Plexus Corp. Reports Decrease in Net Sales

By Bobby Samwell • Friday, November 15 10:31 • Permanent Link

Plexus Corporation has recently released its 10-K report, detailing its financial performance and operations for the fiscal year. The company, headquartered in Neenah, Wisconsin, provides electronic manufacturing services globally, offering design, supply chain, and manufacturing solutions to companies in various market sectors.

In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, Plexus Corp. highlighted a decrease in net sales for fiscal 2024 compared to fiscal 2023. The company reported net sales of $3,960.8 million for fiscal 2024, a 5.9% decrease from the previous year. The net sales were primarily driven by the performance in different geographic segments and market sectors.

Plexus Corp. reported a gross profit of $378.5 million for fiscal 2024, representing a gross margin of 9.6%, which was a 20 basis point increase from the previous year. The company’s operating income decreased by 14.4% to $167.7 million, with an operating margin of 4.2%, down 50 basis points from fiscal 2023.

The company’s net income for fiscal 2024 decreased by 19.6% to $111.8 million, resulting in diluted earnings per share of $4.01, down from $4.95 in fiscal 2023. Plexus Corp. also provided non-GAAP metrics, including Return on Invested Capital (ROIC) and economic return, to offer insight into its financial performance and efficiency.

Plexus Corp. attributed the decrease in net sales to market-driven inventory corrections and weaker customer demand, particularly in the Healthcare/Life Sciences and Industrial market sectors. The company also highlighted the impact of macroeconomic pressures on its operations and its efforts to address potential future challenges.

The report also detailed the net sales performance by geographic segment, including the Americas (AMER), Asia-Pacific (APAC), and Europe, Middle East, and Africa (EMEA), and by market sector, such as Aerospace/Defense, Healthcare/Life Sciences, and Industrial.

As a result of these announcements, the company's shares have moved -0.1% on the market, and are now trading at a price of $153.59. For the full picture, make sure to review Plexus's 10-K report.

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