Plexus Corp. (PLXS) Bundle
A Brief History of Plexus Corp.
Plexus Corp. (NASDAQ: PLXS) has established itself as a leader in the electronics manufacturing services (EMS) sector since its founding in 1979. The company specializes in providing comprehensive product lifecycle management solutions, including design and development, supply chain management, manufacturing, and sustaining services.
Financial Performance Overview as of 2024
For the fiscal year ending September 28, 2024, Plexus reported significant financial achievements:
| Metric | Q4 FY 2024 | FY 2024 |
|---|---|---|
| Revenue (in millions) | $1,051 | $3,961 |
| Gross Profit (in millions) | $107.9 | $378.5 |
| Operating Income (in millions) | $53.9 | $167.7 |
| Net Income (in millions) | $41.2 | $111.8 |
| Diluted EPS | $1.48 | $4.01 |
| Operating Margin | 5.1% | 4.2% |
| Free Cash Flow (in millions) | $194 | $341 |
| Return on Invested Capital (ROIC) | 11.8% | 11.8% |
| Economic Return | 3.6% | 3.6% |
Market Sector Performance
Plexus operates across various market sectors, with the following revenue contributions for the fiscal year 2024:
| Market Sector | Q4 FY 2024 Revenue (in millions) | FY 2024 Revenue (in millions) |
|---|---|---|
| Aerospace/Defense | $184 | $698 |
| Healthcare/Life Sciences | $415 | $1,555 |
| Industrial | $452 | $1,708 |
Operational Highlights
In fiscal 2024, Plexus achieved notable operational milestones:
- Secured 26 manufacturing programs expected to generate $230 million in annualized revenue once fully ramped.
- Achieved record quarterly free cash flow of $194 million.
- Completed a share repurchase program totaling $55.7 million at an average share price of $103.81.
- Maintained a favorable cash cycle of 64 days, an improvement of 19 days year-over-year.
Outlook for Fiscal 2025
Looking ahead, Plexus anticipates robust growth driven by continued demand in the Aerospace/Defense sector and modest growth in Healthcare/Life Sciences. The company expects fiscal Q1 2025 revenue to range between $960 million and $1 billion, with non-GAAP diluted EPS guidance of $1.52 to $1.67.
A Who Owns Plexus Corp. (PLXS)
Ownership Structure
Plexus Corp. (NASDAQ: PLXS) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. As of early 2024, the following is a summary of the major shareholders:
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 85.2% | ~23.5 million shares |
| Insiders (Executives and Directors) | 4.5% | ~1.2 million shares |
| Retail Investors | 10.3% | ~2.8 million shares |
Top Institutional Shareholders
The following table lists the top five institutional shareholders of Plexus Corp. as of early 2024:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.4% | ~2.8 million shares |
| The Vanguard Group, Inc. | 9.8% | ~2.6 million shares |
| State Street Global Advisors | 8.1% | ~2.2 million shares |
| Dimensional Fund Advisors LP | 6.5% | ~1.8 million shares |
| Invesco Ltd. | 4.7% | ~1.3 million shares |
Insider Ownership
Insider ownership represents a significant aspect of Plexus Corp.'s governance. Key executives and board members own approximately 4.5% of the company's shares. The following table outlines the top executives and their respective shareholdings:
| Name | Position | Shares Owned |
|---|---|---|
| Todd Kelsey | President & CEO | ~500,000 shares |
| Pat Jermain | Executive VP & CFO | ~250,000 shares |
| Stephen L. Frisch | Executive VP | ~150,000 shares |
| Other Executives | Various | ~300,000 shares |
Recent Share Repurchase Activity
Plexus Corp. has been active in repurchasing its shares to enhance shareholder value. In fiscal year 2024, the company purchased approximately $55.7 million worth of its shares at an average price of $103.81 per share, and an additional $19.5 million at an average price of $117.91 per share in Q4 of 2024.
Stock Performance
As of the end of Q4 2024, Plexus Corp. reported a diluted EPS of $1.48 for the quarter and $4.01 for the fiscal year. The company experienced a revenue of $1.05 billion in Q4 and a total revenue of $3.96 billion for the fiscal year 2024.
| Metric | Q4 2024 | Fiscal Year 2024 |
|---|---|---|
| Revenue | $1.05 billion | $3.96 billion |
| Operating Margin | 5.1% | 4.2% |
| Diluted EPS | $1.48 | $4.01 |
Market Capitalization
The market capitalization of Plexus Corp. as of early 2024 is approximately $3.4 billion, reflecting its position in the market and investor confidence.
