PLEXUS CORP

Cash and cash equivalents and restricted cash were $314.6 million as of July 4, 2026, as compared to $306.8 million as of September 27, 2025.

As of July 4, 2026, 95% of our cash and cash equivalents balance was held outside of the U.S. by our foreign subsidiaries. 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.

Cash Flows. The following table provides a summary of cash flows (in millions):

Operating Activities. Cash flows provided by operating activities were $39.0 million for the nine months ended July 4, 2026, as compared to cash flows provided by operating activities of $117.2 million for the nine months ended June 28, 2025. The decrease was primarily due to cash flow improvements (reductions) of:

•$12.5 million increase in net income.

•$(297.5) million in inventory cash flows driven by an increase in inventory associated with ramping programs in the nine months ended July 4, 2026 compared to a decrease in inventory driven by inventory reduction efforts in the nine months ended June 28, 2025.

•$(102.9) million in accounts receivable cash flows driven by an increase in net sales as well as the timing of shipments and mix of customer payment terms.

•$(46.6) million in other current and non-current asset cash flows primarily driven by an increase in prepaid amounts owed to us by governmental entities for taxes and other governmental obligations in the nine months ended July 4, 2026 as compared to the nine months ended June 28, 2025 as well as an increase in prepayments to suppliers in the nine months ended July 4, 2026 as compared to a decrease in the nine months ended June 28, 2025.

•$(19.2) million in contract assets cash flows corresponding to changes in demand from over time customers.

•$182.5 million in accounts payables cash flows primarily driven by the timing of materials procurement and payments to suppliers.

•$145.7 million in advanced payments from customers cash flows as prior year had a significant outflow of deposit returns due to inventory management efforts.

•$16.4 million in other current and non-current liabilities cash flows primarily driven by an increase in other miscellaneous payables for the nine months ended July 4, 2026 as compared to a decrease in the nine months ended June 28, 2025 due to the timing of bank deposits and factoring.

•$14.4 million in stock based compensation expense primarily driven by stock accelerations from previously announced executive retirement agreements in the nine months ended July 4, 2026.

•$9.4 million in accrued income taxes payable driven by an increase in deferred income tax benefit in the nine months ended July 4, 2026 compared to the nine months ended June 28, 2025.

•$8.2 million in other, net primarily driven by lower payments for operating leases in the nine months ended July 4, 2026 compared to the nine months ended June 28, 2025.

The following table provides a summary of cash cycle days for the periods indicated (in days):

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 calculate days in inventory, accounts payable and advanced payments as each balance sheet line item for the respective quarter divided by annualized cost of sales for the respective quarter by day. We calculate annualized cash cycle as the sum of days in accounts receivable, days in contract assets and days in inventory, less days in accounts payable and days in advanced payments.

As of July 4, 2026, annualized cash cycle days decreased seven days compared to June 28, 2025 due to the following:

Days in accounts receivable for the three months ended July 4, 2026 decreased three days compared to the three months ended June 28, 2025. 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 July 4, 2026 remained flat compared to the three months ended June 28, 2025.

Days in inventory for the three months ended July 4, 2026 decreased twelve days compared to the three months ended June 28, 2025. The decrease is primarily attributable to increased net sales and continued inventory management efforts.

Days in accounts payable for the three months ended July 4, 2026 increased four days compared to the three months ended June 28, 2025. The increase is primarily attributable to timing of materials procurement and payments to suppliers.

Days in advanced payments for the three months ended July 4, 2026 decreased twelve days compared to the three months ended June 28, 2025. The decrease was primarily attributable to a return of advanced payments to customers due to continued inventory management efforts.

Free Cash Flow. We define free cash flow ("FCF"), a non-GAAP financial measure, as cash flow generated or used in operations less capital expenditures. FCF was $(35.3) million for the nine months ended July 4, 2026 compared to $56.8 million for the nine months ended June 28, 2025, a decrease of $92.1 million.

Non-GAAP financial measures, including FCF, are used for internal management assessments because such measures provide additional insight to investors into ongoing financial performance. In particular, we provide FCF because we believe it offers insight into the metrics that are driving management decisions. We view FCF as an important financial metric as it demonstrates our ability to generate cash and can allow us to pursue opportunities that enhance shareholder value. 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.

A reconciliation of FCF to our financial statements that were prepared using U.S. GAAP as follows (in millions):

Investing Activities. Cash flows used in investing activities were $74.6 million for the nine months ended July 4, 2026 compared to $60.8 million for the nine months ended June 28, 2025. The increase in cash used in investing activities was primarily due to a $14.0 million increase in capital expenditures.

We currently estimate capital expenditures for fiscal 2026 will be approximately $100.0 million to $120.0 million to support new program ramps and replace older equipment.

