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What changed in PLEXUS CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PLEXUS CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+246 added−272 removedSource: 10-K (2025-11-14) vs 10-K (2024-11-15)

Top changes in PLEXUS CORP's 2025 10-K

246 paragraphs added · 272 removed · 221 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

62 edited+5 added−29 removed35 unchanged
Biggest changeWe aspire that all of our people reach their full potential." Our organizational approach to D&I at Plexus includes the following: • D&I Integration Plan – We have established defined actions aligned to value-driven outcomes as we further integrate diversity and inclusion into our strategy, business operations and culture. • D&I Committee and Board Oversight – To oversee strategic objectives and to ensure appropriate accountabilities exist to support our efforts, D&I is incorporated into our executive Sustainable & Responsible Business Practices Committee, made up of key members of executive management, including our Chief Executive Officer.
Biggest changeWe poll team members regularly through our employee engagement survey and we identify strengths and act on areas of opportunity to enhance our work environment and increase employee satisfaction. • Executive and Board Oversight – To oversee strategic objectives and to ensure appropriate accountabilities exist to support our efforts, how we build belonging is incorporated into our executive Sustainable & Responsible Business Practices Committee, made up of key members of executive management, including our Chief Executive Officer.
Human Capital Management People are the heart of what we do and who we are. How we engage and empower our team members is critical to how we deliver value and create sustained growth for our shareholders. We realize our success depends on the well-being and inclusive engagement of each individual on our team.
Human Capital Management People are the heart of who we are and what we do. How we engage and empower our team members is critical to how we deliver value and create sustained growth for our shareholders. We realize our success depends on the well-being and inclusive engagement of each individual on our team.
Management also updates the Board of Directors regularly on employee-related policies, trends and efforts intended to protect our team members and to preserve our corporate culture, such as those related to EHS and Ethics Hotline reporting. Employee Data Of our over 20,000 team members, 50.4% are female, 49.5% are male and 0.1% choose not to identify.
Management also updates the Board of Directors regularly on employee-related policies, trends and efforts intended to protect our team members and to preserve our corporate culture, such as those related to EHS and Ethics Hotline reporting. Employee Data Of our over 20,000 team members, 49.5% are female, 50.4% are male and 0.1% choose not to identify.
In building a great culture, we embrace our five values: • Growing our People – We foster a culture of trust, courage and growth, empowering every team member to realize their full potential. • Building Belonging – We build an inclusive environment, valuing each team member, embracing diversity and promoting teamwork to achieve extraordinary outcomes together. • Innovating Responsibly – We innovate and leverage technology, guided by a clear strategy, to boldly drive positive change and promote a sustainable future. • Delivering Excellence – We commit to exceptional quality and perfect delivery by standardizing, scaling and continuously improving. • Creating Customer Success – We exceed customer expectations and forge relationships built on trust, candor and shared successes.
In building a great culture, we embrace our five values: • Growing our People – We foster a culture of trust, courage and growth, empowering each team member to realize their full potential. • Building Belonging – We build an inclusive environment, valuing each team member, embracing diversity and promoting teamwork to achieve extraordinary outcomes together. • Innovating Responsibly – We innovate and leverage technology, guided by a clear strategy, to boldly drive positive change and promote a sustainable future. • Delivering Excellence – We commit to exceptional quality and perfect delivery by standardizing, scaling and continuously improving. • Creating Customer Success – We exceed customer expectations and forge relationships built on trust, candor and shared successes.
We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors, supported by a global team of over 20,000 members across our 26 facilities in the Americas ("AMER"), Asia-Pacific ("APAC") and Europe, Middle East and Africa ("EMEA") regions.
We provide these solutions to market-leading as well as disruptive companies globally in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial market sectors, supported by a global team of over 20,000 members across our 26 facilities in the Americas ("AMER"), Asia-Pacific ("APAC") and Europe, Middle East and Africa ("EMEA") regions.
These teams maintain expertise related to each market sector and execute sector strategies aligned to that market’s unique delivery, quality and regulatory requirements. Our market sector teams help to develop Plexus’ strategy for growth with a particular emphasis on expanding the value-add solutions we offer customers.
These teams maintain expertise related to each market sector and execute sector strategies aligned to that market’s unique commercial delivery, quality and regulatory requirements. Our market sector teams help to develop Plexus’ strategy for growth with a particular emphasis on expanding the value-add solutions we offer customers.
Commitment to Our Values and Ethical Business Practices Along with our values, we act in accordance with our Code of Conduct, which creates expectations and provides guidance for all team members, representatives and partners of Plexus to make the right decisions.
Commitment to Our Values and Ethical Business Practices Along with our values, we act in accordance with our Code of Conduct, which creates expectations and provides guidance for all team members, representatives and partners of Plexus to make the right decisions in conducting business.
Community involvement, volunteering and charitable giving are important to ensure we are investing and promoting positive impacts in the communities in which we operate and where our team members live. Within each community where we have a physical location, we provide donations to local charities that enhance innovation, promote technology-related educational programs (e.g., STEM) and preserve the quality of life.
Community involvement, volunteering and charitable giving are important to ensure we are investing and promoting positive impacts in the communities in which we operate and where our team members live. Within each community where we have a physical location, we provide donations to local charities that enhance innovation, promote technology-related educational programs (e.g., STEM) and improve the quality of life.
Solutions With integrated solutions throughout the product lifecycle, our team strives to create innovative and optimized paths to deliver products to the market, keep products in the market longer and help manage the product lifecycle sustainably and responsibly. • Design and Development – Using standard tools and processes throughout our six design centers worldwide, we leverage the latest technology and state-of-the-art design automation methodologies to provide comprehensive new product development and product commercialization solutions.
Solutions With integrated services throughout the product lifecycle, our team strives to create innovative and optimized solutions to deliver products to the market, keep products in the market longer and help manage the product lifecycle sustainably and responsibly. • Design and Development – Using standard tools and processes throughout our six design centers worldwide, we leverage the latest technology and state-of-the-art design automation methodologies to provide comprehensive new product development and product commercialization solutions.
Additional Information Our global headquarters is located at One Plexus Way, Neenah, Wisconsin, 54957. Plexus maintains a website at www.plexus.com. As soon as is reasonably practical, after we electronically file or furnish all reports to the Securities and Exchange Commission ("SEC"), we provide online copies of such reports, free of charge.
Additional Information Our global headquarters is located at One Plexus Way, Neenah, Wisconsin, 54956. Plexus maintains a website at www.plexus.com. As soon as is reasonably practical, after we electronically file or furnish all reports to the Securities and Exchange Commission ("SEC"), we provide online copies of such reports, free of charge.
We provide select solutions on a consignment basis, meaning our customers supply the necessary materials, while Plexus provides the labor and other services required for product assembly. Other than certain test equipment, manufacturing equipment and software used for internal operations, we do not design or manufacture our own proprietary products.
We provide select solutions on a consignment basis, meaning our customers supply the necessary materials, while we provide the labor and other services required for product assembly. Other than certain test equipment, manufacturing equipment and software used for internal operations, we do not design or manufacture our own proprietary products.
Our primary long-term goal is to achieve a 9-12% compounded annual revenue growth rate while earning a return on invested capital ("ROIC") of 15%, which would significantly exceed our weighted average cost of capital ("WACC") and represent positive economic return.
Financial Model Our primary long-term goal is to achieve a 9-12% compounded annual revenue growth rate while earning a return on invested capital ("ROIC") of 15%, which would significantly exceed our weighted average cost of capital ("WACC") and represent positive economic return.
Plexus offers an array of solutions for customers in each market sector and, aside from the specific go-to-market teams, generally we do not dedicate operational equipment, personnel, facilities or other resources to particular market sectors, nor do we internally track our costs and resources per market sector. 3 Table of Contents Go-to-Market Strategy Each market sector has a market sector vice president, as well as market sector senior director roles, who together oversee and provide leadership to business development and customer management teams, supply chain, engineering and manufacturing subject matter experts and market sector specialists.
Plexus offers an array of solutions for customers in each market sector and, aside from the specific go-to-market teams, generally we do not dedicate operational equipment, personnel or other resources to particular market sectors, nor do we internally track our costs and resources per market sector. 3 Table of Contents Go-to-Market Strategy Each market sector has a market sector vice president, as well as market sector senior director roles, who together oversee and provide leadership to business development and customer relationship management teams, supply chain, engineering, manufacturing and sustaining services subject matter experts and market sector specialists.
For our team members, this includes access to our Employee Assistance Program ("EAP") - or similar program depending on the country of employment - that provides confidential support for stress management and mental health, including counseling and resources for team members and their households.
For many of our locations, this includes access to our Employee Assistance Program ("EAP") - or similar program depending on the country of employment - that provides confidential support for stress management and mental health, including counseling and resources for team members and their households.
Refer to the discussion in "Cybersecurity" in Part I, Item 1C herein for details on our cybersecurity risk management strategy and governance. 9 Table of Contents Compliance with Laws and Regulations As a global public company that designs, manufactures and services highly complex products in demanding regulatory environments, our operations are subject to a variety of laws, regulations and compliance obligations.
Refer to the discussion in "Cybersecurity" in Part I, Item 1C herein for details on our cybersecurity risk management strategy and governance. Compliance with Laws and Regulations As a global public company that designs, manufactures and services highly complex products in demanding regulatory environments, our operations are subject to a variety of laws, regulations and compliance obligations.
We also realize in order to attract and retain talented individuals we must provide our team members the ability to do meaningful work, personally and professionally develop, and create diverse and memorable experiences. 5 Table of Contents Purpose and Culture We recognize a great culture is foundational to the success of our vision to help create the products that build a better world.
We also realize in order to attract and retain talented individuals we must provide our team members the ability to do meaningful work, personally and professionally develop, and create diverse and memorable experiences. Purpose and Culture We recognize a great culture is foundational to the success of our vision to help create the products that build a better world.
In addition to our core solutions, we are committed to investing in new platform technologies, such as advanced manufacturing execution systems, process automation, warehouse automation, artificial intelligence, realtime vision and anomaly detection systems and collaboration tools. These investments are aimed at enhancing productivity, optimizing operational efficiency, and driving differentiation in a competitive landscape.
In addition to our core solutions, we are committed to investing in new platform technologies, such as advanced manufacturing execution systems, process automation, warehouse automation, artificial intelligence, real-time vision and anomaly detection systems and collaboration tools. These investments are aimed at enhancing productivity, optimizing operational efficiency, and driving differentiation in a competitive landscape.
In addition, the Compensation and Leadership Development Committee of our Board of Directors reviews our human capital management strategy, including D&I initiatives and progress to cultivate an optimized workforce and inclusive culture. • Employee Resource Groups – Our ERGs are voluntary, employee-driven, executive-sponsored groups organized around common interests and legitimate business purposes.
In addition, the Compensation and Leadership Development Committee of our Board of Directors reviews our human capital management strategy, including progress to cultivate an optimized workforce and inclusive culture. • Employee Resource Groups – Our ERGs are voluntary, employee-driven, executive-sponsored groups organized around common interests and legitimate business purposes.
We have a dedicated team focused on decreasing time to market and transitioning products to full volume manufacturing, through a full suite of integrated new product introduction services, such as design for excellence, product lifecycle assessment, specialized design of test solutions and rapid prototyping. • Manufacturing – Our approach to manufacturing focuses on innovation, continuous improvement and superior quality and delivery.
We have a dedicated team focused on decreasing time to market and transitioning products to full volume manufacturing, through a full suite of integrated new product introduction services, such as design for excellence, product lifecycle assessment, specialized design of test solutions and rapid prototyping. • Manufacturing – Our approach to manufacturing focuses on innovation, continuous improvement and operational excellence.
Built on a foundation of innovation, we are relentless in our pursuit of excellence, aligning our team members, operations, systems of oversight and financial metrics to create a high performance, accountable organization with an engaged workforce deeply passionate about helping to create the products that build a better world. Financial Model Our financial model aligns with our business strategy.
Built on a foundation of innovation, we are relentless in our pursuit of excellence, aligning our team members, operations, systems of oversight and financial metrics to create a high performance, accountable organization with an engaged workforce deeply passionate about helping to create the products that build a better world.
You may access these SEC reports and the Code of Conduct by following the links under "Investors" at our website. 10 Table of Contents
You may access these SEC reports and the Code of Conduct by following the links under "Investors" at our website. 9 Table of Contents
We are guided by our values. We do the right thing to support our team members, communities and customers. • Discipline by Design – We hold ourselves accountable to delivering shareholder value through consistent application of a disciplined financial model.
We do the right thing to support our team members, customers and communities. • Discipline by Design – We hold ourselves accountable to delivering shareholder value through consistent application of a disciplined financial model.
Many of these raw materials are unique to the designed assembly. By customer agreement, we purchase materials according to customer forecast and supplier lead-times. The key electronic components we purchase include: advanced semiconductors, diodes, power management modules, microcontrollers, memory modules, interconnects, inductors, resistors, capacitors, power supplies and cable and wire.
Many of these raw materials are unique to the designed assembly. By customer agreement, we purchase materials according to customer forecasts and purchase orders and supplier lead-times. The key electronic raw materials we purchase include: advanced semiconductors, diodes, power management modules, microcontrollers, memory modules, interconnects, inductors, resistors, capacitors, power supplies and cable and wire.
We continue to expand our product lifecycle capabilities in response to this heightened focus, as we seek to design more environmentally sustainable products, improve our production practices, assess and deploy product life extension and part recovery strategies, and enable a more sustainable, responsible supply chain for our customers.
We continue to expand our product lifecycle capabilities in response to this heightened focus, as we seek to 4 Table of Contents design more environmentally sustainable products, improve our production practices, assess and deploy product life extension and part recovery strategies, and enable a more sustainable, responsible supply chain for our customers.
The distribution of our net sales by market sectors for the indicated fiscal years is shown in the following table: Industry 2024 2023 2022 Aerospace/Defense 18% 14% 13% Healthcare/Life Sciences 39% 44% 41% Industrial 43% 42% 46% Total net sales 100% 100% 100% Although our current business development focus is based on our targeted market sectors of Aerospace/Defense, Healthcare/Life Sciences, and Industrial, we evaluate our financial performance and allocate our resources geographically (see Note 11 "Reportable Segments, Geographic Information and Major Customers" in Notes to Consolidated Financial Statements regarding our reportable segments).
The distribution of our net sales by market sectors for the indicated fiscal years is shown in the following table: Industry 2025 2024 2023 Aerospace/Defense 17% 18% 14% Healthcare/Life Sciences 40% 39% 44% Industrial 43% 43% 42% Total net sales 100% 100% 100% Although our current business development focus is based on our targeted market sectors of Aerospace/Defense, Healthcare/Life Sciences, and Industrial, we evaluate our financial performance and allocate our resources geographically (see Note 11 "Reportable Segments, Geographic Information and Major Customers" in Notes to Consolidated Financial Statements regarding our reportable segments).
Plexus serves a diverse customer landscape that includes industry-leading, branded product companies, along with other technology pioneering start-ups and emerging companies that may or may not maintain manufacturing capabilities. During fiscal 2024, we served approximately 190 customers. No customer accounted for over 10% of our sales in fiscal 2024. GE Healthcare Technologies, Inc.
Plexus serves a diverse customer landscape that includes industry-leading, branded product companies, along with other technology pioneering start-ups and emerging companies that may or may not maintain manufacturing capabilities. During fiscal 2025, we served approximately 190 customers. No customer accounted for over 10% of our sales in fiscal 2025 or 2024.
This update may include, among other topics, talent attraction, development and retention; succession planning, including successor candidates for key management roles; corporate culture; D&I; compensation practices; training; and progress to advance initiatives.
This update may include, among other topics, talent attraction, development and retention; succession planning, including successor candidates for key management roles; corporate culture; employee engagement; compensation practices; training; and progress to advance initiatives.
