Financial Analysis

"Benefit Plans Share-based Compensation Plans: During fiscal 2024, the Companys shareholders approved the Plexus Corp. 2024 Omnibus Incentive Plan (the 2024 Plan). The 2024 Plan is a stock and cash-based incentive plan, and includes provisions by which the Company may grant executive officers, employees and directors stock options, stock appreciation rights (""SARs""), restricted stock (including restricted stock units (""RSUs""), performance stock awards (including performance stock units (""PSUs""), other stock awards and cash incentive awards. Similar awards were offered under its predecessor, the Plexus Corp. 2016 Omnibus Incentive Plan (the ""2016 Plan""), which is no longer being used for grants of new awards; however, outstanding awards granted under the 2016 Plan and its predecessors continue until vesting, exercise, forfeiture or expiration. The maximum number of shares of Plexus common stock that may be issued pursuant to the 2024 Plan is 0.8 million shares. The Compensation and Leadership Development Committee (the ""Committee"") of the Board of Directors may establish a term and vesting period for awards under the 2024 Plan as well as accelerate the vesting of such awards. RSUs granted to executive officers, other officers and key employees generally vest on the 3 year anniversary of the grant date (assuming continued employment), which is also the date as of which the underlying shares will be issued. PSUs are payable in shares of the Company's common stock and h …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"Debt, Finance Lease and Other Financing Obligations Debt and finance lease obligations as of September 27, 2025 and September 28, 2024, consisted of the following (in thousands): 2025 2024 4.05% Senior Notes, due June 15, 2025 $ $ 100,000 4.22% Senior Notes, due June 15, 2028 50,000 50,000 Borrowings under the Credit Facility 40,000 50,000 Finance lease and other financing obligations 48,274 48,142 Unamortized deferred financing fees (494) (824) Total obligations 137,780 247,318 Less: current portion (45,793) (157,325) Long-term debt, finance lease and other financing obligations, net of current portion $ 91,987 $ 89,993 On June 15, 2018, the Company entered into a Note Purchase Agreement (the 2018 NPA) pursuant to which it 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. On June 15, 2025, the Company repaid, on maturity, $100.0 million in principal amount of its 4.05% Series A Senior Notes. The 2018 NPA includes customary operational and financial covenants with which the Company is required to comply, including, among others, maintenance of certain financial ratios such as total leverage ratio and a minimum interest coverage ratio. As of September 27, 2025, $50.0 million of the 4.22% Series B …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The table below includes the Companys revenue for the fiscal years indicated disaggregated by market sector (in thousands): 2025 2024 2023 Net Sales Aerospace/Defense $ 688,484 $ 698,434 $ 579,006 Healthcare/Life Sciences 1,629,286 1,554,816 1,874,774 Industrial 1,715,196 1,707,577 1,756,525 Total net sales $ 4,032,966 $ 3,960,827 $ 4,210,305 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Income Taxes The domestic and foreign components of income (loss) before income tax expense for fiscal 2025, 2024 and 2023 were as follows (in thousands): 2025 2024 2023 U.S. $ (83,155) $ (114,757) $ (84,557) Foreign 271,173 244,289 245,570 $ 188,018 $ 129,532 $ 161,013 Income tax expense (benefit) for fiscal 2025, 2024 and 2023 were as follows (in thousands): 2025 2024 2023 Current: Federal $ 886 $ 2,849 $ 24,779 State 589 (26) 302 Foreign 29,958 21,993 19,276 31,433 24,816 44,357 Deferred: Federal (11,680) (9,343) (21,098) State (4,529) (1,045) (1,371) Foreign (91) 3,289 31 (16,300) (7,099) (22,438) $ 15,133 $ 17,717 $ 21,919 The following is a reconciliation of the federal statutory income tax rate to the effective income tax rates reflected in the Consolidated Statements of Comprehensive Income for fiscal 2025, 2024 and 2023: 2025 2024 2023 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % (Decrease) increase resulting from: Foreign tax rate differences (20.7) (30.0) (23.8) Withholding tax on dividends 3.2 6.2 1.2 Permanent differences (0.1) (1.7) (1.3) Excess tax benefits related to share-based compensation (2.1) (0.8) (1.1) Global intangible low-taxed income (""GILTI"") 4.8 12.8 13.1 Audit settlements (0.2) Non-deductible compensation 3.2 3.9 2.8 Valuation allowances 1.5 2.0 3.5 Tax credits, net (2.2) (1.8) (2.1) Other, net (0.6) 2.3 0.3 Effective income tax rate 8.0 % 13.7 % 13.6 % The effective tax rate for fiscal 2025 was lower than the effective tax rate for f …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Litigation The Company is party to lawsuits in the ordinary course of business. We record provisions in the consolidated financial statements for pending legal matters when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. Refer to Note 16, ""Restructuring and Non-recurring Charges,"" for information regarding total charges and insurance proceeds related to a contractual matter concluded in May 2023. The Company does not expect further charges relating to this matter. Management does not believe that any other such proceedings, individually or in the aggregate, will have a material positive or adverse effect on the Companys consolidated financial position, results of operations or cash flows. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial fines, civil or criminal penalties, and other expenditures."

