分组1 - Sanmina Corporation reported its fiscal Q1 results for the October-December period on January 26, marking the first report after a significant event [1] - The company focuses on identifying mispriced securities by understanding the drivers behind financials, utilizing a DCF model valuation to assess risk-to-reward [1]

Key Takeaways SANM delivered strong Q1 FY26, with revenues up 59% to $3.19B and earnings surpassing the consensus estimate.SANM's Integrated Manufacturing Solutions surged 72.2% to $2.79B, accounting for 87.5% of total revenue.SANM generated $178.7M operating cash flow, repurchased $79M of shares, and guided Q2 revenues of $3.1-$3.4B.Sanmina Corporation (SANM) reported strong first-quarter fiscal 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate.The California-based electr ...

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Group 1 - Sanmina reported quarterly earnings of $2.38 per share, exceeding the Zacks Consensus Estimate of $2.15 per share, and showing a significant increase from $1.44 per share a year ago, resulting in an earnings surprise of +10.96% [1] - The company achieved revenues of $3.19 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.89%, and up from $2.01 billion in the same quarter last year [2] - Sanmina has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] Group 2 - The stock has gained approximately 18.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 1% [3] - The future performance of Sanmina's stock will largely depend on management's commentary during the earnings call and the outlook for upcoming earnings [4][6] - The current consensus EPS estimate for the next quarter is $2.36 on revenues of $3.49 billion, and for the current fiscal year, it is $9.64 on revenues of $14 billion [7] Group 3 - The Electronics - Manufacturing Services industry, to which Sanmina belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8] - Another company in the same industry, Celestica, is expected to report quarterly earnings of $1.74 per share, reflecting a year-over-year increase of +56.8%, with revenues projected at $3.47 billion, up 36.1% from the previous year [9][10]

Financial Data and Key Metrics Changes - Revenue for Q1 Fiscal 2026 was $3.19 billion, representing a 59% increase compared to the same period a year ago [12][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase compared to the same period last year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15][16] - CPS revenue was $434 million, a 4.3% increase year-over-year, with a non-GAAP gross margin of 12.9%, which is lower than recent performance due to investments for new programs [17] Market Data and Key Metrics Changes - Communication networks and cloud infrastructure accounted for approximately 62% of total revenue, with core business growth of about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation contributed 38% of revenue, slightly down by 3% year-over-year, but expected to stabilize [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, with a strong focus on AI opportunities [34] - Strategic investments are planned in technologies and capabilities to support growth, particularly in AI data centers and energy solutions [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for fiscal 2026, with expectations for continued strong demand in AI hardware and core business growth in high single digits [24][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][36] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings on its $1.5 billion revolver [18] Q&A Session Summary Question: Can you help parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and that they are guiding one quarter at a time, with expectations for strong performance in both core Sanmina and ZT Systems [42][44] Question: How do you see the transition occurring with ZT Systems? - Management confirmed that the transition is on track and that they are focused on future opportunities, emphasizing the importance of execution and customer relationships [45][49] Question: What is the outlook for the communications market? - Management reported strong demand in the communications market, expecting continued strength in the March quarter and throughout the year [55]