We have additional certifications and/or registrations held by certain facilities in the following regions: AMER APAC EMEA Medical Standard ISO 13485:2016 X X X 21 CFR Part 820 (FDA) (Finished Medical) X X X JMGP accreditation X X X GMP-Korea certification X ANVISA accreditation X X X NPMA (National Medical Products Administration) registration X ISO 14001(environmental management) X X X ISO 45001 (occupational health and safety) X X ANSI/ESD (Electrostatic Discharge Control Program) S20.20 X X ITAR (International Traffic and Arms Regulation) self-declaration X Aerospace Standard AS9100 X X X NADCAP certification X X X FAR 145 certification (FAA repair station) X EASA repair approval X ATEX/IECEx certification X IRIS certification (Railway) X ISO 50001:2011 (energy management) X Bureau of Indian Standards (BIS) X TL9000 (telecommunications) X Refer to the discussion in "Risk Factors" in Part I, Item 1A herein for further details on legal and regulatory obligations that could adversely affect our business, results of operation and financial conditions.
Food and Drug Administration’s (“FDA”) Quality Systems Regulation requirements and similar regulatory requirements in other countries. 8 Table of Contents We have additional certifications and/or registrations held by certain facilities in the following regions: AMER APAC EMEA Medical Standard ISO 13485:2016 X X X 21 CFR Part 820 (FDA) (Finished Medical) X X X JGMP accreditation X X X GMP-Korea certification X X X ANVISA accreditation X NPMA (National Medical Products Administration) registration X ISO 14001(environmental management) X X X ISO 45001 (occupational health and safety) X ANSI/ESD (Electrostatic Discharge Control Program) S20.20 X X ITAR (International Traffic and Arms Regulation) self-declaration X Aerospace Standard AS9100 X X X NADCAP certification X X X FAR 145 certification (FAA repair station) X EASA repair approval X ATEX/IECEx certification X IRIS certification (Railway) X ISO 50001:2011 (energy management) X Bureau of Indian Standards (BIS) X TL9000 (telecommunications) X Refer to the discussion in "Risk Factors" in Part I, Item 1A herein for further details on legal and regulatory obligations that could adversely affect our business, results of operation and financial conditions.
Economic return is the amount by which our ROIC exceeds our WACC, and we believe it is a fundamental driver of shareholder value. We review our internal calculation of WACC annually; for fiscal 2024, our WACC was 8.2%.
Economic return is the amount by which our ROIC exceeds our WACC, and we believe it is a fundamental driver of shareholder value. We review our internal calculation of WACC annually; for fiscal 2025, our WACC was 8.9%.
The Code of Conduct also emphasizes the importance of having an inclusive, welcoming environment in which all team members feel empowered to do what is right and are expected to voice concerns should violations of the Code of Conduct be observed. All team members are required to complete training on the Code of Conduct biennially.
The Code of Conduct also emphasizes the importance of having an inclusive, welcoming environment in which all team members feel empowered to do what is right and are expected to voice concerns should violations of the Code of Conduct be observed.
Our Code of Conduct includes topics such as corruption, discrimination, harassment, privacy, appropriate use of company assets, protecting confidential information and reporting Code of Conduct violations. It is used to reinforce our passion for operating in a fair, honest, responsible and ethical manner and articulates our responsibilities as a trusted leader in the business community.
Our Code of Conduct includes topics such as corruption, discrimination, harassment, privacy, appropriate use of company assets, protecting confidential information and reporting Code of Conduct violations. Our Code of Conduct reinforces our passion for operating in a fair, honest, responsible and ethical manner and articulates our responsibilities as a trusted leader in the business community.
These union agreements are typically renewed at the beginning of each year, although in a few cases these agreements may last two or more years. Our global team members outside the United Kingdom are not covered by union agreements.
These union agreements are typically renew ed at the beginning of each year, although in a few cases these agreements may last two or more years. Our global team members outside the United Kingdom are not covered by union or collective bargaining agreements.
Worker Health and Safety Protecting our team and those within our communities is paramount as we strive to be the safest place for our team members outside of their home. We are committed to complying with applicable laws and take an adaptive and proactive approach to ensure we conduct all of our operations across the globe safely and responsibly.
Worker Health and Safety Protecting our team and those within our communities is paramount as we strive to be the safest place for our team members outside of their homes. We are committed to complying with applicable laws and taking a proactive approach to ensure we conduct all of our operations across the globe safely and responsibly.
Plexus also offers eight hours of paid, volunteer time off for team members who want to give back through community engagement events. In addition to local impacts realized through our team member volunteer efforts, the Plexus Community Foundation donated nearly $1.1 million in fiscal 2024, bringing its total giving to $11.0 million since 2004.
Plexus also offers eight hours per year of paid, volunteer time off for team members who want to give back through community engagement events. In addition to local impacts realized through our team member volunteer efforts, the Plexus Community Foundation donated nearly $1.4 million in fiscal 2025, bringing its total giving to $12.4 million since 2004.
Volatile demand (in quantity or mix), material shortages, extended lead-times and subsequent allocations by our suppliers are an inherent risk within the electronics industry and have remained an issue, particularly for semiconductors during fiscal 2024. We discuss the causes, implications, and potential implications of volatile demand and material shortages more fully in "Risk Factors" in Part I, Item 1A herein.
Volatile demand (in quantity or mix), material shortages, extended lead-times and subsequent allocations by our suppliers are an inherent risk within the electronics industry. We discuss the causes, implications, and potential implications of volatile demand and material shortages more fully in "Risk Factors" in Part I, Item 1A herein.
We have no history of labor disputes at any of our facilities, and we believe that our employee relationships are positive and stable. Given the quick response times required by our customers, we seek to maintain flexibility to scale our operations as necessary to maximize efficiency. To do so, we use skilled temporary labor in addition to our full-time employees.
We have no history of labor disputes at any of our facilities, and we believe that our employee relationships are positive and stable. Given the quick response times required by our customers, we seek to maintain flexibility to scale our operations as necessary to maximize efficiency.
Our strategy to fulfill our vision and mission is consistent and can be summarized in four parts: • Market Focus – We engineer innovative solutions for customers in growth markets featuring highly complex products and demanding regulatory environments. • Superior Execution – We are dedicated partners to our customers, committed to achieving zero defects and perfect delivery through operational excellence. • Passion Meets Purpose – We are united as a team.
Our strategy to fulfill our vision and mission consists of four strategic pillars: • Market Focus – We engineer innovative solutions for customers in growth markets featuring highly complex products and demanding regulatory environments. • Superior Execution – We are dedicated partners to our customers, committed to achieving zero defects and perfect delivery through operational excellence. • Passion Meets Purpose – We are united as a team and guided by our values.
Information Technology Our core solutions for manufacturing facilities include a single-instance enterprise resource planning (“ERP”) system in addition to product data management and advanced planning and scheduling systems, along with consistent solutions for warehouse management and manufacturing execution that support our global operations.
We hold multiple copyrights including the copyright on www.plexus.com. Information Technology Our core solutions for manufacturing facilities include a single-instance enterprise resource planning (“ERP”) system in addition to product data management and advanced planning and scheduling systems, along with consistent solutions for warehouse management and manufacturing execution that support our global operations.
Our facility in Kelso, Scotland is certified to the ISO 50001 Energy Management system, which requires the development and implementation of a comprehensive energy management system that helps the site achieve continual improvement of energy performance, including efficiency, security, use and consumption.
Two of our 18 facilities are certified to the ISO 50001 Energy Management system, which requires the development and implementation of a comprehensive energy management system that helps the site achieve continual improvement of energy performance, including efficiency, security, use and consumption.
Regulatory Requirements All Plexus manufacturing and engineering facilities are certified to a baseline Quality Management System standard per ISO9001:2015. We have capabilities to assemble finished medical devices meeting the U.S. Food and Drug Administration’s (“FDA”) Quality Systems Regulation requirements and similar regulatory requirements in other countries.
Regulatory Requirements All Plexus manufacturing and engineering facilities are certified to a baseline Quality Management System standard per ISO9001:2015. We have capabilities to assemble finished medical devices meeting the U.S.
Our Human Rights Policy supports the RBA Code of Conduct labor standards framework, and reinforces our statement in support of the California Transparency in Supply Chains Act and the UK Modern Slavery Act.
Our Human Rights Policy supports the RBA Code of Conduct labor standards framework, and reinforces our statement in support of the California Transparency in Supply Chains Act and the UK Modern Slavery Act. Talent Development & Acquisition People are the heart of who we are and what we do.
Leaders are provided with the flexibility to recognize exceptional individual contributions through customized elements of pay such as base salary, cash incentives and equity (company stock) compensation.
Compensation We employ a "pay for performance" approach, emphasizing a direct correlation between performance and rewards. Leaders are provided with the flexibility to recognize exceptional individual contributions through customized elements of pay such as base salary, cash incentives and equity (company stock) compensation.
We help manage the full supply chain to minimize cost, mitigate risk and provide a flexible, scalable and resilient solution for our customers. 2 Table of Contents • New Product Introduction – When introducing a new product, we understand our customers need to move quickly.
We offer services to help manage the full supply chain to minimize cost, mitigate risk and comply with trade regulations to provide a flexible, scalable and resilient solution for our customers. 2 Table of Contents • New Product Introduction – When introducing a new product, we understand that time to market is critical to our customers.
These requirements are related to topics such as: monitoring, tracking and reporting of air and water emissions; tracking and disposing of wastes generated from our manufacturing process; and evaluating and mitigating employee health and safety risks in our facilities. 8 Table of Contents Sixteen of our 17 manufacturing facilities are certified to ISO 14001 Environmental Management and three of 17 are certified to ISO 45001 Occupational Health and Safety Management standards.
These requirements are related to topics such as: monitoring, tracking and reporting of air and water emissions; tracking and disposing of wastes generated from our manufacturing process; and evaluating and mitigating employee health and safety risks in our facilities.
Human Rights At the core of our value system is a fundamental respect for human rights. Our Human Rights Policy formalizes Plexus' commitment to respect human rights and embodies internationally-recognized principles and the laws of the countries in which we operate.
All Plexus team members are required to complete training on the Code of Conduct biennially. 5 Table of Contents Human Rights At the core of our value system is a fundamental respect for human rights. Our Human Rights Policy formalizes Plexus' commitment to respect human rights and embodies internationally-recognized principles and the laws of the countries in which we operate.
Intellectual Property We own various service marks that we use in our business, which are registered in the trademark offices of the United States and other countries. We develop and maintain trade secrets but do not generally seek to protect trade secrets through patents. We do not have any material copyrights.
To do so, we use skilled temporary labor in addition to our full-time employees. 7 Table of Contents Intellectual Property We own various service marks that we use in our business, which are registered in the trademark offices of the United States and other countries. We develop and maintain trade secrets but do not generally seek to patent inventions.
Global Compact ("UNGC"), including alignment to the U.N. Sustainable Development Goals, and the Responsible Business Alliance ("RBA"). 4 Table of Contents In service to our vision, we continue to evolve our solutions to better service our customers in light of changing market demands. This includes the opportunity we have to help deliver more sustainable and responsible products to the market.
This commitment is made public through our membership with organizations such as the U.N. Global Compact ("UNGC"), including alignment to the U.N. Sustainable Development Goals and the Responsible Business Alliance ("RBA"). In service to our vision, we continue to evolve our solutions to better service our customers in light of changing market demands.
The majority of our workforce, 56.8%, is located in our APAC region, while 29.6% and 13.6% of our team members are located in our AMER and EMEA regions, respectively. Approximately 240 of our team members in the United Kingdom are covered by union agreements.
The majority of our workforce, 58.3%, is located in our APAC region, while 30.1% and 11.6% of our team members are located in our AMER and EMEA regions, respectively. Approxim ately 211 o f our team members in the United Kingdom are covered by union agreements.
We believe that in most cases our sales to any one such division, subsidiary, facility or location are independent of sales to others.
Many of our large customers contract with us through multiple independent divisions, subsidiaries, production facilities or locations. We believe that in most cases our sales to any one such division, subsidiary, facility or location are independent of sales to others.
The cost variance from our competitors is especially evident relative to those that provide electronics manufacturing services for high-volume, less complex products, with less stringent requirements (e.g., consumer electronics).
The cost variance from our competitors is especially evident relative to those that provide electronics manufacturing services for high-volume, less complex products, with less stringent requirements (e.g., consumer electronics). Sustainability & Social Impact We are committed to elevating the standards of business conduct through the adoption of sustainable and responsible business practices within our global operations.
All of our manufacturing facilities, regardless of formal certification, abide by global policies and processes that align with both of these standards.
Seventeen of our 18 manufacturing facilities are certified to ISO 14001 Environmental Management and three of 18 are certified to ISO 45001 Occupational Health and Safety Management standards. All of our manufacturing facilities, regardless of formal certification, abide by global policies and processes that align with both of these standards.
During these reviews, we also assess retention rates and the diversity composition of our leaders and leadership pipeline. Competency-based training, leadership development programs and online learning promote a learning culture and provide ongoing development for team members at all levels.
Competency-based training, leadership development programs and online learning promote a learning culture and provide ongoing development for team members at all levels. We also have established a formal mentoring program that aids in the development and retention of talent.
These roles are integrated into operational teams and process reviews to ensure appropriate consideration of potential safety concerns and environmental consequences of our operating procedures. Human Capital Management Governance Our Chief Human Resources Officer ("CHRO") directs our human capital management strategy and provides an update to the Compensation and Leadership Development Committee of our Board of Directors quarterly.
Human Capital Management Governance Our Chief Human Resources Officer ("CHRO") directs our human capital management strategy and provides an update to the Compensation and Leadership Development Committee of our Board of Directors quarterly.
Our commitment to reducing our environmental impact is captured in our Climate Policy, which helps to guide our objectives and offers structure to aid in prioritizing our efforts.
Our commitment to reducing our environmental impact is captured in our Climate Policy, which helps to guide our objectives and offers structure to aid in prioritizing our efforts. We are also focused on collaborating and integrating with our local communities and finding opportunities to partner throughout our value chain.
We are proud of our culture and the recognition we have received over the years as a great place to work. In 2024, HR Asia awarded Plexus the Best Company to Work for in Asia (Malaysia Chapter), as well as the HR Asia Diversity, Equity, & Inclusion Award.
We are proud of our culture and the recognition we have received over the years as a great place to work.
Talent Development & Acquisition With people at the heart of what we do and who we are, we create, implement and accelerate development opportunities for our team members in order to enable business growth, enhance our culture, drive leadership accountability and inspire purposeful engagement.
We create, implement and accelerate development opportunities for our team members in order to enable business growth, enhance our culture, drive leadership accountability and inspire purposeful engagement. Our commitment to holistic talent management means that we expect and reward high performance and address underperformance with urgency, candor and empathy.
The breadth of our capabilities across the product lifecycle enables us to integrate supply chain, manufacturing and service expertise into our designs, resulting in products developed with the full product lifecycle in mind. • Supply Chain Solutions – Delivering an optimal supply chain strategy is more than simply getting a product where it needs to be on time.
The breadth of our capabilities across the product lifecycle enables us to integrate supply chain, manufacturing and service expertise into our designs, resulting in products developed with the full product lifecycle in mind. • Supply Chain Solutions – Our supply chain experts engage in all of Plexus’ integrated solutions to identify opportunities for supply chain optimization.
Our commitment to holistic talent management means that we expect and reward high performance and address underperformance with urgency, candor and empathy. We engage in regular talent reviews to calibrate on the performance and potential of our teammates, development opportunities, career pathing and the strength of our succession plans.
We engage in regular talent reviews to calibrate on the performance and potential of our teammates, development opportunities, career pathing and the strength of our succession plans. During these reviews, we also review retention rates and the talent of our leaders and leadership pipeline.
Short and long-term incentive pay is designed to be competitive, improve employee retention, reward team members for performance supporting our strategic objectives and align team members with the interests of shareholders to deliver both short-term and long-term results. Approximately 20.4% and 3.0% of our team members participate in our short and long-term incentive programs, respectively.
Short and long-term incentive pay is designed to be competitive, improve employee retention, reward team members for performance supporting our strategic objectives and align team members with the interests of shareholders to deliver both short-term and long-term results. 6 Table of Contents Our compensation guidelines and pay structures are adapted to reflect market dynamics and currency exchange rate fluctuations, ensuring alignment with regional trends, pay range segments and applicable experience.
Our capabilities and our commitment to superior execution position us to support the complex technology and regulatory needs of the industries we serve, providing customers with dependable and flexible manufacturing solutions. • Sustaining Services – We are committed to protecting our customers' brand reputation, supporting the success of each product in the market and extending a product's useful life through repair, refurbishment, remanufacturing (at the direction of our customers) and service parts planning.
