Plexus Corp.

Ladies and gentlemen, thank you for joining us and welcome to the Plexus Fiscal Fourth Quarter and Fiscal Year-End 2025 Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you've dialed in to today's call, please press star nine to raise your hand and star six to unmute your line. I will now hand the conference over to Sean Harrison, Vice President of Investor Relations. Please go ahead.

Good morning, and 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 guaranteed since they're 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 that 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, as supplemented by our Form 10-Q filings and 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, 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. Fiscal 2025 was an outstanding year for Plexus, highlighted by our ongoing delivery of a differentiated value proposition for our customers that created the opportunity for Plexus to expand customer relationships and gain market share. Our robust and well-balanced new program win results across our solutions that will support future growth. Our team's dedication to innovating responsibly to help create a better world. in our strong financial performance with a 40 basis point expansion of non-GAAP operating margin, 30% non-GAAP EPS growth, another year of tremendous free cash flow generation, and robust ROIC. I'm excited that the momentum gained during fiscal 2025 across these areas positions Plexus during fiscal 2026 to deliver revenue growth in excess of our end markets through new program ramps inclusive of market share gains, accelerated revenue growth positioning Plexus toward our 9 to 12% goal, strong financial performance with a focus on achieving our goal of a 6% non-gap operating margin while also investing in talent, technology, facilities, and advanced capabilities to support sustained future revenue growth and greater operational efficiency, and robust free cash flow generation that will be deployed to create additional shareholder value. Please advance to slide four. Revenue of $1.058 billion approached the high end of our guidance range, marking our third consecutive quarter of sequential growth. Our team's ability to support late quarter demand upside from semi-cap and energy customers more than offset minor delays in new program transitions in our aerospace and defense market sector. Non-GAAP EPS of $2.14 substantially exceeded our guidance due to favorable discrete tax items with inline non-GAAP operating margin of 5.8%. We expanded non-GAAP operating margin by 40 basis points and non-GAAP EPS over 30% in fiscal 2025 as compared to fiscal 2024. Finally, we delivered fiscal fourth quarter free cash flow of $97 million, resulting in fiscal 2025 free cash flow of $154 million, an amount that substantially exceeded our projections. We have now generated $495 million of free cash flow over the past two fiscal years, while deploying excess cash to reduce our borrowing and accelerate our share repurchase activity. Please advance to slide five. For the fiscal fourth quarter, we secured 28 new manufacturing programs worth $274 million in revenue annually when fully ramped into production. Included in these wins were expanded relationships with commercial aerospace customers, growth in our exposure to unmanned aircraft, expansion of share with existing healthcare, life sciences, and industrial customers, and notable market share gains within Semicap. For fiscal 2025, our team generated 141 manufacturing wins, representing $941 million in annualized revenue. In addition, efforts to diversify our engineering solutions engagements successfully drove increased wins for fiscal 2025, including a record result in aerospace and defense. Finally, our sustaining services team achieved record wins for the fiscal year, positioning the offering for stronger future financial performance. In addition, while producing the strong winds performance, we expanded our funnel of qualified opportunities versus the prior quarter and year over year. Please advance to slide six. At Plexus, we are committed to boldly driving positive change and promoting 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. The following are recent highlights of how Plexus lives our value of innovating responsibly. In September, GE Vernova presented Plexus its Supplier Innovation Award at the Gas Power Supplier Conference in Shanghai, China. This award recognized Plexus's strategic engagement and collaboration in supporting a successful program transition to our facility in Xiamen, China, well ahead of GE Vernova's original timeline. Next, As we reflect on the accomplishments of fiscal 2025 and our guiding principle that people are the heart of who we are and what we do, I'm thrilled to share that our global team members completed over 32,000 volunteer hours during the fiscal year. This incredible achievement is a 47% increase compared to fiscal 2024 and serves as a powerful testament to how our team members live our vision of building a better world. Additionally, in fiscal 2025, we granted $1.4 million to global nonprofits through our Plexus Community Foundation, deepening our connections to causes and organizations in the communities where we live and work. Further, through a focused effort across our operations, we reduced our waste to landfill by over 30% globally in fiscal 2025, far exceeding our goal. This achievement is underscored by a remarkable eight sites reaching zero waste to landfill status, which accounts for over 40% of our manufacturing sites. Finally, we reduced absolute scope one and two emissions by over 10% across our global manufacturing sites versus our fiscal 2023 baseline. This reduction represents the second consecutive year of exceeding our emissions reduction goal. I'm incredibly proud of and grateful for the contributions of our global team members as they deliver a consequential environmental and social impact in support of our vision of building a better world. Please advance to slide seven. For our fiscal first quarter, we are guiding revenue of $1.05 to $1.09 billion, non-GAAP operating margin of 5.6 to 6.0%, and non-GAAP EPS of $1.66 to $1.81. With modest end market growth across the majority of our sectors, we expect to deliver revenue growth through ongoing new program ramps, inclusive of market share gains. In addition, during the fiscal first quarter, we will continue to invest in talent, technology, facilities, and advanced capabilities to expand our industry-leading solutions, drive greater long-term operational efficiency, and prepare for accelerated fiscal 2026 revenue growth. For fiscal 2026, we anticipate another year of strong operational and financial performance. Currently, we expect to deliver revenue growth in excess of our end markets, realizing year-over-year growth in each of our market sectors, while accelerating momentum toward our 9% to 12% revenue growth goal. We also anticipate delivering another strong year of operating margin and free cash flow performance, even as we continue to make significant investments to increase our long-term competitiveness. In closing, thank you to our global team for making fiscal 2025 outstanding through your support of our customers, communities, and each other. We're excited to leverage this momentum during fiscal 2026 into generating growth in excess of our end markets, delivering strong financial performance, and creating long-term shareholder value. I will now turn the call over to Oliver for additional analysis of the performance of our market sectors.