Plexus Targets 15% ROIC Amidst Diversified Growth Strategy

Ticker: PLXS · Form: 10-K · Filed: Nov 14, 2025 · CIK: 785786

Sentiment: bullish

Topics: Electronics Manufacturing Services, Healthcare Technology, Aerospace & Defense, Industrial Automation, Supply Chain Management, Global Manufacturing, Shareholder Value

Related Tickers: PLXS

TL;DR

**PLXS is a solid long-term play, leveraging diversified high-growth sectors and a disciplined financial model to deliver consistent shareholder value.**

AI Summary

Plexus Corp. (PLXS) reported a fiscal year ended September 27, 2025, with a strategic focus on Aerospace/Defense, Healthcare/Life Sciences, and Industrial market sectors. The company aims for a 9-12% compounded annual revenue growth rate and a 15% Return on Invested Capital (ROIC), significantly exceeding its 2025 Weighted Average Cost of Capital (WACC) of 8.9%. In fiscal 2025, no single customer accounted for over 10% of sales, indicating a diversified customer base of approximately 190 customers. The Healthcare/Life Sciences sector contributed 40% of net sales, Industrial 43%, and Aerospace/Defense 17%. Key risks include volatile demand, material shortages, and intense competition, as detailed in the 'Risk Factors' section. Plexus emphasizes its integrated solutions across the product lifecycle, from design and development to sustaining services, all delivered from 26 facilities globally.

Why It Matters

Plexus's diversified customer base, with no single customer exceeding 10% of sales in fiscal 2025, provides a degree of stability for investors, mitigating concentration risk. Its commitment to a 15% ROIC, well above its 8.9% WACC, signals a strong focus on shareholder value creation, which could attract growth-oriented investors. For employees, the global footprint of 26 facilities and over 20,000 team members suggests a stable and expanding operational base. Customers benefit from Plexus's integrated, full-lifecycle solutions in highly regulated sectors, offering a competitive edge in product development and market longevity.

Risk Assessment

Risk Level: medium — The company faces inherent risks from 'volatile demand (in quantity or mix), material shortages, extended lead-times and subsequent allocations by our suppliers' within the electronics industry, which can impact production and profitability. Additionally, Plexus operates in a 'highly competitive market' with competitors potentially having 'greater financial, manufacturing or marketing resources,' posing a threat to market share and pricing power.

Analyst Insight

Investors should monitor Plexus's ability to maintain its 15% ROIC target and manage supply chain volatility, as these are critical to its long-term financial health. Given its diversified customer base and focus on high-growth, regulated sectors, PLXS could be a stable addition to a portfolio, but potential investors should assess its competitive positioning and material sourcing strategies.

Revenue Breakdown

SegmentRevenueGrowth
Industrial
Healthcare/Life Sciences
Aerospace/Defense

Key Numbers

Key Players & Entities

FAQ

What are Plexus Corp.'s primary market sectors and their revenue contributions in fiscal 2025?

Plexus Corp. primarily serves the Industrial, Healthcare/Life Sciences, and Aerospace/Defense market sectors. In fiscal 2025, the Industrial sector accounted for 43% of net sales, Healthcare/Life Sciences for 40%, and Aerospace/Defense for 17%.

What is Plexus Corp.'s long-term financial goal for revenue growth and return on invested capital?

Plexus Corp.'s primary long-term goal is to achieve a 9-12% compounded annual revenue growth rate. Concurrently, the company aims to earn a Return on Invested Capital (ROIC) of 15%, which significantly exceeds its fiscal 2025 Weighted Average Cost of Capital (WACC) of 8.9%.

How many customers did Plexus Corp. serve in fiscal 2025, and was there significant customer concentration?

In fiscal 2025, Plexus Corp. served approximately 190 customers. The filing explicitly states that no single customer accounted for over 10% of its sales in fiscal 2025, indicating a diversified customer base.

What are the key risks identified by Plexus Corp. in its 10-K filing?

Plexus Corp. highlights several key risks, including the effects of tariffs and trade disputes, inflationary pressures on costs, shortages and delays in obtaining components, and the risk of customer delays or cancellations. Additionally, intense competition and the economic performance of the industries served are significant concerns.

What is the significance of Plexus Corp.'s ROIC exceeding its WACC?

Plexus Corp. believes that its ROIC exceeding its WACC represents a positive economic return, which is a fundamental driver of shareholder value. For fiscal 2025, their ROIC target of 15% significantly surpasses their WACC of 8.9%.

Where are Plexus Corp.'s operational facilities located?

Plexus Corp. operates from 26 active facilities strategically located across the Americas (AMER), Asia-Pacific (APAC), and Europe, Middle East and Africa (EMEA) regions, totaling approximately 5.0 million square feet.

What types of solutions does Plexus Corp. provide to its customers?

Plexus Corp. offers integrated solutions throughout the product lifecycle, including Design and Development, Supply Chain Solutions, New Product Introduction, Manufacturing, and Sustaining Services such as repair and refurbishment.

What is Plexus Corp.'s approach to managing its supply chain?

