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Earnings Call Summary | Plexus(PLXS.US) Q2 2024 Earnings Conference

Futu News ·  Apr 27 21:00  · Conference Call

The following is a summary of the Plexus Corp. (PLXS) Q2 2024 Earnings Call Transcript:

Financial Performance:

  • Plexus Corp. reported Q2 revenue of $967 million and non-GAAP EPS of $0.94.

  • The company generated $65 million of free cash flow in Q2, aided by improvements in gross inventory and reduced capital spending.

  • Their gross margin stood at 9.1% in Q2 due to improvements in fixed cost leverage and productivity.

  • Plexus Corp expects to achieve a 5.5% GAAP operating margin by fiscal 2025.

  • It expects to generate similar quantities of free cash flow in Q3 and Q4 while returning to a normalized free cash flow by 2025.

Business Progress:

  • In Q2, Plexus Corp. achieved $255 million in new program wins and expects robust demand in Q3 from the aerospace and defense market sector.

  • The company is embedding sustainable business practices by participating in the United Nations Global Compact and is a finalist for Glasgow's Net Zero Hero Award.

  • The company anticipates a strong finish for the current fiscal year and increased momentum leading into FY '25.

  • Plexus is leveraging advanced AI and ML practices in manufacturing to hasten product innovation.

  • A trend towards outsourcing amongst their clients, along with their profitability driven by program ramps in the healthcare sector and not market recovery, offers promising prospects for the future.

More details: Plexus IR

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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