Sanmina(SANM) - 2025 Q3 - Quarterly Results

Financial News Release Third Quarter Fiscal 2025 Financial Highlights Sanmina reported solid third quarter fiscal 2025 financial results, with revenue, non-GAAP gross margin, and non-GAAP diluted earnings per share exceeding its outlook, driven by operational efficiencies and a favorable business mix - Sanmina's Chairman and CEO, Jure Sola, stated that focused execution and operating discipline led to solid third quarter financial results, with revenue, non-GAAP gross margin, and non-GAAP diluted earnings per share exceeding outlook, benefiting from operational efficiencies and a favorable business mix[3] Third Quarter Fiscal 2025 Non-GAAP Financial Performance | Metric | Q3 FY25 (June 28, 2025) | Q3 FY24 (June 29, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | Non-GAAP Operating income | $115,703 thousand | $96,842 thousand | +19.5% | | Non-GAAP Operating margin | 5.7 % | 5.3 % | +0.4 pp | | Non-GAAP Net income attributable to common shareholders | $83,593 thousand | $70,828 thousand | +18.0% | | Non-GAAP diluted EPS | $1.53 | $1.25 | +22.4% | Fourth Quarter Fiscal 2025 Outlook Sanmina provided an outlook for the fourth fiscal quarter ending September 27, 2025, projecting revenue between $2.0 billion to $2.1 billion and specific GAAP and Non-GAAP diluted EPS ranges Fourth Quarter Fiscal 2025 Outlook | Metric | Low | High | | :--- | :--- | :--- | | Revenue | $2.0 billion | $2.1 billion | | GAAP diluted earnings per share | $1.21 | $1.31 | | Non-GAAP diluted earnings per share | $1.52 | $1.62 | - The outlook is forward-looking, and actual results may differ materially due to various factors including adverse changes to target markets, trade policy uncertainties, reliance on key customers, international operations risks, and geopolitical uncertainty[5][8][9] Company Information This section provides details for Sanmina's Q3 FY25 earnings conference call, a brief overview of Sanmina Corporation as a leading integrated manufacturing solutions provider, and investor contact information - Sanmina will host a conference call on Monday, July 28, 2025, at 5:00 p.m. ET (2:00 p.m. PT) to discuss Q3 FY25 financial results and Q4 FY25 outlook[11] - Sanmina Corporation is a Fortune 500 company and a leading integrated manufacturing solutions provider in the global Electronics Manufacturing Services (EMS) market, serving industrial, medical, defense and aerospace, automotive, communications networks, and cloud infrastructure markets globally[12] Condensed Consolidated Financial Statements (GAAP) Condensed Consolidated Balance Sheets As of June 28, 2025, Sanmina's total assets increased by 8.3% to $5.22 billion from $4.82 billion as of September 28, 2024, primarily driven by increases in cash and cash equivalents, accounts receivable, and inventories Condensed Consolidated Balance Sheets (Key Figures) | Metric | June 28, 2025 (in thousands) | September 28, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $797,878 | $625,860 | +$172,018 | | Total current assets | $4,301,883 | $3,870,429 | +$431,454 | | Total assets | $5,221,756 | $4,822,845 | +$398,911 | | Total current liabilities | $2,247,790 | $1,940,679 | +$307,111 | | Deferred revenue and customer advances | $525,144 | $215,553 | +$309,591 | | Total liabilities and stockholders' equity | $5,221,756 | $4,822,845 | +$398,911 | Condensed Consolidated Statements of Income For the third quarter of fiscal 2025, Sanmina reported a 10.8% year-over-year increase in net sales to $2.04 billion, with net income attributable to common shareholders rising 33% to $68.6 million Three Months Ended Income Statement Highlights | Metric | June 28, 2025 (in thousands) | June 29, 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $2,041,562 | $1,841,430 | +10.8% | | Gross profit | $181,050 | $153,539 | +17.9% | | Operating income | $95,877 | $82,367 | +16.4% | | Net income attributable to common shareholders | $68,616 | $51,602 | +33.0% | | Diluted EPS | $1.26 | $0.91 | +38.5% | Nine Months Ended Income Statement Highlights | Metric | June 28, 2025 (in thousands) | June 29, 