Financial Data and Key Metrics Changes - Fourth quarter revenue reached $910 million, exceeding guidance and up over 20% year-over-year and 4% sequentially [4][11] - Full fiscal year 2025 revenue was a record $3.4 billion, representing a 19% increase from the prior year [5][16] - Non-GAAP EPS for Q4 was $2.65, a new quarterly record, while full year non-GAAP EPS hit $10.17 [5][11] Business Line Data and Key Metrics Changes - Optical Communications revenue was $689 million, up 15% year-over-year and 5% sequentially, with telecom revenue at $412 million, a 46% increase from a year ago [12][16] - Datacom revenue was $277 million, down 12% year-over-year but up 10% sequentially, driven by demand for higher data rate products [13][19] - Non-optical communications revenue was $221 million, a 41% increase year-over-year and 3% sequentially, with automotive revenue at $128 million [14][16] Market Data and Key Metrics Changes - Telecom revenue growth was primarily driven by data center interconnect (DCI) products, which represented 12% of overall revenue at $107 million [12][19] - DCI revenue grew 45% year-over-year, indicating strong demand trends [7][68] - The automotive segment showed a slight decline but performed better than expected, while industrial laser revenue remained stable [9][14] Company Strategy and Development Direction - The company established a significant partnership with Amazon Web Services, expected to be a meaningful revenue driver in fiscal year 2026 [5][79] - Construction began on Building 10, which will add 2 million square feet of capacity, with plans to accelerate completion due to increasing customer demand [5][17] - The company is introducing a new revenue category for high-performance computing (HPC) to better capture growth in this area [20][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, citing strong customer demand and multiple growth drivers [6][19] - There are temporary component supply challenges impacting Datacom revenue, but these are expected to be resolved [9][54] - The company anticipates healthy year-over-year and sequential growth in Q1, with revenue guidance between $910 million and $950 million [21][19] Other Important Information - The company returned $126 million to shareholders through a buyback program, with continued repurchases expected in fiscal year 2026 [5][18] - The effective GAAP tax rate was 6.5%, and the company ended the year with cash and short-term investments of $934 million [16][17] Q&A Session Summary Question: Clarification on Datacom revenue dip - Management clarified that the expected dip in Datacom revenue for September does not include contributions from the new HPC segment, which will be reported separately [25][26] Question: Future hyperscaler transceiver opportunities - Management indicated that future hyperscaler opportunities would predominantly be on 1.6 terabit port speeds, while 800 gig opportunities remain [27][28] Question: Growth prospects for fiscal year 2026 - Management remains optimistic about growth prospects, citing strong demand for 1.6 terabit products and continued telecom trends [36][38] Question: Impact of component shortages on Datacom - Management acknowledged that component shortages are causing a temporary dip in Datacom revenue but expressed confidence in resolving these issues [54][55] Question: Amazon PCB business potential - Management believes the Amazon PCB business could represent a significant opportunity, with revenue expected to ramp in fiscal Q1 [78][79] Question: Visibility on 800 gig demand - Management confirmed good visibility on 800 gig demand, indicating that supply constraints are currently more of an issue than demand constraints [87][88] Question: Tariffs impact - Management stated that they have not seen significant impacts from tariffs, as shipping terms place the responsibility on customers [90][91]

COMPANY OVERVIEW August 18, 2025 1 Disclaimer This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our business plans and objectives, potential growth opportunities, competitive position, industry environme ...

