Financial Data and Key Metrics Changes - Revenue for the second quarter reached a record $1.13 billion, representing a 36% increase year-over-year and a 16% increase from the prior quarter [4][9] - Non-GAAP EPS was $3.36, exceeding guidance despite a $3 million foreign exchange revaluation loss [9][11] - Gross margin improved to 12.4%, and operating margin reached 10.9%, reflecting strong top-line growth [11][12] Business Line Data and Key Metrics Changes - Optical Communications revenue grew 29% year-over-year and 11% sequentially, totaling $833 million [9][10] - Telecom revenue surged 59% year-over-year and 17% from Q1, reaching $554 million, with DCI revenue increasing 42% year-over-year [4][10] - Non-Optical Communications revenue was $300 million, up 61% year-over-year and 30% sequentially, driven by high-performance computing products [10][11] Market Data and Key Metrics Changes - Datacom revenue was $278 million, showing a 2% sequential increase, while the year-over-year decline narrowed to 7% [10] - Automotive revenue grew 12% year-over-year but slightly declined sequentially as anticipated [5][11] - Industrial Laser revenue increased 10% year-over-year and 4% sequentially, contributing $41 million [11] Company Strategy and Development Direction - The company is focused on strategic capacity expansion, with the construction of Building 10, a 2 million sq ft facility, on track for completion by the end of 2026 [6][8] - The company is pursuing new opportunities across all business areas, particularly in telecom and high-performance computing [5][6] - The company aims to maintain execution excellence while scaling operations to meet increasing demand [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth trends across all major business areas, with expectations for continued strong performance in Q3 [8][13] - The company anticipates revenue growth in telecom, datacom, and HPC, while expecting a modest decline in automotive revenue [13] - Management highlighted the importance of executing well to capture growth opportunities and maintain competitive advantages [17][52] Other Important Information - The company ended the quarter with cash and short-term investments of $961 million, with capital expenditures of $52 million reflecting ongoing construction and capacity enhancements [12] - The company repurchased over 12,000 shares at an average price of $387 per share during the quarter [12] Q&A Session Summary Question: HPC customer ramp and production lines - Management indicated they are a little more than halfway to fully ramping the HPC program, expecting revenue to exceed $150 million when fully ramped [16][17] Question: Co-packaged optics and optical circuit switches - Management confirmed they are working on co-packaged optics with three different customers and are excited about the potential of optical circuit switches [19][22] Question: Datacom transceivers supply constraints - Management acknowledged supply constraints in Datacom but noted progress with a second source for lasers, which should alleviate some issues [27] Question: Telecom revenue growth drivers - Management stated that the growth in telecom was primarily driven by DCI, with optimism about both satellite communications and core telecom systems [30][31] Question: New customer opportunities in telecom - Management is pursuing both existing and new customers, emphasizing their role as a pure contract manufacturer without competing products [43][44] Question: Capacity additions and timelines - Management confirmed that the Pinehurst campus is being repurposed to add 120,000 sq ft of manufacturing space, with strong demand from legacy customers [91][92]

Core Insights - Fabrinet reported record revenue and earnings for the second quarter of fiscal year 2026, significantly exceeding guidance ranges [2][6] - The company attributes its strong performance to multiple large strategic programs and excellent execution, which are expected to continue into the third quarter [2][4] Financial Highlights - Revenue for Q2 FY2026 was $1,132.9 million, up from $833.6 million in Q2 FY2025, representing a year-over-year increase of approximately 36% [6] - GAAP net income for Q2 FY2026 was $112.6 million, compared to $86.6 million in Q2 FY2025, marking a 30% increase [6] - GAAP net income per diluted share for Q2 FY2026 was $3.11, up from $2.38 in Q2 FY2025, reflecting a 30% increase [6] - Non-GAAP net income for Q2 FY2026 was $121.6 million, compared to $95.1 million in Q2 FY2025, a 28% increase [6] - Non-GAAP net income per diluted share for Q2 FY2026 was $3.36, compared to $2.61 in Q2 FY2025, a 29% increase [6] Business Outlook - For Q3 FY2026, Fabrinet expects revenue to be in the range of $1.15 billion to $1.20 billion [6] - GAAP net income per diluted share is projected to be between $3.22 and $3.37, while non-GAAP net income per diluted share is expected to be between $3.45 and $3.60 [6][29]