LegalMattersAndContingenciesTextBlock

Recently Adopted Accounting Pronouncements: In September 2022, the FASB issued ASU 2022-04 Supplier Finance Programs (Subtopic 405-50), which requires enhanced disclosures about supplier finance programs. The Company adopted this guidance during the first quarter of fiscal 2024 with no material impact to the Company's Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280), which requires enhanced disclosures for segment reporting. The Company adopted this guidance during the fourth quarter of fiscal 2025. Recently Issued Accounting Pronouncements Not Yet Adopted: In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740), which requires enhanced disclosures for income taxes. The guidance is effective for the Company beginning in the first quarter of fiscal 2026. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. In March 2024, the SEC adopted final rules to require registrants to disclose certain climate-related information in registration statements and annual reports. The SEC stayed its climate disclosure rules to facilitate the orderly judicial resolution of pending legal challenges. We are currently evaluating the impacts that the SEC's rule will have on our financial statement disclosures. In November 2024, the FASB issued ASU 2024-03 Disaggregation of Income Statement Expense (Subtopic 220-40), which requires di …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Restructuring and Non-recurring Charges Restructuring and non-recurring charges are recorded within restructuring and other charges on the Consolidated Statements of Comprehensive Income. Restructuring liabilities are primarily recorded within other accrued liabilities on the Consolidated Balance Sheets. During fiscal 2025, the Company incurred restructuring and other charges of $4.7 million, which primarily consisted of severance costs associated with a reduction of the Company's workforce in the EMEA and AMER regions. During fiscal 2024, the Company incurred restructuring and other charges of $20.3 million, which consisted of severance from the reduction of the Company's workforce and associated site closure costs in the AMER region and EMEA region. During fiscal 2023, the Company incurred restructuring and other charges of $8.9 million, which consisted of severance from the reduction of the Company's workforce and a lease agreement termination. Additionally during fiscal 2023, the Company incurred a one-time non-recurring charge of $14.2 million relating to an arbitration decision in Norway regarding a contractual matter. During fiscal 2024, the Company received $2.3 million of insurance proceeds related to this decision. The company no longer provides services for this customer. The Company recognized a tax benefit of $0.5 million, $2.1 million and $1.9 million related to restructuring and other charges in fiscal 2025, 2024 and 2023, respectively. The Company's restructur …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers Revenue is recognized over time for arrangements with customers for which: (i) the Company's performance does not create an asset with an alternative use to the Company, and (ii) the Company has an enforceable right to payment, including reasonable profit margin, for performance completed to date. Revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin. If either of the two conditions noted above are not met to recognize revenue over time, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement. The Company recognizes revenue when a contract exists and when, or as, it satisfies a performance obligation by transferring control of a product or service to a customer. Contracts are accounted for when they have approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company generally enters into a master services arrangement that establishes the framework under which business will be conducted. These arrangements represent the master terms and conditions of the Company's services that apply to individual ord …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Reportable Segments, Geographic Information and Major Customers Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM) in assessing performance and allocating resources. The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Companys resources on a regional basis. Net sales for the segments are attributed to the region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segments performance is evaluated based upon its segment income. Segment income includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring costs and other charges, if any. Inter-segment transactions are generally recorded at amounts that approximate arms length transactions. The accounting policies