Plexus (PLXS) Raymond James 46th Annual Institutional Investors Conference summary

Business overview and market focus

• Designs, manufactures, and services complex products in healthcare/life sciences, industrial, and aerospace/defense sectors, with healthcare and industrial each representing about 40% of business and aerospace/defense the remainder.

• Healthcare includes finished medical devices for clinical settings; industrial covers semiconductor capital equipment and automation; aerospace/defense includes commercial aerospace, defense, and commercial space subsystems.

• Operates globally with about 20,000 employees and $4 billion in revenue.

Financial performance and margin dynamics

• Achieved 6.2% non-GAAP operating margin in the December quarter, above the 6% target, on flat revenue.

• March quarter margins expected to dip due to merit increases, with recovery anticipated in the second half of the fiscal year.

• Margin expansion opportunities include higher-margin engineering and aftermarket services, automation, and productivity improvements.

• New facilities in Thailand and Malaysia, plus capacity in North America and Europe, support growth beyond $5 billion revenue.

Market trends and growth outlook

• Q1 revenue was $980 million, with Q2 expected to be flat; inventory corrections and production challenges have caused choppiness.

• Healthcare shows early signs of recovery, with strong product development wins; industrial market is flat but expects double-digit growth in semiconductor capital equipment due to market share gains.

• Aerospace/defense faces soft commercial aerospace due to OEM production ramp issues, but defense and commercial space are strong.

• Expects sequential growth in all sectors in fiscal 2025 and targets 9%-12% annual growth as achieved in 2022 and 2023.