Group 1 - Fabrinet reported fourth-quarter revenue of $909.69 million, exceeding analyst estimates of $884.87 million [1][2] - The company achieved adjusted earnings of $2.65 per share, surpassing estimates of $2.64 per share [1] - Fabrinet ended the period with approximately $306.43 million in cash and cash equivalents [2] Group 2 - The company expects fiscal first-quarter revenue to be in the range of $910 million to $950 million, compared to estimates of $916.72 million [3] - First-quarter adjusted earnings are anticipated to be between $2.75 and $2.90 per share, against estimates of $2.74 per share [3] - CEO Seamus Grady expressed optimism about growing demand across all business areas, expecting favorable trends to continue [3] Group 3 - Following the earnings report, Fabrinet shares initially rose but later pulled back, trading at $326.12 in after-hours [4]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Fabrinet's financial performance for fiscal year 2025 and its fourth quarter demonstrated strong growth across revenue, net income, and earnings per share, with positive guidance for Q1 FY2026 [Fourth Quarter Fiscal Year 2025 Performance](index=1&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20Performance) Fabrinet reported a record-breaking fourth quarter for fiscal year 2025, with revenue reaching $909.7 million, a significant increase from the previous year, and both GAAP and Non-GAAP net income and earnings per share saw substantial growth, exceeding company guidance and setting new all-time highs - CEO Seamus Grady highlighted the exceptional fourth quarter, which capped a remarkable year with strong momentum and record revenue of **$910 million**, exceeding guidance[2](index=2&type=chunk) Q4 FY2025 vs. Q4 FY2024 Financial Results | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $909.7 million | $753.3 million | +20.8% | | **GAAP Net Income** | $87.2 million | $81.1 million | +7.5% | | **GAAP EPS (diluted)** | $2.42 | $2.22 | +9.0% | | **Non-GAAP Net Income** | $95.6 million | $88.0 million | +8.6% | | **Non-GAAP EPS (diluted)** | $2.65 | $2.41 | +10.0% | [Fiscal Year 2025 Performance](index=1&type=section&id=Fiscal%20Year%202025%20Performance) For the full fiscal year 2025, Fabrinet achieved record revenue of $3.42 billion, a 19% increase year-over-year, with net income and earnings per share on both a GAAP and Non-GAAP basis demonstrating strong growth compared to fiscal year 2024 - Full fiscal year 2025 revenue grew by **19%** year-over-year, reaching a record **$3.4 billion**[2](index=2&type=chunk) FY2025 vs. FY2024 Financial Results | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $3.42 billion | $2.88 billion | +18.8% | | **GAAP Net Income** | $332.5 million | $296.2 million | +12.3% | | **GAAP EPS (diluted)** | $9.17 | $8.10 | +13.2% | | **Non-GAAP Net Income** | $368.8 million | $324.6 million | +13.6% | | **Non-GAAP EPS (diluted)** | $10.17 | $8.88 | +14.5% | [Business Outlook (Q1 FY2026)](index=1&type=section&id=Business%20Outlook%20(Q1%20FY2026)) Fabrinet issued strong guidance for the first quarter of fiscal year 2026, projecting continued growth with expected revenue between $910 million and $950 million and Non-GAAP earnings per diluted share anticipated in the range of $2.75 to $2.90 Q1 FY2026 Guidance | Metric | Guidance Range | | :--- | :--- | | **Revenue** | $910 million - $950 million | | **GAAP EPS (diluted)** | $2.48 - $2.63 | | **Non-GAAP EPS (diluted)** | $2.75 - $2.90 | | **Fully Diluted Shares** | ~36.1 million | - The company expresses optimism that favorable business trends will continue into the first quarter of fiscal 2026 and beyond[2](index=2&type=chunk)[9](index=9&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Fabrinet's consolidated financial statements for fiscal year 2025 reflect significant asset growth driven by receivables and inventories, increased liabilities, and a shift in cash flow dynamics [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 27, 2025, Fabrinet's balance sheet shows significant growth in total assets to $2.83 billion from $2.34 billion in the prior year, driven by increases in cash and short-term investments, trade accounts receivable, and inventories, while total liabilities also increased, primarily due to a rise in trade accounts payable, and shareholders' equity grew to $1.98 billion Key Balance Sheet Items (as of June 27, 2025 vs. June 28, 2024) | Account | June 27, 2025 | June 28, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,428.8 million | $2,012.7 million | | **Total Assets** | $2,831.4 million | $2,338.5 million | | **Total Current Liabilities** | $809.8 million | $557.9 million | | **Total Liabilities** | $849.6 million | $592.8 million | | **Total Shareholders' Equity** | $1,981.8 million | $1,745.7 million | - Key drivers of asset growth include a significant increase in Trade accounts receivable (to **$758.9 million** from **$592.5 million**) and Inventories (to **$581.0 million** from **$463.2 million**)[16](index=16&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the fiscal year ended June 27, 2025, Fabrinet's revenues increased by 18.6% to $3.42 billion, gross profit grew to $413.3 million, although gross margin slightly decreased to 12.1% from 12.4%, operating income rose to $324.4 million, and net income increased to $332.5 million, resulting in a diluted EPS of $9.17 FY2025 vs. FY2024 Statement of Operations Highlights | Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | **Revenues** | $3,419.3 million | $2,883.0 million | | **Gross Profit** | $413.3 million | $356.1 million | | **Operating Income** | $324.4 million | $277.6 million | | **Net Income** | $332.5 million | $296.2 million | | **Diluted EPS** | $9.17 | $8.10 | - Gross margin for FY2025 was **12.1%**, a slight decrease from **12.4%** in FY2024, while operating margin was **9.5%**, slightly down from **9.6%** in the prior year[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For fiscal year 2025, net cash provided by operating activities was $328.4 million, a decrease from $413.1 million in the prior year, primarily due to significant increases in trade accounts receivable and inventories, while net cash used in investing activities increased to $286.3 million due to higher purchases of property, plant, and equipment, and financing activities used $147.0 million, largely for share repurchases, resulting in a net decrease in cash and cash equivalents FY2025 vs. FY2024 Cash Flow Summary | Cash Flow Activity | FY2025 | FY2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $328.4 million | $413.1 million | | **Net Cash used in Investing Activities** | ($286.3 million) | ($169.8 million) | | **Net Cash used in Financing Activities** | ($147.0 million) | ($64.9 million) | | **Net (Decrease) Increase in Cash** | ($104.9 million) | $178.5 million | | **Cash at End of Period** | $306.4 million | $409.9 million | - The decrease in operating cash flow was significantly impacted by changes in working capital, including a **$165.7 million** increase in trade accounts receivable and a **$117.8 million** increase in inventories[19](index=19&type=chunk) - The company significantly increased its repurchase of ordinary shares to **$125.7 million** in FY2025, up from **$39.5 million** in FY2024[19](index=19&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Fabrinet provides Non-GAAP financial measures to offer a clearer view of underlying operational performance by excluding specific non-recurring or non-cash items, aiding in historical comparisons and management decision-making [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Fabrinet provides Non-GAAP financial measures to supplement its GAAP results, believing they offer useful information for comparing historical performance and competitor results, and these measures exclude items such as share-based compensation, restructuring costs, and certain legal expenses to provide a clearer view of underlying operations - Non-GAAP measures are used to evaluate company performance, facilitate competitor comparisons, and for management's financial and operational decision-making[10](index=10&type=chunk) - Key exclusions from Non-GAAP calculations include share-based compensation, severance payments, restructuring costs, legal and litigation costs, and amortization of deferred debt issuance costs[11](index=11&type=chunk)[12](index=12&type=chunk) [Reconciliation of Key Metrics](index=9&type=section&id=Reconciliation%20of%20Key%20Metrics) For fiscal year 2025, Fabrinet's Non-GAAP operating profit was $360.7 million (10.5% margin) compared to a GAAP operating profit of $324.4 million (9.5% margin), with Non-GAAP net income reaching $368.8 million, or $10.17 per diluted share, after adjusting for $36.3 million in expenses, primarily share-based compensation, and Non-GAAP free cash flow for the year was $207.3 million FY2025 GAAP vs. Non-GAAP Reconciliation Summary | Metric | GAAP | Non-GAAP | Key Adjustments | | :--- | :--- | :--- | :--- | | **Gross Profit** | $413.3 million | $423.8 million | +$10.5 million Share-based comp. | | **Operating Profit** | $324.4 million | $360.7 million | +$33.0 million Share-based comp. | | **Net Income** | $332.5 million | $368.8 million | +$36.3 million various expenses | | **Diluted EPS** | $9.17 | $10.17 | +$1.00 | FY2025 Free Cash Flow Calculation | Metric | Amount | | :--- | :--- | | Net cash provided by operating activities | $328.4 million | | Less: Purchase of property, plant and equipment | ($121.1 million) | | **Non-GAAP free cash flow** | **$207.3 million** | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides essential background on Fabrinet's business, outlines important forward-looking statement disclaimers, and details information for the upcoming financial results conference call [About Fabrinet](index=3&type=section&id=About%20Fabrinet) Fabrinet is a leading provider of advanced optical packaging and manufacturing services for original equipment manufacturers, specializing in complex products such as optical communication components, automotive components, medical devices, and industrial lasers, offering a wide range of capabilities from process design to final testing, and operates facilities in Thailand, the USA, China, and Israel - Fabrinet provides advanced optical packaging and precision manufacturing services for complex products[8](index=8&type=chunk) - Key markets served include optical communication, automotive, medical devices, industrial lasers, and sensors[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements, including the business outlook for the first quarter of fiscal 2026 and optimism about future business trends, which are subject to various risks and uncertainties, such as changes in economic conditions, supply chain disruptions, and customer demand, that could cause actual results to differ materially, and the company disclaims any obligation to update these statements - Forward-looking statements include the Q1 FY2026 financial guidance and optimism about continuing positive business trends[9](index=9&type=chunk) - Key risks that could affect results include global economic conditions, supply chain disruptions, customer demand fluctuations, and market competition[9](index=9&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Fabrinet will host a conference call to discuss its fourth quarter and fiscal year 2025 financial results on August 18, 2025, at 5:00 p.m. ET, with a live webcast and replay available on the company's investor relations website Conference Call Details | Item | Detail | | :--- | :--- | | **Event** | Q4 FY2025 Financial Results Call | | **Date** | August 18, 2025 | | **Time** | 5:00 p.m. ET | | **Access** | https://investor.fabrinet.com/events-and-presentations/events |

