8 | % | ||||||||||||||||||
| (1) | Refer to Non-GAAP Supplemental Information tables for additional information regarding non-GAAP financial measures. | |||||||||||||||||||
| (2) | Excludes stock-based compensation expense of approximately 70 bps for Q2F26 results and Q2F26 guidance and 180 bps for Q3F26 guidance. | |||||||||||||||||||
| (3) | Excludes stock-based compensation expense, net of tax, of $0.23 for Q2F26 results, $0.27 for Q2F26 guidance and $0.77 for Q3F26 guidance. | |||||||||||||||||||
Fiscal Second Quarter 2026 Information
•Won 30 manufacturing programs during the quarter representing a record $355 million in annualized revenue when fully ramped into production.
•Generated free cash flow of $16.0 million.
•Purchased $20.6 million of our shares at an average price of $189.22 per share under our 2026 Share Repurchase Program, leaving $42.0 million available under our existing $100.0 million authorization.
Todd Kelsey, President and Chief Executive Officer, commented, “Our momentum is accelerating broadly. For the fiscal second quarter, we increased revenue significantly year-over-year, delivered record manufacturing wins, expanded our efficiency efforts and generated robust profitability. We produced record revenue of $1.164 billion, which exceeded our guidance range and increased 19% year-over-year with significant contributions from all market sectors. In addition, non-GAAP operating margin of 6.0% met the high end of guidance, while non-GAAP EPS of $2.05 exceeded guidance.”
Mr. Kelsey added, “Our go-to-market team achieved record quarterly manufacturing wins of $355 million in annualized revenue. This included broad-based programs in aerospace and defense, expanded relationships and share gains in surgical and imaging platforms, a new engagement in data center power solutions and continued share gains in semiconductor capital equipment. While achieving this tremendous wins result, we also expanded our funnel of qualified manufacturing opportunities.”
Patrick Jermain, Executive Vice President and Chief Financial Officer, commented, “Our fiscal second quarter cash cycle of 64 days represented a better-than-expected sequential improvement of 5 days, the benefit of continued progress on working capital initiatives and stronger-than-guided revenue. Our favorable cash cycle combined with our strong operating performance produced a fiscal second quarter return on invested capital of 13.8%, which exceeded our cost of capital by 480 basis points. We also delivered $16 million in free cash flow for the fiscal second quarter, a result that surpassed our projections. We are strategically increasing working capital investments in support of accelerating revenue growth, with an expectation to maintain cash cycle days consistent with our recent performance. As a result, we now expect to generate fiscal 2026 free cash flow in the range of $50 to $75 million.”
Mr. Kelsey continued, “We anticipate continued strong performance for our fiscal third quarter from program ramps, improved end-market demand and our sustained focus on operational efficiency. We are guiding revenue of $1.200 to $1.250 billion, representing 5% sequential and 20% year-over-year growth at the midpoint, non-GAAP operating margin of 5.9% to 6.3% and non-GAAP EPS of $2.02 to $2.18.”
Mr. Kelsey concluded, “Plexus’ consistent focus on redefining excellence through our unmatched quality and delivery is shaping our decision-making and sustaining our tremendous momentum. Leveraging this momentum, and our excellent financial performance year to date, we now expect Plexus to deliver mid-teens or greater fiscal 2026 revenue growth, with robust operating performance.”