We hold ourselves accountable for our customers, our team members and the world. • Sustaining Services – We are committed to protecting our customers' brand reputation, supporting the success of each product in the market and extending a product's useful life through repair, refurbishment and related services.
Employee Engagement At every facility, in every region and at all levels, we strive to continuously improve the engagement of our team members. We survey employee engagement annually through our employee net promoter score and we identify strengths and act on areas of opportunity to enhance our work environment and increase employee satisfaction.
By embracing inclusion and promoting teamwork, we achieve extraordinary outcomes together. • Employee Engagement – At every facility, in every region and at all levels, we strive to continuously improve the engagement of our team members.
With a global footprint and scalable operations, we aim to tailor our manufacturing environment to meet each customer’s needs worldwide. As we strive for perfect delivery and zero defects, exceptional quality begins with each individual member of our team, which we advance through our Quality Begins with Me program.
With a global footprint and scalable operations, we aim to tailor our manufacturing environment to meet each customer's needs worldwide. Our capabilities and our commitment to superior execution position us to support the complex technology and regulatory needs of the industries we serve, providing customers with dependable and flexible manufacturing solutions.
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Our supply chain experts engage in all of Plexus’ integrated solutions to identify opportunities for supply chain optimization.
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We commit to exceptional quality and perfect delivery by standardizing, scaling and continuously improving, ensuring that the products we help create are reliable, safe and trusted in the moments that matter most. Quality Begins with Me is our promise to do the right thing, the first time, every time.
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("GEHC") accounted for 10.3% of our net sales during fiscal 2023, while General Electric ("GE") accounted for 12.9% of our net sales during fiscal 2022. During fiscal 2023, GE completed the separation of its healthcare business, GEHC, as a stand-alone company.
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This includes the opportunity we have to help deliver more sustainable and responsible products to the market.
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No other customer accounted for 10.0% or more of our net sales in any of the last three fiscal years. Many of our large customers, including GEHC and GE, contract with us through multiple independent divisions, subsidiaries, production facilities or locations.
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While our goal is to develop our own talent, we are equally committed to recruiting new graduate and experienced talent who bring transferable experiences and skillsets. Our Culture of Belonging Our history of doing the right thing is deeply rooted in our values and woven into everything we do.
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Sustainability & Social Impact Our vision is to help create the products that build a better world, yet the opportunity and responsibility we have to build a better world goes far beyond the products we help to create.
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That means we foster an inclusive environment that builds a sense of belonging, where every team member is valued for their unique contributions and empowered to realize their full potential.
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We are committed to elevating the standards of business conduct through the integration of sustainable and responsible business practices into our enduring strategy. This integrated approach and related goals enable us to address important environmental and social issues material to the long-term success of our business. This commitment is made public through our membership with organizations such as the U.N.
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Plexus' current ERGs include Plexus Pride, Plexus Veterans Network, Plexus Women in Network, Plexus Young Professionals and UnusPlexus.
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In 2024, we were a finalist in Scotland's Centre for Engineering, Education & Development's "Net Zero Hero" award for our product lifecycle assessment services. These services help our customers estimate and uncover factors that may impact the global warming potential of their products.
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In fiscal 2024, we pursued a third consecutive year-over-year emissions intensity reduction goal, achieving an absolute Scope 1 and Scope 2 emissions reduction following two consecutive years of Scope 1 and Scope 2 emissions intensity reductions across our global operations.
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Further in fiscal 2024, we participated in the UNGC's Climate Ambition Accelerator program as we seek to advance our energy transition strategy and develop longer-term aspirations in support of international climate initiatives. Beyond our four walls, we seek to collaborate and integrate with our local communities and find opportunities to partner throughout our value chain.
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We are committed to driving greater transparency around our sustainable and responsible business practices through the publication of an annual sustainability report. More detailed information about Plexus’ efforts and progress can be found in that report located at https://www.plexus.com/en-us/corporate-social-responsibility.
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The information in the sustainability report and on Plexus’ website is not a part of this Annual Report on Form 10-K and is not incorporated by reference.
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Our commitment to being a responsible employer is reinforced through our membership with the RBA. Since 2014, our RBA membership reinforces the critical business standards required of Plexus, our team members and business partners related to human rights, environmental, health and safety, labor and business ethics.
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As an active member of RBA, we abide by their global standards, which may exceed minimum legal requirements, regarding the treatment of workers. Being a member of the RBA means we help collectively influence our broader business ecosystem by propagating and maintaining sustainable and responsible business practices.
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Our Human Rights Policy was created by a cross-functional team appointed to conduct regular policy and impact mapping, as outlined by the UNGC, to facilitate continuous improvement and commitment to our standards.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeEconomic, business or regulatory conditions that affect the sector, or our failure to choose to do business in appropriate subsectors, can particularly impact us. For instance, sales in the Healthcare/Life Sciences sector are substantially affected by trends in the healthcare industry, such as government reimbursement rates and uncertainties relating to the U.S. healthcare sector generally.
Biggest changeFor instance, sales in the Healthcare/Life Sciences sector are substantially affected by trends in the healthcare industry, such as government reimbursement rates and uncertainties relating to the U.S. healthcare sector generally. In addition, the Healthcare/Life Sciences sector is affected by health crises and trends. The semiconductor industry has historically been subject to significant cyclicality and volatility.
These tensions have resulted in, and may continue to cause, global disruptions creating significant volatility in financial markets and the global economy. We experience component shortages, delays, price fluctuations and supplier quality concerns. We generally do not have long-term supply agreements.
These tensions have resulted in, and may continue to cause, global disruptions creating significant volatility in financial markets and the global economy. We may experience component shortages, delays, price fluctuations and supplier quality concerns. We generally do not have long-term supply agreements.
Bribery Act and the European Union’s (EU's) General Data Protection Regulation (the “GDPR”), applicable to companies with global operations • changing global trade regulations, particularly relating to advanced semiconductors and chip-manufacturing equipment, which may limit the ability to ship certain components or product to customers in China, support certain programs in our China operations, and source the components necessary to manufacture customer product in China • changes in the taxation of earnings in the U.S. and in other countries • reputational risks related to, among other factors, varying standards and practices among countries • changes in duty rates • significant natural disasters and other events or factors impacting local infrastructure • the effects of other international political developments, such as tariffs, embargoes, sanctions, boycotts, trade wars, energy disruptions, trade agreements and changes in trade policies, including those which may be affected by the U.S. and other countries’ political reactions to those actions, and • other regulatory and legal requirements and industry standards, and changes thereto.
Bribery Act and the European Union’s (EU's) General Data Protection Regulation (the “GDPR”), applicable to companies with global operations • changing global trade regulations, particularly relating to advanced semiconductors and chip-manufacturing equipment, which may limit the ability to ship certain components or product to customers in China, support certain programs in our China operations, and source the components necessary to manufacture customer product in China • changes in the taxation of earnings in the U.S. and in other countries • reputational risks related to, among other factors, varying standards and practices among countries • changes in duty rates • significant natural disasters, energy disruptions and other events or factors impacting local infrastructure • the effects of other international political developments, such as tariffs, embargoes, sanctions, seizures, boycotts, trade wars, trade agreements and changes in trade policies, including those which may be affected by the U.S. and other countries’ political reactions to those actions, and • other regulatory and legal requirements and industry standards, and changes thereto.
This risk is enhanced as a result of the increasing sophistication of threat actors, including through the use of artificial intelligence, and an increase in our remote workforce due to evolving flexible workplace practices, for example by reason of utilizing home networks that may lack encryption or secure password protection, virtual meeting/conference security concerns and an increase of phishing/cyberattacks around our remote workforce's digital resources.
This risk is enhanced as a result of the increasing sophistication of threat actors, including through the use of artificial intelligence, and an increase in our remote workforce due to flexible workplace practices, for example by reason of utilizing home networks that may lack encryption or secure password protection, virtual meeting/conference security concerns and an increase of phishing/cyberattacks around our remote workforce's digital resources.
If we fail to meet those obligations, or are otherwise unable to execute on our commitments or unsuccessfully mitigate such risks, then it could result in claims against us, regulatory violations, or adversely affect our reputation and our ability to obtain future business, as well as impair our ability to enforce our rights (including those related to payment) under those contracts.
If we fail to meet those obligations, or are otherwise unable to execute on our commitments or unsuccessfully mitigate such risks, it could result in claims against us, regulatory violations, or adversely affect our reputation and our ability to obtain future business, as well as impair our ability to enforce our rights (including those related to payment) under those contracts.
Our future success may depend on our ability to obtain additional financing and capital to support possible future growth and future initiatives including additional investments in our business. In addition, we also have receivables factoring programs. Many of our borrowings are at variable interest rates and therefore our interest expense is subject to increase if rates increase.
Our future success may depend on our ability to obtain additional financing and capital to support possible future growth and future initiatives including additional investments in our business. We also have receivables factoring programs. Many of our borrowings are at variable interest rates and therefore our interest expense is subject to increase if rates increase.
Our manufacturing processes are generally not subject to significant proprietary protection, and companies with greater resources or a greater market presence may enter our market or otherwise become increasingly competitive. Increased competition could result in significant price reductions, reduced sales and margins, or loss of market share.
Our manufacturing processes are generally not subject to significant proprietary protection, and companies with greater resources or a greater market presence may enter our market or otherwise become increasingly competitive. Increased competition could result in significant price reductions, reduced sales and margins, or loss of customers or market share.
Other risks of current or future expansions, acquisitions and consolidations include: • the inability to successfully integrate additional facilities or incremental capacity and to realize anticipated efficiencies, economies of scale or other value • challenges faced as a result of transitioning programs • incurrence of restructuring costs or other charges that may be insufficient or may not have their intended effects • additional fixed or other costs, or selling and administrative expenses, which may not be fully absorbed by new business • a reduction of our return on invested capital, including as a result of excess inventory or excess capacity at new facilities, as well as the increased costs associated with opening new facilities • difficulties in the timing of expansions, including delays in the implementation of construction and manufacturing plans • diversion of management's attention from other business areas during the planning and implementation of expansions • strain placed on our operational, financial and other systems and resources, and • inability to locate sufficient customers, employees or management talent to support the expansion.
Other risks of current or future expansions, acquisitions and consolidations include: • the inability to successfully integrate additional facilities or incremental capacity and to realize anticipated efficiencies, economies of scale or other value • challenges faced as a result of transitioning programs 20 Table of Contents • incurrence of restructuring costs or other charges that may be insufficient or may not have their intended effects • additional fixed or other costs, or selling and administrative expenses, which may not be fully absorbed by new business • a reduction of our return on invested capital, including as a result of excess inventory or excess capacity at new facilities, as well as the increased costs associated with opening new facilities • difficulties in the timing of expansions, including delays in the implementation of construction and manufacturing plans • diversion of management's attention from other business areas during the planning and implementation of expansions • strain placed on our operational, financial and other systems and resources, and • inability to locate sufficient customers, employees or management talent to support the expansion.
A failure to comply with laws, regulations or standards applicable to our business can result in, among other consequences, fines, injunctions, civil penalties, criminal prosecution, recall or seizure of devices, total or partial suspension of production, including debarment, and could have an adverse effect on our reputation, customer relationships, profitability and results of operations.
A failure to comply with laws, regulations or standards applicable to our business can result in, among other consequences, enforcement actions, fines, injunctions, civil penalties, criminal prosecution, recall or seizure of devices, total or partial suspension of production, including debarment, and could have an adverse effect on our reputation, customer relationships, profitability and results of operations.
We also have receivables factoring agreements in place; therefore, deterioration in the payment experience with or credit quality of our customers with respect to which we factor receivables, or issues with the banking counterparties to 12 Table of Contents our factoring agreements, could have a material adverse effect on our financial condition and results of operations if we are unable to factor such receivables.
We also have receivables factoring agreements in place; therefore, deterioration in the payment experience 11 Table of Contents with or credit quality of our customers with respect to which we factor receivables, or issues with the banking counterparties to our factoring agreements, could have a material adverse effect on our financial condition and results of operations if we are unable to factor such receivables.
Moreover, because our margins vary across customers and specific programs, a reduction in revenue with higher margin customers or programs will have a more significant adverse effect on our operating results. 11 Table of Contents Increased competition may result in reduced demand or reduced prices for our services. Our industry is highly competitive.
Moreover, because our margins vary across customers and specific programs, a reduction in revenue with higher margin customers or programs will have a more significant adverse effect on our operating results. 10 Table of Contents Increased competition may result in reduced demand or reduced prices for our services. Our industry is highly competitive.
This includes regulations and standards relating to labor and employment practices, workplace health and safety, operating practices and quality systems, the environment, sourcing and global trade practices, usage of emerging technologies, data privacy and protection, ethics, financial reporting, the market sectors we support and many other facets of our operations.
This includes regulations and standards relating to labor and employment practices, workplace health and safety, operating practices and quality systems, the environment, sourcing and global trade practices including tariffs, usage of emerging technologies, data privacy and protection, ethics, financial reporting, the market sectors we support and many other facets of our operations.
Persistent inflation, especially in Europe and the U.S., has led central banks to hold higher interest rates throughout fiscal 2024 to dampen inflation. These interest rates directly impact the amount of interest we pay on our variable rate obligations and continued or sustained increases in interest rates could negatively impact our business.
Persistent inflation, especially in Europe and the U.S., has led central banks to hold higher interest rates throughout fiscal 2025 to dampen inflation. These interest rates directly impact the amount of interest we pay on our variable rate obligations and continued or sustained increases in interest rates could negatively impact our business.
The regulatory climate in the U.S. and other countries has become increasingly complex and fragmented, and regulatory enforcement activity has increased in recent periods. Rulings of the U.S. Supreme Court and other courts may affect the regulatory environment. Regulatory changes and restrictions can be announced with little or no advance notice.
The regulatory climate in the U.S. and other countries has become increasingly complex and dynamic, and regulatory enforcement activity has increased in recent periods. Rulings of the U.S. Supreme Court and other courts may affect the regulatory environment. Regulatory changes and restrictions can be announced with little or no advance notice.
Further, the extent to which the conflict between Russia and Ukraine, conflict in the Middle East or the escalating tensions between China and Taiwan or China and the U.S. may impact our business or results of operations will depend on future developments, including the severity and duration of any conflicts, their impact on global supply chains and their impact on regional and global economic conditions including the ability of our customers or suppliers to do business in those or surrounding countries and the inflationary effects of such conflicts on our profitability.
Further, the extent to which the conflict between Russia and Ukraine, conflict in the Middle East or the escalating tensions between China and Taiwan or China and the U.S. or the U.S. and other trading partner countries may impact our business or results of operations will depend on future developments, including the severity and duration of any conflicts, their impact on global supply chains and their impact on regional and global economic conditions including the ability of our customers or suppliers to do business in those or surrounding countries and the inflationary effects of such conflicts on our profitability.
Whether or not we are responsible, problems in the products we create, whether real or alleged, whether caused by faulty customer specifications, product design, manufacturing processes, servicing, a component defect or otherwise, may result in delayed shipments to customers or reduced or canceled customer orders or liability claims.
Whether or not we are responsible, problems in the products we create, whether real or alleged, whether caused by faulty customer specifications, product design, manufacturing processes, servicing, a component defect or otherwise, may result in delayed shipments to customers or reduced or canceled customer orders.
They also include strategic risks such as the diversion of management time and attention from other business activities and opportunities and financial risks such as the use of cash or incurrence of additional debt and interest expense as consideration for the acquisition and to fund the activities required to pursue acquisitions, the potential volatility or weakness in our stock price as a result of the announcement of such transactions, the incurrence of large write-offs or write-downs as a result of the acquisition and other potential financial impacts.
They also include strategic risks such as the diversion of management time and attention from other business activities and opportunities and financial risks such as the use of cash or incurrence of additional debt and interest expense as consideration for the acquisition and to fund the activities required to pursue acquisitions, the potential 12 Table of Contents volatility or weakness in our stock price as a result of the announcement of such transactions, the incurrence of large write-offs or write-downs as a result of the acquisition and other potential financial impacts.
As we assume more responsibility across the product lifecycle, our customers’ expectations have and may continue to extend beyond what has historically been expected of electronics manufacturing service providers, such as expectations related to environmental sustainability and heightened regulatory compliance support, including as it relates to product composition such as the Restrictions on Hazardous Substances ("RoHS") 2011/65/EU directive, the Registration, Evaluation, Authorization and restriction of Chemicals ("REACh") EC 1907/2006 EU directive, and emerging regulations pertaining to per- and polyfluoroalkyl substances ("PFAS").
