Sanmina Reports First Quarter Fiscal 2025 Financial Results
Sanmina (NASDAQ: SANM) has reported its Q1 fiscal 2025 financial results, achieving revenue of $2.01 billion with GAAP operating margin of 4.4% and GAAP diluted EPS of $1.16. The company's non-GAAP operating margin reached 5.6% with diluted EPS of $1.44.
The company demonstrated strong cash management with $64 million in operating cash flow and $47 million in free cash flow. During Q1, Sanmina repurchased 0.2 million shares for $16 million and reported ending cash and cash equivalents of $642 million.
In a significant development, Sanmina's Board has authorized an additional $300 million for share repurchases, with approximately $37 million still remaining from the previous authorization. The company's management expressed confidence in fiscal 2025 being a growth year, citing positive trends and strong operational execution.
Sanmina (NASDAQ: SANM) ha riportato i risultati finanziari per il primo trimestre dell'anno fiscale 2025, registrando un fatturato di 2,01 miliardi di dollari con un margine operativo GAAP del 4,4% e un utile per azione diluito GAAP di 1,16 dollari. Il margine operativo non-GAAP dell'azienda ha raggiunto il 5,6% con un utile per azione diluito di 1,44 dollari.
L'azienda ha dimostrato una solida gestione della liquidità, con 64 milioni di dollari di flusso di cassa operativo e 47 milioni di dollari di flusso di cassa libero. Durante il primo trimestre, Sanmina ha riacquistato 0,2 milioni di azioni per 16 milioni di dollari e ha riportato un saldo di cassa e equivalenti di cassa di 642 milioni di dollari.
In un importante sviluppo, il Consiglio di Amministrazione di Sanmina ha autorizzato ulteriori 300 milioni di dollari per il riacquisto di azioni, con circa 37 milioni di dollari ancora disponibili dall'autorizzazione precedente. La direzione dell'azienda ha espresso fiducia nel fatto che il 2025 sarà un anno di crescita, citando tendenze positive e una forte esecuzione operativa.
Sanmina (NASDAQ: SANM) ha reportado sus resultados financieros del primer trimestre del año fiscal 2025, logrando ingresos de 2,01 mil millones de dólares con un margen operativo GAAP del 4,4% y ganancias por acción diluida GAAP de 1,16 dólares. El margen operativo no GAAP de la compañía alcanzó el 5,6% con ganancias por acción diluida de 1,44 dólares.
La compañía demostró una sólida gestión de efectivo con 64 millones de dólares en flujo de caja operativo y 47 millones de dólares en flujo de caja libre. Durante el primer trimestre, Sanmina recompró 0,2 millones de acciones por 16 millones de dólares y reportó un saldo de efectivo y equivalentes de efectivo de 642 millones de dólares.
En un desarrollo significativo, la Junta de Sanmina autorizó un adicional de 300 millones de dólares para recompras de acciones, quedando aproximadamente 37 millones de dólares de la autorización anterior. La dirección de la compañía expresó confianza en que el año fiscal 2025 será un año de crecimiento, citando tendencias positivas y una fuerte ejecución operativa.
산미나 (NASDAQ: SANM)가 2025 회계연도 1분기 재무 결과를 발표하였습니다. 매출액 20억 1천만 달러를 기록하였으며, GAAP 운영 마진은 4.4%, 희석 주당 순이익(EPS)은 1.16 달러입니다. 회사의 비 GAAP 운영 마진은 5.6%로, 희석 EPS는 1.44 달러에 달했습니다.
회사는 6천4백만 달러의 운영 현금 흐름과 4천7백만 달러의 자유 현금 흐름으로 강력한 현금 관리 능력을 보여주었습니다. 1분기 동안 산미나는 16백만 달러에 20만 주를 재매입하였고, 최종 현금 및 현금성 자산은 6억 4천2백만 달러로 보고되었습니다.
주요 발전 사항으로, 산미나의 이사회는 추가적으로 3억 달러의 자사주 매입을 승인하였으며, 이전 승인에서 약 3천7백만 달러가 남아 있습니다. 회사의 경영진은 2025 회계연도가 성장의 해가 될 것이라는 확신을 표명하며, 긍정적인 추세와 강력한 운영 실행을 언급하였습니다.