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| Quarterly Comparison | Three Months Ended | ||||||||||||||||
| (in thousands, except EPS) | Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||||||||
| Revenue | $ | 1,163,757 | $ | 1,069,852 | $ | 980,170 | |||||||||||
| Gross profit | 119,176 | 106,138 | 97,751 | ||||||||||||||
| Operating income | 61,837 | 54,464 | 48,791 | ||||||||||||||
| Net income | 49,809 | 41,182 | 39,073 | ||||||||||||||
| Diluted EPS | $ | 1.82 | $ | 1.51 | $ | 1.41 | |||||||||||
| Gross margin | 10.2 | % | 9.9 | % | 10.0 | % | |||||||||||
| Operating margin | 5.3 | % | 5.1 | % | 5.0 | % | |||||||||||
| ROIC (1) | 13.8 | % | 13.2 | % | 13.7 | % | |||||||||||
| Economic return (1) | 4.8 | % | 4.2 | % | 4.8 | % | |||||||||||
| (1) Refer to Non-GAAP Supplemental Information tables for non-GAAP financial measures discussed and/or disclosed in this release, such as adjusted operating margin, adjusted net income, adjusted diluted EPS, ROIC and economic return. | |||||||||||||||||
Business Segment and Market Sector Revenue
Plexus measures operational performance and allocates resources on a geographic segment basis. Plexus also reports revenue based on the market sector breakout set forth in the table below, which reflects Plexus’ market sector focused strategy. Top 10 customers comprised 54% of revenue during the second quarter of fiscal 2026. This is up 2 percentage points from the first quarter of fiscal 2026 and up 3 percentage points from the second quarter of fiscal 2025.
| Business Segments ($ in millions) | Three Months Ended | |||||||||||||||||||
| Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||||||||||||
| Americas | $ | 397 | $ | 345 | $ | 295 | ||||||||||||||
| Asia-Pacific | 652 | 612 | 587 | |||||||||||||||||
| Europe, Middle East and Africa | 116 | 118 | 103 | |||||||||||||||||
| Elimination of inter-segment sales | (1) | (5) | (5) | |||||||||||||||||
| Total Revenue | $ | 1,164 | $ | 1,070 | $ | 980 | ||||||||||||||
| Market Sectors ($ in millions) | Three Months Ended | |||||||||||||||||||||||||
| Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||||||||||||||||||
| Aerospace/Defense | $ | 212 | 18 | % | $ | 178 | 17 | % | $ | 172 | 18 | % | ||||||||||||||
| Healthcare/Life Sciences | 473 | 41 | % | 466 | 43 | % | 411 | 42 | % | |||||||||||||||||
| Industrial | 479 | 41 | % | 426 | 40 | % | 397 | 40 | % | |||||||||||||||||
| Total Revenue | $ | 1,164 | $ | 1,070 | $ | 980 | ||||||||||||||||||||
3
Non-GAAP Supplemental Information
Plexus provides non-GAAP supplemental information, such as ROIC, economic return and free cash flow, because such measures are used for internal management goals and decision-making, and because they provide management and investors with additional insight into financial performance. In addition, management uses these and other non-GAAP measures, such as adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted EPS, to provide a better understanding of core performance for purposes of period-to-period comparisons. Plexus believes that these measures are also useful to investors because they provide further insight by eliminating the effect of non-recurring items that are not reflective of continuing operations. For additional information on non-GAAP measures, please refer to the attached Non-GAAP Supplemental Information tables.
ROIC and Economic Return
ROIC for the second quarter of fiscal 2026 was 13.8%. Plexus defines ROIC as tax-effected annualized adjusted operating income divided by average invested capital over a three-quarter period for the second fiscal quarter. Invested capital is defined as equity plus debt and operating lease obligations, less cash and cash equivalents. Plexus' weighted average cost of capital for fiscal 2026 is 9.0%. ROIC for the second quarter of fiscal 2026 less Plexus’ weighted average cost of capital resulted in an economic return of 4.8%.
Free Cash Flow
Plexus defines free cash flow as cash flows provided by operations less capital expenditures. For the three months ended April 4, 2026, cash flows provided by operations was $28.5 million and capital expenditures were $12.5 million, which resulted in free cash flow of $16.0 million.
