Plexus (PLXS) Q4 2024 earnings summary

Executive summary

• Exited fiscal 2024 with exceptional performance, achieving non-GAAP operating margin above 6% in Q4 and record free cash flow of $341 million, more than double the previous record.

• Robust demand in Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors drove revenue growth, with market share gains and operational efficiency goals met ahead of schedule.

• Positioned for fiscal 2025 with anticipated revenue and EPS growth, especially in Aerospace/Defense, and moderate growth in Healthcare/Life Sciences and Industrial.

Financial highlights

• Q4 2024 revenue was $1.05 billion, up from $961 million in Q3 and $1.02 billion in Q4 2023, exceeding guidance.

• Non-GAAP operating margin reached 6.2% in Q4, above guidance and up from 5.8% in Q3.

• Non-GAAP EPS was $1.85 in Q4, above guidance and prior quarters.

• Record free cash flow of $194 million in Q4 and $341 million for the year.

• Gross margin for Q4 was 10.3%, up from 9.8% in Q3.

Outlook and guidance

• Fiscal Q1 2025 revenue guidance: $960 million–$1.0 billion; non-GAAP EPS: $1.52–$1.67; non-GAAP operating margin: 5.7%–6.1%.

• Fiscal 2025 free cash flow expected at $50 million–$100 million; capital spending projected at $120 million–$150 million, including $60 million for Penang, Malaysia expansion.

• Sequential revenue growth expected to resume after Q1, with robust Aerospace/Defense demand and moderate growth in Healthcare/Life Sciences and Industrial.