Plexus Corp
NASDAQ:PLXS
Plexus Corp
Nestled within the intricate web of the global electronics supply chain is Plexus Corp., a company that has skillfully crafted a niche as a leading player in the realm of electronics manufacturing services (EMS). Headquartered in Neenah, Wisconsin, Plexus specializes in transforming complex product concepts into tangible realities for a diverse clientele. This involves managing the entire product lifecycle: from design and engineering to manufacturing and even aftermarket services. What sets Plexus apart is its integrated service model, which allows for seamless collaboration with clients to ensure that every step, from initial design to final production, aligns perfectly with their specific needs. By harnessing this comprehensive approach, Plexus positions itself as an invaluable partner to sectors such as healthcare, aerospace, defense, industrial, and communications.
The company's revenue stream is fueled by its adeptness at manufacturing high-complexity and low to medium-volume products. Instead of focusing on sheer volume, Plexus thrives on its ability to tackle sophisticated technical challenges, which often come with higher margins. This enables the company to address the unique demands of industries where precision and reliability are crucial. Clients trust Plexus not only for its manufacturing prowess but also for its commitment to high standards of quality and regulatory compliance. By consistently delivering tailored solutions across different phases of product development, Plexus has created a reliable business model that not only generates profit but also fosters long-term client relationships. The company's story is one of maintaining a robust operational strategy while constantly adapting to the ever-evolving landscape of global technology manufacturing.
Nestled within the intricate web of the global electronics supply chain is Plexus Corp., a company that has skillfully crafted a niche as a leading player in the realm of electronics manufacturing services (EMS). Headquartered in Neenah, Wisconsin, Plexus specializes in transforming complex product concepts into tangible realities for a diverse clientele. This involves managing the entire product lifecycle: from design and engineering to manufacturing and even aftermarket services. What sets Plexus apart is its integrated service model, which allows for seamless collaboration with clients to ensure that every step, from initial design to final production, aligns perfectly with their specific needs. By harnessing this comprehensive approach, Plexus positions itself as an invaluable partner to sectors such as healthcare, aerospace, defense, industrial, and communications.
The company's revenue stream is fueled by its adeptness at manufacturing high-complexity and low to medium-volume products. Instead of focusing on sheer volume, Plexus thrives on its ability to tackle sophisticated technical challenges, which often come with higher margins. This enables the company to address the unique demands of industries where precision and reliability are crucial. Clients trust Plexus not only for its manufacturing prowess but also for its commitment to high standards of quality and regulatory compliance. By consistently delivering tailored solutions across different phases of product development, Plexus has created a reliable business model that not only generates profit but also fosters long-term client relationships. The company's story is one of maintaining a robust operational strategy while constantly adapting to the ever-evolving landscape of global technology manufacturing.
Revenue Growth: Plexus delivered Q1 revenue of $1.07 billion, up 10% year-over-year, meeting the midpoint of guidance, with continued strong end-market demand and program ramps.
EPS Performance: Non-GAAP EPS was $1.78, hitting the high end of guidance, reflecting strong operating execution despite investments in capacity and technology.
Guidance Raised: Management now expects to meet or exceed the high end of its 9% to 12% revenue growth target for fiscal 2026, citing strong momentum and robust new program wins.
Sector Momentum: Notable strength in Healthcare/Life Sciences and Aerospace & Defense, with record quarterly wins in Aerospace & Defense ($220 million annualized).
Margin & Efficiency: Gross margin held steady at 9.9% despite new facility ramp-ups, and operating margin was 5.8%, both in line with guidance.
Operational Investments: Ongoing capital expenditure and working capital increases are supporting faster-than-expected growth, but free cash flow guidance for FY26 remains at approximately $100 million.
AI & Automation: Plexus is accelerating efficiency through automation and AI initiatives in both operations and quoting, targeting margin gains and faster program onboarding.
Q2 & FY26 Outlook: Q2 revenue is guided to $1.11–$1.15 billion (up 6% sequentially and 15% YoY at midpoint), with EPS of $1.80–$1.95 and operating margin guidance of 5.6%–6.0%.