As we assume more responsibility across the product lifecycle, our customers’ expectations have and may continue to extend beyond what has historically been expected of electronics manufacturing service providers, such as expectations related to material traceability, environmental sustainability and heightened regulatory compliance support, including as it relates to product composition such as the Restrictions on Hazardous Substances ("RoHS") 2011/65/EU directive, the Registration, Evaluation, Authorization and restriction of Chemicals ("REACh") EC 1907/2006 EU directive, and evolving regulations pertaining to per- and polyfluoroalkyl substances ("PFAS").
These actions could also affect the cost and/or availability of materials or components that we procure from suppliers in China, as well as create disruptions, delays, shortages or increased costs within our global supply chain.
These actions could also affect the cost and/or availability of materials or components that we procure from suppliers, as well as create disruptions, delays, shortages or increased costs within our global supply chain.
A failure to adequately understand unique customer requirements may also impact our ability to estimate and ultimately recover associated costs, adversely affecting our financial results. 17 Table of Contents Many of our customers' markets are characterized by rapidly changing technology and evolving process developments. Our internal processes are also subject to these factors.
A failure to adequately understand unique customer requirements may also impact our ability to estimate and ultimately recover associated costs, adversely affecting our financial results. Many of our customers' markets are characterized by rapidly changing technology and evolving process developments. Our internal processes are also subject to these factors.
Further, potential reductions in U.S. government agency spending, including those due to budget cuts or other political developments or issues, could affect opportunities in all of our market sectors.
Further, potential reductions in government agency spending, including those due to budget cuts or other political developments or issues, could affect opportunities in all of our market sectors.
Due to the highly competitive nature of our industry, an inability to obtain sufficient inventory of quality components on a timely basis and for a reasonable price, could also harm relationships with our customers and lead to loss of business to our competitors. Our services involve other inventory risk.
Due to the highly competitive nature of our industry, an inability to obtain sufficient inventory of quality components on a timely basis and for a reasonable price, could also harm relationships with our customers and lead to loss of business to our competitors. 14 Table of Contents Our services involve other inventory risk.
These transition risks could negatively impact our financial condition and results of operations including 20 Table of Contents by means of carbon pricing mechanisms, investments in lower greenhouse gas emissions technology, increased cost of raw materials and mandates on and regulation of existing products and services.
These transition risks could negatively impact our financial condition and results of operations including by means of carbon pricing mechanisms, investments in lower greenhouse gas emissions technology, increased cost of raw materials and mandates on and regulation of existing products and services.
Also, the time and funds spent on monitoring and mitigating our exposure and responding to breaches or attempted breaches, including the training of employees, the purchase of protective technologies and the hiring of additional employees and consultants to assist in these efforts could adversely affect our financial results.
Also, the time and funds spent on monitoring and mitigating our exposure and responding to breaches or attempted breaches, including the training of employees, the purchase of protective technologies and the hiring of additional employees and consultants to assist in these 15 Table of Contents efforts could adversely affect our financial results.
In addition, these repricing or pricing recoveries have been 15 Table of Contents and may continue to be dilutive to our operating margin. Conversely, as a result of our pricing strategies and practices, component price reductions have contributed positively to our operating results in the past.
In addition, these repricing or pricing recoveries have been and may continue to be dilutive to our operating margin. Conversely, as a result of our pricing strategies and practices, component price reductions have contributed positively to our operating results in the past.
Further, increased public awareness and concern regarding global climate change may result in new or enhanced requirements and/or stakeholder expectations to reduce or mitigate the effects of greenhouse gas emissions and transition to low-carbon alternatives, driven by policy and regulations, low-carbon technology advancement and shifting consumer sentiment and societal preferences.
Further, increased public awareness and concern regarding global climate change may result in new enhanced or conflicting requirements and/or stakeholder expectations related to the effects of greenhouse gas emissions and transition to low-carbon alternatives, driven by policy and regulations, low-carbon technology advancement and shifting consumer sentiment and societal preferences.
Expansion and consolidation, including the transfer of operations to new or other facilities or due to acquisitions, can inherently include additional costs and start-up inefficiencies. For example, we are expanding our operations by constructing an additional manufacturing facility in Penang, Malaysia, to support our growth in the Asia-Pacific region.
Expansion and consolidation, including the transfer of operations to new or other facilities or due to acquisitions, can inherently include additional costs and start-up inefficiencies. For example, we recently expanded our operations by constructing an additional manufacturing facility in Penang, Malaysia, to support our growth in the Asia-Pacific region.
Any operational failure or breach of security from increasingly sophisticated cyber threats could lead to the loss or disclosure of our or our customers’ financial, product or other confidential information, result in adverse regulatory or other legal actions and have a material adverse effect on our business and reputation.
Any operational failure or breach of security from increasingly sophisticated cyber threats could lead to the loss or disclosure of our or our customers’ financial, product or other confidential information, result in adverse regulatory or other legal actions and have a material adverse effect on our business and reputation, which could include the loss of programs or customers.
These factors include: • customers’ ability or inability to adapt to rapidly changing technologies, such as artificial intelligence, and evolving industry standards that can result in short product life-cycles or product obsolescence • customers’ ability or inability to develop and market their products, some of which are new and untested • the potential failure of our customers’ products to gain widespread commercial acceptance, and • the availability of the components required to manufacture and service our customers' products.
These factors include: • customers’ ability or inability to adapt to rapidly changing technologies, such as artificial intelligence, and evolving industry standards that can result in short product life-cycles or product obsolescence • customers’ ability or inability to develop and market their products, some of which are new and untested, and • the potential failure of our customers’ products to gain widespread commercial acceptance.
In addition, we may expand our operations in new geographical areas where currently we do not operate. If we are unable to effectively manage this or other expansions or consolidations, or 21 Table of Contents related anticipated net sales are not realized, our operating results could be adversely affected.
In addition, we may expand our operations in new geographical areas where currently we do not operate. If we are unable to effectively manage this or other expansions or consolidations, or related anticipated net sales are not realized, our operating results could be adversely affected.
Further, as we grow in size and complexity, a failure to effectively develop personnel and plan for the succession of critical roles may result in shortfalls in the talent and skills required to execute effectively and grow our business, which could affect our operations and financial results.
As we grow in size and complexity and required technical skills evolve, a failure to hire, effectively develop personnel and plan for the succession of critical roles may result in shortfalls in the talent and skills required to execute effectively and grow our business, which could affect our operations and financial results.
These dynamics increase the risks inherent in those engagements. Despite our quality control and quality assurance efforts, problems may occur, or may be alleged, in the execution of these services.
These dynamics increase the risks inherent in those engagements. 17 Table of Contents Despite our quality control and quality assurance efforts, problems may occur, or may be alleged, in the execution of these services.
These factors can negatively affect our operating results and financial position, including reducing our revenues and profitability as a result of having to minimize engagements in China, requiring us to shift such production to other potentially higher-cost locations, or increasing the cost of sourcing components.
These factors can negatively affect our operating results and financial position, including reducing our revenues and profitability as a result of having to minimize engagements in certain countries, requiring us to shift such production to other potentially higher-cost locations, increasing the cost of sourcing components, or the loss of business.
Risks impacting our Superior Execution Plexus is a multinational corporation and operating in multiple countries exposes us to increased risks, including adverse local developments and currency risks. We have operations in many countries. Operations outside of the U.S. in the aggregate represent a majority of our net sales and operating income, with a particular concentration in Malaysia.
Risks impacting our Superior Execution Plexus is a multinational corporation and operating in multiple countries exposes us to increased risks. We have operations in many countries. Operations outside of the U.S. in the aggregate represent a majority of our net sales and operating income, with a particular concentration in Malaysia.
Securities and Exchange Commission ("SEC") climate rules. A failure to adequately meet stakeholder expectations and reporting requirements may result in noncompliance with any imposed regulations, the loss of business, reputational impacts, an inability to attract and retain customers, and an inability to attract and retain talent.
A failure to adequately meet stakeholder expectations and reporting requirements may result in noncompliance with any imposed regulations, the loss of business, reputational impacts, an inability to attract and retain customers, and an inability to attract and retain talent.
In addition, we focus our sales efforts on customers in only a few market sectors, as identified in Part I, Item 1, herein. Each of these sectors is subject to macroeconomic conditions as well as trends and conditions that are sector specific. Any weakness in our customers’ end markets could affect our business and results of operations.
In addition, we focus our sales efforts on customers in only a few market sectors, as identified in Part I, Item 1, herein. Each of these sectors is subject to macroeconomic conditions as well as trends and conditions that are sector specific.
In addition, our adoption of certain standards, related reporting requirements, or mandated compliance to certain requirements could necessitate additional investments that could impact our profitability.
In addition, our failure to adopt or adoption of certain standards, related reporting requirements, or mandated compliance to certain requirements could necessitate additional investments in our operations, processes or control procedures that could impact our profitability.
Government-imposed restrictions on where we or our customers can produce certain types of products or source components or with whom we can conduct business, such as named companies or industries identified in the 2021 National Defense Authorization Act, outbound investment restrictions, and trade regulations limiting advanced semiconductors and chip-manufacturing equipment, could limit our ability to sell or manufacture products or services in China, or source components from certain companies or geographies.
Government-imposed restrictions on where we or our customers can produce certain types of products or source components or with whom we can conduct business, outbound investment restrictions, and trade regulations limiting advanced semiconductors and chip-manufacturing equipment, could limit our ability to sell or manufacture products or services, or source components from certain companies or geographies.
Failure to navigate these regulatory obligations and burdens could impact our operating results as well as cause reputational damage. The regulatory climate can itself affect the demand for our services.
Failure to navigate these regulatory obligations and other standards could result in the loss of business and impact our operating results as well as cause reputational damage. The regulatory climate can itself affect the demand for our services.
Such infringements may also cause our customers to abruptly discontinue selling the impacted products, which would adversely affect our net sales of those products and could affect our customer relationships more broadly. Similarly, claims affecting our suppliers could cause those suppliers to discontinue selling materials and components upon which we rely.
Such infringements may also cause our customers to abruptly discontinue selling the impacted products, which would adversely affect our net sales of those products and could affect our customer relationships more broadly.
The sustained success of our business will depend upon our continued ability to: • attract and retain qualified engineering and technical personnel, especially in times of tight labor markets • choose, maintain and enhance appropriate technological and service capabilities • successfully manage the implementation and execution of information systems • develop and market services that meet changing customer needs • effectively and efficiently execute our services and perform to our customers’ expectations, and • successfully anticipate, or respond to, technological changes on a cost-effective and timely basis.
The sustained success of our business will depend upon our continued ability to: • attract and retain qualified engineering and technical personnel, especially in times of tight labor markets • choose, maintain and enhance appropriate technological and service capabilities • successfully manage the implementation and execution of information systems • develop and market services that meet changing customer needs • effectively and efficiently execute our services and perform to our customers’ expectations, and • successfully anticipate, or respond to, technological changes on a cost-effective and timely basis. 16 Table of Contents Although we believe that our operations utilize the technologies, equipment and processes that are currently required by our customers, we cannot be certain that we will maintain or develop the capabilities required by our customers in the future.
If unauthorized persons gain physical access to our facilities, or our physical assets or information are stolen, damaged or used in an unauthorized manner (whether through outside theft or industrial espionage), we could be subject to, among other consequences, interruption in our operations, negative publicity, governmental inquiry and oversight, loss of government contracts, litigation by affected parties or other future financial obligations related to the loss, misuse or theft of our or our customers’ data, inventory or physical assets, any of which could have a material adverse effect on our reputation and results of operations. 18 Table of Contents There may be problems with the products we design, manufacture or service that could result in liability claims against us, reduced demand for our services and damage to our reputation.
If unauthorized persons gain physical access to our facilities, or our physical assets or information are stolen, damaged or used in an unauthorized manner (whether through outside theft or industrial espionage), we could be subject to, among other consequences, interruption in our operations, negative publicity, governmental inquiry and oversight, loss of government contracts, litigation by affected parties or other future financial obligations related to the loss, misuse or theft of our or our customers’ data, inventory or physical assets, any of which could have a material adverse effect on our reputation and results of operations.
The BEPS project is challenging longstanding international tax norms regarding the taxation of profits from cross-border business. 22 Table of Contents Given the scope of our international operations and the fluid and uncertain nature of how the BEPS project might ultimately lead to future legislation, it is difficult to assess how any changes in tax laws would impact our income tax expense.
Given the scope of our international operations and the fluid and uncertain nature of how the BEPS project might ultimately lead to future legislation, it is difficult to assess how any changes in tax laws would impact our income tax expense.
We would experience adverse tax consequences if we are found to not be in compliance. A global minimum tax has been, or is anticipated to be, implemented in many of the countries in which Plexus operates.
We would experience adverse tax consequences if we are found to not be in compliance. A global minimum tax has been, or is anticipated to be, implemented in many of the countries in which Plexus operates. We anticipate this will materially and unfavorably impact our existing tax holidays and effective tax rate.
In addition, developments affecting particular countries can adversely affect our ability to access cash or other assets held in such countries. 14 Table of Contents A significant portion of our operations is currently located in the APAC region, particularly in Malaysia.
In addition, developments affecting particular countries can adversely affect our ability to access cash or other assets held in such countries. A significant amount of our cash balances remain held outside of the U.S., with a particular concentration in Malaysia and China. A significant portion of our operations is currently located in the APAC region, particularly in Malaysia.
Additionally, continued uncertainty regarding commercial dealings, tariffs, export regulations and other trade protection measures between the U.S. and China, heightened by escalating geopolitical tensions, may affect our ability to do business in China, may impact the cost of our products originating in China and may impact the demand for our products manufactured in China in the event our customers reduce or eliminate their operations in China.
Additionally, continued uncertainty regarding commercial dealings, tariffs, export regulations and other trade protection measures between the U.S. and countries globally, heightened by escalating geopolitical tensions, may affect our ability to do 13 Table of Contents business in certain countries, may impact the cost of our services and products originating from certain countries, and may impact the demand for our services.
We have also experienced inflationary or other general personnel cost increases due to economic conditions and government-mandated wage increases. Further, increases in turnover rates can lead to decreased efficiency and increased costs in our operations, such as increased overtime to meet demand, increased wage rates to attract and retain employees, and costs associated with recruiting training replacement personnel.
Further, increases in turnover rates can lead to decreased efficiency and increased costs in our operations, such as increased overtime to meet demand, increased wage rates to attract and retain employees, and costs associated with recruiting and training replacement personnel.
Risks associated with transfer pricing adjustments are further highlighted by the global initiative from the Organization for Economic Cooperation and Development called the Base Erosion and Profit Shifting ("BEPS") project.
Risks associated with transfer pricing adjustments are further highlighted by the global initiative from the Organization for Economic Cooperation and Development called the Base Erosion and Profit Shifting ("BEPS") project. The BEPS project is challenging longstanding international tax norms regarding the taxation of profits from cross-border business.
Infringement by our customers could cause them to discontinue production of some of their products, potentially with little or no notice, which may reduce our net sales to them and disrupt our production. 19 Table of Contents Additionally, if third parties on whom we rely for products or services, such as component suppliers, are responsible for an infringement (including through the supply of counterfeit parts), we may or may not be able to hold them responsible and we may incur costs in defending claims or providing remedies.
Additionally, if third parties on whom we rely for products or services, such as component suppliers, are responsible for an infringement (including through the supply of counterfeit parts), we may or may not be able to hold them responsible and we may incur costs in defending claims or providing remedies.
Specifically, certain stakeholders are beginning to request or require disclosures on ESG topics such as greenhouse gas emissions, human capital matters and specific ESG-risk management practices, and we expect this trend to continue and be amplified by existing and potential legislation, such as the Corporate Sustainability Reporting Directive in the European Union and the U.S.
Specifically, certain stakeholders are beginning to request or require disclosures on sustainability topics such as greenhouse gas emissions, social responsibility and specific climate, social and other sustainability risk management practices, and we expect this trend to continue and be amplified by existing and potential legislation, such as California's Climate Corporate Data Accountability Act and Climate-Related Financial Risk Act and the Corporate Sustainability Directive in the EU.