| Cash Cycle Days | Three Months Ended | |||||||||||||||||||
| Apr 4, 2026 | Jan 3, 2026 | Mar 29, 2025 | ||||||||||||||||||
| Days in Accounts Receivable | 55 | 58 | 57 | |||||||||||||||||
| Days in Contract Assets | 12 | 13 | 12 | |||||||||||||||||
| Days in Inventory | 120 | 124 | 132 | |||||||||||||||||
| Days in Accounts Payable | (74) | (71) | (70) | |||||||||||||||||
| Days in Advanced Payments | (49) | (55) | (63) | |||||||||||||||||
| Annualized Cash Cycle (1) | 64 | 69 | 68 | |||||||||||||||||
| (1) | Plexus calculates cash cycle as the sum of days in accounts receivable, days in contract assets and days in inventory, less days in accounts payable and days in advanced payments. | |||||||||||||||||||
4
Conference Call and Webcast Information
What: | Plexus Fiscal 2026 Q2 Earnings Conference Call and Webcast | ||||
When: | Thursday, April 30, 2026 at 8:30 a.m. Eastern Time | ||||
Where: | Participants are encouraged to join the live webcast at the investor relations section of the Plexus website, plexus.com. Participants can also join utilizing the links below: Webcast link: https://events.q4inc.com/attendee/177402160 | ||||
Replay: | The webcast will be archived on the Plexus website and will be available as on-demand for 12 months | ||||
Investor and Media Contact
Shawn Harrison
+1.920.969.6325
shawn.harrison@plexus.com
About Plexus
At Plexus, we help create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments. From life-saving medical devices and mission-critical aerospace and defense products to industrial automation systems and semiconductor capital equipment, our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect. We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors, supported by a global team of over 20,000 members across our 27 facilities. For more information about Plexus, visit our website at www.plexus.com.
Safe Harbor and Fair Disclosure Statement
The statements contained in this press release that are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, plan, anticipate, goal, target and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include the effects of tariffs, trade disputes, trade agreements and other trade protection measures; the effects of shortages, delays and price fluctuations in obtaining components as a result of economic cycles, capacity constraints, natural disasters or otherwise; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the particular risks relative to new or recent customers, programs or services, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate engagement terms, and the lack of a track record of order volume and timing; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customers and deliver product on a timely basis; the risks of concentration of work for certain customers; the effects of start-up costs of new programs and facilities or the costs associated with winding down programs or the closure or consolidation of facilities; possible unexpected costs and operating disruption in transitioning programs, including transitions between Company facilities; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by the customer, resulting in an inventory write-off; the fact that customer orders may not lead to long-term relationships; our ability to manage successfully and execute a complex business model characterized by high product mix and demanding quality, regulatory, and other requirements; the outcome of litigation and regulatory investigations and proceedings, including the results of any challenges with regard to such outcomes; the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; risks related to information technology systems and data security; increasing regulatory and compliance requirements; any tax law changes and related foreign jurisdiction tax developments; current or potential future barriers to the repatriation of funds that are currently held outside of the United States as a result of actions taken by other countries or otherwise; the potential effects of jurisdictional results on our taxes, tax rates, and our ability to use deferred tax assets and net operating losses; the weakness of the economy regionally or globally; the effect of changes in the pricing and margins of our services; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; the effects of changes in economic conditions, political conditions and regulatory matters in the United States and in the other countries in which we do business; the potential effect of other events outside our control, such as the conflict between Russia and Ukraine, conflict in the Middle East (including in Iran), escalating tensions between China and Taiwan or China and the United States, tensions in or amongst countries in which we operate or transact business, changes in energy prices, terrorism, global health epidemics and weather events; the impact of increased competition; an inability to successfully manage human capital; changes in financial accounting standards; and other risks detailed herein and in our other Securities and Exchange Commission filings, particularly in Risk Factors contained in our fiscal 2025 Form 10-K.