Financial Data and Key Metrics Changes - Revenue for the first quarter of Fiscal 2026 was $3.19 billion, representing a 59% increase compared to the same period a year ago [13][14] - Non-GAAP operating margin was 6%, consistent with the previous quarter and up 40 basis points year-over-year [14][19] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase compared to the same period last year [14][19] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15][16] - CPS revenue was $434 million, a 4.3% increase year-over-year, with a non-GAAP gross margin of 12.9%, which is lower than recent performance due to investments in new programs [17][18] Market Data and Key Metrics Changes - The core Sanmina business in communication networks and cloud infrastructure grew approximately 20% year-over-year, contributing to 62% of total revenue [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation segments accounted for 38% of revenue, slightly down 3% year-over-year, but expected to stabilize and grow in the future [28][32] Company Strategy and Development Direction - The company aims to double revenue to $16 billion by 2027, focusing on AI opportunities and vertical integration in the AI data center market [34][36] - Strategic investments are being made in technologies and capabilities to support growth, particularly in the U.S., India, and Mexico [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for Fiscal 2026, with expectations for strong demand in AI hardware and core business growth in high single digits [24][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][22] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20][21] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings on its $1.5 billion revolver [19][20] Q&A Session Summary Question: Can you help parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and that guidance is based on one quarter at a time, with expectations for strong performance from both core Sanmina and ZT Systems [41][44] Question: Can you clarify the revenue contributions from different parts of the ZT business? - Management confirmed that the transition is ongoing, and they are focused on future business opportunities while maintaining strong relationships with existing customers [46][49] Question: How do you see the communications market recovering? - Management noted strong demand in the communications market, with expectations for continued strength in the upcoming quarters [54][55] Question: What are the expectations for the industrial, medical, and automotive segments? - Management acknowledged some recent weakness in automotive but expects stabilization and growth in the second half of Fiscal 2026 [81][83]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $3.19 billion, representing a 59% increase compared to the same period last year [10][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase from the previous year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15] - CPS revenue was $434 million, a 4.3% increase year-over-year, but lower than recent performance due to investments for new programs [16] Market Data and Key Metrics Changes - Communication networks, cloud, and AI infrastructure accounted for approximately 62% of total revenue, with core business growing about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation represented 38% of revenue, slightly down 3% year-over-year [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, focusing on AI opportunities [35] - Strategic investments are planned in technologies and capabilities to strengthen market position and support growth expectations [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across most end markets and expects continued growth in fiscal 2026 [29][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][22] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20][21] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings [17][19] Q&A Session Summary Question: Can you help me parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and expects core Sanmina to grow quarter-over-quarter and double digits year-over-year [42][44] Question: Can you clarify the revenue contributions from different parts of the ZT business? - Management confirmed that the transition is ongoing and they are focused on future business opportunities, with strong demand expected [47][49] Question: How do you see the communications market recovering? - Management noted strong demand in the communications sector and expects continued strength throughout the year [56][58] Question: Where was the pocket of weakness in the industrial, medical, auto, and defense segments? - Management identified automotive and transportation as areas of recent weakness but expects stabilization and recovery in the future [84][86]

Q1 Fiscal 2026 Financial Results January 26, 2026 Today's Presenters Jure Sola Chairman & CEO Jon Faust EVP & CFO 2 Safe Harbor Statement Certain statements made during this presentation, including our financial outlook for the second quarter fiscal 2026 and growth expectations for fiscal 2026, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these state ...

Financial Performance - Net sales for the three months ended December 27, 2025, were $3,189,693, a 59.0% increase from $2,006,348 for the same period in 2024[139] - Gross profit for the three months ended December 27, 2025, was $242,362, compared to $167,915 for the same period in 2024[139] - Selling, general and administrative expenses increased to $115 million for the three months ended December 27, 2025, from $71 million in the same period in 2024[143] - Research and development expenses were $9 million for the three months ended December 27, 2025, compared to $7 million for the same period in 2024[144] - Interest expense rose to $25 million for the three months ended December 27, 2025, from $5 million in the same period in 2024, primarily due to new term loans totaling $2.2 billion[146] - The effective tax rate for the three months ended December 27, 2025, was 16%, down from 18% in the same period in 2024, due to favorable discrete tax events[147] - Gross margin decreased to 7.6% for the three months ended December 27, 2025, from 8.4% for the same period in 2024[141] Cash Flow and Liquidity - Net cash provided by operating activities was $179 million for the three months ended December 27, 2025, compared to $63,938 for the same period in 2024, reflecting a significant increase[149] - Cash and cash equivalents increased to $1.4 billion as of December 27, 2025, up from $926 million as of September 27, 2025[152] - Working capital rose to $3.2 billion as of December 27, 2025, compared to $2.0 billion as of September 27, 2025[153] - Net cash used in investing activities was $1.4 billion, primarily for the ZT Acquisition, which accounted for the majority of the cash outflow[156] - Net cash provided by financing activities was $1.8 billion, including $2.2 billion borrowed for the ZT Acquisition[157] - The company believes existing cash resources and other sources of liquidity will be sufficient to meet working capital requirements for at least the next twelve months[169] Customer Concentration - Sales to the ten largest customers accounted for approximately 65% of net sales, with one customer representing 10% or more of net sales for the three months ended December 27, 2025[128] Strategic Initiatives - The company aims to diversify into mission-critical markets and develop higher technology products with longer life cycles[133] Shareholder Actions - The company repurchased 0.5 million shares of common stock for $79 million during the three months ended December 27, 2025[160] Accounts Receivable and Cash Cycle - Days in accounts receivable increased to 75 days as of December 27, 2025, compared to 60 days as of September 27, 2025[151] - The cash cycle days increased to 83 days as of December 27, 2025, compared to 57 days as of September 27, 2025[151] Tax Liabilities - As of December 27, 2025, the company had a liability of $50 million for uncertain tax positions[166]