Plexus' Q2 Earnings Surpass Estimates, Revenues Miss Marginally

Plexus Corp PLXS reported second-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.66, compared with year-ago quarter’s earnings of $1.19 per share. The figure outpaced the Zacks Consensus Estimate of $1.54 per share. Management expected non-GAAP EPS to be in the band of $1.46-$1.61.

Revenues of $980.2 million improved 1.4% year over year and missed the Zacks Consensus Estimate of $980.5 million. Management expected revenues to be between $960 million and $1 billion. Increases in Healthcare/Life Sciences’ revenues provided cushioning to the top line performance. However, weakness in the Industrial sector was a headwind. 

In the reported quarter, revenues from the Americas declined marginally while EMEA sales declined 32%. Revenues from Asia-Pacific jumped 12.5% to $587 million.

In the fiscal second quarter, Plexus announced 42 manufacturing programs wins, which are estimated to contribute $205 million in annualized revenues once fully ramped into production. These wins included PLXS’ largest ever win for sustaining services for a leading healthcare customer. 

Following the announcement, shares are down 0.6% in the premarket trading session today. In the past year, shares have gained 28.3% compared with the Electronic- Manufacturing Services industry’s growth of 34.3%. (See the Zacks  Earnings Calendar to stay ahead of market-making news.)

Market Sector Details of PLXS

Industrial sector’s revenues were down 5% year over year to $397 million. This contributed 40% to total revenues. However, management kept the previous outlook for modest growth in revenues unchanged as it continues to witness strength in semi-cap amid demand instability across broader industrial sectors. 

Owing to stronger demand, Healthcare/Life Sciences’ revenues were up 8.4% from the year-ago quarter’s levels to $411 million. This contributed 42% to total revenues. 

Revenues from Aerospace/Defense inched up 1.2% year over year to $172 million. This contributed 18% to total revenues. Increases in demand within the defense and space vertical offset softness in the commercial aerospace segment. 

The company’s top 10 customers accounted for 51% of net revenues in the fiscal second quarter.

Plexus Corp. Price, Consensus and EPS Surprise

Plexus Corp. price-consensus-eps-surprise-chart | Plexus Corp. Quote

Plexus’ Operating Details

Gross profit on a GAAP basis increased 11% year over year to $97.8 million. Gross margin was 10%, up from 9.1% year over year. 

Selling and administrative expenses increased 3% from the year-ago quarter’s actuals to $49 million.

Adjusted operating margin expanded 80 basis points to 5.7%.

Balance Sheet & Cash Flow of Plexus

As of March 29, 2025, Plexus had cash & cash equivalents worth $310.5 million compared with $317.2 million as of Dec. 28, 2024.

As of March 29, 2025, PLXS had long-term debt and finance lease obligations, net of the current portion of $88.8 million compared with $88.7 million as of Dec. 28.

For the quarter under review, cash flows from operations were $36.7 million. Plexus reported a free cash flow of $16.5 million.

The company repurchased $12.2 million of shares at an average price of $141.18 per share under its repurchase program. Plexus has $25 million available under its existing $50 million buyback authorization.

Plexus’ Q3 Outlook

For third-quarter fiscal 2025, revenues are anticipated to be between $1 billion and $1.04 billion.

Non-GAAP operating margin is expected to be between 5.7% and 6.1%. Non-GAAP EPS is expected to be in the band of $1.65-$1.80.

Zacks Rank of PLXS

Plexus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies in Tech Space

Jabil Inc JBL reported strong second-quarter fiscal 2025 results, with both bottom and top lines surpassing the Zacks Consensus Estimate. Its non-GAAP net income in the reported quarter was $215 million or $1.94 per share compared with $213 million or $1.68 in the prior-year quarter. Jabil’s net sales during the quarter decreased to $6.72 billion from $6.76 billion reported in the year-ago quarter. Demand softness in several end markets impeded the top line. In the past year, shares of Jabil have gained 16.9%.

Badger Meter, Inc. BMI reported earnings per share of $1.30 for first-quarter 2025, which beat the Zacks Consensus Estimate by 20.4%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 99 cents. Quarterly net sales were $222.2 million, up 13% from $196.3 million in the year-ago quarter, driven by higher utility water sales and the initial contribution from the SmartCover acquisition. The expansion not only highlights BMI’s ability to capitalize on favorable market trends but also its operational execution. The Zacks Consensus Estimate was pegged at $222 million. In the past year, shares of Badger Meter have gained 14.5%.

BlackBerry Limited BB reported the fourth quarter of fiscal 2025 non-GAAP EPS of 3 cents. The figure outpaced the company’s estimate of a loss of 1 cent to EPS of 1 cent. In the year-ago quarter, it reported a non-GAAP EPS of 3 cents. The Zacks Consensus Estimate was pegged at 2 cents per share. BlackBerry projects volatility in the automotive sector to weigh on its 2026 guidance. Supply-chain challenges and macroeconomic uncertainty are added woes. In the past year, shares of BlackBerry have gained 18.3%.

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