Our major customers may vary from period to period, and our major customers may not continue to purchase services from us at current levels, or at all, particularly given the volatile or temporary nature of certain programs.
Our 10 largest customers accounted for 49.1% and 47.8% of our net sales in fiscal 2025 and 2024, respectively. Our major customers may vary from period to period, and our major customers may not continue to purchase services from us at current levels, or at all, particularly given the volatile or temporary nature of certain programs.
Risks impacting our Passion Meets Purpose We depend on our workforce, and the inability to attract, develop and retain personnel or an increase in personnel costs or other personnel disruptions may harm our business.
Similarly, claims affecting our suppliers could cause those suppliers to discontinue selling materials and components upon which we rely. 18 Table of Contents Risks impacting our Passion Meets Purpose We depend on our workforce, and the inability to attract, develop and retain personnel or an increase in personnel costs or other personnel disruptions may harm our business.
A number of factors may adversely affect labor availability in one or more of our locations, including wage pressure and changing wage requirements, restrictions on immigration or labor mobility, local competition, high employment rates, high turnover rates and local labor laws. These labor-related issues and labor shortages are pronounced, and we expect these conditions to persist.
A number of factors may adversely affect labor availability in one or more of our locations, including wage pressure and changing wage requirements, restrictions on immigration or labor mobility, local competition, high employment rates, high turnover rates, increased demand for expertise in certain technical areas such as artificial intelligence, and local labor laws.
Adverse changes in the profitability and financial outlook in each of our jurisdictions may require the creation of an additional valuation allowance to reduce our net deferred tax assets. Such changes could result in material non-cash expenses in the period in which the changes are made. We may fail to secure or maintain necessary additional financing or capital.
Adverse changes in the profitability and financial outlook in each of our jurisdictions may require the creation of an additional valuation allowance to reduce our net deferred tax assets.
Failure of our customers to identify or flow down any such requirements to us could result in production of non-compliant product, which could restrict their ability to sell such products, thus affecting our sales to them. 13 Table of Contents We may fail to identify acquisition targets, successfully complete future acquisitions, successfully integrate acquired operations or recognize the anticipated benefits of an acquisition, which could adversely affect our operating results.
Failure of our customers to identify or flow down any such requirements to us could result in production of non-compliant product, which could restrict their ability to sell such products, thus affecting our sales to them.
In addition, the Healthcare/Life Sciences sector is affected by health crises and trends. The semiconductor industry has historically been subject to significant cyclicality and volatility. Changing export regulations, increasing sanctions or other trade barriers may limit our ability to use or produce certain technologies or products in China or sell certain components or products that are ultimately destined to China.
Changing export regulations, increasing sanctions or other trade barriers may limit our ability to use or produce certain technologies or products in China or sell certain components or products that are ultimately destined to China.
If we pursue new capabilities or geographies to enable growth through acquisitions, such activities would involve significant risks that could have a material adverse effect on us.
We may fail to identify acquisition targets, successfully complete future acquisitions, successfully integrate acquired operations or recognize the anticipated benefits of an acquisition, which could adversely affect our operating results. If we pursue new capabilities or geographies to enable growth through acquisitions, such activities would involve significant risks that could have a material adverse effect on us.
There can be no assurance that the security measures and systems configurations we choose to implement will be sufficient to protect the data we manage.
The increasing sophistication of cyberattacks requires us to continually evaluate the threat landscape and new technologies and processes intended to detect and prevent these attacks. There can be no assurance that the security measures and systems configurations we choose to implement will be sufficient to protect the data we manage.
In addition, lone and organized crime elements have been known to extort money by encrypting their victims’ data (ransomware) and/or utilizing their victims’ resources for unauthorized mining of cryptocurrency.
In addition, lone and organized crime elements have been known to extort money by encrypting their victims’ data (ransomware) and/or utilizing their victims’ resources for unauthorized mining of cryptocurrency. The reliance on third-party vendors in a complex supply chain can further introduce cybersecurity risks, as unmitigated vendor vulnerabilities or compromise can increase the attack surface for malicious actors.
Evolving expectations on environmental, social and governance ("ESG") matters, including global climate change, by various stakeholders could negatively affect our business. Customer, investor and employee expectations relating to ESG have been rapidly evolving and increasing. In addition, governmental and non-governmental organizations are enhancing or advancing requirements specific to ESG matters.
Evolving expectations on environmental, sustainability, social responsibility, and corporate governance ("sustainability") matters, including global climate change, by various stakeholders could negatively affect our business by failing to meet stakeholder expectations or imposing additional costs on our business. Customer, investor and employee expectations relating to sustainability continue to evolve and and are increasingly dynamic.
When we make decisions to reduce capacity or to close facilities, we frequently incur restructuring costs. In Fiscal 2024, we closed an engineering facility in Darmstadt, Germany and a manufacturing facility in Portland, Oregon, and we incurred restructuring costs associated with both closures.
When we make decisions to reduce capacity or to close facilities, we frequently incur restructuring costs.
Removed
Our 10 largest customers accounted for 47.8% and 49.6% of our net sales in fiscal 2024 and 2023, respectively. During fiscal 2023, there was one customer that represented 10.0% or more of our net sales.
Added
Any weakness in our customers’ end markets, or new entrants in those markets that compete with our customers, could affect our business and results of operations. Economic, business or regulatory conditions that affect the sector, or our failure to choose to do business in appropriate sectors or subsectors, can particularly impact us.
Removed
In addition, although we have repatriated a substantial amount of cash since the enactment of the U.S. Tax Cuts and Jobs Act (“U.S. Tax Reform”) in 2017, a significant amount of our cash balances remain held outside of the U.S., with a particular concentration in Malaysia and China.
Added
These risks are particularly pronounced for our operations in the APAC region and the materials and components we procure from suppliers in China.
Removed
The reliance on third-party vendors in a complex supply chain can further introduce cybersecurity risks, as unmitigated vendor vulnerabilities or compromise can increase the attack surface for malicious actors. 16 Table of Contents The increasing sophistication of cyberattacks requires us to continually evaluate the threat landscape and new technologies and processes intended to detect and prevent these attacks.
Added
There may be problems with the products we design, manufacture or service or we may fail to meet increasing customer expectations, which could result in liability claims against us, reduced demand for our services and damage to our reputation.
Removed
Although we believe that our operations utilize the technologies, equipment and processes that are currently required by our customers, we cannot be certain that we will maintain or develop the capabilities required by our customers in the future.
Added
Infringement by our customers could cause them to discontinue production of some of their products, potentially with little or no notice, which may reduce our net sales to them and disrupt our production.
Removed
In addition, the economic and market uncertainty created by transitioning to low-carbon alternatives could result in reduced demand or product obsolescence for certain of our customers’ products and/or price modifications for our customers’ products and the resources needed to produce them.
Added
These labor-related issues and labor shortages are pronounced, and we expect these conditions to persist. We have also experienced inflationary or other general personnel cost increases due to economic conditions and government-mandated wage increases.
Removed
This could in turn put pressure on our costs and result in reduced profit margin associated with certain of our customer programs, or loss of customer programs that we may not be able to replace.
Added
Further, hiring executive officers and other key employees may be adversely impacted by global workforce trends and labor shortages.
Removed
We anticipate this will materially and unfavorably impact our existing tax holidays and effective tax rate although to what extent is difficult to estimate without final rules and regulations. As of September 28, 2024, we expect those impacts to begin in fiscal 2026 and carry forward.
Added
In addition, governmental and non-governmental organizations are enhancing or advancing requirements specific to sustainability matters.
Added
Policy trends and public sentiment related to "anti-ESG" or "anti-DEI" legislation, policy or stakeholder pressure or activism, particularly in the U.S., may lead to new or 19 Table of Contents conflicting requirements or expectations, resulting in risk of noncompliance, reputational damage, potential enforcement actions or claims.
Added
The estimated impact of the global minimum tax has been included in our estimates of tax rates for fiscal 2026.
Added
Such changes could result in material non-cash expenses in the period in which the changes are made. 21 Table of Contents We may fail to secure or maintain necessary additional financing or capital.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

6 edited+1 added−0 removed11 unchanged
Biggest changeUnder the direction of the CITO, the Director of Cybersecurity leads our enterprise-wide cybersecurity program and oversees a dedicated global cybersecurity team that monitors, assesses and mitigates material risks from various cybersecurity threats.
Biggest changeUnder the direction of the CITO, the Chief Information Security Officer (CISO) leads our enterprise-wide cybersecurity program and oversees a dedicated global 22 Table of Contents cybersecurity team that monitors, assesses and mitigates material risks from various cybersecurity threats.
These reviews also include reviewing the appropriateness of resources (people and financial) devoted to information technology requirements. The CITO and Director of Cybersecurity also brief the Audit Committee quarterly on cybersecurity matters, including specific risks, mitigation plans, risk management and governance. The Audit Committee reports to the full Board of Directors on these discussions as appropriate.
These reviews also include reviewing the appropriateness of resources (people and financial) devoted to information technology requirements. The CITO and CISO also brief the Audit Committee quarterly on cybersecurity matters, including specific risks, mitigation plans, risk management and governance. The Audit Committee reports to the full Board of Directors on these discussions as appropriate.
The Director of Cybersecurity is a seasoned cybersecurity expert with over 18 years of cybersecurity experience combined within the United States Department of Defense and Electronic Manufacturing Services industry. The Company's Director of Cybersecurity holds industry-recognized cybersecurity certifications, a Bachelor of Science degree in Cybersecurity and a Master of Science degree in Cybersecurity Management and Policy.
The CISO is a seasoned cybersecurity expert with over 18 years of cybersecurity experience combined within the United States Department of Defense and Electronic Manufacturing Services industry. The Company's CISO holds industry-recognized cybersecurity certifications, a Bachelor of Science degree in Cybersecurity and a Master of Science degree in Cybersecurity Management and Policy.
Refer to the discussion in "Risk Factors" in Part I, Item 1A herein for further details on cybersecurity and information technology risks that could adversely affect our business, results of operation and financial conditions. 24 Table of Contents
Refer to the discussion in "Risk Factors" in Part I, Item 1A herein for further details on cybersecurity and information technology risks that could adversely affect our business, results of operation and financial conditions. 23 Table of Contents
Our incident response plan is periodically tested through tabletop exercises, the results of which are reported to the Audit Committee. 23 Table of Contents Cybersecurity Governance & Oversight Our Chief Information & Technology Officer ("CITO"), who reports directly to the President and Chief Executive Officer ("CEO"), directs our global information technology vision and long-term strategies.
Our incident response plan is periodically tested through tabletop exercises, the results of which are reported to the Audit Committee. Cybersecurity Governance & Oversight Our Chief Information & Technology Officer ("CITO"), who reports directly to the President and Chief Executive Officer ("CEO"), directs our global information technology vision and long-term strategies.
The committee serves to provide awareness and guidance to prioritization, organizational alignment and enablement of resources to minimize risk to Plexus' operations, brand and reputation. The Security Steering Committee, through the Director of Cybersecurity and the CITO, reports to a broader Information Technology ("IT") Steering Committee, which includes the President and CEO and Chief Financial Officer.
The committee serves to provide awareness and guidance to prioritization, organizational alignment and enablement of resources to minimize risk to Plexus' operations, brand and reputation. The Security Steering Committee, through the CISO and the CITO, reports to a broader Global Technology Steering Committee, which includes the President and CEO and Chief Financial Officer.
Added
We perform cybersecurity risk assessments of the third-party vendors we utilize and have processes to identify cybersecurity risks posed by using third-party systems. We also request our third-party vendors to promptly notify us of any actual or suspected breach that could impact our data or operations.

Item 2. Properties

Properties — owned and leased real estate

3 edited+0 added−0 removed1 unchanged
Biggest changeOur active facilities as of September 28, 2024 are described in the following table: Location Type Size (sq. ft.) Owned/Leased AMER Neenah, Wisconsin Manufacturing 418,000 Owned Guadalajara, Mexico (1) Manufacturing/Engineering 741,000 Leased Nampa, Idaho Manufacturing 216,000 Owned Appleton, Wisconsin Manufacturing 205,000 Owned Buffalo Grove, Illinois (1) Manufacturing 189,000 Leased Neenah, Wisconsin Global Headquarters 104,000 Owned Neenah, Wisconsin Engineering 90,000 Leased Raleigh, North Carolina Engineering 41,000 Leased APAC Penang, Malaysia (1) Manufacturing/Engineering 1,530,000 Owned Bangkok, Thailand Manufacturing 389,000 Owned Haining, China (1) Manufacturing 264,000 Leased Xiamen, China (1) Manufacturing 253,000 Leased EMEA Oradea, Romania Manufacturing/Engineering 296,000 Owned Oradea, Romania Manufacturing 108,000 Leased Livingston, Scotland Manufacturing/Engineering 62,000 Leased Kelso, Scotland Manufacturing 57,000 Owned (1) The facilities in Guadalajara, Mexico; Buffalo Grove, Illinois; Penang, Malaysia; Haining, China; and Xiamen, China include more than one building.
Biggest changeOur active facilities as of September 27, 2025 are described in the following table: Location Type Size (sq. ft.) Owned/Leased AMER Neenah, Wisconsin Manufacturing 418,000 Owned Guadalajara, Mexico (1) Manufacturing/Engineering 794,000 Leased Nampa, Idaho Manufacturing 216,000 Owned Appleton, Wisconsin Manufacturing 205,000 Owned Buffalo Grove, Illinois (1) Manufacturing 189,000 Leased Neenah, Wisconsin Global Headquarters 104,000 Owned Neenah, Wisconsin Engineering 90,000 Leased Raleigh, North Carolina Engineering 41,000 Leased APAC Penang, Malaysia (1) Manufacturing/Engineering 1,530,000 Owned Bangkok, Thailand Manufacturing 389,000 Owned Haining, China (1) Manufacturing 264,000 Leased Xiamen, China (1) Manufacturing 253,000 Leased EMEA Oradea, Romania Manufacturing/Engineering 296,000 Owned Oradea, Romania Manufacturing 108,000 Leased Livingston, Scotland Manufacturing/Engineering 62,000 Leased Kelso, Scotland Manufacturing 57,000 Owned (1) The facilities in Guadalajara, Mexico; Buffalo Grove, Illinois; Penang, Malaysia; Haining, China; and Xiamen, China include more than one building.
ITEM 3. LEGAL PROCEEDINGS Refer to Note 10, "Litigation," for information regarding legal proceedings in which we are involved. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 25 Table of Contents PART II
ITEM 3. LEGAL PROCEEDINGS Refer to Note 10, "Litigation," for information regarding legal proceedings in which we are involved. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 24 Table of Contents PART II
This includes approximately 2.0 million square feet in AMER, approximately 2.5 million square feet in APAC and approximately 0.5 million square feet in EMEA.
This includes approximately 2.1 million square feet in AMER, approximately 2.4 million square feet in APAC and approximately 0.5 million square feet in EMEA.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−0 removed4 unchanged
Biggest changeSee also Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources," for additional discussion of our intentions regarding dividends as well as a description of loan covenants that could restrict our ability to make future dividend payments. 26 Table of Contents Issuer Purchases of Equity Securities The following table provides the specified information about the repurchases of shares by us during the three months ended September 28, 2024: Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Maximum approximate dollar value of shares that may yet be purchased under the plans or programs (1) June 30, 2024 to July 27, 2024 60,094 $ 107.54 60,094 $ 13,058,922 July 28, 2024 to August 24, 2024 28,844 121.16 28,844 59,564,264 August 25, 2024 to September 28, 2024 76,795 124.80 76,795 49,980,101 165,733 $ 117.91 165,733 (1) On January 16, 2024, the Company announced that its Board of Directors had approved a $50.0 million share repurchase authorization (the "2024 Program") that authorizes the Company to repurchase its common stock.
Biggest changeSee also Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources," for additional discussion of our intentions regarding dividends as well as a description of loan covenants that could restrict our ability to make future dividend payments. 25 Table of Contents Issuer Purchases of Equity Securities The following table provides the specified information about the repurchases of shares by us during the three months ended September 27, 2025: Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Maximum approximate dollar value of shares that may yet be purchased under the plans or programs (1) June 29, 2025 to July 26, 2025 53,601 $ 135.68 53,601 $ 99,287,107 July 27, 2025 to August 23, 2025 55,227 129.07 55,227 92,158,744 August 24, 2025 to September 27, 2025 51,754 137.72 51,754 85,031,042 160,582 $ 134.07 160,582 (1) On August 14, 2024 the Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $50.0 million of its common stock (the "2025 Program").
