Sanmina(US:SANM)2026-01-26 21:31Financial 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]