The following is a summary of the Plexus Corp. (PLXS) Q2 2024 Earnings Call Transcript:
Financial Performance:
Plexus Corp. reported Q2 revenue of $967 million and non-GAAP EPS of $0.94.
The company generated $65 million of free cash flow in Q2, aided by improvements in gross inventory and reduced capital spending.
Their gross margin stood at 9.1% in Q2 due to improvements in fixed cost leverage and productivity.
Plexus Corp expects to achieve a 5.5% GAAP operating margin by fiscal 2025.
It expects to generate similar quantities of free cash flow in Q3 and Q4 while returning to a normalized free cash flow by 2025.
Business Progress:
In Q2, Plexus Corp. achieved $255 million in new program wins and expects robust demand in Q3 from the aerospace and defense market sector.
The company is embedding sustainable business practices by participating in the United Nations Global Compact and is a finalist for Glasgow's Net Zero Hero Award.
The company anticipates a strong finish for the current fiscal year and increased momentum leading into FY '25.
Plexus is leveraging advanced AI and ML practices in manufacturing to hasten product innovation.
A trend towards outsourcing amongst their clients, along with their profitability driven by program ramps in the healthcare sector and not market recovery, offers promising prospects for the future.
More details: Plexus IR
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