SAN JOSE, Calif., April 28, 2025 /PRNewswire/ — Sanmina Corporation (“Sanmina” or the “Company”) (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the second quarter ended March 29, 2025 and outlook for its third fiscal quarter ending June 28, 2025.
Second Quarter Fiscal 2025 Financial Highlights
Revenue: $1.98 billionGAAP operating margin: 4.6%GAAP diluted EPS: $1.16Non-GAAP(1) operating margin: 5.6%Non-GAAP(1) diluted EPS: $1.41
Additional Highlights
Cash flow from operations: $157 millionFree cash flow(2): $126 millionShare repurchases: 1.03 million shares for $84 millionEnding cash and cash equivalents: $647 million
(1)
See Schedule 1 below for information regarding the items excluded from and our use of non-GAAP financial measures. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release.
(2)
See Condensed Consolidated Cash Flow Statement included in the financial statements furnished with this release.
“We delivered solid financial results for the second quarter, with revenue at the high end and non-GAAP earnings per share exceeding our outlook. Our ability to adapt to the evolving environment is reflected in our consistent operating margin and strong cash generation,” stated Jure Sola, Chairman and Chief Executive Officer. “Our regional manufacturing footprint has enabled us to be agile and responsive to support our customers during these uncertain times. We remain focused on operational execution and driving shareholder value. Based on our results for the first half of fiscal 2025 and our outlook for the third quarter, we remain confident that fiscal 2025 will be a growth year,” Sola concluded.
Third Quarter Fiscal 2025 Outlook
The following outlook is for the third fiscal quarter ending June 28, 2025. These statements are forward-looking and actual results may differ materially.
Revenue between $1.925 billion to $2.025 billionGAAP diluted earnings per share between $1.05 to $1.15Non-GAAP diluted earnings per share between $1.35 to $1.45
Safe Harbor Statement
The statements above including our financial outlook for the third quarter fiscal 2025 and expectations for growth in fiscal 2025 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 as a result of a number of factors, including adverse changes to the key markets we target; significant uncertainties that can cause our future sales and net income to be variable, including uncertainties related to trade policy; reliance on a small number of customers for a substantial portion of our sales; risks arising from our international operations; geopolitical uncertainty, and the other risk factors set forth in the Company’s annual and quarterly reports filed with the Securities Exchange Commission.
The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.
Company Conference Call Information
Sanmina will hold a conference call to review its financial results for the second quarter and outlook for the third quarter of fiscal 2025 on Monday, April 28, 2025 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 800-836-8184 and international 646-357-8785. The conference will also be webcast live over the Internet. You can log on to the live webcast at Q2’25 Earnings. Additional information in the form of a slide presentation is available on Sanmina’s website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 888-660-6345 and international 646-517-4150, access code is 31002#.
About Sanmina
Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the industrial, medical, defense and aerospace, automotive, communications networks and cloud infrastructure markets. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com..
Sanmina Contact
Paige Melching
SVP, Investor Communications
408-964-3610
Sanmina Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(GAAP)
(Unaudited)
March 29,
2025
September 28,
2024
ASSETS
Current assets:
Cash and cash equivalents
$ 647,141
$ 625,860
Accounts receivable, net
1,383,116
1,337,562
Contract assets
384,629
384,077
Inventories
1,548,093
1,443,629
Prepaid expenses and other current assets
104,080
79,301
Total current assets
4,067,059
3,870,429
Property, plant and equipment, net
608,749
616,067
Deferred income tax assets
155,685
160,703
Other assets
135,139
175,646
