Core Viewpoint - Investors are encouraged to consider Sanmina (SANM) due to solid improvements in earnings estimates and positive short-term price momentum [1][10] Earnings Estimates - Analysts have shown growing optimism regarding Sanmina's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2] - The consensus earnings estimate for the current quarter is $2.15 per share, reflecting a year-over-year increase of +49.3% [6] - Over the past 30 days, the Zacks Consensus Estimate for Sanmina has risen by 22.76%, with no negative revisions reported [6] - For the full year, the expected earnings per share is $9.64, indicating a change of +59.6% from the previous year [7] - The consensus estimate for the current year has increased by 32.42% over the same time frame [8] Zacks Rank - Sanmina has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a strong indicator for potential stock performance [9] - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3] Stock Performance - Sanmina's stock has gained 32.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - The Style Scores categorize stocks into ratings of A, B, C, D, or F, with A indicating the highest potential for outperformance [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks [6] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores to highlight stocks with the best overall potential [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9][10] Company Spotlight: Sanmina Corporation - Sanmina Corporation, based in San Jose, CA, specializes in electronics contract manufacturing and offers comprehensive supply chain solutions across various sectors [11] - Currently rated 3 (Hold) by Zacks, Sanmina has a VGM Score of B and a Growth Style Score of A, with projected year-over-year earnings growth of 38.1% for the current fiscal year [12] - The Zacks Consensus Estimate for Sanmina's earnings has increased by $1.40 to $8.34 per share, with an average earnings surprise of +5.4% [12][13]

Core Insights - Sanmina Corporation (SANM) reported strong fourth-quarter fiscal 2025 results, with both revenue and net income exceeding the Zacks Consensus Estimate [1][4] Financial Performance - Net income on a GAAP basis for the quarter was $48.1 million or $0.88 per share, down from $61.4 million or $1.09 per share in the prior-year quarter, impacted by higher operating expenses and income taxes [2] - Non-GAAP net income for the quarter was $91.5 million or $1.67 per share, compared to $80.3 million or $1.43 in the prior-year quarter, surpassing the Zacks Consensus Estimate of $1.57 [2] - For the full fiscal year 2025, GAAP net income was $245.9 million or $4.46 per share, up from $222.5 million or $3.91 per share in 2024 [3] Revenue Growth - Net sales for the fourth quarter increased to $2.09 billion from $2.01 billion year-over-year, driven by growth across multiple end markets, beating the consensus estimate by $46 million [4] - For fiscal year 2025, revenues rose to $8.13 billion from $7.56 billion in 2024 [4] - The Integrated Manufacturing Solutions segment generated $1.68 billion in revenues, up 3.3% year-over-year, contributing 80.2% to total revenues, with strong sales growth in communications networks, cloud, and AI infrastructure [4] Segment Performance - Components, Products and Services revenues increased to $448 million, up 7.3% year-over-year, supported by growth in several end markets [5] - Industrial & Energy, Medical, Defense & Aerospace, and Automotive markets generated $1.247 billion in revenues, slightly down from $1.253 billion [5] - Communications Networks and Cloud Infrastructure generated $849 million, up from $765 million a year ago [5] Operational Efficiency - Non-GAAP gross profit was $196.4 million compared to $175.5 million in the year-ago quarter, driven by a favorable mix and improved operational efficiency [6] - Non-GAAP operating income totaled $126.4 million, up from $107.3 million in the prior-year period, with a non-GAAP operating margin of 6%, slightly up from 5.6% [6] Cash Flow and Liquidity - In the fourth quarter, Sanmina generated $199.1 million of net cash from operating activities, compared to $51.9 million in the previous year's quarter [10] - For the full year 2025, the company generated $620.7 million in cash, up from $340.2 million in 2024 [10] - As of September 27, 2025, Sanmina had $926.3 million in cash and cash equivalents and $282.3 million in long-term debt [10] Future Outlook - For the first quarter of fiscal 2026, revenues are projected to be in the range of $2.05 billion to $2.15 billion, with non-GAAP earnings per share expected between $1.95 and $2.25 [11]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Revenue for fiscal year 2025 was $8.13 billion, representing a year-over-year growth of 7.4% [15] - Non-GAAP operating margin was 5.7%, an increase of 30 basis points year-over-year [15] - Non-GAAP diluted earnings per share (EPS) was $6.04, reflecting a growth of 14.4% year-over-year [23] - Cash flow from operations for the fiscal year was $621 million [15][25] Business Line Data and Key Metrics Changes - Integrated Manufacturing Services (IMS) revenue was $1.68 billion, up 3.3% year-over-year, with a non-GAAP gross margin of 7.8% [21] - Communications and Cloud Services (CPS) revenue was $448 million, up 7.3% year-over-year, with a non-GAAP gross margin of 14.5% [21] - Both IMS and CPS businesses showed growth but have not yet reached their full potential [21] Market Data and Key Metrics Changes - Communication networks and cloud and AI end markets showed strong demand, contributing to 41% of quarterly revenue and 38% for the year, with a growth of 17% year-over-year [35] - Industrial, energy, medical, defense, aerospace, and automotive segments accounted for 59% of quarterly revenue and 62% for the year, with a growth of 2.2% year-over-year [35] Company Strategy and Development Direction - The acquisition of ZT Systems is seen as transformative, increasing scale and capabilities in the cloud and AI end market [27] - The company aims to double revenue to around $16 billion within the next two years, focusing on margin expansion and profitable growth [41][42] - Strategic investments will continue in capacity and technologies across operations in the US, India, and Mexico [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly in the cloud and AI sectors, and highlighted a strong pipeline for 2026 and beyond [36][37] - The company expects legacy Sanmina revenue to grow in the high single digits for fiscal 2026, with acceleration anticipated in the second half of the year [46] - Management emphasized the importance of executing on growth opportunities and maintaining a diversified customer base [48] Other Important Information - Cash and cash equivalents were $926 million, with no outstanding borrowings on the $800 million revolver, providing substantial liquidity of approximately $1.8 billion [24] - The company repurchased 1.44 million shares for $113.7 million during the fiscal year [26] Q&A Session Summary Question: Confirmation of ZT Systems annual run rate and margins - Management confirmed ZT Systems has a $5 billion-$6 billion annual run rate and expects margins to align with Sanmina's guidance of 5.6%-6.1% [44][45] Question: Growth expectations for legacy business - Legacy business is expected to grow in the high single digits, with acceleration anticipated in the second half of fiscal 2026 due to various market opportunities [46][47] Question: Cash conversion cycle and free cash flow outlook - The cash conversion cycle is back in the 50s, and the legacy business is expected to continue generating cash flow from operations, while ZT's cash flow trajectory is still being assessed [51][52] Question: Opportunities in AI and ZT Systems - Management highlighted significant AI opportunities in the pipeline for ZT Systems, emphasizing the importance of execution and strong leadership [59][60] Question: Automotive market outlook - The automotive segment showed some softness but management remains optimistic due to new programs and strong customer relationships [61]