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net sales | $6,031,990 | $5,550,823 | +8.7% | | Gross profit | $525,200 | $469,136 | +11.9% | | Operating income | $276,103 | $245,904 | +12.3% | | Net income attributable to common shareholders | $197,827 | $161,155 | +22.7% | | Diluted EPS | $3.58 | $2.82 | +26.9% | Condensed Consolidated Cash Flow Sanmina's cash provided by operating activities significantly increased to $200.8 million in Q3 FY25 from $90.0 million in Q3 FY24, with free cash flow reaching $168.2 million for the quarter Three Months Ended Cash Flow Highlights | Metric | June 28, 2025 (in thousands) | June 29, 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | $200,782 | $89,999 | +123.1% | | Cash used in investing activities | $(32,664) | $(23,372) | -39.7% | | Cash used in financing activities | $(18,758) | $(59,004) | +68.2% | | Net change in cash, cash equivalents & restricted cash equivalents | $151,000 | $6,851 | +2103.9% | | Free cash flow | $168,178 | $67,227 | +150.2% | Nine Months Ended Cash Flow Highlights | Metric | June 28, 2025 (in thousands) | June 29, 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | $421,578 | $288,341 | +46.2% | | Cash used in investing activities | $(45,563) | $(88,499) | +48.5% | | Cash used in financing activities | $(165,616) | $(209,295) | +20.9% | | Net change in cash, cash equivalents & restricted cash equivalents | $211,860 | $(9,861) | N/A | | Free cash flow | $341,406 | $201,742 | +69.2% | Non-GAAP Financial Measures Reconciliation and Explanation Reconciliation of GAAP to Non-GAAP Measures Sanmina provides a reconciliation of its GAAP to Non-GAAP financial measures, adjusting for items such as stock compensation, acquisition and integration costs, and restructuring Non-GAAP Operating Income and Margin Reconciliation | Metric | Q3 FY25 (June 28, 2025) | Q2 FY25 (March 29, 2025) | Q3 FY24 (June 29, 2024) | | :--- | :--- | :--- | :--- | | GAAP Operating income | $95,877 thousand | $91,616 thousand | $82,367 thousand | | GAAP Operating margin | 4.7 % | 4.6 % | 4.5 % | | Non-GAAP Operating income | $115,703 thousand | $110,646 thousand | $96,842 thousand | | Non-GAAP Operating margin | 5.7 % | 5.6 % | 5.3 % | Non-GAAP Net Income and EPS Reconciliation | Metric | Q3 FY25 (June 28, 2025) | Q2 FY25 (March 29, 2025) | Q3 FY24 (June 29, 2024) | | :--- | :--- | :--- | :--- | | GAAP Net income attributable to common shareholders | $68,616 thousand | $64,208 thousand | $51,602 thousand | | GAAP Diluted EPS | $1.26 | $1.16 | $0.91 | | Non-GAAP Net income attributable to common shareholders | $83,593 thousand | $78,037 thousand | $70,828 thousand | | Non-GAAP Diluted EPS | $1.53 | $1.41 | $1.25 | Q4 FY25 Non-GAAP Diluted EPS Outlook | Metric | Low | High | | :--- | :--- | :--- | | GAAP diluted earnings per share | $1.21 | $1.31 | | Stock compensation expense | $0.31 | $0.31 | | Non-GAAP diluted earnings per share | $1.52 | $1.62 | Explanation of Non-GAAP Measures Management uses non-GAAP measures to provide more meaningful period-to-period comparisons, guide business performance assessment, and offer investors a clearer understanding of core operations - Management excludes certain charges or benefits from non-GAAP measures to focus on ongoing core business operations, facilitate period-to-period comparisons, and guide strategic decisions[25][26][27] - Specific exclusions include: - Stock-based Compensation Expense: Non-cash charges for equity awards, excluded for better comparability - Restructuring, Acquisition and Integration Expenses: Charges related to facility closures, acquisitions, and integration, excluded due to their unpredictable and non-recurring nature - Impairment Charges for Goodwill and Other Assets: Non-cash, non-recurring charges - Amortization Charges: Non-cash charges impacted by timing and magnitude of acquisitions - Other Unusual or Infrequent Items: Non-recurring or unpredictable items like distressed customer charges or gains/losses on asset sales - Adjustments for Taxes: Tax effects of the above adjustments and deferred/discrete tax items[28][29][30][31][32][33][34]