for the segments are the same as for the Company taken as a whole. The CODM for the Company is the chief executive officer. The CODM uses income generated from each segment in evaluating segment performance and whether to reinv …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Shareholders' Equity On August 18, 2022, 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 ""2023 Program""). During fiscal 2024 and 2023, the Company completed the 2023 Program by repurchasing 59,277 and 425,746 shares under this program for $5.7 million and $40.9 million at an average price of $95.59 and $95.96 per share, respectively. On January 16, 2024, the Company announced a share repurchase program authorized by the Board of Directors under which the Company is authorized to repurchase up to $50.0 million of its common stock (the ""2024 Program""). The 2024 Program became effective upon completion of the 2023 Program. During fiscal 2024, the Company 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 the Company is authorized to repurchase up to $50.0 million of its common stock (the ""2025 Program""). The 2025 Program became effective upon completion of the 2024 Program. During fiscal 2025, the Company completed the 2025 program by repurchasing 362,325 shares under this program for $50.0 million at an average price of $138.00 per share. The fiscal 2025 purchased amounts exclude excise tax on share repurchases of $0.4 million. On May 14, 2025, the Board of Directors approved a share repurch …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Share-Based CompensationThe Company recognized $7.8 million and $7.0 million of compensation expense associated with share-based awards for the three months ended January3, 2026 and December28, 2024, respectively. …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"Debt, Finance Lease and Other Financing Obligations Debt and finance lease obligations as of January 3, 2026 and September 27, 2025, consisted of the following (in thousands): January 3, 2026 September 27, 2025 4.22% Senior Notes, due June 15, 2028 $ 50,000 $ 50,000 Borrowings under the Credit Facility 60,000 40,000 Finance lease and other financing obligations 48,400 48,274 Unamortized deferred financing fees (424) (494) Total obligations 157,976 137,780 Less: current portion (66,837) (45,793) Long-term debt, finance lease and other financing obligations, net of current portion $ 91,139 $ 91,987 As of January 3, 2026, the Company was in compliance with covenants for all debt agreements. During the three months ended January 3, 2026, the highest daily borrowing under the Company's 5-year senior unsecured revolving credit facility (referred to as the ""Credit Facility"") was $145.0 million; the average daily borrowings were $86.4 million. During the three months ended December 28, 2024, the highest daily borrowing was $50.0 million; the average daily borrowings were $40.0 million. The fair value of the Companys debt, excluding finance lease and other financing obligations, wa s $109.3 million and $89.0 million as of January 3, 2026 and September 27, 2025, respectively. The carrying value of the Company's debt, excluding finance lease and other financing obligations, was $110.0 million and $90.0 million as of January 3, 2026 and September 27, 2025, respectively. If measured at …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The table below includes the Companys revenue for the three months ended January 3, 2026 and December 28, 2024 (in thousands): Three Months Ended January 3, 2026 December 28, 2024 Net sales: Aerospace/Defense $ 177,931 $ 159,730 Healthcare/Life Sciences 466,027 374,089 Industrial 425,894 442,303 Total net sales $ 1,069,852 $ 976,122 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Income Taxes Income tax expense for the three months ended January 3, 2026 was $9.9 million compared to $6.2 million for the three months ended December 28, 2024. The effective tax rates for the three months ended January 3, 2026 and December 28, 2024 were 19.3% and 14.3%, respectively. The effective tax rate for the three months ended January 3, 2026 was higher than the effective tax rate for the three months ended December 28, 2024 primarily due to the implementation of the global minimum tax across several jurisdictions in which the Company operates. The amount of unrecognized tax benefits recorded for uncertain tax positions increased by $0.1 million for the three months ended January 3, 2026. The Company recognizes accrued interest and penalties on uncertain tax positions as a component of income tax expense. The amount of interest and penalties recorded for the three months ended January 3, 2026 was $0.3 million. Within the next 12 months, it is reasonably possible that federal, state and foreign tax audit resolutions could reduce unrecognized tax benefits by approximately $3.8 million, either because the Companys tax positions are sustained on audit, the Company agrees to their disallowance or the statute of limitations closes. The Company maintains valuation allowances when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. During the three months ended January 3, 2026, the Company continued to record a full valuation al …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Litigation The Company is party to lawsuits in the ordinary course of business. We record provisions in the consolidated financial statements for pending legal matters when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. Management does not believe that any such proceedings, individually or in the aggregate, will have a material positive or adverse effect on the Companys consolidated financial position, results of operations or cash flows. