Plexus Corp. (NASDAQ: PLXS): Industrial Revolution 2.0 Is Coming

This week’s newsletter will be focusing on an industrial technology company, Plexus (NASDAQ: PLXS). Plexus is somewhat insulated from the potential tariff risk as a result of its global manufacturing presence. This topic has been a theme discussed in my reports in recent weeks as part of the nearshoring play.

Plexus operates out of 28 global facilities in the Americas, Asia-Pacific, Europe, Middle East, and Africa, with 56% of the firm’s revenue generated in APAC.

Plexus operates across 3 segments, Aerospace & Defense, Healthcare & Life Sciences, and Industrial. Plexus acts as an outsourced manufacturer, offering customers a variety of solutions to help with their business needs. These services include product design and development as well as new product introduction, supply chain optimization, manufacturing, and ongoing servicing.

• The market for industrial robotics is expected to grow at a 9.9% CAGR between 2025-2030.

• The satellite market is expected to have a 3.31% CAGR from 2023-2028.

• Medical Devices is expected to grow at a 5.68% CAGR from 2024-2029.

Customers range from industry-leading, brand-name products to start-ups and emerging companies. Plexus had 190 customers at the close of FY24 with no customer concentrations over 10%. In 2023 and 2022, GE Healthcare Technology and GE were some of Plexus’s largest customers.

Plexus primarily manufactures electronic devices across their core industries. These can include medical devices such as micro-implantable devices, networking and communications equipment, industrial electronics, and robotics, amongst others.