What Plexus Corp. told the SEC could break it.

Although no single customer exceeded 10% of sales, Plexus's 10 largest customers accounted for 49.1% of net sales in fiscal 2025 (47.8% in 2024) across a limited number of market sectors; loss of a major customer or program, or weakness in healthcare/industrial/aerospace-defense demand, would significantly impact net sales.

“Our 10 largest customers accounted for 49.1% and 47.8% of our net sales in fiscal 2025 and 2024, respectively.”

A significant portion of Plexus's operations, workforce (58.3% in APAC), assets, profitability and offshore cash is concentrated in the APAC region — particularly Malaysia, with cash also held in China — exposing it to adverse economic, political, currency or trade developments in those countries and to risk around repatriating cash.

“A significant amount of our cash balances remain held outside of the U.S., with a particular concentration in Malaysia and China. A significant portion of our operations is currently located in the APAC region, particularly in Malaysia. The concentration of our operations, workforce, assets and profitability in that region exposes us to adverse developments, economic, political or otherwise, in those countries.”

Plexus faces trade-policy risk on two fronts: changing export regulations and sanctions on advanced semiconductors/chip equipment could limit its ability to source components for and ship products to/from its China operations, while its Mexican facilities operate under the IMMEX (Maquiladora) program for reduced tariffs — leaving it exposed to changes in IMMEX, tariffs and U.S.–partner trade-protection measures.

“Our current facilities in Mexico operate under the Mexican Maquiladora (“IMMEX”) program. This program provides for reduced tariffs and eased import regulations. We could be adversely affected by changes in the IMMEX program or our failure to comply with its requirements.”

Plexus relies on a limited number of suppliers for many of the electronic components used in its contract-manufacturing assembly process and, in some cases, must use the sole provider of a particular component; supplier quality problems, labor disputes, shortages or financial difficulty would disrupt production for the customer programs it builds.

“we rely on a limited number of suppliers for many of the components used in the assembly process and, in some cases, may be required to use suppliers that are the sole provider of a particular component.”