Core Insights - Fabrinet reported exceptional financial results for the fourth quarter and fiscal year 2025, achieving record quarterly revenue of $910 million and annual revenue of $3.4 billion, marking a 19% increase year-over-year [2][6][7]. Financial Highlights - Fourth quarter revenue was $909.7 million, up from $753.3 million in the same quarter of fiscal year 2024 [7]. - GAAP net income for the fourth quarter was $87.2 million, compared to $81.1 million in the fourth quarter of fiscal year 2024 [7]. - Non-GAAP net income for the fourth quarter was $95.6 million, compared to $88.0 million in the same quarter of the previous year [7]. - For fiscal year 2025, GAAP net income was $332.5 million, an increase from $296.2 million in fiscal year 2024 [7]. - Non-GAAP net income for fiscal year 2025 was $368.8 million, compared to $324.6 million in fiscal year 2024 [7]. Business Outlook - Fabrinet expects first quarter revenue for fiscal year 2026 to be in the range of $910 million to $950 million [5]. - The company remains optimistic about the growing demand across all areas of its business, anticipating favorable trends to continue into the first quarter and beyond [2][5]. Operational Performance - The company achieved a gross profit of $111.3 million for the fourth quarter, with a gross margin of 12.2% [27]. - Operating income for the fourth quarter was $89.1 million, reflecting an operating margin of 9.8% [28]. - The company reported a non-GAAP operating profit of $97.5 million for the fourth quarter, with a non-GAAP operating margin of 10.7% [28]. Cash Flow and Investments - Net cash provided by operating activities for fiscal year 2025 was $328.4 million, down from $413.1 million in fiscal year 2024 [31]. - Non-GAAP free cash flow for fiscal year 2025 was $207.3 million, compared to $365.6 million in the previous year [31].

