SANMINA REPORTS FOURTH QUARTER AND FISCAL 2025 FINANCIAL RESULTS

Rhea-AI Summary

Sanmina (NASDAQ: SANM) reported fourth-quarter and fiscal 2025 results and provided fiscal Q1 2026 outlook on Nov 3, 2025. FY25 revenue was $8.1B; Q4 revenue was $2.1B. FY25 non-GAAP diluted EPS rose 14.4% to $6.04 and non-GAAP operating margin expanded to 5.7%. Sanmina generated $621M of cash flow from operations in FY25 and returned ~$114M to shareholders via repurchases (1.44M shares).

Management cited strength in Communications Networks and Cloud & AI Infrastructure and highlighted the ZT Systems acquisition as a scale-building move. Fiscal Q1 2026 guidance: $2.9B–$3.2B revenue and $1.95–$2.25 non-GAAP diluted EPS.

Positive

• Non-GAAP diluted EPS +14.4% in FY25 to $6.04
• FY25 cash from operations $621M
• Fiscal Q1 2026 guidance: $2.9B–$3.2B revenue
• ZT Systems acquisition expected to expand Cloud & AI scale

Negative

• Q4 GAAP operating margin 3.7% vs non-GAAP 6.0% (230 bps gap)
• Company warns of integration risks related to ZT Systems
• Disclosure: fiscal Q1 non-GAAP guidance cannot be reconciled to GAAP

Insights

Senior equity analyst

Sanmina delivered revenue and cash-flow expansion, raised scale via ZT Systems, and gave a stronger Q1 fiscal 2026 outlook.

Sanmina reported $8.1 billion revenue for fiscal 2025, a 7.4% year-over-year revenue increase, GAAP diluted EPS of $4.46, and strong cash generation with operating cash flow of $621 million and free cash flow of $478 million. The company returned capital via ~1.44 million share repurchases for $114 million. Management highlights continued strength in Communications Networks and Cloud and AI Infrastructure end-markets and cites the acquisition of ZT Systems as a scale-building, capability-expanding move that underpins the higher revenue guidance for the fiscal first quarter.

The outlook frames material dependencies and risks clearly: the Q1 fiscal 2026 revenue guide of $2.9 billion to $3.2 billion and non-GAAP EPS of $1.95 to $2.25 assumes successful integration of ZT Systems and sustained demand in cloud/AI markets. Integration timing, customer concentration, trade policy shifts, and execution on cost control could materially affect outcomes. The company explicitly lists these risks in its safe-harbor language.

Watch near-term execution and proof points over the next quarter: actual Q1 fiscal 2026 results versus the provided ranges, integration milestones for ZT Systems, and quarterly cash-flow conversion. Expect the next meaningful datapoints at the Q1 results around December 27, 2025 and subsequent quarterly filings for confirmation of margin expansion or integration-related costs.

SAN JOSE, Calif., Nov. 3, 2025 /PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the fourth quarter and fiscal year ended September 27, 2025 and outlook for its fiscal first quarter ending December 27, 2025.

Fourth Quarter Fiscal 2025 Financial Highlights •    Revenue: $2.1 billion •    GAAP operating margin: 3.7% •    GAAP diluted EPS: $0.88 •    Non-GAAP(1) operating margin: 6.0% •    Non-GAAP(1) diluted EPS: $1.67	Fiscal Year 2025 Financial Highlights •    Revenue: $8.1 billion •    GAAP operating margin: 4.4% •    GAAP diluted EPS: $4.46 •    Non-GAAP(1) operating margin: 5.7% •    Non-GAAP(1) diluted EPS: $6.04
Additional Highlights •    Cash flow from operations: Q4 $199 million and FY'25 $621 million •    Free cash flow(2): $137 million in Q4 and $478 million in FY'25 •    Share repurchases: Approximately 1.44 million shares for $114 million in FY'25  •    Q4 ending cash and cash equivalents: $926 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 strong results for the fourth quarter. Ongoing strength in the Communications Networks and Cloud and AI Infrastructure end-markets, combined with our team's execution and disciplined cost management, drove performance that met or exceeded our outlook," stated Jure Sola, Chairman and CEO.

