Plexus Corp.

Hello, everyone. Thank you for joining us and welcome to the Q2 2026 Plexus Earnings Conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Sean Harrison, IRO. Sean, 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 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 27, 2025, 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's 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 Min, Executive Vice President and Chief Operating Officer, Pat Germain, Executive Vice President and Chief Financial Officer, and David Abel, Senior Vice President of Finance. With today's earnings call, Todd will provide summary comments before turning the call over to Oliver, Pat, and David for further details. But before I turn the call over to Todd, I would first like to express my gratitude to Pat for his partnership, mentorship, and friendship, and offer my best wishes for an amazing retirement. Second, I'm excited to announce that Todd will be appearing on CNBC's Fast Money this evening to discuss Plexus and our fantastic results in Outlook. With that, let me now turn the call over to Todd Kelsey. Todd?

Thank you, Sean. Good morning, everyone. Please advance to slide three. Before I begin my prepared remarks regarding the business, I want to celebrate Pat's incredible 12-year tenure as Plexus' CFO and wish him all the best during retirement. He's been an extraordinary business partner to me over the years. I also want to express my deep gratitude for Pat's leadership and integrity, establishing a strong tone from the top. Pat has been instrumental in our growth journey, fostering and cultivating a high-performing finance team that has played a significant role in Plexus's tremendous financial results over the years. I'm also excited to welcome David Abel as our next CFO. Since joining Plexus last fall, David's impact on the organization has already been meaningful. I'm confident that as we continue our growth journey, David's extensive financial expertise, global perspective, and strategic mindset will position him to be an exceptional CFO. Please advance to slide four. Plexus's momentum is accelerating broadly. We now expect to deliver mid-teens or greater fiscal 2026 revenue growth from the contribution of numerous program ramps, ongoing market share gains, and improving end market demand. Our team generated a record $355 million in new manufacturing program wins with broad-based contributions across our market sectors. Against this tremendous result, we also expanded our funnel of qualified manufacturing opportunities. We're delivering non-GAAP operating margin expansion while increasing our already significant investments focused on expanding operational efficiency and capitalizing on continuing revenue growth momentum. Finally, we are sustaining strong financial discipline, delivering better than expected working capital performance amidst substantial acceleration in revenue growth and tightening supply chain conditions. Please advance to slide five. Fiscal second quarter revenue of $1.164 billion exceeded our guidance range, representing our fifth consecutive quarter of sequential revenue growth and a robust 19% year-over-year increase. While growth was strong throughout all of our market sectors, we experienced specific strength in aerospace and defense as a result of increasing demand for our industry-leading solutions and supportive disruptive technologies, and in semi-cap, where our ongoing share gains are amplifying surging market demand. Non-GAAP EPS of $2.05 exceeded guidance. We delivered a robust 6% non-GAAP operating margin while continuing to heavily invest in program ramps, operational efficiency initiatives, and technology. Please advance to slide six. For the fiscal second quarter, we secured 30 new manufacturing programs with a record $355 million in annualized revenue when fully ramped into production. All market sectors contributed to this tremendous performance, which included broad-based opportunities in aerospace and defense, expanded relationships and share gains in surgical and imaging platforms, a new engagement in data center power solutions, and continued share gains in semiconductor capital equipment. Through expanded business development efforts, synergies with our engineering solutions and sustaining services, and our focus on providing unmatched quality and delivery, we're also seeing an increasing breadth of customer interest for our industry-leading solutions. As a result, for the second fiscal quarter, our funnel of qualified manufacturing opportunities expanded sequentially and year over year. We produced particularly notable growth in our industrial market sector, where we are generating significant interest in automation and robotics, data center, and energy solutions, and our aerospace and defense market sector. Please advance to slide seven. At Plexus, we're committed to advancing sustainability through our value of innovating responsibly as 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. Critical to our success is our people who are at the heart of who we are and what we do. Our second fiscal quarter was particularly memorable as we celebrated two major organizational milestones. First, I was honored to join members of our Plexus leadership team at NASDAQ's market site in Times Square to ring the closing bell in celebration of our 40th anniversary as a publicly listed NASDAQ company. The significant accomplishment was a celebration of the trust we've created with our customers and the unwavering dedication of our people. Additionally, our Kelso Scotland site celebrated its 25th anniversary. Since opening in 2001, the Kelso team has evolved from printed circuit board assembly to manufacturing complex, life-impacting products, an evolution made possible by our team members, many of whom have been with us since day one. Our commitment to delivering excellence and innovating responsibly also continues to earn external recognition. We're proud to be named a finalist for the 2026 Manufacturing Leadership Awards in two categories, AI Vision and Strategy, and Sustainability in the Circular Economy. The awards will be presented in June by the Manufacturing Leadership Council, which is part of the National Association of Manufacturers. These awards highlight our emphasis on innovation delivering a positive environmental impact as we help create the products that build a better world finally we are excited to announce the upcoming release of our annual sustainability report during our fiscal third quarter the fiscal 2025 report highlights our continued commitment to innovating responsibly as we've always been driven to do something more for our customers our team members and the world please advance to slide eight For our fiscal third quarter, we are guiding revenue of $1.2 to $1.25 billion, representing 5% sequential and 20% year-over-year growth at the midpoint. We are guiding non-GAAP operating margin of 5.9 to 6.3%, and non-GAAP EPS of $2.02 to $2.18. We believe we are outgrowing our end markets, many of which are seeing improving demand, by leveraging new program ramps market share gains, and our support of disruptive technologies. As a result, we anticipate double-digit revenue growth in each of our market sectors in fiscal 2026 with particularly strong performance in aerospace and defense and industrial, led by significant growth in our semi-cap subsector. Accordingly, for fiscal 2026, we now expect to deliver mid-teens or greater revenue growth overall a substantially increased forecast from our initial expectations last October. We anticipate delivering this revenue growth performance with robust profitability, anticipating a 6% or greater non-GAAP operating margin for fiscal 2026 and continued strong working capital efficiencies. In closing, our consistent focus on redefining excellence through our unmatched quality and delivery is shaping our decision-making and sustaining our tremendous momentum. We are expanding and accelerating investments in technology capabilities and our people to enable customer success, drive greater long-term operational efficiency and increase our revenue growth potential. These efforts will position us to sustain our momentum well beyond fiscal 2026. We'll now turn the call over to Oliver for additional analysis of the performance of our market sectors. Oliver.