Plexus Corp.

If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. I will now hand the conference over to Sean Harrison, Vice President of Investor Relations. Sean, please go ahead.

Good morning, thank you 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 guarantees 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 10K filing for the fiscal year ended September 28th, 2024, is supplemented by our Form 10Q filings and the safe harbor and fair disclosure statement in our press release. We encourage participants on the call this morning to access a live webcast and supporting materials at Lexus's website at .lexus.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, Pat Germain, Executive Vice President, 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 turn the call over to Todd Kelsey. Todd?

Thank you, Sean. Good morning, everyone. Please advance to slide three. Lexus continues to gain momentum as we design, manufacture and service some of the world's most transformative products. For the fiscal third quarter, Lexus received national and regional recognition as a top workplace. We grew revenue sequentially. We generated solid new program wins, including opportunities supporting new customers with products aligned to exciting growth technologies. We delivered non-GAAP operating margin of 6%, matching our stated goal. We once again generated better than expected free cashflow. And finally, we reduced our debt while accelerating our share repurchase activity and concurrently increasing our share repurchase authorization. Through our commitment to enabling customer success, we are seeing ongoing strength in new program wins and opportunities to gain share in support of delivering growth outpacing our end markets. In addition, our ongoing strategic investments that drive organizational and operational efficiency are generating strong profitability and free cashflow in support of creating long-term shareholder value. Please advance to slide four. Revenue of $1.018 billion met our guidance. As the fiscal third quarter progressed, we saw improved order activity from some industrial and European customers. In addition, we observed early signs of increasing European defense sector activity, a market we are uniquely qualified and positioned to support. This offset the impact of evolving program ramp timelines and tariff-related uncertainties on our market sectors. Non-GAAP operating margin of .0% was near the high end of our guidance, increasing 30 basis points sequentially in meeting our stated goal of 6% or greater operating margin. We have now achieved this goal and delivered operating margin at or above 6% for three of the last four quarters. Continued strong performance from our engineering solutions and sustaining services, operational efficiencies, and volume leverage drove the sequential expansion. Non-GAAP EPS of $1.90 exceeded our guidance, benefiting from strong operating performance, lower than anticipated interest expense, and a favorable tax rate. Finally, we delivered $13.2 million of free cash flow, significantly better than our expectations entering the quarter as we continue to drive strong working capital management. Please advance to slide five. For the fiscal third quarter, we secured 41 new manufacturing programs with $250 million in revenue annually when fully ramped into production. Included in these wins, which were well-balanced across all of our market sectors, are share gains resulting from our sustained focus and zero defects in perfect delivery. We also added in each of our market sectors, new customers with products aligned to exciting growth technologies. Furthermore, similar to last quarter, the revenue contribution and diversification of the wins performance of our engineering solutions was strong. Finally, our funnel of qualified opportunities expanded sequentially once again, with balanced diversification across our market sectors, as well as a strong contribution from our sustaining services. Please advance to slide six. At Plexus, our commitment to advancing sustainability is aligned to our value of innovating responsibly. We boldly drive positive change and promote a sustainable future for and through our people, our solutions and our operations, all of which is built on a foundation of trust and transparency. Our people are the heart of who we are and what we do. With that in mind, I'm incredibly proud to share that Newsweek listed Plexus as one of America's greatest workplaces in manufacturing 2025. Further, our Chicago site was recognized as one of the 2025 best and brightest companies to work for, nationally and regionally. 2025 marks the 18th consecutive year this site has received regional recognition and the third consecutive year receiving national recognition. Thank you to our incredible team members for living our values and enabling our success. Our people are also at the heart of strengthening our communities. In celebration of Earth Day, our teams around the globe participated in a number of local volunteer activities, including community cleanup and recycling events. Here in Wisconsin, our team members recycled an amazing 8,000 pounds of electronics waste. In June, we released our 2024 sustainability report, building trust through transparency and highlighting the many ways we're committed to doing something more for our customers, our team members and the world. Finally, our commitment to customer success drove our historically strong customer satisfaction score to a seven year high in our recently completed customer net promoter survey. We believe this positive customer sentiment is manifesting into share gains and expanded outsourcing opportunities across our market sectors. Please advance to slide seven. For our fiscal fourth quarter, we are forecasting sequential revenue growth and expect to realize another strong quarterly financial performance. We anticipate delivering this revenue expansion through share gains, new program ramps and growth with new customers, overcoming modest end market demand, evolving new product ramp timelines and uncertainties created by tariffs. Our fiscal fourth quarter guidance is for revenue of 1.025 to $1.065 billion. Non-GAAP operating margin of 5.7 to .1% inclusive of greater incentive compensation and the opening of our new facility in Penang, Malaysia. And non-GAAP EPS of $1.82 to $1.97. At the midpoint, our fiscal fourth quarter would result in impressive non-GAAP EPS growth of 26% for fiscal 2025. Additionally, we are now forecasting approximately $100 million of free cashflow for fiscal 2025, which would represent cumulative two year free cashflow generation of nearly $450 million. As previously noted, in recognition of our robust free cashflow performance and our long-term value creation potential, we accelerated our share repurchase activity during the fiscal third quarter, while also engaging with our board of directors to approve a follow on authorization of $100 million, creating additional shareholder value. Finally, while early, for fiscal 2026, we currently anticipate delivering healthy year over year revenue growth from each of our market sectors without assuming end market demand improvement. We also anticipate sustaining our strong operating margin and free cashflow performance. In closing, we are committed to creating long-term shareholder value. Lexus continues to gain momentum through enabling customer success and through focused initiatives that drive organizational and operational efficiency. We're bullish on the growth opportunities our solutions and our market sectors provide. Our strategy is creating opportunities to sustain strong financial performance and gain share in support of delivering growth outpacing our end markets. I'll now turn the call to Oliver for additional analysis of the performance of our market sectors. Oliver.