5
| PLEXUS CORP. AND SUBSIDIARIES | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| Apr 4, | Mar 29, | Apr 4, | Mar 29, | ||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 1,163,757 | $ | 980,170 | $ | 2,233,609 | $ | 1,956,292 | |||||||||||||||
| Cost of sales | 1,044,581 | 882,419 | 2,008,295 | 1,757,849 | |||||||||||||||||||
| Gross profit | 119,176 | 97,751 | 225,314 | 198,443 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling and administrative expenses | 57,339 | 48,960 | 109,013 | 98,109 | |||||||||||||||||||
| Restructuring and other charges, net | — | — | — | 4,683 | |||||||||||||||||||
| Operating income | 61,837 | 48,791 | 116,301 | 95,651 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Interest expense | (3,422) | (3,137) | (6,310) | (6,691) | |||||||||||||||||||
| Interest income | 812 | 871 | 1,796 | 2,105 | |||||||||||||||||||
| Miscellaneous, net | (1,350) | (1,502) | (2,878) | (2,548) | |||||||||||||||||||
| Income before income taxes | 57,877 | 45,023 | 108,909 | 88,517 | |||||||||||||||||||
| Income tax expense | 8,068 | 5,950 | 17,918 | 12,177 | |||||||||||||||||||
Net income | $ | 49,809 | $ | 39,073 | $ | 90,991 | $ | 76,340 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 1.86 | $ | 1.44 | $ | 3.40 | $ | 2.82 | |||||||||||||||
| Diluted | $ | 1.82 | $ | 1.41 | $ | 3.32 | $ | 2.75 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 26,757 | 27,109 | 26,762 | 27,098 | |||||||||||||||||||
| Diluted | 27,310 | 27,662 | 27,369 | 27,726 | |||||||||||||||||||
6
| PLEXUS CORP. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| (in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Apr 4, | Sep 27, | ||||||||||
| 2026 | 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 303,133 | $ | 306,464 | |||||||
| Restricted cash | 48 | 294 | |||||||||
| Accounts receivable | 702,339 | 656,573 | |||||||||
| Contract assets | 160,382 | 150,654 | |||||||||
| Inventories | 1,373,732 | 1,229,839 | |||||||||
| Prepaid expenses and other | 97,569 | 54,969 | |||||||||
| Total current assets | 2,637,203 | 2,398,793 | |||||||||
| Property, plant and equipment, net | 535,171 | 546,052 | |||||||||
| Operating lease right-of-use assets | 68,632 | 72,863 | |||||||||
| Deferred income taxes | 91,663 | 91,349 | |||||||||
| Other assets | 28,300 | 28,053 | |||||||||
| Total non-current assets | 723,766 | 738,317 | |||||||||
| Total assets | $ | 3,360,969 | $ | 3,137,110 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt and finance lease obligations | $ | 143,112 | $ | 45,793 | |||||||
| Accounts payable | 851,909 | 726,597 | |||||||||
| Advanced payments from customers | 565,346 | 575,850 | |||||||||
| Accrued salaries and wages | 90,924 | 109,076 | |||||||||
| Other accrued liabilities | 60,989 | 61,367 | |||||||||
| Total current liabilities | 1,712,280 | 1,518,683 | |||||||||
| Long-term debt and finance lease obligations, net of current portion | 91,034 | 91,987 | |||||||||
| Long-term operating lease liabilities | 25,769 | 29,422 | |||||||||
| Deferred income taxes | 5,155 | 6,000 | |||||||||
| Other liabilities | 36,931 | 36,430 | |||||||||
| Total non-current liabilities | 158,889 | 163,839 | |||||||||
| Total liabilities | 1,871,169 | 1,682,522 | |||||||||
| Shareholders’ equity: | |||||||||||
| Common stock | 549 | 547 | |||||||||
| Additional paid-in-capital | 689,909 | 695,653 | |||||||||
| Common stock held in treasury | (1,298,881) | (1,255,451) | |||||||||
| Retained earnings | 2,087,019 | 1,996,028 | |||||||||
| Accumulated other comprehensive income | 11,204 | 17,811 | |||||||||
