Q4 2024 Plexus Corp Earnings Call Transcript
Key Points
- Plexus Corp (PLXS) achieved a non-GAAP operating margin of 6.2%, meeting their long-term goal a year earlier than expected.
- The company generated record free cash flow of $194 million in the quarter, contributing to a fiscal 2024 total of $341 million, more than doubling their previous record.
- Plexus Corp (PLXS) reported revenue of $1.05 billion, exceeding their guidance range due to stronger demand across multiple market sectors.
- The company won 26 manufacturing programs worth $230 million in annual revenue, with significant contributions from the healthcare and life sciences sector.
- Plexus Corp (PLXS) reduced waste to landfill by over 10% globally and decreased scope one and two emissions by over 5% across their manufacturing sites.
- Revenue growth is expected to pause in the fiscal first quarter of 2025 due to a challenging demand environment and the impact of pull-ins from the previous quarter.
- The aerospace and defense sector is facing uncertainty due to the unresolved Boeing strike, which could impact growth projections.
- The healthcare and life sciences sector experienced a 17% revenue decline in fiscal 2024 due to inventory corrections and demand softness.
- The industrial sector saw a 3% revenue decline in fiscal 2024, with ongoing demand weakness in various subsectors.
- Plexus Corp (PLXS) anticipates a sequential increase in cash cycle days in the fiscal first quarter of 2025, primarily due to the return of advanced payments and higher working capital investments.
You're standing by. My name is Bailey and I will be your conference operator today. At this time, I would like to welcome everyone to the Plexus fiscal fourth quarter, 2024 earnings conference call.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press star and one I would now like to turn the call over to Shawn Harrison, Vice President of Investor relations. You may begin
Good morning and thank you for joining us today. Some of the statements made and information provided during our call today will be forward-looking statements including without limitation, those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense taxes, cash cycle capital allocation and future business outlook.
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