Plexus (PLXS) investor relations material

Executive summary

• Achieved record fiscal Q3 2026 revenue of $1.305 billion, up 12% sequentially and 28% year-over-year, exceeding guidance, with strong growth in AMER and APAC segments and robust wins in Aerospace/Defense and Industrial sectors.

• Non-GAAP operating margin reached 6.3%, at the high end of guidance, with non-GAAP EPS of $2.32 surpassing expectations; GAAP operating margin was 4.7% and GAAP EPS was $1.58.

• Secured significant new program wins and expanded the funnel of qualified manufacturing opportunities to a record $4.5 billion, supporting long-term growth.

• Sustainability initiatives recognized with multiple industry awards and all Penang facilities operating on 100% renewable energy.

• No material operational impact from a tornado near headquarters; $12.9 million in accelerated stock-based compensation expense due to executive retirements.

Financial highlights

• Gross margin was 10.1% for Q3 2026, in line with guidance, with gross profit of $131.4 million.

• Non-GAAP operating margin was 6.3%; GAAP operating margin was 4.7% due to higher stock-based compensation.

• Free cash flow usage was $0.7 million in Q3; cash from operations was $25.9 million and capital expenditures were $26.6 million.

• Ended Q3 with a cash balance of $315 million, $172 million outstanding under the revolving credit facility, and $320 million available.

• Return on invested capital (ROIC) was 14.9%, 590 basis points above WACC, with a cash cycle improved to 62 days, the best in over five years.

Outlook and guidance

• Fiscal Q4 2026 revenue guidance: $1.33–$1.38 billion, up 4% sequentially and 28% year-over-year at midpoint; non-GAAP EPS guidance: $2.47–$2.63.

• Fiscal 2026 revenue growth expected to exceed 20%, with non-GAAP operating margin above 6%; fiscal 2027 revenue growth expected above 9–12% target.

• Fiscal 2026 capex forecast: $100–$120 million; fiscal 2027 capex to remain 2%–3% of revenue.

• Effective tax rate guidance: 12%–14% for Q4, 15%–18% for FY26, 16%–18% for FY27.

• Free cash flow usage expected for fiscal 2026, with a return to positive free cash flow in early fiscal 2027.