The values on the graph show the relative performance of an investment of $100 made on September 28, 2019 in Plexus common stock and in each of the indices as of the last business day of the respective fiscal year.
The values on the graph show the relative performance of an investment of $100 made on October 3, 2020 in Plexus common stock and in each of the indices as of the last business day of the respective fiscal year.
The table above reflects the maximum dollar amount remaining available for purchase under the 2025 Program as of September 28, 2024. 27 Table of Contents
The table above reflects the maximum dollar amount remaining available for purchase under the 2026 Program as of September 27, 2025. ITEM 6. [RESERVED] 26 Table of Contents
On August 14, 2024 the Board of Directors approved a share repurchase program (the "2025 Program") that authorizes the Company to repurchase up to $50.0 million of its common stock beginning upon completion of the Company’s 2024 Program. The 2025 Program commenced upon completion of the 2024 Program, and has no expiration.
The 2025 Program became effective upon completion of the 2024 Program. On May 14, 2025, the Board of Directors approved a share repurchase program under which the Company is authorized to repurchase up to $100.0 million of its common stock (the “2026 Program”). The 2026 Program became effective upon completion of the 2025 Program and has no expiration.
Comparison of Cumulative Total Return 2019 2020 2021 2022 2023 2024 Plexus $100 $113 $146 $140 $149 $218 Nasdaq-Electronic Components 100 107 145 121 148 200 S&P 400 100 99 140 115 130 162 Shareholders of Record As of November 11, 2024, we had 325 shareholders of record. Dividends We have not paid any cash dividends in the past.
Comparison of Cumulative Total Return 2020 2021 2022 2023 2024 2025 Plexus $100 $128 $123 $131 $192 $202 Nasdaq-Electronic Components 100 136 113 138 187 314 S&P 400 100 141 116 131 164 172 Shareholders of Record As of November 10, 2025, we had 284 shareholders of record. Dividends We have not paid any cash dividends in the past.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

79 edited+9 added−15 removed29 unchanged
Biggest changeThe increase was primarily due to cash flow improvements (reductions) of: • $(27.3) million decrease in net income. • $213.7 million in inventory cash flows driven by a larger decrease in inventory in fiscal 2024 as compared to fiscal 2023 due to inventory reduction efforts. • $139.9 million in accounts payables cash flows primarily driven by the timing of materials procurement and payments to suppliers. • $24.8 million in contract assets cash flows driven by lower demand from over time customers. • $(34.1) million in advanced payments from customers cash flows driven by a larger decrease in advanced payments in fiscal 2024 as compared to fiscal 2023. • $(36.5) million in accounts receivable cash flows driven by timing of shipments and mix of customer payment terms. • $(23.6) million in other current and non-current asset cash flows primarily driven by an increase in tax prepayments related to timing of payments and an increase in prepayments to suppliers in fiscal 2024 as compared to a decrease in fiscal 2023. 33 Table of Contents The following table provides a summary of cash cycle days for the periods indicated (in days): Three Months Ended September 28, 2024 September 30, 2023 Days in accounts receivable 54 59 Days in contract assets 10 13 Days in inventory 127 154 Days in accounts payable (59) (64) Days in advanced payments (68) (75) Annualized cash cycle 64 87 We calculate days in accounts receivable and contract assets as each balance sheet item for the respective quarter divided by annualized sales for the respective quarter by day.
Biggest changeWe disposed greater amounts of aged inventory during fiscal 2025 which resulted in an increase in advanced payments returned to customers. • $(75.7) million in accounts receivable cash flows driven by timing of shipments and mix of customer payment terms. • $(51.3) million in contract assets cash flows corresponding to changes in demand from over time customers. • $(11.2) million in other current and non-current liabilities cash flows primarily driven by lower cash flow benefit of accrued salaries and wages due to the timing of the year-end. • $(9.2) million in deferred income taxes driven by an increase in deferred income tax benefit in fiscal 2025 as compared to fiscal 2024. • $129.5 million in accounts payables cash flows primarily driven by the timing of materials procurement and payments to suppliers. • $28.0 million in other current and non-current asset cash flows primarily driven by a decrease in prepayments to suppliers in fiscal 2025 as compared to an increase in fiscal 2024. 32 Table of Contents The following table provides a summary of cash cycle days for the periods indicated (in days): Three Months Ended September 27, 2025 September 28, 2024 Days in accounts receivable 57 54 Days in contract assets 13 10 Days in inventory 118 127 Days in accounts payable (70) (59) Days in advanced payments (55) (68) Annualized cash cycle 63 64 We calculate days in accounts receivable and contract assets as each balance sheet item for the respective quarter divided by annualized sales for the respective quarter by day.
We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial market sectors supported by a global team of over 20,000 members across our 26 facilities in the Americas ("AMER"), Asia-Pacific ("APAC") and Europe, Middle East and Africa ("EMEA") regions.
We provide these solutions to market-leading as well as disruptive global companies in the Aerospace/Defense, Healthcare/Life Sciences, and Industrial sectors, supported by a global team of over 20,000 members across our 26 facilities in the Americas ("AMER"), Asia-Pacific ("APAC") and Europe, Middle East and Africa ("EMEA") regions.
On June 15, 2018, we entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which we issued an aggregate of $150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement.
On June 15, 2018, we entered into a Note Purchase Agreement (the “2018 NPA”) pursuant to which we issued an aggregate of $150.0 million in principal amount of unsecured senior notes, consisting of $100.0 million in principal amount of 4.05% Series A Senior Notes, due on June 15, 2025, and $50.0 million in principal amount of 4.22% Series B Senior Notes, due on June 15, 2028 (collectively, the “2018 Notes”), in a private placement.
During fiscal 2024, we completed the 2024 Program by repurchasing 477,012 shares under this program for $50.0 million at an average price of $104.82 per share. On August 14, 2024, the Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $50.0 million of our common stock (the "2025 Program").
During fiscal 2024, we completed the 2024 Program by repurchasing 477,012 shares under this program for $50.0 million at an average price of $104.82 per share. On August 14, 2024, the Board of Directors approved a share repurchase program under which we were authorized to repurchase up to $50.0 million of our common stock (the "2025 Program").
Excluded from the amounts disclosed are certain bonus and incentive compensation amounts, which would be paid on a prorated basis in the year of termination. 37 Table of Contents DISCLOSURE ABOUT CRITICAL ACCOUNTING ESTIMATES Our accounting policies are disclosed in Note 1 "Description of Business and Significant Accounting Policies" of Notes to Consolidated Financial Statements.
Excluded from the amounts disclosed are certain bonus and incentive compensation amounts, which would be paid on a prorated basis in the year of termination. 36 Table of Contents DISCLOSURE ABOUT CRITICAL ACCOUNTING ESTIMATES Our accounting policies are disclosed in Note 1 "Description of Business and Significant Accounting Policies" of Notes to Consolidated Financial Statements.
However, we cannot be assured that we will be able to make any such arrangements on acceptable terms or at all. 36 Table of Contents CONTRACTUAL OBLIGATIONS, COMMITMENTS AND OFF-BALANCE SHEET OBLIGATIONS Our disclosures regarding contractual obligations and commercial commitments are located in various parts of our regulatory filings.
However, we cannot be assured that we will be able to make any such arrangements on acceptable terms or at all. 35 Table of Contents CONTRACTUAL OBLIGATIONS, COMMITMENTS AND OFF-BALANCE SHEET OBLIGATIONS Our disclosures regarding contractual obligations and commercial commitments are located in various parts of our regulatory filings.
The information should be read in conjunction with our consolidated financial statements included herein and "Risk Factors" included in Part I, Item 1A herein. A discussion regarding our financial condition and results of operations for fiscal 2024 compared to fiscal 2023 is presented below.
The information should be read in conjunction with our consolidated financial statements included herein and "Risk Factors" included in Part I, Item 1A herein. A discussion regarding our financial condition and results of operations for fiscal 2025 compared to fiscal 2024 is presented below.
ROIC and other non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of our financial performance prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). We review our internal calculation of WACC annually. Our WACC was 8.2% for fiscal 2024 and 9.0% for fiscal 2023.
ROIC and other non-GAAP financial measures should be considered in addition to, not as a substitute for, measures of our financial performance prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). We review our internal calculation of WACC annually. Our WACC was 8.9% for fiscal 2025 and 8.2% for fiscal 2024.
We also use ROIC as a performance criteria in determining certain elements of compensation as well as economic return performance. We define ROIC as tax-effected operating income before restructuring and other charges divided by average invested capital over a rolling five-quarter period for the fiscal year.
We also use ROIC as a performance criteria in determining certain elements of compensation as well as economic return performance. 30 Table of Contents We define ROIC as tax-effected operating income before restructuring and other charges divided by average invested capital over a rolling five-quarter period for the fiscal year.
NEW ACCOUNTING PRONOUNCEMENTS See Note 1, "Description of Business and Significant Accounting Policies," in Notes to Consolidated Financial Statements regarding recent accounting pronouncements. 38 Table of Contents
NEW ACCOUNTING PRONOUNCEMENTS See Note 1, "Description of Business and Significant Accounting Policies," in Notes to Consolidated Financial Statements regarding recent accounting pronouncements. 37 Table of Contents
The maximum facility amount under the MUFG RPA as of September 28, 2024 is $340.0 million. The maximum facility amount under the HSBC RPA as of September 28, 2024 is $70.0 million. The MUFG RPA will be automatically extended each year unless any party gives no less than 10 days prior notice that the agreement should not be extended.
The maximum facility amount under the MUFG RPA as of September 27, 2025 is $340.0 million. The maximum facility amount under the HSBC RPA as of September 27, 2025 is $70.0 million. The MUFG RPA will be automatically extended each year unless any party gives no less than 10 days prior notice that the agreement should not be extended.
The improvement in FCF was primarily due to inventory reduction efforts as well as lower working capital investments in inventory to support our customers. Non-GAAP financial measures, including FCF, are used for internal management assessments because such measures provide additional insight to investors into ongoing financial performance.
The decline in FCF was primarily due to significant inventory reduction efforts as well as lower working capital investments in inventory to support our customers in the prior year. Non-GAAP financial measures, including FCF, are used for internal management assessments because such measures provide additional insight to investors into ongoing financial performance.
On January 16, 2024, the Company announced a share repurchase program authorized by the Board of Directors under which we were authorized to repurchase up to $50.0 million of our common stock (the "2024 Program"). The 2024 Program commenced upon completion of the 2023 Program.
On January 16, 2024, we announced a share repurchase program authorized by the Board of Directors under which we were authorized to repurchase up to $50.0 million of our common stock (the "2024 Program"). The 2024 Program became effective upon completion of the 2023 Program.
We use a financial model that is aligned with our business strategy and includes an ROIC goal of 15% which would exceed our weighted average cost of capital ("WACC") by more than 500 basis points and represent positive economic return.
Return on Invested Capital ("ROIC") and economic return. We use a financial model that is aligned with our business strategy and includes an ROIC goal of 15% which would exceed our weighted average cost of capital ("WACC") by more than 500 basis points and represent positive economic return. Economic return is the amount our ROIC exceeds our WACC.
The restructuring and other charges for fiscal 2024 consisted of employee severance costs associated with a reduction in the Company's workforce as well 30 Table of Contents as closure costs associated with sites in the Company's AMER and EMEA regions, offset by insurance proceeds received in an arbitration decision regarding a contractual matter that took place in the Company's EMEA region in fiscal 2023.
The restructuring and other charges for fiscal 2024 consisted of employee severance costs associated with a reduction in our workforce as well as closure costs associated with sites in our AMER and EMEA regions, partially offset by insurance proceeds received in an arbitration decision regarding a contractual matter that took place in the our EMEA region in fiscal 2023.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Plexus Corp. and its subsidiaries (together "Plexus," the "Company," or "we") help create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW At Plexus, we help create the products that build a better world. Driven by a passion for excellence, we partner with our customers to design, manufacture and service highly complex products in demanding regulatory environments.
FCF is a non-GAAP financial measure that should be considered in addition to, not as a substitute for, measures of our financial performance prepared in accordance with GAAP. 34 Table of Contents A reconciliation of FCF to our financial statements that were prepared using GAAP as follows (in millions): 2024 2023 Cash flows provided by operating activities $ 436.5 $ 165.8 Payments for property, plant and equipment (95.2) (104.0) Free cash flow $ 341.3 $ 61.8 Investing Activities.
FCF is a non-GAAP financial measure that should be considered in addition to, not as a substitute for, measures of our financial performance prepared in accordance with GAAP. 33 Table of Contents A reconciliation of FCF to our financial statements that were prepared using GAAP as follows (in millions): 2025 2024 Cash flows provided by operating activities $ 249.2 $ 436.5 Payments for property, plant and equipment (95.2) (95.2) Free cash flow $ 154.0 $ 341.3 Investing Activities.
As of the end of fiscal 2024, cash and cash equivalents and restricted cash were $347 million, while debt, finance lease and other financing obligations were $247 million. If our future financing needs increase, then we may need to arrange additional debt or equity financing.
As of the end of fiscal 2025, cash and cash equivalents and restricted cash were $307 million, while debt, finance lease and other financing obligations were $138 million. If our future financing needs increase, then we may need to arrange additional debt or equity financing.
During fiscal 2024 there were no material changes to these policies.
During fiscal 2025 there were no material changes to these policies.
Refer to the table below, which includes the calculation of ROIC and economic return for the indicated fiscal years (dollars in millions): 2024 2023 Adjusted operating income (tax-effected) $ 168.0 $ 190.5 Average invested capital 1,418.7 1,425.6 After-tax ROIC 11.8 % 13.4 % WACC 8.2 % 9.0 % Economic return 3.6 % 4.4 % 32 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash and cash equivalents and restricted cash were $347.5 million as of September 28, 2024, as compared to $256.7 million as of September 30, 2023.
Refer to the table below, which includes the calculation of ROIC and economic return for the indicated fiscal years (dollars in millions): 2025 2024 Adjusted operating income (tax-effected) $ 190.5 $ 168.0 Average invested capital 1,303.6 1,418.7 After-tax ROIC 14.6 % 11.8 % WACC 8.9 % 8.2% Economic return 5.7 % 3.6 % 31 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash and cash equivalents and restricted cash were $306.8 million as of September 27, 2025, as compared to $347.5 million as of September 28, 2024.
As of September 28, 2024 and September 30, 2023, $220.2 million and $220.5 million, respectively, of accounts receivables sold under trade accounts receivable programs and subject to servicing by us remained outstanding and had not yet been collected.
As of September 27, 2025 and September 28, 2024, $214.4 million and $220.2 million, respectively, of accounts receivables sold under trade accounts receivable programs and subject to servicing by us remained outstanding and had not yet been collected.
Our future cash flows from operating activities will be reduced by $31.4 million due to cash payments for U.S. federal taxes on the deemed repatriation of undistributed foreign earnings that are payable over an eight year period that began in fiscal 2019 with the first payment.
Our future cash flows from operating activities will be reduced by $16.5 million due to cash payments for U.S. federal taxes on the deemed repatriation of undistributed foreign earnings that are payable over an eight year period that began in fiscal 2019 and will end in fiscal 2026. Cash Flows.
The terms of the HSBC RPA are generally consistent with the terms of the MUFG RPA previously discussed. We sold $854.7 million and $834.5 million of trade accounts receivable under these programs during fiscal 2024 and 2023, respectively, in exchange for cash proceeds of $844.6 million and $824.6 million, respectively.
The terms of the HSBC RPA are generally consistent with the terms of the MUFG RPA previously discussed. We sold $705.0 million and $854.7 million of trade accounts receivable under these programs during fiscal 2025 and 2024, respectively, in exchange for cash proceeds of $698.1 million and $844.6 million, respectively.
A discussion regarding our financial condition and results of operations for fiscal 2023 compared to fiscal 2022 is incorporated herein by reference from Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our Annual Report on the Form 10-K for the fiscal year ended September 30, 2023, which was filed with the SEC on November 17, 2023, and is available on the SEC’s website at www.sec.gov as well as our Investor Relations website at www.plexus.com.