Overall, Plexus Corp.'s ownership structure is characterized by a significant presence of institutional investors, with active insider ownership and share repurchase strategies contributing to its financial health and shareholder value enhancement efforts.
Plexus Corp. (PLXS) Mission Statement
Plexus Corp. focuses on delivering comprehensive solutions that enhance customer performance throughout a product's lifecycle. The company emphasizes innovation and operational excellence in Design and Development, Supply Chain Solutions, New Product Introduction, Manufacturing, and Sustaining Services.
Financial Performance Overview
As of the fourth quarter of fiscal year 2024, Plexus reported:
| Metric | Q4 FY 2024 | Q3 FY 2024 | Q4 FY 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|---|
| Revenue (in millions) | $1,051 | $961 | $1,024 | $3,961 | $4,210 |
| Operating Income (in millions) | $53.9 | $39.2 | $53.3 | $167.7 | $195.8 |
| Net Income (in millions) | $41.2 | $25.1 | $40.3 | $111.8 | $139.1 |
| Diluted EPS | $1.48 | $0.91 | $1.44 | $4.01 | $4.95 |
| Operating Margin | 5.1% | 4.1% | 5.2% | 4.2% | 4.7% |
| Free Cash Flow (in millions) | $194 | - | - | $341 | - |
Market Segment Performance
The following table outlines revenue by market sector for Q4 FY 2024:
| Market Sector | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Aerospace/Defense | $184 | 18% |
| Healthcare/Life Sciences | $415 | 39% |
| Industrial | $452 | 43% |
Return on Investment and Economic Performance
Plexus achieved a return on invested capital (ROIC) of 11.8% for fiscal year 2024, with an economic return of 3.6% above the weighted average cost of capital of 8.2%.
| Metric | Value |
|---|---|
| ROIC | 11.8% |
| Weighted Average Cost of Capital | 8.2% |
| Economic Return | 3.6% |
Share Repurchase Program
In fiscal year 2024, Plexus repurchased shares worth $55.7 million at an average price of $103.81 per share. For the fourth quarter, the company repurchased $19.5 million of its shares at an average price of $117.91 per share.
Sustainability and Community Engagement
Plexus has made strides in sustainability, reducing global waste-to-landfill and Scope 1 and 2 emissions. The company donated over $1 million through the Plexus Community Foundation and contributed more than 20,000 paid volunteer hours to local communities.
Looking Ahead
Plexus anticipates revenue for the first quarter of fiscal year 2025 to be between $960 million and $1 billion, with non-GAAP diluted EPS guidance ranging from $1.52 to $1.67.
How Plexus Corp. (PLXS) Works
Business Overview
Plexus Corp. operates within the electronics manufacturing services (EMS) industry, providing a comprehensive range of services including design, engineering, manufacturing, and supply chain management. The company focuses on complex products across various sectors such as aerospace, defense, healthcare, and industrial markets.
Financial Performance
For the fiscal year ended September 28, 2024, Plexus reported the following key financial metrics:
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue (in millions) | $1,051 | $1,024 | $3,961 | $4,210 |
| Gross Profit (in millions) | $107.9 | $96.7 | $378.5 | $394.6 |
| Operating Income (in millions) | $53.9 | $53.3 | $167.7 | $195.8 |
| Net Income (in millions) | $41.2 | $40.3 | $111.8 | $139.1 |
| Diluted EPS | $1.48 | $1.44 | $4.01 | $4.95 |
| Operating Margin | 5.1% | 5.2% | 4.2% | 4.7% |
| Free Cash Flow (in millions) | $194 | N/A | $341 | N/A |
Market Segmentation
The company divides its revenue into several market sectors, reflecting its strategic focus:
| Market Sector | Q4 2024 Revenue (in millions) | FY 2024 Revenue (in millions) |
|---|---|---|
| Aerospace/Defense | $184 | $698 |
| Healthcare/Life Sciences | $415 | $1,555 |
| Industrial | $452 | $1,708 |
Operational Highlights
Plexus won 26 manufacturing programs in Q4 2024, which are expected to generate $230 million in annualized revenue once fully ramped into production. The company also achieved a record quarterly free cash flow of $194 million during the same period.