Sanmina (NASDAQ: SANM) a annoncé ses résultats financiers du premier trimestre de l'exercice fiscal 2025, enregistrant un chiffre d'affaires de 2,01 milliards de dollars avec une marge opérationnelle GAAP de 4,4% et un BPA dilué GAAP de 1,16 dollar. La marge opérationnelle non GAAP de l'entreprise a atteint 5,6% avec un BPA dilué de 1,44 dollar.
L'entreprise a démontré une gestion de trésorerie solide avec 64 millions de dollars de flux de trésorerie d'exploitation et 47 millions de dollars de flux de trésorerie libre. Au cours du premier trimestre, Sanmina a racheté 0,2 million d'actions pour 16 millions de dollars et a rapporté un montant de trésorerie et équivalents de trésorerie de 642 millions de dollars.
Dans un développement significatif, le conseil d'administration de Sanmina a autorisé un montant supplémentaire de 300 millions de dollars pour le rachat d'actions, avec environ 37 millions de dollars encore disponibles de l'autorisation précédente. La direction de l'entreprise a exprimé sa confiance en ce que l'exercice 2025 sera une année de croissance, citant des tendances positives et une exécution opérationnelle solide.
Sanmina (NASDAQ: SANM) hat seine finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025 veröffentlicht und dabei einen Umsatz von 2,01 Milliarden Dollar mit einer GAAP-Betriebsrendite von 4,4% und einem verwässerten GAAP-EPS von 1,16 Dollar erzielt. Die nicht-GAAP-Betriebsrendite des Unternehmens erreichte 5,6% mit einem verwässerten EPS von 1,44 Dollar.
Das Unternehmen zeigte ein starkes Cash Management mit 64 Millionen Dollar im operativen Cashflow und 47 Millionen Dollar im freien Cashflow. Im ersten Quartal hat Sanmina 0,2 Millionen Aktien für 16 Millionen Dollar zurückgekauft und berichtete über einen Endbestand an Zahlungsmitteln und Zahlungsmitteläquivalenten von 642 Millionen Dollar.
In einer bedeutenden Entwicklung hat der Vorstand von Sanmina zusätzliche 300 Millionen Dollar für Aktienrückkäufe genehmigt, wobei noch etwa 37 Millionen Dollar von der vorherigen Genehmigung übrig sind. Das Management des Unternehmens äußerte Zuversicht, dass das Geschäftsjahr 2025 ein Wachstumsjahr sein wird, und verwies auf positive Trends und eine starke operative Umsetzung.
- Revenue reached $2.01 billion, hitting high end of outlook
- Non-GAAP earnings per share exceeded company guidance
- Board authorized additional $300 million for share repurchases
- Generated $64 million in operating cash flow
- Maintained strong cash position with $642 million in cash and equivalents
- GAAP operating margin declined to 4.4%
- Share repurchases decreased to 0.2 million shares ($16 million) in Q1
Insights
Sanmina's Q1 FY2025 performance demonstrates robust operational execution and financial discipline. The
The company's financial position remains particularly strong, with
A significant development is the Board's authorization of an additional
- Signals management's confidence in future cash generation capabilities
- Indicates shares may be viewed as undervalued at current levels
- Provides flexibility to opportunistically return capital to shareholders
- Demonstrates commitment to shareholder-friendly capital allocation
Management's outlook for fiscal 2025 as a growth year, coupled with their emphasis on operational discipline, suggests a balanced approach to managing near-term performance while investing in long-term value creation. The consistent margin performance and cash generation capability position Sanmina well for sustained value creation in the integrated manufacturing solutions space.
First Quarter Fiscal 2025 Financial Highlights • Revenue: • GAAP operating margin: • GAAP diluted EPS: • Non-GAAP(1) operating margin: • Non-GAAP(1) diluted EPS: |
Additional Highlights • Cash flow from operations: • Free cash flow(2): • Share repurchases: 0.2 million shares for • Ending cash and cash equivalents: |
(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 first quarter financial results, with revenue towards the high end and non-GAAP earnings per share exceeding our outlook. We continue to execute well, as evident in our consistent operating margin and cash generation," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation. "Our operational discipline and ability to service our customers will further strengthen our operating model and drive shareholder value. We continue to see positive trends and are confident that fiscal 2025 will be a growth year."
