Plexus Corp. (PLXS) Cash Flow Statement

The 2024Q4 and 2025Q4 quarters show operating cash flow far exceeding net income, which appears driven by large working capital releases rather than structurally superior earnings quality. The negative operating cash flow in 2026Q1 against positive net income of $41.2M suggests that reported profits were absorbed by receivables or inventory build, and investors should monitor whether these reversals net out over a full cycle. Conversion quality therefore appears timing-dependent rather than demonstrably durable.

Excluding the 2024Q4 and 2025Q4 spikes, free cash flow margins hover near 1% to 2%, which is consistent with a contract manufacturer operating on a roughly 5% operating margin. The 2026Q4 free cash flow of $6.4M on a 0.4% margin suggests the most recent quarter reflects little underlying cash surplus. This pattern may indicate that headline free cash flow is a poor guide to recurring earning power for this business.

Quarterly CapEx tracks close to D&A on a rolling basis, which suggests spending is largely maintenance in character, though the company does not split maintenance from growth spending in the supplied data. The 3.3% CapEx intensity in 2026Q1 and 2025Q4 coincides with the weakest cash conversion periods, possibly reflecting capacity additions tied to new program ramps. Investors should monitor whether elevated capex persists after the revenue re-acceleration noted in the income statement findings.

The magnitude of working capital movements relative to net income, often exceeding 100% of quarterly earnings, suggests the cash profile is governed by receivables and inventory timing tied to program milestones. Large releases in 2024Q4 and 2025Q4 may reflect collection of prior-period build rather than improved operating efficiency, which would argue against extrapolating those quarters. The 2026Q1 outflow of $83.7M appears to correspond with the EPS miss context, warranting closer review of inventory and receivable trends.