| Total shareholders’ equity | 1,489,800 | 1,454,588 | |||||||||
| Total liabilities and shareholders’ equity | $ | 3,360,969 | $ | 3,137,110 | |||||||
7
| PLEXUS CORP. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (in thousands) | |||||||||||
| (unaudited) | |||||||||||
| Six Months Ended | |||||||||||
| Apr 4, | Mar 29, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 90,991 | $ | 76,340 | |||||||
| Adjustments to reconcile net income to net cash flows from operating activities: | |||||||||||
| Depreciation and amortization | 38,493 | 38,925 | |||||||||
| Share-based compensation expense and related charges | 15,685 | 14,771 | |||||||||
| Other, net | (88) | (6,125) | |||||||||
| Changes in operating assets and liabilities, excluding impacts of currency: | |||||||||||
| Accounts receivable | (47,335) | 9,100 | |||||||||
| Contract assets | (9,770) | (15,624) | |||||||||
| Inventories | (145,413) | 25,310 | |||||||||
| Other current and non-current assets | (45,965) | (240) | |||||||||
| Accrued income taxes payable | (7,006) | (12,390) | |||||||||
| Accounts payable | 146,673 | 70,624 | |||||||||
| Advanced payments from customers | (9,945) | (95,297) | |||||||||
| Other current and non-current liabilities | (13,240) | (15,064) | |||||||||
| Cash flows provided by operating activities | 13,080 | 90,330 | |||||||||
| Cash flows from investing activities | |||||||||||
| Payments for property, plant and equipment | (47,650) | (46,726) | |||||||||
| Other, net | (29) | (28) | |||||||||
| Cash flows used in investing activities | (47,679) | (46,754) | |||||||||
| Cash flows from financing activities | |||||||||||
| Borrowings under debt agreements | 384,500 | 127,000 | |||||||||
| Payments on debt and finance lease obligations | (289,863) | (165,202) | |||||||||
| Repurchases of common stock | (43,430) | (25,366) | |||||||||
| Payments related to tax withholding for share-based compensation | (21,426) | (14,527) | |||||||||
| Cash flows provided by (used in) financing activities | 29,781 | (78,095) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 1,241 | (2,381) | |||||||||
| Net decrease in cash and cash equivalents and restricted cash | (3,577) | (36,900) | |||||||||
| Cash and cash equivalents and restricted cash: | |||||||||||
| Beginning of period | 306,758 | 347,462 | |||||||||
| End of period | $ | 303,181 | $ | 310,562 | |||||||
8
| PLEXUS CORP. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
| NON-GAAP SUPPLEMENTAL INFORMATION Table 1 | ||||||||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| Apr 4, | Jan 3, | Mar 29, | Apr 4, | Mar 29, | ||||||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Operating income, as reported | $ | 61,837 | $ | 54,464 | $ | 48,791 | $ | 116,301 | $ | 95,651 | ||||||||||||||||||||||
| Operating margin, as reported | 5.3 | % | 5.1 | % | 5.0 | % | 5.2 | % | 4.9 | % | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Restructuring costs (1) | — | — | — | — | 4,683 | |||||||||||||||||||||||||||
| Stock-based compensation | 7,922 | 7,765 | 7,132 | 15,687 | 14,122 | |||||||||||||||||||||||||||
| Non-GAAP operating income | $ | 69,759 | $ | 62,229 | $ | 55,923 | $ | 131,988 | $ | 114,456 | ||||||||||||||||||||||
| Non-GAAP operating margin | 6.0 | % | 5.8 | % | 5.7 | % | 5.9 | % | 5.9 | % | ||||||||||||||||||||||
| Net income, as reported | $ | 49,809 | $ | 41,182 | $ | 39,073 | $ | 90,991 | $ | 76,340 | ||||||||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
| Restructuring costs, net of tax (1) | — | — | — | — | 4,191 | |||||||||||||||||||||||||||
| Stock-based compensation, net of tax | 6,055 | 7,377 | 6,775 | 13,432 | 13,415 | |||||||||||||||||||||||||||