Total assets
$ 4,966,632
$ 4,822,845
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$ 1,351,087
$ 1,441,984
Accrued liabilities
125,655
132,513
Deferred revenue and customer advances
443,983
215,553
Accrued payroll and related benefits
134,879
133,129
Short-term debt, including current portion of long-term debt
17,500
17,500
Total current liabilities
2,073,104
1,940,679
Long-term liabilities:
Long-term debt
291,394
299,823
Other liabilities
206,564
220,835
Total long-term liabilities
497,958
520,658
Stockholders’ equity
2,395,570
2,361,508
Total liabilities and stockholders’ equity
$ 4,966,632
$ 4,822,845
Sanmina Corporation
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(GAAP)
(Unaudited)
Three Months Ended
Six Months Ended
March 29,
2025
March 30,
2024
March 29,
2025
March 30,
2024
Net sales
$ 1,984,080
$ 1,834,595
$ 3,990,428
$ 3,709,393
Cost of sales
1,807,845
1,679,838
3,646,278
3,393,796
Gross profit
176,235
154,757
344,150
315,597
Operating expenses:
Selling, general and administrative
76,313
69,199
147,158
133,984
Research and development
7,316
6,323
14,340
12,612
Restructuring
990
3,274
2,426
5,464
Total operating expenses
84,619
78,796
163,924
152,060
Operating income
91,616
75,961
180,226
163,537
Interest income
3,723
3,412
7,119
7,069
Interest expense
(4,979)
(8,218)
(9,980)
(16,630)
Other income (expense), net
(1,955)
3,276
(2,684)
2,143
Interest and other, net
(3,211)
(1,530)
(5,545)
(7,418)
Income before income taxes
88,405
74,431
174,681
156,119
Provision for income taxes
17,890
19,122
33,282
40,446
Net income before noncontrolling interest
70,515
55,309
141,399
115,673
Less: Net income attributable to noncontrolling interest
6,307
2,824
12,188
6,120
Net income attributable to common shareholders
$ 64,208
$ 52,485
$ 129,211
$ 109,553
Net income attributable to common shareholders per share:
Basic
$ 1.18
$ 0.94
$ 2.38
$ 1.95
Diluted
$ 1.16
$ 0.93
$ 2.32
$ 1.91
Weighted-average shares used in computing per share amounts:
Basic
54,405
55,585
54,304
56,062
Diluted
55,511
56,699
55,681
57,470
Sanmina Corporation
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 29,
2025
December 28,
2024
March 30,
2024
GAAP Operating income
$ 91,616
$ 88,610
$ 75,961
GAAP Operating margin
4.6 %
4.4 %
4.1 %
Adjustments:
Stock compensation expense (1)
15,790
15,292
14,651
Distressed customer charges (2)
159
6,872
4,299
Legal (3)
—
450
1,350
Restructuring and other
3,081
1,436
3,274
Non-GAAP Operating income
$ 110,646
$ 112,660
$ 99,535
Non-GAAP Operating margin
5.6 %
5.6 %
5.4 %
GAAP Net income attributable to common shareholders
$ 64,208
$ 65,003
$ 52,485
Adjustments:
Operating income adjustments (see above)
19,030
24,050
23,574
Legal (3)
—
—
(4,967)
Adjustments for taxes (4)
(5,201)
(8,880)
2,849
Non-GAAP Net income attributable to common shareholders
$ 78,037
$ 80,173
$ 73,941
GAAP Net income attributable to common shareholders per share:
Basic
$ 1.18
$ 1.20
$ 0.94
Diluted
$ 1.16
$ 1.16
$ 0.93
Non-GAAP Net income attributable to common shareholders per share:
Basic
$ 1.43
$ 1.48
$ 1.33
Diluted
$ 1.41
$ 1.44
$ 1.30
Weighted-average shares used in computing per share amounts:
Basic
54,405
54,206
55,585
Diluted
55,511
55,853
56,699
(1)
Stock compensation expense
Cost of sales
$ 4,931
$ 5,024
$ 4,416
Selling, general and administrative
10,580
9,962
9,984
Research and development
279
306
251
Total
$ 15,790
$ 15,292
$ 14,651
(2)
Relates to accounts receivable and inventory write-downs associated with distressed customers.
(3)
Represents charges and recoveries associated with certain legal matters.
(4)
Adjustments for taxes include the tax effects of the various adjustments we exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items.
Q3 FY25 Earnings Per Share Outlook*:
Q3 FY25 EPS Range
Low
High
GAAP diluted earnings per share
$ 1.05
$ 1.15
Stock compensation expense
$ 0.30
$ 0.30
Non-GAAP diluted earnings per share
$ 1.35
$ 1.45
* Due to uncertainty regarding the timing of recognition of restructuring, acquisition and integration expenses, impairment charges and other unusual or infrequent items, if any, that could be incurred during the third quarter of FY25, an estimate of such items is not included in the outlook for Q3 FY25 GAAP EPS.