Core Viewpoint - Sanmina Corporation (NASDAQ:SANM) is highlighted as a strong investment opportunity following a price target increase by Argus from $170 to $200, maintaining a "Buy" rating due to its Q1 2026 earnings performance and robust manufacturing presence in the Americas [1][2]. Financial Performance - Sanmina reported Q1 2026 revenues of $3.19 billion and a GAAP diluted EPS of $0.89, driven by strong demand in the Communications Networks and Cloud & AI Infrastructure markets [3]. - For Q2 2026, the company anticipates revenues between $3.1 billion and $3.4 billion, with non-GAAP diluted EPS projected to be between $2.25 and $2.55 [3]. Market Position - Sanmina is recognized as an integrated manufacturing solutions provider, focusing on the growing segments of the global Electronics Manufacturing Services (EMS) market [4]. - The company has demonstrated resilience against tariffs, benefiting from its agile manufacturing infrastructure and global footprint [2].

Core Insights - Celestica reported strong financial performance for fiscal year 2025, with revenue of $12.4 billion and adjusted EPS of $6.05, reflecting growth of 28% and 56% respectively [1] - The company achieved an adjusted operating margin of 7.5%, marking the second consecutive year of 100 basis points improvement, driven by AI-related demand and operational execution [1] Financial Performance - For Q4 2025, Celestica's revenue reached $3.65 billion, a 44% increase year over year, exceeding guidance [3][4] - Adjusted EPS for Q4 was $1.89, up 70% from the previous year, also surpassing the top end of guidance [3][4] - The adjusted operating margin for Q4 was a record 7.7%, up 90 basis points [3][4] Segment Performance - The Connectivity & Cloud Solutions (CCS) segment drove growth, with revenue increasing 64% to $2.86 billion, accounting for 78% of total revenue [6][7] - The Advanced Technology Solutions (ATS) segment saw a slight decline of 1% to $795 million, attributed to lower volumes in capital equipment and portfolio reshaping [8] Capital Expenditure and Growth Plans - Celestica plans to significantly increase capital expenditures to approximately $1 billion in 2026, up from $201 million in 2025, to expand operations in Texas, Thailand, and other locations [5][10] - The company raised its 2026 revenue guidance to $17 billion and adjusted EPS to $8.75, representing year-over-year growth of 37% and 45% respectively [15] Market Demand and Future Outlook - Demand from hyperscalers for networking and AI compute systems is expected to support CCS segment revenue growth of approximately 50% in 2026 [17] - Celestica has secured a design and manufacturing award for a 1.6T networking switch platform, with production expected to begin in 2027 [18] - Customer visibility extends into 2027 and beyond, with Celestica being viewed as a technology leader rather than just a supply chain partner [20]

Key Takeaways Celestica posted Q4 results with adjusted EPS and revenue beats, driven by 44% sales growth led by CCS.CLS saw CCS revenues rise 64% as Communications demand lifted HPS sales by 72% on hyperscale networking.Celestica raised 2026 outlook to ~$17B revenues, $8.75 non-GAAP earnings per share.Celestica, Inc. (CLS) recorded strong fourth-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate.This Toronto-based electronics manufacturing service provi ...

Key Takeaways FN will report fiscal Q2 results with revenues expected between $1.05-$1.10 billion and EPS of $3.15-$3.30.FN's telecom and DCI businesses are driving growth, supported by strong demand and rising HPC adoption.FN's results may be constrained by flat automotive revenue and margin pressure from FX headwinds.Fabrinet (FN) is slated to release second-quarter fiscal 2026 results on Feb. 2.For the fiscal second quarter, revenues are expected in the range of $1.05-$1.10 billion. Non-GAAP earnings per ...