A discussion regarding our financial condition and results of operations for fiscal 2024 compared to fiscal 2023 can be found in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," in our Annual Report on the Form 10-K for the fiscal year ended September 28, 2024, which was filed with the SEC on November 15, 2024, and is available on the SEC’s website at www.sec.gov as well as our Investor Relations website at www.plexus.com.
The following table provides a summary of cash flows for fiscal 2024 and 2023 (in millions): 2024 2023 Cash flows provided by operating activities $ 436.5 $ 165.8 Cash flows used in investing activities (94.9) (93.3) Cash flows used in financing activities (255.6) (92.7) Effect of exchange rate changes on cash and cash equivalents 4.8 1.4 Net increase (decrease) in cash and cash equivalents and restricted cash $ 90.8 $ (18.8) Operating Activities.
The following table provides a summary of cash flows for fiscal 2025 and 2024 (in millions): 2025 2024 Cash flows provided by operating activities $ 249.2 $ 436.5 Cash flows used in investing activities (95.6) (94.9) Cash flows used in financing activities (196.4) (255.6) Effect of exchange rate changes on cash and cash equivalents 2.1 4.8 Net (decrease) increase in cash and cash equivalents and restricted cash $ (40.7) $ 90.8 Operating Activities.
Net sales. Fiscal 2024 net sales decreased $249.5 million, or 5.9%, as compared to fiscal 2023. Net sales are analyzed by management by geographic segment, which reflects our reportable segments, and by market sector. Management measures operational performance and allocates resources on a geographic segment basis. Our global business development strategy is based on our targeted market sectors.
Net sales. Fiscal 2025 net sales increased $72.2 million, or 1.8%, as compared to fiscal 2024. Net sales are analyzed by management by geographic segment, which reflects our reportable segments, and by market sector. Management measures operational performance and allocates resources on a geographic segment basis. Our global business development strategy is based on our targeted market sectors.
The decrease is primarily attributable to the timing of customer shipments and payments as well as the mix of customer payment terms. Days in contract assets for the three months ended September 28, 2024 decreased three days compared to the three months ended September 30, 2023.
The increase is primarily attributable to the timing of customer shipments and payments as well as the mix of customer payment terms. Days in contract assets for the three months ended September 27, 2025 increased three days compared to the three months ended September 28, 2024.
We borrowed $550.5 million and repaid $733.5 million of revolving borrowings ("revolving commitment") under the Credit Facility during fiscal 2024. As of September 28, 2024, we were in compliance with all financial covenants relating to the Credit Facility, which are generally consistent with those in the 2018 NPA discussed above.
We borrowed $477.0 million and repaid $487.0 million of revolving borrowings ("revolving commitment") under the Credit Facility during fiscal 2025. As of September 27, 2025, we were in compliance with all financial covenants relating to the Credit Facility, which are generally consistent with those in the 2018 NPA discussed above.
We have excluded from the above table the impact of approximately $19.6 million, as of September 28, 2024, related to unrecognized income tax benefits.
We have excluded from the above table the impact of approximately $19.1 million, as of September 27, 2025, related to unrecognized income tax benefits.
The following table presents selected consolidated financial data for the indicated fiscal years (dollars in millions, except per share data): 2024 2023 Net sales $ 3,960.8 $ 4,210.3 Cost of sales 3,582.3 3,815.8 Gross profit 378.5 394.6 Gross margin 9.6 % 9.4 % Operating income 167.7 195.8 Operating margin 4.2 % 4.7 % Other expense 38.2 34.8 Income tax expense 17.7 21.9 Net income 111.8 139.1 Diluted earnings per share $ 4.01 $ 4.95 Return on invested capital* 11.8 % 13.4 % Economic return* 3.6 % 4.4 % *Non-GAAP metric; refer to "Return on Invested Capital ("ROIC") and economic return" below and Exhibit 99.1 for more information.
The following table presents selected consolidated financial data for the indicated fiscal years (dollars in millions, except per share data): 2025 2024 Net sales $ 4,033.0 $ 3,960.8 Cost of sales 3,626.5 3,582.3 Gross profit 406.5 378.5 Gross margin 10.1 % 9.6 % Operating income 202.4 167.7 Operating margin 5.0 % 4.2 % Other expense 14.4 38.2 Income tax expense 15.1 17.7 Net income 172.9 111.8 Diluted earnings per share $ 6.26 $ 4.01 Return on invested capital* 14.6 % 11.8 % Economic return* 5.7 % 3.6 % *Non-GAAP metric; refer to "Return on Invested Capital ("ROIC") and economic return" below and Exhibit 99.1 for more information.
In fiscal 2024 and 2023, the holiday resulted in tax reductions, net of the impact of the GILTI provisions of the U.S. Tax Cuts and Jobs Act, of approximately $37.3 million ($1.36 per basic share, $1.34 per diluted share) and $25.9 million ($0.94 per basic share, $0.92 per diluted share), respectively.
In fiscal 2025 and 2024, the holiday resulted in tax reductions, net of the impact of the GILTI provisions of the U.S. Tax Cuts and Jobs Act, of approximately $43.1 million ($1.59 per basic share, $1.56 per diluted share) and $37.3 million ($1.36 per basic share, $1.34 per diluted share), respectively.
Operating income increased $11.8 million in fiscal 2024 as compared to fiscal 2023 primarily as a result of an increase in net sales and a positive shift in customer mix, partially offset by increased fixed costs and an increase in S&A. Other expense. Other expense for fiscal 2024 increased $3.4 million as compared to fiscal 2023.
Operating income decreased $9.7 million in fiscal 2025 as compared to fiscal 2024, primarily as a result of a decrease in net sales and an increase in S&A, partially offset by a decrease in fixed costs and a positive shift in customer mix. Other expense. Other expense for fiscal 2025 decreased $23.8 million as compared to fiscal 2024.
As of September 28, 2024, 88% of our cash and cash equivalents balance was held outside of the U.S. by our foreign subsidiaries.
As of September 27, 2025, 85% of our cash and cash equivalents balance was held outside of the U.S. by our foreign subsidiaries.
The maximum commitment under the Credit Facility may be further increased to $750.0 million, generally by mutual agreement of the lenders and us, subject to certain customary conditions. During fiscal 2024, the highest daily borrowing was $376.0 million; the average daily balance was $257.8 million.
The maximum commitment under the Credit Facility may be further increased to $750.0 million, generally by mutual 34 Table of Contents agreement of the lenders and us, subject to certain customary conditions. During fiscal 2025, the highest daily borrowing were $128.0 million; the average daily balance was $46.5 million.
Fiscal 2024 ROIC of 11.8% reflects an economic return of 3.6%, based on our weighted average cost of capital of 8.2%, and fiscal 2023 ROIC of 13.4% reflects an economic return of 4.4%, based on our weighted average cost of capital of 9.0%.
Fiscal 2025 ROIC of 14.6% reflects an economic return of 5.7%, based on our weighted average cost of capital of 8.9%, and fiscal 2024 ROIC of 11.8% reflects an economic return of 3.6%, based on our weighted average cost of capital of 8.2%.
Information in the following table provides a summary of our contractual obligations and commercial commitments as of September 28, 2024 (dollars in millions): Payments Due by Fiscal Year Contractual Obligations Total 2025 2026-2027 2028-2029 2030 and thereafter Debt Obligations (1) $ 212.5 $ 156.2 $ 4.2 $ 52.1 $ — Finance Lease Obligations 110.1 9.9 24.5 10.4 65.3 Operating Lease Obligations 53.2 16.1 15.3 8.2 13.6 Purchase Obligations (2) 1,144.1 1,080.7 61.0 1.3 1.1 Repatriation Tax on Undistributed Foreign Earnings (3) 31.3 14.1 17.2 — — Other Liabilities on the Balance Sheet (4) 22.6 3.9 3.6 2.0 13.1 Other Liabilities not on the Balance Sheet (5) 10.2 5.1 1.4 0.1 3.6 Total Contractual Cash Obligations $ 1,584.0 $ 1,286.0 $ 127.2 $ 74.1 $ 96.7 1) Debt obligations includes $150.0 million in principal amount of 2018 Notes and $50.0 million of borrowings on the revolving commitment of the Credit Facility, as well as interest. 2) Purchase obligations consist primarily of purchases of inventory and equipment in the ordinary course of business. 3) Repatriation tax on undistributed foreign earnings consists of U.S. federal income taxes on the deemed repatriation of undistributed foreign earnings due to U.S.
Information in the following table provides a summary of our contractual obligations and commercial commitments as of September 27, 2025 (dollars in millions): Payments Due by Fiscal Year Contractual Obligations Total 2026 2027-2028 2029-2030 2031 and thereafter Debt Obligations (1) $ 96.3 $ 42.1 $ 54.2 $ — $ — Finance Lease Obligations 107.7 8.4 24.1 10.9 64.3 Operating Lease Obligations 43.1 9.5 15.0 7.6 11.0 Purchase Obligations (2) 1,214.4 1,147.9 65.7 0.4 0.4 Repatriation Tax on Undistributed Foreign Earnings (3) 16.5 16.5 — — — Other Liabilities on the Balance Sheet (4) 19.7 2.1 3.2 0.7 13.7 Other Liabilities not on the Balance Sheet (5) 9.0 4.6 1.5 — 2.9 Total Contractual Cash Obligations $ 1,506.7 $ 1,231.1 $ 163.7 $ 19.6 $ 92.3 1) Debt obligations includes $50.0 million in principal amount of 2018 Notes and $40.0 million of borrowings on the revolving commitment of the Credit Facility, as well as interest. 2) Purchase obligations consist primarily of purchases of inventory and equipment in the ordinary course of business. 3) Repatriation tax on undistributed foreign earnings consists of U.S. federal income taxes on the deemed repatriation of undistributed foreign earnings due to U.S.
Operating income decreased $40.1 million in fiscal 2024 as compared to fiscal 2023, primarily as a result of a decrease in net sales and an increase in S&A, partially offset by a positive shift in customer mix and a decrease in fixed costs. APAC.
Operating income increased $24.5 million in fiscal 2025 as compared to fiscal 2024, primarily as a result of an increase in net sales and a positive shift in customer mix, partially offset by an increase in fixed costs and an increase in S&A. EMEA.
As of September 28, 2024, annualized cash cycle days decreased twenty-three days compared to September 30, 2023 due to the following: Days in accounts receivable for the three months ended September 28, 2024 decreased five days compared to the three months ended September 30, 2023.
As of September 27, 2025, annualized cash cycle days decreased one day compared to September 28, 2024 due to the following: Days in accounts receivable for the three months ended September 27, 2025 increased three days compared to the three months ended September 28, 2024.
The decrease is primarily attributable to a decrease in demand from customers with arrangements requiring revenue to be recognized over time as products are produced. Days in inventory for the three months ended September 28, 2024 decreased twenty-seven days compared to the three months ended September 30, 2023. The decrease is primarily due to inventory reduction efforts.
The increase is primarily attributable to a decrease in advanced payments from customers with arrangements requiring revenue to be recognized over time as products are produced. Days in inventory for the three months ended September 27, 2025 decreased nine days compared to the three months ended September 28, 2024.
The increase was driven by overall net increased customer end-market demand, an increase of $32.9 million in production ramps for new customers and $19.7 million in production ramps of new products for existing customers. The increase was partially offset by a decrease of $20.7 million due to disengagements with customers. Healthcare/Life Sciences .
The increase in net sales was driven by an increase of $112.8 million in production ramps of new products for existing customers. The increase was partially offset by a decrease of $25.9 million due to disengagements with customers and overall net decreased customer end-market demand. Industrial.
The 2018 Notes may be prepaid in whole or in part at any time, subject to payment of a make-whole amount; interest on the 2018 Notes is payable semiannually. As of September 28, 2024, we were in compliance with the covenants under the 2018 NPA.
As of September 27, 2025, $50.0 million of the 4.22% Series B Senior Notes were outstanding and we were in compliance with the covenants under the 2018 NPA. The remaining 4.22% Series B Senior Notes may be prepaid in whole or in part at any time, subject to payment of a make-whole amount; interest on the notes is payable semiannually.
Our net sales by market sector for the indicated fiscal years were as follows (in millions): 2024 2023 Net sales: Aerospace/Defense $ 698.5 $ 579.0 Healthcare/Life Sciences 1,554.8 1,874.8 Industrial 1,707.5 1,756.5 Total net sales $ 3,960.8 $ 4,210.3 Aerospace/Defense . Net sales for fiscal 2024 in the Aerospace/Defense sector increased $119.5 million, or 20.6%, as compared to fiscal 2023.
Our net sales by market sector for the indicated fiscal years were as follows (in millions): 2025 2024 Net sales: Aerospace/Defense $ 688.5 $ 698.5 Healthcare/Life Sciences 1,629.3 1,554.8 Industrial 1,715.2 1,707.5 Total net sales $ 4,033.0 $ 3,960.8 Aerospace/Defense . Net sales for fiscal 2025 in the Aerospace/Defense sector decreased $10.0 million, or 1.4%, as compared to fiscal 2024.
The decrease was partially offset by an increase of $20.0 million due to production ramps of new products for existing customers. EMEA. Net sales for fiscal 2024 in the EMEA segment increased $138.6 million, or 34.4%, as compared to fiscal 2023.
The decrease was partially offset by an increase of $71.4 million due to production ramps of new products for existing customers and an increase of $10.5 million due to production ramps for new customers. APAC. Net sales for fiscal 2025 in the APAC segment increased $179.6 million, or 8.1%, as compared to fiscal 2024.
The 2018 NPA includes customary operational and financial covenants with which we are required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio.
On June 15, 2025, we repaid, on maturity, $100.0 million in principal amount of our 4.05% Senior Notes. The 2018 NPA includes customary operational and financial covenants with which we are required to comply, including, among others, maintenance of certain financial ratios such as a total leverage ratio and a minimum interest coverage ratio.
Approximately 87% of these costs in both fiscal 2024 and 2023 were related to material and component costs. As compared to fiscal 2023, the decrease in cost of sales in fiscal 2024 was primarily driven by the decrease in net sales and a positive shift in customer mix, partially offset by an increase in fixed costs. Gross profit.
As compared to fiscal 2024, the increase in cost of sales in fiscal 2025 was primarily driven by an increase in net sales, partially offset by a positive shift in customer mix and a decrease in fixed costs resulting from progress on operational efficiency initiatives. Gross profit.
The increase in net sales was driven by an increase of $89.3 million due to production ramps for new customers, $22.6 million due to production ramps of new products for existing customers and overall net increased customer end-market demand.
The increase in net sales was driven by an increase of $103.1 million due to production ramps of new products for existing 28 Table of Contents customers and overall net increased customer end-market demand. The increase was partially offset by a decrease of $12.6 million due to disengagements with customers. EMEA.
Days in advanced payments for the three months ended September 28, 2024 decreased seven days compared to the three months ended September 30, 2023. The decrease was primarily attributable to a return of advanced payments to customers in line with lower inventory balances. Free Cash Flow.
The increase is primarily attributable to the timing of materials procurement and payments to suppliers. Days in advanced payments for the three months ended September 27, 2025 decreased thirteen days compared to the three months ended September 28, 2024. The decrease was primarily attributable to a return of advanced payments to customers in line with lower inventory balances.
We are required to pay a commitment fee on the daily unused credit facility based on our leverage ratio; the fee was 0.100% as of September 28, 2024. 35 Table of Contents The Credit Facility and the 2018 NPA allow for the future payment of cash dividends or the repurchase of shares provided that no event of default (including any failure to comply with a financial covenant) exists at the time of, or would be caused by, the dividend payment or the share repurchases.
The Credit Facility and the 2018 NPA allow for the future payment of cash dividends or the repurchase of shares provided that no event of default (including any failure to comply with a financial covenant) exists at the time of, or would be caused by, the dividend payment or the share repurchases.
A discussion of net sales by reportable segment is presented below for the indicated fiscal years (in millions): 2024 2023 Net sales: AMER $ 1,323.4 $ 1,558.2 APAC 2,213.1 2,358.4 EMEA 541.6 403.0 Elimination of inter-segment sales (117.3) (109.3) Total net sales $ 3,960.8 $ 4,210.3 AMER.