"Our fiscal year 2025 results were in line with our previously communicated expectations. Revenue for the fiscal year increased 7.4%, non-GAAP operating margin expanded by 30 basis points, non-GAAP diluted EPS grew 14.4%, and we generated $621 million of cash flow from operations."

"As we look to fiscal year 2026, our legacy business remains strong, driven by demand from new and existing customers across our diversified portfolio. Additionally, our acquisition of ZT Systems is transformative, increasing our scale and expanding our capabilities, enabling us to capitalize on significant growth opportunities in the Cloud and AI end-market. Our complementary offerings create a competitive advantage for Sanmina. We are excited about the opportunities ahead," concluded Sola. 

First Quarter Fiscal 2026 Outlook
The following outlook is for the fiscal first quarter ending December 27, 2025. These statements are forward-looking and actual results may differ materially.  

• Revenue between $2.9 billion to $3.2 billion
• Non-GAAP diluted earnings per share between $1.95 to $2.25*

*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort.

Safe Harbor Statement
The statements above including our financial outlook for the first quarter fiscal 2026 and expectations for growth in fiscal 2026 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 the risk that the expected benefits from the ZT Systems acquisition may not be realized or may take longer to realize than anticipated; adverse changes in the key markets we target, in particular the cloud and AI infrastructure sectors; the impact of recent or future changes in tariffs and trade policy, which may adversely affect our costs, supply chain, and customer demand; significant uncertainties that can cause our future sales, earnings, and cash flows to be variable; our reliance on a limited number of customers for a substantial portion of our sales; risks arising from our international operations and expansion into new geographic markets; integration risks related to combining ZT Systems' manufacturing operations with our own; 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 fourth quarter and fiscal year 2025 and outlook for the first quarter and fiscal year 2026 on Monday, November 3, 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 call will also be webcast live over the Internet. You can log on to the live webcast at Q4'25 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 34375#.

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 and AI 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)
	September 27, 2025		September 28, 2024
ASSETS
Current assets:
Cash and cash equivalents	$          926,267		$          625,860
Accounts receivable, net	1,400,129		1,337,562
Contract assets	425,944		384,077
Inventories	1,988,462		1,443,629
Prepaid expenses and other current assets	124,656		79,301
Total current assets	4,865,458		3,870,429
Property, plant and equipment, net	682,354		616,067
Deferred income tax assets	171,218		160,703
Other assets	139,143		175,646
Total assets	$       5,858,173		$       4,822,845
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$       1,578,895		$       1,441,984
Accrued liabilities	179,605		132,513
Deferred revenue and customer advances	878,474		215,553
Accrued payroll and related benefits	167,541		133,129
Short-term debt, including current portion of long-term debt	17,500		17,500
Total current liabilities	2,822,015		1,940,679
Long-term liabilities:
Long-term debt	282,974		299,823
Other liabilities	214,021		220,835
Total long-term liabilities	496,995		520,658
Stockholders' equity	2,539,163		2,361,508
Total liabilities and stockholders' equity	$       5,858,173		$       4,822,845

 

Sanmina Corporation
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(GAAP)
(Unaudited)
	Three Months Ended				Twelve Months Ended
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Net sales	$       2,096,392		$       2,017,505		$       8,128,382		$       7,568,328
Cost of sales	1,905,235		1,846,212		7,412,025		6,927,899
Gross profit	191,157		171,293		716,357		640,429
Operating expenses:
Selling, general and administrative	73,521		70,490		290,221		266,194
Research and development	8,669		8,243		31,087		28,514
Acquisition and integration charges	27,082		—		34,162		—
Restructuring	3,420		2,970		6,319		10,227
Total operating expenses	112,692		81,703		361,789		304,935
Operating income	78,465		89,590		354,568		335,494
Interest income	4,536		2,799		15,855		12,440
Interest expense	(5,190)		(5,047)		(20,151)		(29,183)
Other income (expense), net	(4,474)		(564)		(10,844)		(1,216)
Interest and other, net	(5,128)		(2,812)		(15,140)		(17,959)
Income before income taxes	73,337		86,778		339,428		317,535
Provision for income taxes	21,364		19,438		73,168		79,784
Net income before noncontrolling interest	51,973		67,340		266,260		237,751
Less: Net income attributable to noncontrolling interest	3,907		5,959		20,367		15,215
Net income attributable to common shareholders	$            48,066		$            61,381		$          245,893		$          222,536
Net income attributable to common shareholders per share:
Basic	$                 0.90		$                 1.12		$                 4.56		$                 4.00
Diluted	$                 0.88		$                 1.09		$                 4.46		$                 3.91
Weighted-average shares used in computing per share amounts:
Basic	53,567		54,783		53,947		55,592
Diluted	54,860		56,235		55,178		56,970