Expanded Share Repurchase Program
Sanmina's Board of Directors has authorized the repurchase of up to an additional
Second Quarter Fiscal 2025 Outlook
The following outlook is for the second fiscal quarter ending March 29, 2025. These statements are forward-looking and actual results may differ materially.
- Revenue between
$1.9 billion $2.0 billion - GAAP diluted earnings per share between
$1.03 $1.13 - Non-GAAP diluted earnings per share between
$1.30 $1.40
Safe Harbor Statement
The statements above including our financial outlook for the second 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; reliance on a small number of customers for a substantial portion of our sales; risks arising from our international operations; geopolitical uncertainty, including from the war in
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 first quarter and outlook for the second quarter of fiscal 2025 on Monday, January 27, 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 Q1'25 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 98068#.
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) | |||
December 28, | September 28, | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 642,402 | $ 625,860 | |
Accounts receivable, net | 1,354,199 | 1,337,562 | |
Contract assets | 386,633 | 384,077 | |
Inventories | 1,425,869 | 1,443,629 | |
Prepaid expenses and other current assets | 67,347 | 79,301 | |
Total current assets | 3,876,450 | 3,870,429 | |
Property, plant and equipment, net | 605,073 | 616,067 | |
Deferred income tax assets | 153,246 | 160,703 | |
Other assets | 177,253 | 175,646 | |
Total assets | $ 4,812,022 | $ 4,822,845 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,391,649 | $ 1,441,984 | |
Accrued liabilities | 107,665 | 132,513 | |
Deferred revenue and customer advances | 239,642 | 215,553 | |
Accrued payroll and related benefits | 126,483 | 133,129 | |
Short-term debt, including current portion of long-term debt | 17,500 | 17,500 | |
Total current liabilities | 1,882,939 | 1,940,679 | |
Long-term liabilities: | |||
Long-term debt | 295,608 | 299,823 | |
Other liabilities | 212,283 | 220,835 | |
Total long-term liabilities | 507,891 | 520,658 | |
Stockholders' equity | 2,421,192 | 2,361,508 | |
Total liabilities and stockholders' equity | $ 4,812,022 | $ 4,822,845 | |
Sanmina Corporation | |||
Condensed Consolidated Statements of Income | |||
(in thousands, except per share amounts) | |||
(GAAP) | |||
(Unaudited) | |||
Three Months Ended | |||
December 28, | December 30, | ||
Net sales | $ 2,006,348 | $ 1,874,798 | |
Cost of sales | 1,838,433 | 1,713,958 | |
Gross profit | 167,915 | 160,840 | |
Operating expenses: | |||
Selling, general and administrative | 70,845 | 64,785 | |
Research and development | 7,024 | 6,289 | |
Restructuring | 1,436 | 2,190 | |
Total operating expenses | 79,305 | 73,264 | |
Operating income | 88,610 | 87,576 | |
Interest income | 3,396 | 3,657 | |
Interest expense | (5,001) | (8,412) | |
Other income (expense), net | (729) | (1,133) | |
Interest and other, net | (2,334) | (5,888) | |
Income before income taxes | 86,276 | 81,688 | |
Provision for income taxes | 15,392 | 21,324 | |
Net income before noncontrolling interest | 70,884 | 60,364 | |
Less: Net income attributable to noncontrolling interest | 5,881 | 3,296 | |
Net income attributable to common shareholders | $ 65,003 | $ 57,068 | |
Net income attributable to common shareholders per share: | |||
Basic | $ 1.20 | $ 1.01 | |
Diluted | $ 1.16 | $ 0.98 | |
Weighted-average shares used in computing per share amounts: | |||
Basic | 54,206 | 56,538 | |
Diluted | 55,853 | 58,240 | |
Sanmina Corporation | |||||||
Reconciliation of GAAP to Non-GAAP Measures | |||||||
(in thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
December 28, | September 28, | December 30, | |||||
GAAP Operating income | $ 88,610 | $ 89,590 | $ 87,576 | ||||
