Plexus Corp.

Good morning, everyone. Thank you for joining us for the Plexus Third Quarter Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. On the call today to answer your questions after the presentation are Todd Kelsey, President and CEO, and David Abel, CFO, and Senior Vice President. I will now hand the conference over to Shawn Harrison, Vice President of Investor Relations. Shawn, 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 guarantees since their 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-end at September 27, 2025, in 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, and David Abel, Senior Vice President, Chief Financial Officer. Unfortunately, Oliver Mihm, our Executive Vice President and Chief Operating Officer, is unexpectedly feeling unwell and could not make the call today. Oliver will rejoin us on our fiscal fourth quarter call. With today's earnings call, Todd will provide summary comments before turning the call over to me and David for further details. With that, let me turn the call over to Todd Kelsey. Todd?

Thank you, Shawn. Good morning, everyone. Earlier this week, a devastating tornado struck near our corporate headquarters, causing significant damage to our local community. Our thoughts and prayers go out to all of those impacted. Thankfully, no fatalities or missing persons were reported. There was no material impact to Plexus's operations or our headquarters. Please advance to slide three. Our differentiated value proposition focused on unmatched quality and delivery is creating customer success. Plexus generated record revenue in the fiscal third quarter by capturing strengthening end market demand and successfully launching numerous new programs. As a result, we see Plexus positioned to deliver more than 20% revenue growth for fiscal 2026. We anticipate Plexus will sustain this momentum and currently see the potential to generate fiscal 2027 revenue growth in excess of our 9 to 12% goal. Furthermore, we expanded our funnel of qualified manufacturing opportunities to a record level creating the potential to sustain strong long-term revenue growth. We delivered solid operating performance with a robust 6.3% non-GAAP operating margin for our fiscal third quarter. We anticipate further strong operating results for our fiscal fourth quarter. Consequently, we expect our fiscal 2026 non-GAAP operating margin to exceed 6% and see the potential for continued operating margin expansion in fiscal 2027. Finally, our working capital efficiency remains robust while supporting accelerated revenue growth. Fiscal third quarter cash cycle exceeded our expectations and was the best in more than five years. We expect to sustain this performance into fiscal 2027 and anticipate a return to meaningful free cash flow generation. Please advance to slide four. With all three of our market sectors contributing better than expected performance, fiscal third quarter revenue of $1.305 billion exceeded our guidance range, representing a 12% sequential and a 28% year-over-year increase. Additionally, non-GAAP operating margin of 6.3% met the high end of guidance, increasing 30 basis points year-over-year on continued efficiency gains and revenue leverage. Finally, non-GAAP EPS of $2.32 exceeded our guidance range. Please advance to slide five. Our go-to-market team continued to drive strong performance. For the third quarter, we secured 31 new manufacturing programs worth $255 million in annualized revenue when fully ramped into production. This result included and exciting new partnership in our industrial market sector supporting battery energy storage systems for data centers. As well as another robust contribution from our aerospace and defense market sector of $135 million. Year to date, our $400 million of aerospace and defense wins represents a result more than two times our combined fiscal 2024 and 2025 performance. This positions us for long-term secular market outgrowth. Furthermore, aerospace and defense engineering solutions wins were significant. Finally, our funnel of qualified manufacturing opportunities expanded to a record $4.5 billion in support of sustaining robust long-term revenue growth. Please advance to slide six. At Plexus, we're committed to advancing sustainability through our value of innovating responsibly. Our customer partnerships are central to our strategy. During our fiscal third quarter, ASM honored Plexus with its Supplier Performance Award for overall supplier excellence and Prism Sustainability Award for circularity. These recognitions underscore our commitment to deep customer collaboration and advancing sustainable practices across our value chain. We also continue to take proactive steps to reduce our environmental footprint. Earlier in July, we were thrilled to receive the Gold Award for Renewable Energy at the Positive Impact Awards in Malaysia, highlighting our dedication to renewable energy adoption and sustainable manufacturing. As of fiscal 2026, all of our Penang facilities operate on 100% renewable energy through a combination of on-site generation and purchased renewable energy. Finally, we continue to build trust through transparency. In June, we released our annual sustainability report that showcases our commitment to innovating responsibly and establishes our formal greenhouse gas emission reduction targets. I'm grateful for the continued recognition by our customers and our communities of our global team members' efforts to live our values, deliver excellence and create a lasting positive impact. Please advance to slide seven. For our fiscal fourth quarter, we forecast continued revenue strength led by our industrial market sector. We are guiding revenue of $1.33 to $1.38 billion, representing 4% sequential and 28% year-over-year growth at the guidance midpoint. We're also guiding non-GAAP operating margin of 6.1 to 6.5% and non-GAAP EPS of $2.47 to $2.63. Due to success in launching numerous new programs, market share gains, and supportive disruptive technologies, we are driving sustained momentum and revenue growth in excess of market growth. As a result, we now anticipate generating greater than 20% revenue growth for fiscal 2026 with greater than 6% non-GAAP operating margin and disciplined working capital efficiency. Finally, our differentiated value proposition focused on providing unmatched quality and delivery as resulting in robust performance. This focus has positioned Plexus to sustain momentum for fiscal 2027 and beyond. For fiscal 2027, we currently see the potential to maintain quarterly sequential revenue expansion and generate revenue growth in excess of our 9% to 12% goal. Supporting our bullish outlook is continued strong growth from our aerospace and defense and industrial markets, including semiconductor capital equipment, with continued growth in healthcare life sciences. Finally, during fiscal 2027, we anticipate delivering operating margin expansion while continuing to make important investments in talent and technology and support a future growth in operational efficiency. We also expect disciplined working capital efficiency Prudent Capital Expenditures, and Return to Meaningful Free Cash Flow Generation. I will now turn the call over to Shawn for additional analysis of the performance of our market sectors. Shawn. Thank you, Todd.