Plexus Corp. Q2 FY2026 earnings call

Todd Kelsey thanked Pat Germain for his 12-year tenure as CFO and introduced David Abel as the new CFO. Plexus's momentum is accelerating with mid-teens or greater fiscal 2026 revenue growth expected. Secured record $355 million in new manufacturing program wins in Q2. Celebrated 40th anniversary as publicly listed NASDAQ company and Kelso Scotland site's 25th anniversary. Named finalist for 2026 Manufacturing Leadership Awards in two categories. Upcoming release of annual sustainability report in fiscal third quarter.

Fiscal second quarter revenue was $1.164 billion, up 19% year-over-year. Non-GAAP EPS was $2.05. Aerospace and defense saw strength due to increasing demand for solutions and disruptive technologies; semi-cap had ongoing share gains amplifying market demand. For fiscal third quarter, revenue guided at $1.2 to $1.25 billion. Aerospace and defense expected mid-single digit revenue growth in Q3 with double-digit growth anticipated in 2026. Healthcare life sciences had 1% sequential revenue growth in Q2, flat in Q3 ahead of Q4 sequential growth return, with 2026 outlook strong. Industrial sector had 12% sequential revenue growth in Q2, low double-digit increase expected in Q3, with 2026 growth outlook exceeding 9%-12% goal.

Fiscal third quarter revenue guided at $1.2 to $1.25 billion (5% sequential, 20% year-over-year at midpoint). Non-GAAP operating margin guided 5.9% to 6.3%, non-GAAP EPS $2.02 to $2.18. Fiscal 2026 now expected mid-teens or greater revenue growth, 6% or greater non-GAAP operating margin, and continued strong working capital efficiencies. Fiscal 2026 capital expenditures expected $100 to $120 million, free cash flow forecast $50 to $75 million.

Forward-looking statements not guaranteed as actual results could differ materially. Supply chain conditions could act as gating factor, including issues with semiconductor, passes, memory, raw PCB fabs, extended lead times for certain components.

Q: Melissa Fairbanks asked about cash cycle days and industrial trends.

A: Dave and Oliver responded on cash cycle days being in low to mid 60s and industrial sector wins in energy storage, data centers, etc.

Q: Reuben Roy asked about operating margin structure and supply chain.

A: Todd and Pat discussed margin leverage and proactive supply chain work.

Q: David Williams asked about capacity and semi-cap demand.

A: David and Oliver talked about capacity utilization and share gains in semi-cap.

Q: Stephen Fox asked about operating margin leverage and aerospace drivers.

A: David and Oliver discussed margin drop through and aerospace market drivers.

Q: Anya Soderstrom asked about Malaysia facility and healthcare growth.

A: Answered on Malaysia facility tracking and healthcare growth outlook.