Core Viewpoint - Sanmina Corporation reported strong second-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding expectations, driven by growth across all segments and a significant increase in free cash flow [1] Financial Performance - Net income on a GAAP basis was $64.2 million or $1.16 per share, up from $52.5 million or 93 cents per share in the prior-year quarter, supported by top-line expansion [2] - Non-GAAP net income was $78 million or $1.41 per share, compared to $73.9 million or $1.30 in the prior-year quarter, surpassing the Zacks Consensus Estimate of $1.38 [2] Revenue Growth - Net sales increased to $1.98 billion from $1.83 billion in the year-ago quarter, beating the consensus estimate by $34 million [3] - Integrated Manufacturing Solutions generated $1.59 billion in revenues, a 9.7% year-over-year increase, contributing 80.2% to total revenues [4] - Components, Products and Services revenues rose to $391.9 million from $382.9 million in the prior-year quarter, driven by growth in several end markets [4] Segment Performance - Industrial & Energy, Medical, Defense & Aerospace, and Automotive markets generated $1.25 billion in revenues, up from $1.23 billion in the prior-year quarter [5] - Communications Networks and Cloud Infrastructure revenues increased to $732.9 million from $609.3 million in the year-ago quarter [5] Profitability Metrics - Gross profit was $176.2 million compared to $154.8 million in the year-ago quarter, driven by a favorable mix and improved operational efficiency [6] - Non-GAAP operating income totaled $110.6 million, up from $99.5 million in the prior-year period, with a non-GAAP operating margin of 5.6%, slightly up from 5.4% [6] Cash Flow and Liquidity - The company generated $156.9 million of net cash from operating activities, compared to $72.3 million in the previous year's quarter [7] - As of March 29, 2025, Sanmina had $647.1 million in cash and cash equivalents and $291.4 million in long-term debt [7] - During the quarter, approximately 1.03 million shares were repurchased for about $84 million [7] Future Outlook - For the third quarter of fiscal 2025, revenues are expected to be in the range of $1.925-$2.025 billion, with GAAP earnings per share forecasted between $1.05 and $1.15 [8] - Management estimates non-GAAP earnings per share in the band of $1.35-$1.45 [8]

Financial Data and Key Metrics Changes - The company reported revenue of $1,980,000,000 for Q2 2025, representing an 8.1% increase year-over-year [14][25] - Non-GAAP EPS was $1.41, up 7.8% compared to the same period last year [15][25] - Non-GAAP operating margin was 5.6%, up 20 basis points year-over-year [15][25] - Non-GAAP gross margin was 9.1%, an increase of 20 basis points compared to the same period last year [15][25] Business Line Data and Key Metrics Changes - IMS revenue was $1,600,000,000, up 9.8% year-over-year, primarily driven by growth in communication networks and cloud infrastructure [17] - CPS revenue was $411,000,000, up 3.3% year-over-year, with a non-GAAP gross margin of 13.9%, an increase of 100 basis points [17][18] Market Data and Key Metrics Changes - Revenue from industrial, energy, medical, defense, aerospace, and automotive sectors was $1,251,000,000, growing approximately 2.1% year-over-year [26] - Communication networks and cloud infrastructure revenue was $733,000,000, up 20.3% year-over-year [27] Company Strategy and Development Direction - The company aims to invest in faster-growing and higher-margin end markets, focusing on operational execution and customer satisfaction [36][42] - Strategic investments are planned in capacity and technology across the U.S., India, and Mexico to support future growth [21][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities despite geopolitical uncertainties, indicating a solid pipeline of new programs [49][50] - The company expects revenue growth of 6% to 8% for fiscal 2025, with a focus on maintaining stable operating margins [23][36] Other Important Information - The company maintained a strong balance sheet with cash and cash equivalents of $647,000,000 and no outstanding borrowings [19] - Free cash flow for the quarter was $126,000,000, allowing for continued investments and shareholder returns [22] Q&A Session Summary Question: Did you see any pull forward of demand in fiscal 2Q ahead of potential tariff increases? - Management indicated no major changes in customer behavior due to tariffs, but discussions with customers about options were ongoing [46][47] Question: Are you seeing any slowdown in demand in the fiscal second half of 2025? - Management stated they are being prudent in guidance but remain optimistic about future growth, with exciting programs on the horizon [49][50] Question: What drove the increase in gross inventory dollars? - The CFO explained that inventory is being built to support future growth, with a focus on year-over-year improvement [52][54] Question: How is demand trending in the communications end market? - Management reported strong demand across high-end routing, switching, and optical packaging, with expectations for continued strength [56][57] Question: Can you expand on the investments in capacity and technology in India, U.S., and Mexico? - Management highlighted significant growth opportunities in India, with expansions focused on data center demand and high technology printed circuit boards [66][66] Question: How competitive is the environment for new customer wins? - Management emphasized their competitive advantages in technology, quality, and flexibility, which have helped secure new customer contracts [78][80]

Q2 Fiscal 2025 Financial Results April 28, 2025 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 third quarter fiscal 2025 and expectations for fiscal 2025 generally, 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 ...