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of $3.65 billion, a 44% increase year-over-year, exceeding guidance [10] - Adjusted EPS for the quarter was $1.89, a 70% increase compared to the previous year [10] - Full-year revenue for 2025 was $12.4 billion, representing a 28% growth year-over-year, while adjusted EPS was $6.05, up 56% [7][8] - Adjusted operating margin for Q4 was 7.7%, marking the strongest performance in company history [7] Business Line Data and Key Metrics Changes - Revenue in the ATS segment for Q4 was $795 million, a 1% decline year-over-year, while the CCS segment revenue was $2.86 billion, up 64% [11][12] - The CCS segment accounted for 78% of total company revenue in Q4, with communications end market revenue increasing by 79% [12] - The ATS segment margin improved to 5.3%, while the CCS segment margin was 8.4% [13] Market Data and Key Metrics Changes - The company anticipates revenue growth in the communications end market to be in the low sixties percentage range, driven by ongoing ramps in 800G programs [23] - The enterprise end market is expected to see very strong growth in the high teens percentage range, supported by AI/ML compute program ramps [23] Company Strategy and Development Direction - The company is significantly increasing capital investment plans for 2026 and 2027 to support long-term capacity planning and growth opportunities [16][17] - Investments will focus on expanding manufacturing capabilities in the U.S. and Thailand, aligning with customer demand for data center infrastructure and AI capabilities [18][19] - The company aims to maintain a strong balance sheet while funding increased capital expenditures through operating cash flow [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, raising revenue guidance to $17 billion and adjusted EPS to $8.75, reflecting a 37% and 45% growth year-over-year, respectively [25] - The company is focused on securing supply and managing macro uncertainties while anticipating strong demand from hyperscalers and digital native customers [37][41] - Management highlighted the unprecedented level of demand and the strategic importance of investments in new capacity to support future growth [30][31] Other Important Information - The company generated $156 million in free cash flow in Q4, with total annual adjusted free cash flow of $458 million for 2025 [15] - The company has a healthy cash balance of $596 million and a net debt position of $128 million, indicating strong liquidity [20] Q&A Session Summary Question: Concerns about potential slowdown in fiscal second half - Management reassured that customer forecasts for 2026 are higher than the guidance, indicating a pragmatic approach to outlook [36][37] Question: Risk management regarding funding for AI-related projects - Management stated that the build-out is based on booked business with minimal risk of programs not materializing, emphasizing strong demand [40][41] Question: CapEx investment and its impact on revenue - Management clarified that current CapEx investments are tied to booked business and will support revenue growth in 2027 and beyond [49] Question: Updates on digital native customer relationship - Management confirmed a solid relationship with the digital native customer, with preparations for ramping production in early 2027 [88] Question: Expected returns on new programs compared to existing ones - Management indicated that new programs are becoming more complex, with a focus on strong profitability and disciplined investment [95][96]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of $3.65 billion, a 44% increase year-over-year, exceeding guidance [10] - Adjusted EPS for the quarter was $1.89, up 70% from the previous year [10] - For the full year 2025, total revenue reached $12.4 billion, representing a 28% growth, while adjusted EPS was $6.05, a 56% increase [7][8] - The adjusted operating margin for Q4 was 7.7%, marking the strongest performance in company history [7][10] Business Line Data and Key Metrics Changes - The ATS segment reported revenue of $795 million, a 1% decline, while the CCS segment revenue was $2.86 billion, up 64% [11][12] - The CCS segment accounted for 78% of total revenue in Q4, with communications end market revenue increasing by 79% [12] - The ATS segment margin improved to 5.3%, while the CCS segment margin was 8.4% [13] Market Data and Key Metrics Changes - The company anticipates revenue growth in the communications end market to be in the low sixties percentage range, driven by ongoing ramps in 800G programs [23] - The enterprise end market is expected to see very strong growth in the high teens percentage range, supported by AI/ML compute program ramps [23] Company Strategy and Development Direction - The company is significantly increasing capital expenditures to approximately $1 billion in 2026 to support long-term capacity planning and growth opportunities [16][17] - Investments will focus on expanding manufacturing capabilities in the U.S. and Thailand, aligning with customer demand for data center infrastructure and AI capabilities [18][19] - The company aims to maintain a strong cash flow while funding these investments, projecting $500 million in free cash flow for 2026 [25][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, raising revenue guidance to $17 billion and adjusted EPS to $8.75, reflecting a 37% and 45% year-over-year growth, respectively [25] - The demand outlook is expected to extend beyond the typical four-quarter view, indicating strong customer engagement and future growth potential [36] Other Important Information - The company achieved an adjusted ROIC of 43%, up 14 percentage points year-over-year, reflecting strong profitability and disciplined working capital management [11] - The cash balance at the end of the quarter was $596 million, with a net debt position of $128 million [20] Q&A Session Summary Question: Concerns about potential slowdown in growth - Management clarified that the guidance reflects a pragmatic view, focusing on securing supply and accounting for macro uncertainties, while customer forecasts for 2026 are higher than the guidance [34][36] Question: Risk management regarding funding for AI-related projects - Management indicated that the build-out is based on booked business with minimal risk of programs not materializing, supported by strong demand and a healthy balance sheet [40][41][43] Question: CapEx investment and its impact on revenue - The company stated that current CapEx investments are tied to booked business and will support revenue growth in 2027 and beyond, with ongoing evaluations based on market demand [49] Question: Updates on digital native customer relationship - Management confirmed a solid relationship with the digital native customer, with preparations for ramping production in early 2027 [88][89] Question: Expected returns on new programs compared to existing ones - The company emphasized a disciplined investment approach, focusing on strong profitability and expanding ROIC, while competitive intensity is increasing as programs become more complex [94][96]