Shareholder Returns
In fiscal 2024, Plexus executed a share repurchase program, buying back $55.7 million in shares at an average price of $103.81 per share. For Q4 2024, the company repurchased $19.5 million of its shares at an average price of $117.91 per share. The Board of Directors approved an additional $50 million for the 2025 Share Repurchase Program.
Balance Sheet Overview
As of September 28, 2024, Plexus reported the following balance sheet data:
| Metric | Amount (in thousands) |
|---|---|
| Total Assets | $3,153,821 |
| Total Liabilities | $1,828,996 |
| Total Shareholders' Equity | $1,324,825 |
Cash Cycle Analysis
Plexus reported a cash cycle of 64 days in Q4 2024, which is the best result in four years. The breakdown of cash cycle days is as follows:
| Cash Cycle Component | Days |
|---|---|
| Days in Accounts Receivable | 54 |
| Days in Contract Assets | 10 |
| Days in Inventory | 127 |
| Days in Accounts Payable | (59) |
| Days in Advanced Payments | (68) |
Future Guidance
Plexus has provided guidance for the first quarter of fiscal 2025, expecting revenue between $960 million and $1 billion, with diluted EPS projected between $1.25 and $1.40. Non-GAAP EPS is expected to range from $1.52 to $1.67, excluding certain expenses.
How Plexus Corp. (PLXS) Makes Money
Revenue Streams
Plexus Corp. generates revenue primarily through its comprehensive solutions in design and development, supply chain management, manufacturing, and sustaining services. The company serves multiple sectors, including Aerospace/Defense, Healthcare/Life Sciences, and Industrial markets.
| Market Sector | Q4 2024 Revenue (in millions) | Percentage of Total Revenue | FY 2024 Revenue (in millions) | Percentage of Total FY Revenue |
|---|---|---|---|---|
| Aerospace/Defense | $184 | 18% | $698 | 19% |
| Healthcare/Life Sciences | $415 | 39% | $1,555 | 38% |
| Industrial | $452 | 43% | $1,708 | 43% |
| Total Revenue | $1,051 | 100% | $3,961 | 100% |
Financial Performance
For the fiscal year ending September 28, 2024, Plexus reported revenues of $3.96 billion, down from $4.21 billion in the previous fiscal year. The company achieved a GAAP operating margin of 4.2% and a diluted EPS of $4.01.
| Financial Metrics | Q4 2024 | FY 2024 |
|---|---|---|
| Revenue | $1,050,569 | $3,960,827 |
| Gross Profit | $107,912 | $378,530 |
| Operating Income | $53,858 | $167,732 |
| Net Income | $41,221 | $111,815 |
| Diluted EPS | $1.48 | $4.01 |
Operational Efficiency
Plexus has maintained a strong operational performance, with a reported ROIC of 11.8% and an economic return of 3.6% for fiscal 2024. The company generated a record free cash flow of $341 million, significantly improving its financial flexibility.
Market Position and Customer Base
The top 10 customers accounted for 52% of Plexus' revenue in Q4 2024, indicating a high customer concentration risk. However, this also reflects the company's focus on building long-term relationships with key clients.
| Customer Concentration | Q4 2024 | FY 2024 |
|---|---|---|
| Top 10 Customers Revenue Contribution | 52% | 48% |
Future Growth and Guidance
Plexus anticipates revenue growth in fiscal 2025, driven by demand in the Aerospace/Defense sector and new program ramps in Healthcare/Life Sciences and Industrial sectors. The company has guided for Q1 2025 revenue between $960 million and $1 billion, with an expected non-GAAP EPS of $1.52 to $1.67.
| Q1 2025 Guidance | Revenue (in millions) | Non-GAAP EPS |
|---|---|---|
| Expected Range | $960 - $1,000 | $1.52 - $1.67 |
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Article updated on 8 Nov 2024
Resources:
- Plexus Corp. (PLXS) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Plexus Corp. (PLXS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Plexus Corp. (PLXS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.