| Adjusted net income | $ | 55,864 | $ | 48,559 | $ | 45,848 | $ | 104,423 | $ | 93,946 | ||||||||||||||||||||||
| Diluted earnings per share, as reported | $ | 1.82 | $ | 1.51 | $ | 1.41 | $ | 3.32 | $ | 2.75 | ||||||||||||||||||||||
| Non-GAAP per share adjustments: | ||||||||||||||||||||||||||||||||
| Restructuring costs, net of tax (1) | — | — | — | — | 0.15 | |||||||||||||||||||||||||||
| Stock-based compensation, net of tax | 0.23 | 0.27 | 0.25 | 0.50 | 0.49 | |||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 2.05 | $ | 1.78 | $ | 1.66 | $ | 3.82 | $ | 3.39 | ||||||||||||||||||||||
| (1) | During the six months ended March 29, 2025, 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. | |||||||||||||||||||||||||||||||
9
| PLEXUS CORP. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| NON-GAAP SUPPLEMENTAL INFORMATION Table 2 | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||
| ROIC and Economic Return Calculations | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| Apr 4, | Jan 3, | Mar 29, | ||||||||||||||||||||||||
| 2026 | 2026 | 2025 | ||||||||||||||||||||||||
| Operating income, as reported | $ | 116,301 | $ | 54,464 | $ | 95,651 | ||||||||||||||||||||
| Restructuring and other charges, net | + | — | + | — | + | 4,683 | ||||||||||||||||||||
| Adjusted operating income | $ | 116,301 | $ | 54,464 | $ | 100,334 | ||||||||||||||||||||
| x | 2 | x | 4 | x | 2 | |||||||||||||||||||||
| Adjusted annualized operating income | $ | 232,602 | $ | 217,856 | $ | 200,668 | ||||||||||||||||||||
| Adjusted effective tax rate | x | 17 | % | x | 17 | % | x | 13 | % | |||||||||||||||||
| Tax impact | 39,542 | 37,036 | 26,087 | |||||||||||||||||||||||
| Adjusted operating income (tax-effected) | $ | 193,060 | $ | 180,820 | $ | 174,581 | ||||||||||||||||||||
| Average invested capital | ÷ | $ | 1,401,134 | ÷ | $ | 1,374,532 | ÷ | $ | 1,276,742 | |||||||||||||||||
| ROIC | 13.8 | % | 13.2 | % | 13.7 | % | ||||||||||||||||||||
| Weighted average cost of capital | - | 9.0 | % | - | 9.0 | % | - | 8.9 | % | |||||||||||||||||
| Economic return | 4.8 | % | 4.2 | % | 4.8 | % | ||||||||||||||||||||
| Average Invested Capital Calculations | Apr 4, | Jan 3, | Sep 27, | Jun 28, | Mar 29, | Dec 28, | Sep 28, | |||||||||||||||||||||||||||||||||||||
| 2026 | 2026 | 2025 | 2025 | 2025 | 2024 | 2024 | ||||||||||||||||||||||||||||||||||||||
| Equity | $ | 1,489,800 | $ | 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 | 143,112 | 66,837 | 45,793 | 50,678 | 121,014 | 121,977 | 157,325 | |||||||||||||||||||||||||||||||||||||
| Operating lease obligations - current (1) | 7,758 | 7,943 | 8,253 | 8,470 | 9,968 | 14,875 | 14,697 | |||||||||||||||||||||||||||||||||||||
Debt and finance lease obligations - long-term | 91,034 | 91,139 | 91,987 | 92,215 | 88,761 | 88,728 | 89,993 | |||||||||||||||||||||||||||||||||||||
| Operating lease obligations - long-term | 25,769 | 27,327 | 29,422 | 31,192 | 32,720 | 35,124 | 32,275 | |||||||||||||||||||||||||||||||||||||
| Less: Cash and cash equivalents | (303,133) | (248,825) | (306,464) | (237,567) | (310,531) | (317,161) | (345,109) | |||||||||||||||||||||||||||||||||||||
| $ | 1,454,340 | $ | 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. | |||||||||||||||||||
10
Plexus Announces Planned Chief Financial Officer Transition
NEENAH, WI – April 29, 2026 - Plexus Corp. (NASDAQ: PLXS) announced today that Patrick Jermain, Executive Vice President and Chief Financial Officer (CFO), has elected to retire after a distinguished 15-plus year career at Plexus, including 12 years as CFO.