Fabrinet FN will release financial results for the fourth quarter after the closing bell on Monday, Aug. 18.Analysts expect the George Town, the Cayman Islands-based company to report quarterly earnings at $2.63 per share, up from $2.41 per share in the year-ago period. Fabrinet projects to report quarterly revenue at $882.01 million, compared to $753.26 million a year earlier, according to data from Benzinga Pro.On May 5, Fabrinet posted better-than-expected third-quarter earnings.Fabrinet shares fell 4.5% ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Fabrinet (FN) - Fabrinet currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [2][3] - Over the past week, FN shares increased by 9.13%, significantly outperforming the Zacks Electronics - Miscellaneous Components industry, which rose by only 0.21% [5] - In a longer timeframe, FN shares have risen by 48.61% over the past quarter and 54.89% over the last year, while the S&P 500 only increased by 10.18% and 20.38%, respectively [6] - The average 20-day trading volume for FN is 500,202 shares, which is a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, one earnings estimate for FN has increased, while none have decreased, leading to a consensus estimate rise from $10.15 to $10.16 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions, indicating positive earnings momentum [9] Conclusion - Given the strong performance metrics and positive earnings outlook, FN is positioned as a promising momentum pick for investors [11]

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or ...

Key Takeaways Fabrinet (FN) stock has skyrocketed 95% since early April to trade at all-time highs heading into its fourth- quarter fiscal 2025 earnings release on Monday, August 18. FN helps big tech companies, including Nvidia, by making small, precision parts used across AI data centers, telecom, and beyond. Artificial intelligence powerhouse Nvidia is one of Fabrinet's largest clients, and it's growing its relationship with Amazon. The leading provider of advanced optical packaging tripled the Tech sect ...

Core Viewpoint - The article highlights Fabrinet as a promising growth stock, supported by its strong earnings growth, cash flow growth, and positive earnings estimate revisions, making it a suitable choice for growth investors [2][10]. Group 1: Earnings Growth - Fabrinet has a historical EPS growth rate of 25.6%, with projected EPS growth of 17.5% for the current year, surpassing the industry average of 15.9% [5][4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Fabrinet is 14.4%, significantly higher than the industry average of -14% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 17.1%, compared to the industry average of 5.1% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Fabrinet have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month [8]. - This positive trend in earnings estimate revisions contributes to Fabrinet's Zacks Rank of 2 (Buy) [10]. Group 4: Overall Positioning - Fabrinet's combination of a Growth Score of B and a Zacks Rank of 2 positions it well for potential outperformance in the market, making it an attractive option for growth investors [10].