Sanmina Corporation
Condensed Consolidated Cash Flow
(in thousands)
(GAAP)
(Unaudited)
Three Months Ended
Six Months Ended
March 29,
2025
March 30,
2024
March 29,
2025
March 30,
2024
Net income before noncontrolling interest
$ 70,515
$ 55,309
$ 141,399
$ 115,673
Depreciation
28,208
30,274
60,053
61,000
Other, net
13,921
18,634
35,075
36,819
Net change in net working capital
44,214
(31,900)
(15,731)
(15,150)
Cash provided by operating activities
156,858
72,317
220,796
198,342
Purchases of long-term investments
(14,340)
(700)
(14,640)
(1,300)
Proceeds from long-term investments
49,309
—
49,309
—
Net purchases of property & equipment
(30,647)
(29,611)
(47,568)
(63,827)
Cash used in investing activities
4,322
(30,311)
(12,899)
(65,127)
Net share repurchases
(84,340)
(1,255)
(100,453)
(107,605)
Net borrowing activities
(4,375)
(4,375)
(8,750)
(17,195)
Payments for tax withholding on stock-based compensation
(29,312)
(16,222)
(37,655)
(25,491)
Cash used in financing activities
(118,027)
(21,852)
(146,858)
(150,291)
Effect of exchange rate changes
1,165
(886)
(179)
364
Net change in cash, cash equivalents & restricted cash equivalents
$ 44,318
$ 19,268
$ 60,860
$ (16,712)
Free cash flow:
Cash provided by operating activities
$ 156,858
$ 72,317
$ 220,796
$ 198,342
Net purchases of property & equipment
(30,647)
(29,611)
(47,568)
(63,827)
$ 126,211
$ 42,706
$ 173,228
$ 134,515
Schedule 1
The statements above and financial information provided in this earnings release include non-GAAP measures of operating income, operating margin, net income and earnings per share. Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other unusual or infrequent items, as adjusted for taxes, as more fully described below.
Management excludes these items principally because such charges or benefits are not directly related to the Company’s ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company’s operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company’s strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of our ongoing, core business. The material limitations to management’s approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company’s liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company’s performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases.
Additional information regarding the economic substance of each exclusion, management’s use of the resultant non-GAAP measures, the material limitations of management’s approach and management’s methods for compensating for such limitations is provided below.
Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of equity awards granted to employees and directors, is excluded in order to permit more meaningful period-to-period comparisons of the Company’s results since the Company grants different amounts and value of equity awards each quarter. In addition, given the fact that competitors grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company’s core results with those of its competitors.
Restructuring, Acquisition and Integration Expenses, which consist of employee severance, lease termination costs, exit costs, environmental investigation, remediation and related employee costs and other charges primarily related to closing and consolidating manufacturing facilities and those associated with the acquisition and integration of acquired businesses, are excluded because such charges (1) can be driven by the timing of acquisitions and exit activities which are difficult to predict, (2) are not directly related to ongoing business results and (3) generally do not reflect expected future operating expenses. In addition, given the fact that the Company’s competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges or benefits permits more accurate comparisons of the Company’s core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company’s competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Therefore, management also reviews GAAP results including these amounts.
Impairment Charges for Goodwill and Other Assets, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company’s liquidity. In addition, given the fact that the Company’s competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors.
Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company’s liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors because the Company’s competitors complete acquisitions at different times and for different amounts than the Company.
Other Unusual or Infrequent Items, such as charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, and gains and losses on sales of assets, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company’s ongoing or core operations and are therefore not considered by management in assessing the current operating performance of the Company and forecasting earnings trends. However, items excluded by the Company may be different from those excluded by the Company’s competitors. In addition, these items include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.
Adjustments for Taxes, which consist of the tax effects of the various adjustments that we exclude from our non-GAAP measures and adjustments related to deferred tax and discrete tax items. Including these adjustments permits more accurate comparisons of the Company’s core results with those of its competitors. We determine the tax adjustments based upon the various applicable effective tax rates. In those jurisdictions in which we do not expect to realize a tax cost or benefit (due to a history of operating losses or other factors), a reduced tax rate is applied.
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SOURCE Sanmina Corporation
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