Q4 & FY'25 Financial Results November 3, 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 first quarter fiscal 2026 and expectations for growth 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 statements a ...

Financial Performance - Revenue for fiscal year 2025 increased by 7.4% to $8.13 billion compared to $7.57 billion in fiscal year 2024[4] - Non-GAAP diluted EPS for fiscal year 2025 grew by 14.4% to $6.04 from $5.28 in fiscal year 2024[4] - GAAP Net income attributable to common shareholders for the twelve months ended September 2025 was $245,893, up from $222,536 in the previous year, an increase of 10.5%[20] - Non-GAAP Net income attributable to common shareholders for the twelve months ended September 2025 reached $333,250, compared to $300,868 in the prior year, marking an increase of 10.7%[20] Cash Flow and Assets - Cash flow from operations for Q4 2025 was $199 million, contributing to a total of $621 million for fiscal year 2025[8] - Cash provided by operating activities for Q3 2025 was $199,079, significantly higher than $51,875 in Q3 2024, indicating a substantial increase of 283.5%[23] - Free cash flow for the twelve months ended September 2025 was $478,181, compared to $231,020 in the previous year, reflecting a growth of 106.5%[23] - Total current assets increased to $4.87 billion in Q4 2025 from $3.87 billion in Q4 2024[16] - The net change in cash, cash equivalents, and restricted cash equivalents for the twelve months ended September 2025 was $340,360, compared to a decrease of $41,710 in the previous year[23] Operating Performance - GAAP Operating income for Q3 2025 was $78,465, down from $89,590 in Q3 2024, reflecting a decrease of 12.4%[20] - Non-GAAP Operating income increased to $126,450 in Q3 2025, compared to $107,329 in Q3 2024, representing a growth of 17.5%[20] - GAAP Operating margin for Q3 2025 was 3.7%, down from 4.4% in Q3 2024, indicating a decline of 15.9%[20] - Non-GAAP Operating margin improved to 6.0% in Q3 2025 from 5.3% in Q3 2024, an increase of 13.2%[20] Future Outlook - First quarter fiscal 2026 revenue outlook is projected between $2.9 billion to $3.2 billion[9] - Non-GAAP diluted earnings per share for the first quarter fiscal 2026 is expected to be between $1.95 to $2.25[9] Acquisitions and Growth - The acquisition of ZT Systems is expected to enhance scale and capabilities, targeting significant growth in the Cloud and AI end-market[4] - Share repurchases in fiscal year 2025 amounted to approximately 1.44 million shares for $114 million[8] - The company incurred $27,082 in acquisition and integration charges in Q3 2025, compared to no such charges in Q3 2024[20] Liabilities and Equity - Total liabilities and stockholders' equity as of September 27, 2025, was $5.86 billion, up from $4.82 billion a year earlier[16]