Financing Activities. Cash flows provided by financing activities were $42.2 million for the nine months ended July 4, 2026 compared to cash flows used in financing activities of $168.3 million for the nine months ended June 28, 2025. The increase was primarily attributable to net borrowings on the credit facility for the nine months ended July 4, 2026 of $132.0 million partially offset by $64.1 million in cash used to repurchase our common stock. This is compared to net repayments which included the repayment, on maturity, of $100.0 million in principal amount of our 4.05% Senior Notes and net repayments on the credit facility for the nine months ended June 28, 2025 of $5.0 million as well as $43.8 million in cash used to repurchase common stock.

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"). The 2025 Program became effective upon completion of the 2024 Program and was completed in fiscal 2025. During the three months ended June 28, 2025, we repurchased 143,282 shares under this program for $18.4 million at an average price of $128.70 per share. During the nine months ended June 28, 2025, we repurchased 314,344 shares under this program for $43.4 million at an average price of $138.19 per share. The nine months ended June 28, 2025 purchased amounts exclude excise tax on share repurchases of $0.4 million.

On May 14, 2025, the Board of Directors approved a share repurchase program under which we are authorized to repurchase up to $100.0 million of our 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 July 4, 2026, we repurchased 79,707 shares under this program for $20.6 million at an average price of $258.75 per share. During the nine months ended July 4, 2026, we repurchased 341,799 shares under this program for $63.6 million at an average price of $186.25 per share. As of July 4, 2026, $21.4 million of authority remained under the 2026 Program.

All shares repurchased under the aforementioned programs were recorded as treasury stock.

On June 5, 2026, we refinanced our then-existing revolving credit facility (as amended by that certain Amended and Restated Credit Agreement dated June 9, 2022, the "Prior Credit Facility"), by entering into a new five-year revolving credit facility (collectively with the Prior Credit Facility referred to as the "Credit Facility"), which extended the maturity from June 9, 2027 to June 5, 2031. The maximum commitment under the Credit Facility is $500 million and may be further increased to $750 million, generally by mutual agreement of the lenders and us, subject to certain customary conditions. During the nine months ended July 4, 2026, the highest daily borrowing under the Credit Facility was $233.0 million; the average daily borrowings were $127.6 million. During the nine months ended June 28, 2025, the highest daily borrowing was $125.0 million; the average daily borrowings were $33.3 million. As of July 4, 2026, we were in compliance with all our financial covenants relating to the Credit Facility

We have Master Accounts Receivable Purchase Agreements with MUFG Bank, New York Branch (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) (the "MUFG RPA"), HSBC Bank (China) Company Limited, Xiamen branch (the "HSBC RPA") and other unaffiliated financial institutions, under which we may elect to sell receivables, at a discount. These facilities are uncommitted facilities. The maximum facility amount under the MUFG RPA as of July 4, 2026 is $340.0 million. The maximum facility amount under the HSBC RPA as of July 4, 2026 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 terms of the HSBC RPA are generally consistent with the terms of the MUFG RPA previously discussed.

We sold $225.2 million and $179.6 million of trade accounts receivable under these programs during the three months ended July 4, 2026 and June 28, 2025, respectively, in exchange for cash proceeds of $223.4 million and $177.8 million, respectively. We sold $664.8 million and $502.6 million of trade accounts receivable under these programs during the nine months ended July 4, 2026 and June 28, 2025, respectively, in exchange for cash proceeds of $659.3 million and $497.6 million, respectively. As of July 4, 2026 and September 27, 2025, $234.9 million and $214.4 million, respectively, of accounts receivables sold under trade accounts receivable programs and subject to servicing by us remained outstanding.

In all cases, the sale discount was recorded within "Miscellaneous, net" in the Condensed Consolidated Statements of Comprehensive Income in the period of the sale. For further information regarding the receivable sale programs, see Note 13, "Trade Accounts Receivable Sale Programs," in Notes to Condensed Consolidated Financial Statements.

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 execution upon our share repurchase authorizations as management deems appropriate, for the next twelve months. We believe our balance sheet is positioned to support the potential future challenges presented by macroeconomic factors including increased working capital requirements associated with longer lead-times for components, increased component and labor costs, and operating inefficiencies due to supply chain constraints. As of the end of the third quarter of fiscal 2026, cash and cash equivalents and restricted cash were $315 million, while debt, finance lease and other financing obligations were $275 million. If our future financing needs increase, then we may need to arrange additional debt or equity financing. Accordingly, we evaluate and consider from time to time various financing alternatives to supplement our financial resources. However, we cannot be assured that we will be able to make any such arrangements on acceptable terms or at all.