As part of a disciplined succession planning process, Plexus’ Board of Directors has appointed David Abuhl to succeed Mr. Jermain as Senior Vice President and Chief Financial Officer, effective May 11, 2026. Mr. Abuhl currently serves as Plexus’ Senior Vice President-Finance and is a member of the Company’s Leadership Team. To ensure a seamless transition, Mr. Jermain will remain employed by the Company and serve in an advisory role until July 31, 2026.
Todd Kelsey, Plexus’ President and Chief Executive Officer, commented, “Pat has been an exceptional partner, and I am thankful for his 15 years of dedication to Plexus. His leadership, integrity and commitment to Plexus’ success have been instrumental in our growth journey. Pat’s legacy includes fostering a high-performance and high-integrity finance culture, cultivating a tenured finance leadership team with advanced skillsets and propelling Plexus to deliver higher levels of efficiency with tremendous financial results.”
Mr. Kelsey continued, “David has made an immediate impact since joining Plexus and our Leadership Team in September 2025. His extensive financial expertise, coupled with his passion for building high-performing teams, makes him the ideal leader to guide our finance organization. I am confident that his global perspective and strategic mindset will be significant assets as we continue with our growth journey.”
Prior to joining Plexus, Mr. Abuhl spent over 15 years at Kimberly-Clark Corporation in various leadership roles across finance, treasury and investor relations. He most recently served as CFO-Enterprise Supply Chain, with financial oversight of approximately $14 billion in cost of goods sold. His previous experience includes serving as EMEA Finance Director and CFO for Kimberly-Clark Professional, a business-to-business division spanning approximately 70 countries. Mr. Abuhl holds a Masters of Business Administration from the SMU Cox School of Business and a Bachelor of Arts degree in Business and Economics from Wheaton College.
Investor and Media Contact
Shawn Harrison
+1.920.969.6325
shawn.harrison@plexus.com
About Plexus Corp.
At Plexus, we help create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments. From life-saving medical devices and mission-critical aerospace and defense products to industrial automation systems and semiconductor capital equipment, our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect. We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors, supported by a global team of over 20,000 members across our 27 facilities. For more information about Plexus, visit our website at www.plexus.com.
FAQ
How did Plexus Corp. (PLXS) perform in fiscal Q2 2026?
Plexus delivered strong fiscal Q2 2026 results with revenue of $1.164 billion, up 19% year-over-year, and GAAP diluted EPS of $1.82. Non-GAAP diluted EPS was $2.05 and non-GAAP operating margin reached 6.0%, reflecting solid profitability and execution.
What guidance did Plexus (PLXS) provide for fiscal Q3 2026?
For fiscal Q3 2026, Plexus guides revenue to $1.200–$1.250 billion and GAAP diluted EPS of $1.25–$1.41. Non-GAAP EPS is projected at $2.02–$2.18, with non-GAAP operating margin expected between 5.9% and 6.3%, supported by program ramps and demand improvements.
What are Plexus’ (PLXS) free cash flow and ROIC metrics for Q2 2026?
In fiscal Q2 2026, Plexus generated $16.0 million of free cash flow, based on $28.5 million operating cash flow and $12.5 million capital expenditures. Return on invested capital was 13.8%, exceeding the company’s 9.0% weighted average cost of capital and producing an economic return of 4.8%.
Who is the new Chief Financial Officer of Plexus (PLXS) and when does he start?
Plexus appointed David Abuhl as Senior Vice President and Chief Financial Officer, effective May 11, 2026. He succeeds retiring CFO Patrick J. Jermain. Abuhl’s package includes a $550,000 base salary and a target award under the Variable Incentive Compensation Plan equal to 80% of base salary.