Core Viewpoint - Sanmina (SANM) reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.38 per share, and showing an increase from $1.30 per share a year ago, indicating a positive earnings surprise of 2.17% [1][2] Financial Performance - The company achieved revenues of $1.98 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.75% and up from $1.83 billion year-over-year [2] - Over the last four quarters, Sanmina has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Sanmina shares have increased approximately 8.7% since the beginning of the year, contrasting with the S&P 500's decline of -6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.60 on revenues of $2.09 billion, and for the current fiscal year, it is $6.01 on revenues of $8.19 billion [7] Industry Outlook - The Electronics - Manufacturing Services industry, to which Sanmina belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook [8]

Financial Performance - Net sales for the three months ended March 29, 2025, were $1,984,080, an increase of 8.1% compared to $1,834,595 for the same period in 2024[111] - Gross profit for the three months ended March 29, 2025, was $176,235, up from $154,757 in the same period in 2024, reflecting improved operating efficiencies[111] - Operating income for the three months ended March 29, 2025, increased to $91,616 from $75,961 in the same period in 2024[111] - Net income attributable to common shareholders for the three months ended March 29, 2025, was $64,208, compared to $52,485 for the same period in 2024[111] - The gross margin for the three months ended March 29, 2025, increased to 8.9% from 8.4% in the same period in 2024[113] Segment Performance - Sales in the Communications Networks and Cloud Infrastructure segment increased by 20.3% to $123,593 for the three months ended March 29, 2025, compared to $102,700 in the same period in 2024[112] Expenses and Taxation - Selling, general and administrative expenses for the three months ended March 29, 2025, were $76 million, up from $69 million in the same period in 2024[116] - The provision for income taxes for the three months ended March 29, 2025, was $18 million, representing an effective tax rate of 20%[118] Cash Flow and Liquidity - Net cash provided by operating activities for the six months ended March 29, 2025, was $220,796, compared to $198,342 for the same period in 2024[120] - As of March 29, 2025, cash and cash equivalents were $647 million, an increase from $626 million as of September 28, 2024[124] - Working capital was $2.0 billion as of March 29, 2025, compared to $1.9 billion as of September 28, 2024[124] - Net cash provided by operating activities for the six months ended March 29, 2025, was $221 million[125] - The company generated $237 million of cash from earnings, excluding non-cash items, during the six months ended March 29, 2025[126] - Net cash used in investing activities was $13 million for the six months ended March 29, 2025[127] - Net cash used in financing activities was $147 million for the six months ended March 29, 2025, including $100 million for stock repurchases[129] - The company repurchased 1 million shares for $100 million during the six months ended March 29, 2025[130] - The company believes existing cash resources will be sufficient to meet working capital requirements for at least the next twelve months[138] - As of March 29, 2025, 27% of the cash balance was held in the United States[140] Strategic Initiatives - The company aims to diversify into mission-critical markets and create a portfolio of more complex, higher technology products with longer product life cycles[108] Liabilities - As of March 29, 2025, the company had a liability of $55 million for uncertain tax positions[136]

