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]

First Quarter Fiscal 2026 Financial Highlights Additional Highlights "Fiscal 2026 is off to a great start, with Q1 revenue and non-GAAP operating margin at the high-end of our outlook and non-GAAP EPS exceeding our outlook. In addition, the team did an excellent job delivering solid cash flow from operations," stated Jure Sola, Chairman and CEO of Sanmina Corporation. "Our Communications Networks and Cloud & AI Infrastructure end-markets continue to be strong as a result of ongoing demand for AI-driven hard ...

SAN JOSE, Calif., Jan. 26, 2026 /PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the first quarter ended December 27, 2025 and outlook for its second fiscal quarter ending March 28, 2026. First Quarter Fiscal 2026 Financial Highlights Additional Highlights See Schedule 1 below for information regarding the items excluded from and our use of non-GAAP financial measures. A reconciliation ...

Earnings Expectations - Steel Dynamics Inc. (NASDAQ:STLD) is expected to report quarterly earnings of $1.69 per share on revenue of $4.57 billion [1] - Nucor Corp. (NYSE:NUE) is anticipated to post quarterly earnings of $1.91 per share on revenue of $7.87 billion [1] - W R Berkley Corp. (NYSE:WRB) is projected to report quarterly earnings of $1.13 per share on revenue of $3.66 billion [1] - Sanmina Corp. (NASDAQ:SANM) is expected to report quarterly earnings of $2.13 per share on revenue of $3.08 billion [1] Recent Performance - Baker Hughes Co. (NASDAQ:BKR) reported adjusted earnings of 78 cents per share, exceeding market estimates of 67 cents per share, with quarterly sales of $7.386 billion, surpassing expectations of $7.068 billion [1] - Steel Dynamics shares rose 1.4% to close at $181.32 on Friday [1] - Nucor shares increased by 0.8% to close at $181.65 on Friday [1] - W R Berkley shares fell 0.6% to close at $67.12 on Friday [1] - Sanmina shares decreased by 0.9% to close at $177.83 on Friday [1] - Baker Hughes shares fell 1.2% to close at $53.80 on Friday [1]

Core Insights - Sanmina Corporation is a significant player in the Electronics Manufacturing Services (EMS) market, providing solutions to OEMs across various sectors including industrial, medical, defense, automotive, communications, and cloud infrastructure [1] Financial Performance - Sanmina is expected to report quarterly earnings on January 26, 2026, with an anticipated EPS of $2.15 and revenue of approximately $3.09 billion, aligning closely with the Zacks Consensus Estimate of $3.1 billion in sales [2][6] - The company has historically exceeded earnings expectations, with an average earnings surprise of 5.35% over the last four quarters [2] Strategic Initiatives - The recent acquisition of ZT Systems' data center business is aimed at enhancing Sanmina's capabilities in the Cloud and AI sectors, alongside a collaboration with Konar to co-design a medium-voltage transformer, strengthening its position in energy manufacturing [3][6] Valuation Metrics - Sanmina's financial metrics indicate a strong market position, with a P/E ratio of 39.14, a price-to-sales ratio of 1.21, and an enterprise value to sales ratio of 1.13, reflecting its valuation relative to revenue [4] - The enterprise value to operating cash flow ratio stands at 14.77, indicating efficient cash flow generation [4] Financial Health - The company maintains a solid financial foundation with a debt-to-equity ratio of 0.13, suggesting low debt levels compared to equity [5] - A current ratio of 1.72 indicates a strong ability to cover short-term liabilities with short-term assets, underscoring robust financial health and growth potential [5]

Core Viewpoint - Sanmina Corporation (SANM) is set to report its first-quarter fiscal 2026 earnings on January 26, with consensus estimates for sales at $3.1 billion and earnings per share (EPS) at $2.15, indicating stable earnings projections for fiscal years 2026 and 2027 [1][4]. Earnings Estimates - The earnings estimates for Q1 FY26 remain unchanged at $2.15, with Q2 also at $2.36, and fiscal years 2026 and 2027 at $9.64 and $11.46 respectively, showing no revisions over the past 60 days [2]. - Sanmina has a trailing four-quarter earnings surprise average of 5.35%, having beaten estimates in each of the previous quarters, with the last quarter's surprise at 6.37% [2][3]. Recent Developments - Sanmina completed the acquisition of ZT Systems' data center infrastructure manufacturing business from AMD for up to $3 billion, enhancing its capabilities in the Cloud and AI market [6]. - The company partnered with Koncar to co-design a medium-voltage transformer, which is expected to boost revenues in power transmission and energy infrastructure manufacturing [7]. Price Performance - Over the past year, Sanmina's stock has increased by 116.2%, outperforming the Electronics - Manufacturing Services industry growth of 84.4% and its peer Jabil Inc. (47.6% increase), but lagging behind Celestica Inc. (129.8% increase) [8]. Valuation Metrics - Sanmina's shares are currently trading at a price/earnings ratio of 17.76, which is lower than the industry average of 25.74 but higher than its own historical mean of 11.46 [9]. Market Position and Demand - The company is experiencing strong demand across key markets, including communications networks, cloud and AI infrastructure, medical, and defense and aerospace sectors, benefiting from a diversified presence [11]. - Sanmina's end-to-end offerings from design to manufacturing provide a competitive edge in the market [11]. Challenges - Ongoing supply chain disruptions are causing component shortages and delivery delays, while strong competition from larger EMS companies is pressuring sales and margins [12]. - High exposure to overseas manufacturing introduces geopolitical risks, tariffs, and increased costs, alongside elevated R&D spending impacting profitability [12][13].