Evolv Technology partners with Plexus for manufacturing scale-up

WALTHAM, Mass. - Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) announced on Thursday it has entered into a strategic contract manufacturing partnership with Plexus Corp. (NASDAQ:PLXS) to enhance its global manufacturing and supply chain capabilities. Evolv, currently valued at approximately $1.25 billion in market capitalization, has demonstrated strong revenue growth of 36.64% over the last twelve months.

The security technology company, which develops AI-based security screening solutions, aims to meet growing demand for its products while improving coordination across its global supply network through this collaboration.

The partnership combines Evolv’s product expertise with Plexus’ design, supply chain and manufacturing capabilities to deliver production at scale. Plexus brings significant resources to the partnership with 26 facilities and over 20,000 team members globally.

"This is an important partnership that strengthens our ability to capitalize on the growing demand for advanced security screening solutions," said John Kedzierski, President and Chief Executive Officer of Evolv Technology. Despite its impressive 187.7% stock price return over the past year, InvestingPro analysis indicates the company is currently trading above its Fair Value, with analysts not anticipating profitability this year.

Jim Stokes, Plexus Market Sector Vice President for Aerospace/Defense, stated, "We are committed to supporting Evolv Technology’s next phase of growth through our global design, supply chain, manufacturing and sustaining services solutions."

According to the company, the partnership provides several strategic benefits, including increased production capacity, a platform for global expansion, potential cost savings through Plexus’ procurement efficiencies, and improved operational resilience through geographic redundancy and 24/7 global support.

Evolv Technology indicated it maintains sufficient inventory and committed production capacity to meet growth targets while transitioning to the new manufacturing arrangement. The company operates with a moderate debt level, with a debt-to-equity ratio of just 0.15, potentially providing financial flexibility during this manufacturing transition.

The company’s security screening systems have scanned more than 3 billion people since 2019 and are deployed in venues including schools, hospitals, stadiums, and office buildings.

This information is based on a press release statement from Evolv Technology.

In other recent news, Evolv Technologies reported a strong second quarter with total revenue of $32.5 million, reflecting a 29% increase compared to the previous year. This performance surpassed consensus expectations of $30.9 million, largely due to new customer acquisitions. In response to these results, Cantor Fitzgerald raised its price target for Evolv Technologies to $9.00, maintaining an Overweight rating. Similarly, Lake Street Capital Markets upgraded Evolv Technologies’ stock from Hold to Buy, also setting a price target of $9.00.

The company has expanded its partnership with Gillette Stadium, increasing the deployment of its Evolv Express security systems for events at the venue. Evolv Technologies also announced new software updates for its AI-based screening solutions, enhancing its Evolv Express and Evolv eXpedite systems. Additionally, Spartanburg District Five Schools in South Carolina expanded its deployment of Evolv’s security systems across all 14 schools in the district. These developments highlight Evolv Technologies’ ongoing growth in various sectors, including education and sports venues.

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