Core Insights - Sanmina Corporation reported strong financial results for Q4 and fiscal year 2025, driven by growth in Communications Networks and Cloud and AI Infrastructure markets [3][4] - The company anticipates continued strength in its legacy business and sees significant growth opportunities following the acquisition of ZT Systems [4] Financial Highlights - **Fourth Quarter Fiscal 2025**: - Revenue: $2.1 billion - GAAP operating margin: 3.7% - GAAP diluted EPS: $0.88 - Non-GAAP operating margin: 6.0% - Non-GAAP diluted EPS: $1.67 - Cash flow from operations: $199 million - Free cash flow: $137 million - Ending cash and cash equivalents: $926 million [2] - **Fiscal Year 2025**: - Revenue: $8.1 billion, an increase of 7.4% year-over-year - GAAP operating margin: 4.4% - GAAP diluted EPS: $4.46 - Non-GAAP operating margin: 5.7% - Non-GAAP diluted EPS: $6.04 - Cash flow from operations: $621 million - Free cash flow: $478 million - Share repurchases: Approximately 1.44 million shares for $114 million [2][4] Strategic Outlook - The acquisition of ZT Systems is expected to enhance Sanmina's scale and capabilities, particularly in the Cloud and AI sectors, providing a competitive advantage [4] - The company is optimistic about its growth trajectory for fiscal year 2026, supported by demand from both new and existing customers [4]

Core Insights - Celestica Inc. is a Toronto-based provider of electronics manufacturing services (EMS) and supply chain solutions, focusing on two primary segments: Advanced Technology Solutions and Connectivity and Cloud Solutions [2][19] - The company serves a diverse client base, including OEMs, hyperscalers, and clients in aerospace, HealthTech, and industrial markets, emphasizing high-mix, high-reliability manufacturing [1][5] - Celestica's operational footprint spans Asia and North America, allowing it to support time-sensitive demand and provide resilience in supply chain strategies amid geopolitical challenges [4][20] Company Overview - Celestica's service offerings include component sourcing, manufacturing, testing, logistics, and after-market services, enabling support across the product lifecycle [3][19] - The company emphasizes configurable hardware platforms and customizable software modules to enhance customer time-to-market [3][8] Operational Strategy - The operational model includes production and engineering assets strategically located to optimize supply chain efficiency and meet client demands [4][20] - Celestica's ability to provide both hardware platform development and post-deployment support differentiates it in the EMS sector [20][26] Competitive Positioning - Celestica competes with larger contract manufacturers like Flex and Jabil, focusing on engineering depth and lifecycle services rather than pure scale manufacturing [6][19] - The company is positioned as a systems-oriented EMS partner, appealing to clients requiring integrated engineering and supply chain management [8][26] Financial Dynamics - Revenue is primarily driven by product assembly and hardware platform solutions, with sensitivity to capital expenditure cycles in the cloud and industrial sectors [10][11] - The company's market capitalization and revenue can fluctuate based on demand cycles in electronics and broader market conditions [9][10] Historical Context - Founded in 1994, Celestica has evolved from a contract manufacturer to a provider of integrated systems and lifecycle services, reflecting shifts in client demand for fewer vendors and deeper engineering support [27][30] - Major milestones include international expansion, development of specialized capabilities, and a focus on platform-level work for cloud and communications [28][29] Management and Governance - The executive team prioritizes operational execution, customer program management, and margin recovery through higher-value services [31][32] - Governance emphasizes transparent reporting and adherence to compliance standards, particularly in regulated sectors [31][32] Market Position - Celestica trades on the Toronto Stock Exchange under the ticker CLS, with its market position influenced by peer comparisons and index membership [37][38] - The company is viewed as a design-led EMS provider with a focus on lifecycle services, distinguishing it from larger competitors in the consumer electronics space [38][40]