Nasdaq:PLXS
PLEXUS CORP
A global leader in custom printed circuit board design and assembly serving critical industries like medical, automotive, and aerospace.
Key Metrics
Investment Thesis
Bull Case
Investors may find Plexus Corp attractive due to its strong cash generation capabilities and recent significant rebound in profitability which suggests operational efficiency gains or favorable contract renewals. The company's exposure to growing demand in healthcare technology and electric vehicle supply chains provides a stable revenue floor with potential for upside as these sectors expand. Consistent capital expenditures aligned with capacity expansion indicate management's commitment to long-term growth while maintaining a healthy balance sheet with substantial cash reserves.
Bear Case
The recent decline in total revenue over the past three years signals potential saturation in traditional EMS markets or loss of major strategic accounts which warrants caution. High levels of deferred revenue and significant retained earnings deficits suggest the company is managing legacy obligations while trying to rebuild shareholder value, creating uncertainty around future dividend potential. Persistent negative changes in working capital components indicate ongoing pressure on liquidity management that could limit flexibility during economic downturns.
About PLEXUS CORP
Plexus Corp is a leading global contract electronics manufacturing services provider specializing in the design, development, and production of custom printed circuit boards and assemblies. The company serves diverse markets including medical devices, telecommunications, automotive, aerospace, and industrial applications by offering end-to-end electronic manufacturing solutions to original equipment manufacturers. With operations spanning North America, Europe, and Asia, Plexus delivers high-precision electronics manufacturing tailored to complex client specifications.
Analysis
Management Discussion
Despite a slight revenue contraction in 2025 compared to previous years, the company demonstrated resilient operational performance with net profit rebounding significantly to $172.9M from $111.8M in 2024. Strong operating cash flow of $249.2M and effective working capital management highlighted by a positive change in accounts payable offset minor declines in inventory levels. The strategic shift towards higher-margin custom solutions appears to be stabilizing earnings, as evidenced by the recovery in net income following a period of modest decline.
Industry Overview
The global electronics manufacturing services industry is characterized by consolidation, technological advancement, and increasing demand for customized, high-reliability solutions from end-user markets. Companies in this sector face constant pressure to innovate production processes and maintain strict quality compliance while navigating volatile raw material costs and geopolitical supply chain disruptions. Success depends on the ability to offer integrated design-to-delivery services that reduce customer complexity and accelerate time-to-market for new electronic products.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $4.32B | $4.08B | $4.03B |
| Cost of Revenue | $3.82B | $3.58B | $3.63B |
| Gross Profit | $394.6M | $378.5M | $406.5M |
| Operating Expenses | $198.7M | $210.8M | $204.1M |
| Operating Income | $195.8M | $167.7M | $202.4M |
| G&A | $175.6M | $190.5M | $199.5M |
| Stock-Based Comp | $21.3M | $30.3M | $30.3M |
| D&A | $69.8M | $77.8M | $77.8M |
| Depreciation | $68.6M | $76.7M | $76.8M |
| Other OpEx | $23.1M | $20.3M | $4.7M |
| Non-Operating Income | $-34.8M | $-38.2M | $-14.4M |
| Interest Expense | $31.5M | $28.9M | $11.6M |
| Interest Income | $3.1M | $3.9M | $3.9M |
| Pre-Tax Income | $161.0M | $129.5M | $188.0M |
| Income Tax | $21.9M | $17.7M | $15.1M |
| Continuing Ops | $139.1M | $111.8M | $172.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $139.1M | $111.8M | $172.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $139.1M | $111.8M | $172.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $2.67B | $2.48B | $2.40B |
| Cash & Equivalents | $256.2M | $345.1M | $306.5M |
| Accounts Receivable | $661.5M | $622.4M | $656.6M |
| Inventory | $1.56B | $1.31B | $1.23B |
| Prepaid Expenses | $49.7M | $75.3M | $55.0M |
| Other Current Assets | $142.7M | $122.9M | $150.9M |
| Long-Term Assets | $648.9M | $676.7M | $738.3M |
| PP&E (Net) | $492.0M | $501.1M | $546.1M |
| Operating Leases | $69.4M | $74.4M | $72.9M |
| Other LT Assets | $87.5M | $101.2M | $119.4M |
| Total Assets | $3.32B | $3.15B | $3.14B |
| Current Liabilities | $1.81B | $1.64B | $1.52B |
| Accounts Payable | $646.6M | $606.4M | $726.6M |
| Current Leases | $8.4M | $14.7M | $8.3M |
| Deferred Revenue | $760.4M | $709.2M | $575.9M |
| Other Current Liab | $397.3M | $313.1M | $208.0M |
| Long-Term Liabilities | $294.1M | $185.7M | $163.8M |
| LT Operating Leases | $38.6M | $32.3M | $29.4M |
| Other LT Liab | $224.2M | $136.2M | $134.4M |
| Total Liabilities | $2.11B | $1.83B | $1.68B |
| Shareholders' Equity | $1.21B | $1.32B | $1.45B |
| Paid-In Capital | $661.3M | $680.6M | $695.7M |
| Retained Earnings | $1.71B | $1.82B | $2.00B |
| AOCI | $-24.3M | $10.6M | $17.8M |
| Total L&E | $3.32B | $3.15B | $3.14B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $139.1M | $111.8M | $172.9M |
| Non-Cash Adjustments | $340.3M | $729.0M | $161.1M |
| Working Capital Changes | $-313.6M | $-404.3M | $-84.7M |
| Cash from Operations | $165.8M | $436.5M | $249.2M |
| Capital Expenditures | $104.0M | $95.2M | $95.3M |
| Cash from Investing | $-93.3M | $-94.9M | $-95.6M |
| Share Buybacks | $40.9M | $55.7M | $65.3M |
| Cash from Financing | $-92.7M | $-255.6M | $-196.4M |
| FX Effect | $1.4M | $4.8M | $2.1M |
| Net Change in Cash | $-18.8M | $90.8M | $-40.7M |
| Beginning Cash | $275.5M | $256.7M | $347.5M |
| Ending Cash | $256.7M | $347.5M | $306.8M |
Frequently Asked Questions
How does PLEXUS CORP make money?
The company's revenue is primarily derived from its Electronic Manufacturing Services (EMS) segment, which encompasses Printed Circuit Board (PCB) manufacturing and Printed Circuit Board Assembly (PCA). Revenue streams include high-mix/low-volume custom electronics production for specialized markets, standard product offerings, and value-added services such as testing and logistics. The business model relies on securing multi-year contracts with major original equipment manufacturers across various industrial verticals.
What are the main risks for PLXS?
Fluctuations in global supply chain availability for critical electronic components could disrupt production schedules and impact revenue recognition. Rising input costs for materials, energy, and labor may compress gross margins if not effectively passed on to customers through pricing adjustments. Intense competition from other EMS providers could lead to margin pressure or loss of key customer contracts if service levels or pricing strategies are not optimized.
What is PLXS's competitive advantage?
Plexus maintains a competitive edge through its highly flexible manufacturing capabilities that allow rapid scaling between high-volume and low-volume production runs to meet diverse client needs. The company leverages deep engineering expertise in complex board designs and rigorous quality control standards essential for sensitive sectors like medical devices and aerospace. Its global footprint and strategic capacity expansion enable reliable supply chain management and reduced lead times compared to competitors with less diversified geographic presence.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.