A discussion of net sales by reportable segment is presented below for the indicated fiscal years (in millions): 2025 2024 Net sales: AMER $ 1,216.3 $ 1,219.2 APAC 2,392.9 2,213.3 EMEA 440.0 538.1 Elimination of inter-segment sales (16.2) (9.8) Total net sales $ 4,033.0 $ 3,960.8 AMER.
We define free cash flow ("FCF"), a non-GAAP financial measure, as cash flow provided by operations less capital expenditures. FCF was $341.3 million for fiscal 2024 compared to $61.8 million for fiscal 2023, an increase of $279.5 million.
Free Cash Flow. We define free cash flow ("FCF"), a non-GAAP financial measure, as cash flows provided by operating activities less capital expenditures. FCF was $154.0 million for fiscal 2025 compared to $341.3 million for fiscal 2024, a decrease of $187.3 million.
Income tax expense for fiscal 2024 was $17.7 million compared to $21.9 million for fiscal 2023. The decrease is primarily due to a decrease in pre-tax book income and the geographic distribution of worldwide earnings.
Income tax expense for fiscal 2025 was $15.1 million compared to $17.7 million for fiscal 2024. The decrease was primarily due to an increase in discrete tax benefits and the geographic distribution of worldwide earnings, partially offset by an increase in pre-tax book income.
See also Note 6, "Income Taxes," in Notes to Consolidated Financial Statements for additional information regarding our tax rate. The annual effective tax rate for fiscal 2025 is expected to be approximately 14.0% to 16.0%. Net income. Net income for fiscal 2024 decreased $27.3 million, or 19.6%, from fiscal 2023 to $111.8 million.
See also Note 6, "Income Taxes," in Notes to Consolidated Financial Statements for additional information regarding our tax rate. The annual effective tax rate for fiscal 2026 is expected to be approximately 17.0% to 19.0% assuming no changes to tax laws. Net income. Net income for fiscal 2025 increased $61.1 million, or 54.7%, from fiscal 2024 to $172.9 million.
On August 18, 2022, the Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $50.0 million of our common stock (the "2023 Program").
The overall decrease in net repayments was partially offset by an increase of $9.6 million in cash used to repurchase our common stock. On August 18, 2022, the Board of Directors approved a share repurchase program under which we were authorized to repurchase up to $50.0 million of our common stock (the "2023 Program").
In particular, we provide ROIC and economic return because we believe they offer insight into the metrics that are driving management decisions. We view ROIC and economic return as important measures in evaluating the efficiency and effectiveness of our long-term capital investments.
We view ROIC and economic return as important measures in evaluating the efficiency and effectiveness of our long-term capital investments.
Gross profit for fiscal 2024 decreased $16.1 million, or 4.1%, as compared to fiscal 2023. Gross margin of 9.6% increased 20 basis points compared to fiscal 2023.
Gross profit for fiscal 2025 increased $28.0 million, or 7.4%, as compared to fiscal 2024. Gross margin of 10.1% increased 50 basis points compared to fiscal 2024.
Economic return is the amount our ROIC exceeds our WACC. 31 Table of Contents Non-GAAP financial measures, including ROIC and economic return, are used for internal management goals and decision making because such measures provide management and investors additional insight into financial performance.
Non-GAAP financial measures, including ROIC and economic return, are used for internal management goals and decision making because such measures provide management and investors additional insight into financial performance. In particular, we provide ROIC and economic return because we believe they offer insight into the metrics that are driving management decisions.
Net income decreased primarily as a result of the decrease in operating income and the increase in other expense, partially offset by the decrease in tax expense as previously discussed. Diluted earnings per share.
Net income increased primarily as a result of the increase in operating income, the decrease in other expense and the decrease in tax expense as previously discussed. Diluted earnings per share. Diluted earnings per share increased to $6.26 in fiscal 2025 from $4.01 in fiscal 2024, primarily as a result of increased net income due to the factors discussed above.
The decrease was partially offset by an increase of $68.8 million due to production ramps of new products for existing customers and $41.4 million due to production ramps for new customers. 29 Table of Contents APAC. Net sales for fiscal 2024 in the APAC segment decreased $145.3 million, or 6.2%, as compared to fiscal 2023.
The decrease was partially offset by an increase of $44.4 million due to production ramps of new products for existing customers. Healthcare/Life Sciences . Net sales for fiscal 2025 in the Healthcare/Life Sciences sector increased $74.5 million, or 4.8%, as compared to fiscal 2024.
The increase in other expense for fiscal 2024 was primarily driven by a decrease in other miscellaneous income of $4.9 million as prior year insurance recoveries did not recur and an increase in foreign exchange losses of $1.6 million, partially offset by a decrease in interest expense of $2.7 million due to lower borrowings on our credit facility. Income taxes.
The decrease in other expense for fiscal 2025 was primarily driven by a decrease in interest expense of $17.3 million due to lower borrowings on our credit facility, a decrease of $3.2 million in factoring fees and a decrease in foreign exchange losses of $3.2 million. Income taxes.
Operating income decreased $0.3 million in fiscal 2024 as compared to fiscal 2023, primarily as a result of a decrease in net sales, partially offset by a positive shift in customer mix. EMEA.
Operating income increased $16.8 million in fiscal 2025 as compared to fiscal 2024, primarily as a result of a decrease in fixed costs resulting from progress on operational efficiency initiatives and a positive shift in customer mix, partially offset by a decrease in net sales. APAC.
Net sales for fiscal 2024 in the Industrial sector decreased $49.0 million, or 2.8%, as compared to fiscal 2023. The decrease in net sales was driven by overall net decreased customer end-market demand as well as a reductions in inflated component pricing.
Net sales for fiscal 2025 in the EMEA segment decreased $98.1 million, or 18.2%, as compared to fiscal 2024. The decrease in net sales was driven by overall net decreased customer end-market demand and a decrease of $21.0 million due to disengagements with customers.
We utilized available cash and financing cash flows as the sources for funding our operating requirements during fiscal 2024. We currently estimate capital expenditures for fiscal 2025 will be approximately $120.0 million to $150.0 million to support new program ramps and replace older equipment.
We currently estimate capital expenditures for fiscal 2026 will be approximately $90.0 million to $110.0 million to support new program ramps and replace older equipment. Financing Activities. Cash flows used in financing activities were $196.4 million for fiscal 2025 compared to $255.6 million for fiscal 2024.
Cost of sales for fiscal 2024 decreased $233.5 million, or 6.1%, as compared to fiscal 2023. Cost of sales is comprised primarily of material and component costs, labor costs and overhead. In both fiscal 2024 and 2023, approximately 89% of the total cost of sales was variable in nature and fluctuated with sales volumes.
In both fiscal 2025 and 2024, approximately 89% of the total cost of sales was variable in nature and fluctuated with sales volumes. Approximately 87% of these costs were related to material and component costs.
Our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect.
From life-saving medical devices and mission-critical aerospace and defense products to industrial automation systems and semiconductor capital equipment, our innovative solutions across the lifecycle of a product converge where advanced technology and human impact intersect.
The primary drivers of the decrease in operating income and operating margin as compared to fiscal 2023 was the result of the decrease in gross profit and an increase of $14.9 million in S&A, partially offset by a decrease of $2.8 million in restructuring and other charges.
Operating margin of 5.0% increased 80 basis points compared to fiscal 2024. The primary drivers of the increase in operating income and operating margin as compared to fiscal 2024 were the increase in gross profit and gross margin as well as a decrease of $15.6 million in restructuring and other charges.
A discussion of operating income by reportable segment for the indicated fiscal years is presented below (in millions): 2024 2023 Operating income: AMER $ 39.6 $ 79.7 APAC 289.3 289.6 EMEA 13.4 1.6 Corporate and other costs (174.6) (175.1) Total operating income $ 167.7 $ 195.8 AMER.
The increase in S&A was primarily due to an increase in compensation costs. 29 Table of Contents A discussion of operating income by reportable segment for the indicated fiscal years is presented below (in millions): 2025 2024 Operating income: AMER $ 100.5 $ 83.7 APAC 337.7 313.2 EMEA 21.3 31.0 Corporate and other costs (257.1) (260.2) Total operating income $ 202.4 $ 167.7 AMER.
Net sales for fiscal 2024 in the AMER segment decreased $234.8 million, or 15.1%, as compared to fiscal 2023. The decrease in net sales was driven by overall net decreased customer end-market demand, inclusive of market-driven inventory corrections at our customers, as well as reductions in inflated component pricing.
Net sales for fiscal 2025 in the AMER segment decreased $2.9 million, or 0.2%, as compared to fiscal 2024. The decrease in net sales was driven by overall net decreased customer end-market demand, a decrease of $54.1 million due to disengagements with customers and a decrease of $13.9 million due to the discontinuation of a program with an existing customer.
The decrease was further driven by a decrease of $38.7 million due to disengagements with customers and $35.9 million due to the discontinuation of programs with existing customers.
The decrease in net sales was driven by a decrease of $23.6 million due to disengagements with customers, a decrease of $13.9 million due to the discontinuation of a program with an existing customer and overall net decreased customer end-market demand.
The increase was primarily attributable to net repayments on the credit facility in fiscal 2024 of $183.0 million compared to net repayments on the credit facility in 2023 of $30.0 million as well as an increase of $14.7 million in cash used to repurchase our common stock.
The decrease was primarily attributable to the overall decrease in net repayments consisting of net repayments on the credit facility of $10.0 million in fiscal 2025 compared to $183.0 million fiscal 2024 as well as repayment, on maturity, of $100.0 million in principal amount of our 4.05% Senior Notes.
Net sales for fiscal 2024 in the Healthcare/Life Sciences sector decreased $320.0 million, or 17.1%, as compared to fiscal 2023. The decrease in net sales was driven by overall net decreased customer end-market demand, inclusive of market-driven inventory corrections at our customers, as well as a reduction in inflated component pricing.
Net sales for fiscal 2025 in the Industrial sector increased $7.7 million, or 0.5%, as compared to fiscal 2024. The increase in net sales was driven by overall net increased customer end-market demand, an increase of $15.1 million in production ramps of new products for existing customers and an increase of $10.5 million due to production ramps for new customers.
The primary drivers of the decrease in gross profit as compared to fiscal 2023 were a decrease in net sales and an increase in fixed costs to support new customer program ramps, partially offset by a positive shift in customer mix, which drove the increase in gross margin. Operating income.
The primary drivers of the increase in gross profit and gross margin as compared to fiscal 2024 were a positive shift in customer mix as well as lower costs resulting from operational efficiencies and prior restructuring activities. Operating income. Operating income for fiscal 2025 increased $34.7 million, or 20.7%, as compared to fiscal 2024.
The 2025 Program commenced upon completion of the 2024 Program, and has no expiration. During fiscal 2024, we purchased 151 shares under this program for less than $0.1 million at an average price of $131.78 per share. As of September 28, 2024, $49.9 million of authority remained under the 2025 Program.
During fiscal 2025, we repurchased 112,601 shares under this program for $15.0 million at an average price of $132.94 per share. As of September 27, 2025, $85.0 million of authority remained under the 2026 Program. All shares repurchased under the aforementioned programs were recorded as treasury stock.
The restructuring and other charges for fiscal 2023 consisted of severance from the reduction of the Company's workforce, a lease agreement termination and an arbitration decision regarding a contractual matter that occurred in the Company's EMEA region.
The restructuring and other charges for fiscal 2025 primarily consisted of severance costs associated with a reduction in our workforce in the EMEA and AMER regions.
The decrease was further driven by a decrease of $45.9 million due to the discontinuation of programs with existing customers and $24.1 million due to disengagements with customers. The decrease was partially offset by an increase of $83.3 million in production ramps for a new customer. Cost of sales.
The increase was partially offset by a decrease of $38.9 million due to disengagements with customers. Cost of sales. Cost of sales for fiscal 2025 increased $44.2 million, or 1.2%, as compared to fiscal 2024. Cost of sales is comprised primarily of material and component costs, labor costs and overhead.
As a percentage of consolidated net sales, net sales attributable to customers representing 10.0% or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for the indicated fiscal years were as follows: 2024 2023 GE Healthcare Technologies, Inc.
As a percentage of consolidated net sales, no customer accounted for over 10.0% or more of consolidated net sales in fiscal 2025 or 2024. Our 10 largest customers accounted for 49.1% and 47.8% of our net sales in fiscal 2025 and 2024, respectively.
Days in accounts payable for the three months ended September 28, 2024 decreased five days compared to the three months ended September 30, 2023. The decrease is primarily attributable to timing of materials procurement and payments to suppliers.
The decrease is primarily due to inventory reduction efforts as well as lower working capital investments to support our customers. These efforts include improved materials management and timely disposition of aged inventory. Days in accounts payable for the three months ended September 27, 2025 increased eleven days compared to the three months ended September 28, 2024.
Cash flows provided by operating activities were $436.5 million for fiscal 2024, as compared to $165.8 million for fiscal 2023.
Cash flows provided by operating activities were $249.2 million for fiscal 2025, as compared to $436.5 million for fiscal 2024. The decrease was primarily due to cash flow improvements (reductions) of: • $61.1 million increase in net income. • $(177.4) million in inventory cash flows driven by a smaller decrease in inventory in fiscal 2025 as compared to fiscal 2024.
Cash flows used in investing activities were $94.9 million for fiscal 2024 compared to $93.3 million for fiscal 2023. The increase in cash used in investing activities was due to $10.8 million from insurance proceeds in fiscal 2023, partially offset by an $8.9 million decrease in capital expenditures.
Cash flows used in investing activities were $95.6 million for fiscal 2025 compared to $94.9 million for fiscal 2024. The increase in cash used in investing activities was due to a $0.6 million increase in other investing outflows. We utilized available cash and financing cash flows as the sources for funding our operating requirements during fiscal 2025.
Currently, we believe that our cash balance, together with cash available under our Credit Facility, will be sufficient to meet our liquidity needs and potential share repurchases, if any, for the next twelve months and for the foreseeable future.
Based on current expectations, we believe that our projected cash flows provided by operations, available cash and cash equivalents, potential borrowings under the Credit Facility, and our leasing capabilities should be sufficient to meet our working capital and fixed capital requirements, as well as execute our share repurchase authorization as management deems appropriate, for the next twelve months.
Removed
Market Pressures Update We have experienced market-driven inventory corrections and incrementally weaker demand from our customers in our Healthcare/Lifesciences and Industrial market sectors. While we are starting to see improvements, if market softness continues for extended periods, this would impact our operating results in future periods.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeOur percentages of transactions denominated in currencies other than the U.S. dollar for the indicated fiscal years were as follows: 2024 2023 Net Sales 11% 8% Total Costs 17% 16% We have evaluated the potential foreign currency exchange rate risk on transactions denominated in currencies other than the U.S. dollar for the periods presented above.
Biggest changeOur percentages of transactions denominated in currencies other than the U.S. dollar for the indicated fiscal years were as follows: 2025 2024 Net Sales 10% 11% Total Costs 17% 17% We have evaluated the potential foreign currency exchange rate risk on transactions denominated in currencies other than the U.S. dollar for the periods presented above.
Based on our overall currency exposure, as of September 28, 2024, a 10.0% change in the value of the U.S. dollar relative to our other transactional currencies would not have a material effect on our financial position, results of operations, or cash flows.
Based on our overall currency exposure, as of September 27, 2025, a 10.0% change in the value of the U.S. dollar relative to our other transactional currencies would not have a material effect on our financial position, results of operations, or cash flows.
As of September 28, 2024, the borrowing rate under the Credit Facility was SOFR plus 1.00%. Borrowings under the 2018 NPA are based on a fixed interest rate, thus mitigating much of our interest rate risk.
As of September 27, 2025, the borrowing rate under the Credit Facility was SOFR plus 1.00%. Borrowings under the 2018 NPA are based on a fixed interest rate, thus mitigating much of our interest rate risk.
Based on our overall interest rate exposure, as of September 28, 2024, a 10.0% change in interest rates would not have a material effect on our financial position, results of operations, or cash flows. 39 Table of Contents
Based on our overall interest rate exposure, as of September 27, 2025, a 10.0% change in interest rates would not have a material effect on our financial position, results of operations, or cash flows. 38 Table of Contents
As of September 28, 2024, our only material interest rate risk was associated with our Credit Facility.
As of September 27, 2025, our only material interest rate risk was associated with our Credit Facility.

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