Plexus Corp.'s global supply chain management organization works to mitigate risks and ensure a steady flow of materials through collaboration with customers and suppliers, strong supplier partnerships, proprietary risk management tools, and aggressive management of supplier commitments.

Is Plexus Corp. considered a well-known seasoned issuer?

Yes, Plexus Corp. indicates by check mark that it is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

What was the aggregate market value of Plexus Corp. common stock held by non-affiliates as of March 29, 2025?

As of March 29, 2025, the aggregate market value of Plexus Corp. common stock held by non-affiliates was approximately $3.4 billion, based on a closing price of $127.77 per share on the Nasdaq Global Select Market.

Risk Factors

Industry Context

Plexus operates in the complex manufacturing and services sector, serving market-leading and disruptive companies across Aerospace/Defense, Healthcare/Life Sciences, and Industrial markets. These sectors are characterized by demanding regulatory environments and a need for highly complex product solutions. The company competes with other manufacturers and service providers in these specialized niches.

Regulatory Implications

Plexus operates in demanding regulatory environments, particularly in Healthcare/Life Sciences and Aerospace/Defense. Compliance with stringent regulations is critical to its operations and market access, and failure to comply could lead to significant penalties or loss of business.

What Investors Should Do

  1. Monitor ROIC performance against the 15% target.
  2. Track revenue growth within the key market sectors (Industrial, Healthcare/Life Sciences, Aerospace/Defense).
  3. Assess the company's ability to mitigate risks related to material shortages and volatile demand.

Glossary

ROIC
Return on Invested Capital, a measure of how effectively a company uses its capital to generate profits. (Plexus aims for a 15% ROIC, significantly above its WACC, to drive shareholder value.)
WACC
Weighted Average Cost of Capital, the average rate a company expects to pay to finance its assets. (Plexus's WACC was 8.9% in fiscal 2025, serving as a benchmark for its ROIC target.)
Economic Return
The amount by which a company's ROIC exceeds its WACC, indicating a positive return on investment beyond the cost of capital. (Plexus views economic return as a fundamental driver of shareholder value.)

Year-Over-Year Comparison

Information comparing fiscal 2025 metrics to the previous year, such as revenue growth, margin changes, and the emergence of new risks, is not detailed in the provided text. The filing focuses on the current fiscal year's strategic goals and operational overview.

Filing Stats: 4,345 words · 17 min read · ~14 pages · Grade level 16.3 · Accepted 2025-11-14 08:13:12

Key Financial Figures

Filing Documents

RISK FACTORS

ITEM 1A. RISK FACTORS 10

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 22

CYBERSECURITY

ITEM 1C. CYBERSECURITY 22

PROPERTIES

ITEM 2. PROPERTIES 24

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 24

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 24 PART II 25

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 25

[RESERVED]

ITEM 6. [RESERVED] 26

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 27

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 38

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 39

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 71

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 71

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 72

FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 72 PART III 72

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 72

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 73

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 73

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 74

PRINCIPAL ACCOUNTING FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 74 PART IV 75

EXHIBITS A ND FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS A ND FINANCIAL STATEMENT SCHEDULES 75

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 78

SIGNATURES

SIGNATURES 79 Table of Contents "SAFE HARBOR" CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this Form 10-K that are guidance or which are not historical facts (such as statements in the future tense and statements including believe, expect, intend, plan, anticipate, goal, target and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties. These risks and uncertainties include the effects of tariffs, trade disputes, trade agreements and other trade protection measures; the effect of inflationary pressures on our costs of production, profitability, and on the economic outlook of our markets; the effects of shortages and delays in obtaining components as a result of economic cycles, natural disasters or otherwise; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the outcome of litigation and regulatory investigations and proceedings, including the results of any challenges with regard to such outcomes; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customer base and deliver product on a timely basis; the risks of concentration of work for certain customers; the particular risks relative to new or recent customers, programs or services, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate terms of agreements, and the lack o

BUSINESS

ITEM 1. BUSINESS Overview At Plexus, we help create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments. From life-saving medical devices and mission-critical aerospace and defense products to industrial automation systems and semiconductor capital equipment, our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect. We provide these solutions to market-leading as well as disruptive companies globally in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial market sectors, supported by a global team of over 20,000 members across our 26 facilities in the Americas ("AMER"), Asia-Pacific ("APAC") and Europe, Middle East and Africa ("EMEA") regions. Our Vision, Mission and Strategy Our vision is to help create the products that build a better world. Our mission is to be the leader in highly complex products and demanding regulatory environments. Our strategy to fulfill our vision and mission consists of four strategic pillars: Market Focus – We engineer innovative solutions for customers in growth markets featuring highly complex products and demanding regulatory environments. Superior Execution – We are dedicated partners to our customers, committed to achieving zero defects and perfect delivery through operational excellence. Passion Meets Purpose – We are united as a team and guided by our values. We do the right thing to support our team members, customers and communities. Discipline by Design – We hold ourselves accountable to delivering shareholder value through consistent application of a disciplined financial model. Built on a foundation of innovation, we are relentless in our pursuit of excellence, aligning our team members, operations, systems of oversight and financial metrics to create a high performance, accountable organization

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