Plexus (PLXS) risk factors, FY2025 10-K

Other

1. 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’ demand22% rewritten
2. 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
3. 03Increased competition may result in reduced demand or reduced prices for our services
4. 04Our 10 largest customers accounted for 49.1% and 47.8% of our net sales in fiscal 2025 and 2024, respectivelyNew
5. 05We 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
6. 06We 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
7. 07Plexus is a multinational corporation and operating in multiple countries exposes us to increased risks
8. 08A 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 countries33% rewritten
9. 09We may experience component shortages, delays, price fluctuations and supplier quality concerns
10. 10Our services involve other inventory risk
11. 11An 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
12. 12We 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
13. 13Physical 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
14. 14There may be problems with the products we design, manufacture or service or we may fail to meet increasing customer expectations, which could result in liability claims against us, reduced demand for our services and damage to our reputation
15. 15A failure to comply with customer-driven policies and standards, and third-party certification requirements or standards could adversely affect our business and reputation
16. 16Intellectual property infringement claims against our customers or us could harm our business
17. 17We 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
18. 18Evolving expectations on environmental, sustainability, social responsibility, and corporate governance ("sustainability") matters, including global climate change, by various stakeholders could negatively affect our business by failing to meet stakeholder expectations or imposing additional costs on our business64% rewritten
19. 19Challenges 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
20. 20Failure to manage periods of growth or contraction may seriously harm our business
21. 21Changes in tax laws, potential tax disputes, negative or unforeseen tax consequences or further developments affecting our deferred tax assets could adversely affect our results36% rewritten
22. 22We may fail to secure or maintain necessary additional financing or capital