Financial Performance - Revenue for Q2 FY25 was $1.98 billion, representing an increase from $1.83 billion in Q2 FY24, a growth of approximately 8.1%[15] - GAAP diluted earnings per share (EPS) for Q2 FY25 was $1.16, compared to $0.93 in Q2 FY24, reflecting a year-over-year increase of 24.7%[15] - Non-GAAP diluted EPS for Q2 FY25 was $1.41, up from $1.30 in Q2 FY24, indicating a growth of 8.5%[17] - GAAP operating margin for Q2 FY25 was 4.6%, while non-GAAP operating margin was 5.6%, consistent with previous quarters[5][17] - The company remains confident that fiscal 2025 will be a growth year based on the results from the first half and the outlook for the third quarter[2] Cash Flow and Investments - Cash flow from operations for Q2 FY25 was $157 million, with free cash flow amounting to $126 million[5] - Ending cash and cash equivalents as of March 29, 2025, were $647 million, an increase from $625.9 million at the end of September 2024[13] - Cash provided by operating activities increased to $156,858 million in Q1 2025, compared to $72,317 million in Q1 2024, representing a 117% increase[21] - Free cash flow for Q1 2025 was $126,211 million, significantly higher than $42,706 million in Q1 2024, indicating a 178% increase[21] - Net change in cash, cash equivalents, and restricted cash equivalents for Q1 2025 was $44,318 million, compared to $19,268 million in Q1 2024, reflecting a 130% increase[21] - Cash used in financing activities rose to $118,027 million in Q1 2025, compared to $21,852 million in Q1 2024[21] - Proceeds from long-term investments in Q1 2025 were $49,309 million, with no proceeds reported in Q1 2024[21] Share Repurchase and Guidance - The company repurchased 1.03 million shares for $84 million during the quarter[5] - The outlook for Q3 FY25 projects revenue between $1.925 billion and $2.025 billion, with GAAP diluted EPS expected to be between $1.05 and $1.15[6] - Non-GAAP diluted EPS guidance for Q3 FY25 is projected to be between $1.35 and $1.45[19] - Net share repurchases in Q1 2025 totaled $84,340 million, a significant increase from $1,255 million in Q1 2024[21] Depreciation and Capital Expenditures - Net purchases of property and equipment were $30,647 million in Q1 2025, slightly higher than $29,611 million in Q1 2024[21] - The company reported a depreciation expense of $28,208 million in Q1 2025, down from $30,274 million in Q1 2024[21] Net Income and Working Capital - Net income before noncontrolling interest for Q1 2025 was $70,515 million, up 27.5% from $55,309 million in Q1 2024[21] - The net change in net working capital for Q1 2025 was $44,214 million, a substantial improvement from a negative change of $(31,900) million in Q1 2024[21]

SAN JOSE, Calif., April 28, 2025 /PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the second quarter ended March 29, 2025 and outlook for its third fiscal quarter ending June 28, 2025.Second Quarter Fiscal 2025 Financial Highlights Revenue: $1.98 billion GAAP operating margin: 4.6% GAAP diluted EPS: $1.16 Non-GAAP(1) operating margin: 5.6% Non-GAAP(1) diluted EPS: $1.41Additional Highli ...

Group 1 - Sanmina Corporation will host its second quarter fiscal 2025 earnings conference call on April 28, 2025, at 5:00 PM ET [1] - The live webcast presentation and supporting materials will be available on the Sanmina website in the Investor Relations section [1] - A webcast replay will be accessible at the same location after the event concludes [1] Group 2 - Sanmina Corporation is a Fortune 500 company and a leading integrated manufacturing solutions provider in the global Electronics Manufacturing Services (EMS) market [2] - The company is recognized as a technology leader, providing end-to-end manufacturing solutions to Original Equipment Manufacturers (OEMs) in various sectors including industrial, medical, defense, aerospace, automotive, communications networks, and cloud infrastructure [2] - Sanmina has strategically located facilities in key regions around the world [2]

Core Insights - The article promotes a premium service called "Value in Corporate Events" that focuses on major corporate events such as earnings reports, mergers and acquisitions (M&A), and initial public offerings (IPOs) [1] Group 1 - The service aims to provide actionable investment ideas and opportunities for its members [1] - It covers approximately 10 major events each month, targeting the identification of the best investment opportunities [1] - The service is designed to assist members in capitalizing on significant corporate events and changes in capital allocation [1]

Core Insights - The Zacks Rank emphasizes earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [1] - Value investing is a preferred strategy for finding undervalued stocks through fundamental analysis and traditional valuation metrics [2] - Zacks has developed the Style Scores system to highlight stocks with specific traits, particularly for value investors seeking high grades in the "Value" category [3] Company Overview: Sanmina (SANM) - Sanmina (SANM) currently holds a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong investment potential [4] - The stock has a P/E ratio of 11.52, significantly lower than the industry average P/E of 15.41, suggesting it may be undervalued [4] - SANM's Forward P/E has fluctuated between 9.58 and 14.08 over the past year, with a median of 11.21 [4] - The PEG ratio for SANM is 0.86, compared to the industry's average PEG of 1.20, further indicating potential undervaluation [5] - Over the past year, SANM's PEG has ranged from 0.71 to 1.55, with a median of 1.07 [5] - These metrics suggest that SANM is likely undervalued and presents an impressive value stock opportunity, especially considering its strong earnings outlook [6]