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial fines, civil or criminal penalties, and other expenditures. …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements Not Yet Adopted: In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2023-09 Income Taxes (Topic 740), which requires enhanced disclosures for income taxes. Early adoption is permitted. The Company intends to adopt the guidance when it becomes effective in the fourth quarter of fiscal 2026. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. In November 2024, the FASB issued ASU 2024-03 Disaggregation of Income Statement Expense (Subtopic 220-40), which requires disaggregated information about certain income statement expense line items. The guidance is effective for the Company beginning in fiscal 2028. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which removes references to project stages, and requires capitalization of software costs to begin when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the intended function. The guidance is effective for fiscal years beginning after December 15, 2027, and …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue from Contracts with Customers Revenue is recognized over time for arrangements with customers for which: (i) the Company's performance does not create an asset with an alternative use to the Company, and (ii) the Company has an enforceable right to payment, including reasonable profit margin, for performance completed to date. Revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin. If either of the two conditions noted above are not met to recognize revenue over time, revenue is recognized following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement. The Company recognizes revenue when a contract exists and when, or as, it satisfies a performance obligation by transferring control of a product or service to a customer. Contracts are accounted for when they have approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The Company generally enters into a master services arrangement that establishes the framework under which business will be conducted. These arrangements represent the master terms and conditions of the Company's services that apply to individual ord …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Reportable Segments Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM) in assessing performance and allocating resources. The Company uses an internal management reporting system, which provides important financial data to evaluate performance and allocate the Companys resources on a regional basis. Net sales for the segments are attributed to the region in which the product is manufactured or the service is performed. The services provided, manufacturing processes used, class of customers serviced and order fulfillment processes used are similar and generally interchangeable across the segments. A segments performance is evaluated based upon its segment income. Segment income includes its net sales less cost of sales and selling and administrative expenses, but excludes corporate and other expenses. Corporate and other expenses primarily represent corporate selling and administrative expenses, and restructuring costs and other charges, if any. Inter-segment transactions are generally recorded at amounts that approximate arms length transactions. The accounting policies for the segments are the same as for the Company taken as a whole. The CODM for the Company is the chief executive officer. The CODM uses income generated from each segment in evaluating segment performance and whether to reinvest profits or allocate resources into the co …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Shareholders' Equity On August 14, 2024, the Board of Directors approved a share repurchase program under which the Company was authorized to repurchase up to $50.0 million of its common stock (the ""2025 Program""). The 2025 Program became effective upon completion of the 2024 Program and was completed in fiscal 2025. During the three months ended December 28, 2024, the Company repurchased 84,823 shares under this program for $12.8 million at an average price of $151.19 per share. 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. During the three months ended January 3, 2026, the Company repurchased 152,987 shares under this program for $22.4 million at an average price of $146.36 per share. As of January 3, 2026, $62.6 million of authority remained under the 2026 Program. All shares repurchased under the aforementioned programs were recorded as treasury stock."

StockholdersEquityNoteDisclosureTextBlock