Plexus Corp.

If you would like to withdraw your question, please press star 1 again. Thank you. I would now like to turn the call over to Mr. Shawn Harrison, Vice President of Investor Relations. Please go ahead.

Shawn Harrison, Vice President of Investor Relations, Thanks, Liz. Good morning, and thank you, everyone, for joining us today. Some of the statements made and information provided during our call today will be forward-looking statements, including without limitation those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense, taxes, cash cycle, capital allocation, and future business outlook. Forward-looking statements are not guaranteed since there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied in the forward-looking statements. For a list of factors that could cause actual results to differ materially from those discussed, please refer to the company's periodic SEC filings, particularly the risk factors in our Form 10-K filing for the fiscal year ended September 28, 2024, is supplemented by the Safe Harbor and Fair Disclosure Statement in our press release. We encourage participants on the call this morning to access the live webcast and supporting materials at Plexus' website at www.Plexus.com, clicking on Investors at the top of that page. Joining me today are Todd Kelsey, President and Chief Executive Officer, Oliver Mim, Executive Vice President and Chief Operating Officer, and Pat Germain, Executive Vice President and Chief Financial Officer. With today's earnings call, Todd will provide summary comments before turning the call over to Oliver and Pat for further details. With that, let me now turn the call over to Todd Kelsey. Todd?

Thank you, Sean. Good morning, everyone. Please advance to slide three. Our team's agility and responsiveness in support of customer success enabled strong operating performance in the fiscal first quarter and robust financial results to begin fiscal 2025. We continue to forecast revenue growth across each of our market sectors for fiscal 2025. This growth is driven by new program ramps and share gains as trends in our sectors remain mixed associated with shifts in the timing of certain customer program ramps and changes in customer forecasts. We continue to build upon our efforts to drive sustained improvement in working capital efficiency and now forecast fiscal 2025 free cash flow of up to $100 million, which we will continue to utilize to create additional shareholder value. We remain confident in achieving meaningful non-GAAP EPS growth in fiscal 2025, benefiting from revenue growth in each of our market sectors, continued strong operating margin performance, and free cash flow deployment toward debt reduction in our share repurchase program. Please advance to slide four. Our team continues to execute at a high level. Fiscal first quarter revenue of $976 million met our guidance. As the quarter progressed, we experienced stronger demand with some customers in our industrial and healthcare life sciences market sectors, but also demand degradation with other customers in these sectors. In our aerospace and defense market sector, we experienced negative forecast adjustments related to well-publicized reductions in near-term commercial aerospace production rates. With our team driving incremental operating efficiencies, non-GAAP operating margin of 6.0% was near the high end of our guidance range and met our long-term goal. Non-GAAP EPS of $1.73 exceeded our guidance, benefiting from strong operating margin performance, further reduction in interest expense, and a slightly favorable tax rate. In addition, we delivered $27 million of free cash flow, significantly better than our expectations entering the quarter. Please advance to slide five. For the fiscal first quarter, we won 30 manufacturing programs worth $212 million in revenue annually when fully ramped into production, while expanding our funnel of qualified opportunities to $3.6 billion. Included in the wins result is another strong quarterly contribution within our healthcare life sciences market sector of $130 million, and exciting new growth opportunities for our aerospace and defense and industrial market sectors. In addition, our engineering solutions team delivered a win total that approached a two-year high, while our funnel of engineering opportunities continues to see increased diversification. We believe both are strong leading indicators of future Plexus revenue growth. Please advance to slide six. As part of our commitment to sustainable and responsible business practices, we engaged in a materiality assessment with our key stakeholders that helped identify important priorities and inform our fiscal 2025 areas of focus. These initiatives include Furthering the development of innovative capabilities to design, manufacture, and service products to be more sustainable for our customers, including product lifecycle assessments and creative packaging solutions. Continuing efforts to reduce our own environmental impact and operational efficiencies through setting enterprise emissions, waste, and water reduction goals. And building deeper intelligence on our suppliers related to the environment, labor, human rights, and ethics. Additionally, I'm proud to highlight our continued recognition as an employer and partner of choice. Since our update last quarter, we were recognized as one of the best employers in Penang by the Employers' Provident Fund of Malaysia. And we were awarded HR Asia's Best Companies to Work For in Asia for the third consecutive year. We were named a finalist for Wisconsin Manufacturers and Commerce Manufacturer of the Year. Our Kelso Scotland team was shortlisted for the Business of the Year Award and received Scotland's Developing the Young Workforce Champion Award. Finally, last quarter we highlighted the amazing engagement of our team members within their local communities through our volunteer time off charitable giving program. Through this program, we made financial donations to 24 global charities voted on by our team members in the fiscal first quarter. Thank you to our Plexus team, partners, and local communities whose commitment and dedication leads to our ongoing success and our ability to fulfill our vision to build a better world. Please advance to slide seven. Considering current market sector dynamics and typical seasonal cost pressures, we are guiding fiscal second quarter revenue in the range of $960 million to $1.0 billion. non-GAAP operating margin of 5.3% to 5.7%, and non-GAAP EPS of $1.46 to $1.61. As we consider fiscal 2025, I would highlight the following. Our outlook reflects the trends revealed through our constant dialogue with our customers and the current status of global trade policies while acknowledging an evolving geopolitical environment. At Plexus, we have and will continue to invest in tools, technology, people, and capacity to ensure we are proactive in supporting the needs of our customers in any of the regions we operate with a non-negotiable focus on zero defects and perfect delivery. Our historic focus on organic growth is a competitive advantage that provides a consistent OnePlexus experience to our customers in any of our global sites. Looking at the remainder of fiscal 2025, we expect to deliver sequential revenue growth during the back half of the fiscal year with strong operating performance as our ongoing focus on operational efficiency bears incremental dividends. In addition, we expect another year of solid free cash flow generation, which will deploy to create additional shareholder value. We continue to expect year-over-year growth from our aerospace and defense market sector, albeit more subdued than anticipated entering the fiscal year. We expect new program ramps and share gains to offset a more challenged near-term commercial aerospace market and our continued conservatism in forecasting that market. We continue to expect moderate growth in our healthcare life sciences market sector as we navigate through any remaining inventory corrections while benefiting from new program ramps, share gains, and a modest rebound in healthcare market demand. We continue to expect growth in our industrial market sector. This expectation reflects robust growth in semi-cap associated with an increasing contribution from new program wins and share gains realized during the past few years, but a broader global industrial market that remains challenged by inventory corrections and weak demand. Finally, we anticipate meaningful EPS expansion in fiscal 2025, leveraging revenue growth in each of our market sectors ongoing strong operating margin performance, and continued deployment of our substantial free cash flow generation to create additional shareholder value. I will now turn the call over to Oliver for additional analysis of the performance of our market sectors.