What dominates the section
- Customer demand, competition and changing technology drive revenue volatility in Plexus’s contract manufacturing markets.
- Global operations, especially Malaysia and the wider APAC region, expose Plexus to geopolitical, currency, regulatory and disruption risks.
- Supply-chain execution, customer concentration, cybersecurity, complex programs and regulatory compliance are central operational risks.
The risks most specific to Plexus
Our 10 largest customers accounted for 47.8% and 49.6% of our net sales in fiscal 2024 and 2023, respectively. During fiscal 2023, there was one customer that represented 10.0% or more of our net sales
The ten largest customers generated 47.8% of fiscal 2024 net sales, so losing major customers or programs could materially reduce revenue.
Plexus is a multinational corporation and operating in multiple countries exposes us to increased risks, including adverse local developments and currency risks
Operations outside the U.S. generate most sales and operating income, with particular concentration in Malaysia, creating currency and country risks.
We experience component shortages, delays, price fluctuations and supplier quality concerns
Component shortages, extended lead times, price changes and supplier quality problems could delay production and increase costs.
An inability to successfully manage the procurement, development, implementation or execution of information systems, or to adequately maintain these systems and their security, as well as to protect data and other confidential information, may adversely affect our business and reputation
Failures in Plexus’s global information systems, cybersecurity, privacy controls or data protection could disrupt operations and damage its reputation.
We have a complex business model and are subject to rapidly changing technology requirements; our failure to properly manage or execute on that model and those requirements could adversely affect our operations, financial results and reputation
Plexus must manage complex, technology-driven products and globally integrated supply chains while meeting demanding regulatory requirements.
There may be problems with the products we design, manufacture or service that could result in liability claims against us, reduced demand for our services and damage to our reputation
Defects in products Plexus designs, manufactures or services could trigger liability claims, lower demand and reputational damage.
Challenges associated with the engagement of new customers or programs, the provision of new services, or start-up costs and inefficiencies related to new, recent or transferred programs could affect our operations and financial results
New customers, services and transferred programs can create start-up costs, execution problems and initial inefficiencies that hurt results.
Changes in tax laws, potential tax disputes, negative or unforeseen tax consequences or further developments affecting our deferred tax assets could adversely affect our results
Tax-law changes, disputes and developments affecting deferred tax assets could increase Plexus’s effective tax rate and reduce earnings.
All 25 risk factors
Headings as the filing states them, in filing order.
Other
- 01The end markets we serve require technologically advanced products and such markets may be impacted by a number of factors that could adversely impact our customers’ demand
- 02Our customers do not make long-term commitments to us and may cancel or change their production requirements, which may strain resources and negatively impact our revenue, working capital levels and our operating results
- 03Increased competition may result in reduced demand or reduced prices for our services
- 04Our 10 largest customers accounted for 47.8% and 49.6% of our net sales in fiscal 2024 and 2023, respectively. During fiscal 2023, there was one customer that represented 10.0% or more of our net sales
- 05our factoring agreements, could have a material adverse effect on our financial condition and results of operations if we are unable to factor such receivables
- 06We and our customers are subject to increasingly extensive government regulations, legal requirements and industry standards; a failure to comply with current and future regulations, requirements and standards could have an adverse effect on our business, customer relationships, reputation and profitability
- 07We may fail to identify acquisition targets, successfully complete future acquisitions, successfully integrate acquired operations or recognize the anticipated benefits of an acquisition, which could adversely affect our operating results
- 08Plexus is a multinational corporation and operating in multiple countries exposes us to increased risks, including adverse local developments and currency risks
- 09A 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
- 10We experience component shortages, delays, price fluctuations and supplier quality concerns
- 11Our services involve other inventory risk
- 12An inability to successfully manage the procurement, development, implementation or execution of information systems, or to adequately maintain these systems and their security, as well as to protect data and other confidential information, may adversely affect our business and reputation
- 13We have a complex business model and are subject to rapidly changing technology requirements; our failure to properly manage or execute on that model and those requirements could adversely affect our operations, financial results and reputation
- 14Physical risks, including natural disasters and weather events caused by global climate change, breaches of physical security and other events outside our control, and the ineffective management of such events, may harm our business
- 15There may be problems with the products we design, manufacture or service that could result in liability claims against us, reduced demand for our services and damage to our reputation
- 16A failure to comply with customer-driven policies and standards, and third-party certification requirements or standards could adversely affect our business and reputation
- 17Intellectual property infringement claims against our customers or us could harm our business
- 18We depend on our workforce, and the inability to attract, develop and retain personnel or an increase in personnel costs or other personnel disruptions may harm our business
- 19Evolving expectations on environmental, social and governance ("ESG") matters, including global climate change, by various stakeholders could negatively affect our business
- 20by means of carbon pricing mechanisms, investments in lower greenhouse gas emissions technology, increased cost of raw materials and mandates on and regulation of existing products and services
- 21Challenges associated with the engagement of new customers or programs, the provision of new services, or start-up costs and inefficiencies related to new, recent or transferred programs could affect our operations and financial results
- 22Failure to manage periods of growth or contraction may seriously harm our business
- 23Changes in tax laws, potential tax disputes, negative or unforeseen tax consequences or further developments affecting our deferred tax assets could adversely affect our results
- 24Given the scope of our international operations and the fluid and uncertain nature of how the BEPS project might ultimately lead to future legislation, it is difficult to assess how any changes in tax laws would impact our income tax expense
- 25We may fail to secure or maintain necessary additional financing or capital
Other Plexus 10-Ks
- 2025 10-K risk factors
23 risks. Customer concentration and reliance on top accounts drive substantial sales volatility for Plexus Corp.
Filed Nov 14, 2025
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.