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]