GAAP Operating margin | 4.4 % | 4.4 % | 4.7 % | ||||
Adjustments: | |||||||
Stock compensation expense (1) | 15,292 | 15,489 | 12,585 | ||||
Distressed customer charges (2) | 6,872 | — | — | ||||
Legal (3) | 450 | (720) | — | ||||
Restructuring | 1,436 | 2,970 | 2,190 | ||||
Non-GAAP Operating income | $ 112,660 | $ 107,329 | $ 102,351 | ||||
Non-GAAP Operating margin | 5.6 % | 5.3 % | 5.5 % | ||||
GAAP Net income attributable to common shareholders | $ 65,003 | $ 61,381 | $ 57,068 | ||||
Adjustments: | |||||||
Operating income adjustments (see above) | 24,050 | 17,739 | 14,775 | ||||
Adjustments for taxes (4) | (8,880) | 1,175 | 3,961 | ||||
Non-GAAP Net income attributable to common shareholders | $ 80,173 | $ 80,295 | $ 75,804 | ||||
GAAP Net income attributable to common shareholders per share: | |||||||
Basic | $ 1.20 | $ 1.12 | $ 1.01 | ||||
Diluted | $ 1.16 | $ 1.09 | $ 0.98 | ||||
Non-GAAP Net income attributable to common shareholders per share: | |||||||
Basic | $ 1.48 | $ 1.47 | $ 1.34 | ||||
Diluted | $ 1.44 | $ 1.43 | $ 1.30 | ||||
Weighted-average shares used in computing per share amounts: | |||||||
Basic | 54,206 | 54,783 | 56,538 | ||||
Diluted | 55,853 | 56,235 | 58,240 | ||||
(1) | Stock compensation expense | ||||||
Cost of sales | $ 5,024 | $ 4,700 | $ 4,050 | ||||
Selling, general and administrative | 9,962 | 10,461 | 8,340 | ||||
Research and development | 306 | 328 | 195 | ||||
Total | $ 15,292 | $ 15,489 | $ 12,585 | ||||
(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. | ||||||
Q2 FY25 Earnings Per Share Outlook*: | Q2 FY25 EPS Range | ||||
Low | High | ||||
GAAP diluted earnings per share | $ 1.03 | $ 1.13 | |||
Stock compensation expense | $ 0.27 | $ 0.27 | |||
Non-GAAP diluted earnings per share | $ 1.30 | $ 1.40 | |||
* Due to uncertainty regarding the timing of recognition of restructuring charges, impairment charges and other unusual or infrequent items, if any, that could be incurred during the second quarter of FY25, an estimate of such items is not included in the outlook for Q2 FY25 GAAP EPS. | |||||
Sanmina Corporation | ||||||||||
Condensed Consolidated Cash Flow | ||||||||||
(in thousands) | ||||||||||
(GAAP) | ||||||||||
(Unaudited) | ||||||||||
Three Month Periods | ||||||||||
Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 | ||||||
Net income before noncontrolling interest | $ 70,884 | $ 67,340 | $ 54,738 | $ 55,309 | $ 60,364 | |||||
Depreciation | 31,845 | 31,654 | 29,764 | 30,274 | 30,726 | |||||
Other, net | 21,154 | 30,110 | 19,708 | 18,634 | 18,185 | |||||
Net change in net working capital | (59,945) | (77,229) | (14,211) | (31,900) | 16,750 | |||||
Cash provided by operating activities | 63,938 | 51,875 | 89,999 | 72,317 | 126,025 | |||||
Purchases of long-term investments | (300) | (3,300) | (600) | (700) | (600) | |||||
Net purchases of property & equipment | (16,921) | (22,597) | (22,772) | (29,611) | (34,216) | |||||
Cash used in investing activities | (17,221) | (25,897) | (23,372) | (30,311) | (34,816) | |||||
Net share repurchases | (24,456) | (60,412) | (54,629) | (17,477) | (115,619) | |||||
Net borrowing activities | (4,375) | — | (4,375) | (4,375) | (12,820) | |||||
Cash used in financing activities | (28,831) | (60,412) | (59,004) | (21,852) | (128,439) | |||||
Effect of exchange rate changes | (1,344) | 2,585 | (772) | (886) | 1,250 | |||||
Net change in cash & cash equivalents | $ 16,542 | $ (31,849) | $ 6,851 | $ 19,268 | $ (35,980) | |||||
Free cash flow: | ||||||||||
Cash provided by operating activities | $ 63,938 | $ 51,875 | $ 89,999 | $ 72,317 | $ 126,025 | |||||
Net purchases of property & equipment | (16,921) | (22,597) | (22,772) | (29,611) | (34,216) | |||||
$ 47,017 | $ 29,278 | $ 67,227 | $ 42,706 | $ 91,809 | ||||||
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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FAQ
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