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $3.65 billion, a 44% increase year-over-year, exceeding guidance [8][9] - Adjusted EPS for the quarter was $1.89, up 70% from the previous year [9] - Full-year revenue for 2025 was $12.4 billion, representing a 28% growth, while adjusted EPS was $6.05, a 56% increase [5][6] - Adjusted operating margin for Q4 was 7.7%, marking the strongest performance in company history [5][9] - Adjusted ROIC was 43%, up 14 percentage points compared to the prior year [10] Business Segment Data and Key Metrics Changes - ATS segment revenue was $795 million, a 1% decline, while CCS segment revenue was $2.86 billion, up 64% [10] - Communications end market revenue increased by 79%, driven by demand for 800G networking switches [11] - Enterprise end market revenue grew by 33%, supported by AI/ML compute programs [11] - ATS segment margin improved to 5.3%, while CCS segment margin was 8.4% [12] Market Data and Key Metrics Changes - The CCS segment accounted for 78% of total company revenue in Q4 [10] - Three customers accounted for 36%, 15%, and 12% of total revenue in Q4 [12] - Inventory balance at the end of Q4 was $2.19 billion, a sequential increase of $141 million [13] Company Strategy and Development Direction - The company plans to increase capital expenditures to approximately $1 billion in 2026 to support growth [14][15] - Investments will focus on expanding capacity in the U.S. and Thailand to meet customer demand [16][17] - The company aims to align its global footprint with customer capacity roadmaps, particularly in data center infrastructure and AI capabilities [15][18] - The outlook for 2026 revenue is raised to $17 billion, with adjusted EPS expected to be $8.75, reflecting strong demand [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, citing strong customer demand and a robust pipeline of growth opportunities [23][25] - The company anticipates continued growth in the CCS segment, driven by hyperscaler demand for networking technologies [26][27] - Management acknowledged macro uncertainties but emphasized a strong demand outlook [35][39] Other Important Information - The company generated $156 million in free cash flow in Q4, totaling $458 million for the year [13] - The gross debt to non-GAAP trailing twelve-month Adjusted EBITDA leverage ratio improved to 0.7 turns [19] - The company repurchased approximately 132,000 shares for $36 million during the quarter [20] Q&A Session Summary Question: Clarification on revenue and EPS guidance for fiscal 2026 - Management confirmed confidence in the 2026 outlook, noting customer forecasts exceed guidance [34] Question: Concerns about funding for future AI-related projects - Management stated that the build-out is based on booked business, with minimal risk of programs not materializing [37] Question: CapEx investment and its impact on revenue growth - Management indicated that current investments are based on booked business and will support growth into 2027 [47] Question: Margin trajectory with enterprise growth - Management expects strong operating leverage and does not foresee significant margin compression despite enterprise growth [55] Question: Supply chain and inflation impact on margins - Management is comfortable with the supply chain and does not anticipate significant margin compression from inflation [104]

Fourth Quarter 2025 Financial Results January 29, 2026 1 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to: strengthening demand in our businesses, demand environment and customer forecasts, our anticipated financial and/or operational results, guidance and outlook, including statements under the headings "Capital Investments," "Q1 2026 Guidance," "Q1 2026 Non-GAAP Tax Rate Estimate," "Q1 2026 End Marke ...