Plexus Corp.'s Q3 2025: Navigating Contradictions in Semi-Cap Demand, Tariffs, and Market Outlook

Semi-Cap Demand Trends, Impact of Tariffs on Customers, Capacity Utilization and Targets, Semiconductor Capacitor Demand and Growth Expectations, Aerospace and Defense Market Outlook are the key contradictions discussed in Plexus Corp.'s latest 2025Q3 earnings call.



Strong Financial Performance:
- Plexus Corp reported revenue of $1.018 billion for Q3 2025, meeting guidance, and delivered a non-GAAP operating margin of 6%.
- Growth was driven by strong new program wins, improved order activity, and operational efficiencies.

New Program Wins and Market Share:
- The company secured 41 new manufacturing programs with $250 million in revenue annually when fully ramped.
- These wins were balanced across sectors and included new customers with products aligned to exciting growth technologies.

Free Cash Flow and Debt Reduction:
- Plexus generated $13.2 million in free cash flow, significantly better than expectations, and reduced debt while increasing share repurchase activity.
- This performance was due to strong working capital management and execution of strategic initiatives.

Sustainability and Employee Recognition:
- Plexus was recognized as one of America's greatest workplaces in manufacturing and received regional and national recognition for its Chicago site.
- This acknowledges the company's commitment to sustainability through employee engagement and community initiatives.

Industry and Market Dynamics:
- The industrial sector saw a 4% sequential revenue increase, driven by broadband communications and energy markets, despite semicap demand pushouts.
- The company anticipates strong growth in the energy and semicap subsectors, supported by share gains and new program ramps.