 

Sanmina Corporation
Reconciliation of GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
(Unaudited)
			Three Months Ended				Twelve Months Ended
			September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
GAAP Operating income			$           78,465		$          89,590		$         354,568		$         335,494
	GAAP Operating margin		3.7 %		4.4 %		4.4 %		4.4 %
Adjustments:
	Stock compensation expense (1)		16,233		15,489		63,396		57,407
	Acquisition and integration charges (2)		27,082		—		34,162		—
	Distressed customer charges (3)		—		—		7,031		1,799
	Legal (4)		1,250		(720)		1,700		1,130
	Restructuring and others		3,420		2,970		4,602		10,227
Non-GAAP Operating income			$         126,450		$        107,329		$        465,459		$        406,057
	Non-GAAP Operating margin		6.0 %		5.3 %		5.7 %		5.4 %
GAAP Net income attributable to common shareholders			$           48,066		$          61,381		$         245,893		$         222,536
Adjustments:
	Operating income adjustments (see above)		47,985		17,739		110,891		70,563
	Legal (4)		—		—		—		(4,967)
	Adjustments for taxes (5)		(4,604)		1,175		(23,534)		12,736
Non-GAAP Net income attributable to common shareholders			$           91,447		$          80,295		$        333,250		$        300,868
GAAP Net income attributable to common shareholders per share:
	Basic		$               0.90		$               1.12		$               4.56		$               4.00
	Diluted		$               0.88		$               1.09		$               4.46		$               3.91
Non-GAAP Net income attributable to common shareholders per share:
	Basic		$               1.71		$               1.47		$               6.18		$               5.41
	Diluted		$               1.67		$               1.43		$               6.04		$               5.28
Weighted-average shares used in computing per share amounts:
	Basic		53,567		54,783		53,947		55,592
	Diluted		54,860		56,235		55,178		56,970
(1)	Stock compensation expense
	Cost of sales		$             5,225		$            4,700		$           20,136		$           17,493
	Selling, general and administrative		10,621		10,461		41,974		38,867
	Research and development		387		328		1,286		1,047
	Total		$           16,233		$          15,489		$          63,396		$          57,407
(2)	Relates to fees on the bridge loan facility as well as professional and legal fees incurred in connection with the acquisition of ZT Group Int'l, Inc. from AMD Design, LLC.
(3)	Relates to accounts receivable and inventory write-downs associated with distressed customers.
(4)	Represents expenses, charges and recoveries associated with certain legal and other matters.
(5)	Adjustments for taxes include 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.

 

Sanmina Corporation
Condensed Consolidated Cash Flow
(in thousands)
(GAAP)
(Unaudited)
	Three Months Ended				Twelve Months Ended
	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Net income before noncontrolling interest	$            51,973		$            67,340		$           266,260		$           237,751
Depreciation	29,653		31,654		119,466		122,418
Other, net	(2,991)		30,110		45,920		86,637
Net change in net working capital	120,444		(77,229)		189,011		(106,590)
Cash provided by operating activities	199,079		51,875		620,657		340,216
Purchases of investments	(340)		(3,300)		(15,040)		(5,200)
Proceeds from sales of investments	—		—		49,309		—
Net purchases of property, plant and equipment	(62,304)		(22,597)		(142,476)		(109,196)
Cash used in investing activities	(62,644)		(25,897)		(108,207)		(114,396)
Net sales (repurchases) of shares and other	624		(60,229)		(113,320)		(222,295)
Net borrowing activities	(4,375)		—		(17,500)		(21,570)
Payments for tax withholding on stock-based compensation	(4,473)		(183)		(43,020)		(25,842)
Cash used for financing activities	(8,224)		(60,412)		(173,840)		(269,707)
Effect of exchange rate changes	289		2,585		1,750		2,177
Net change in cash, cash equivalents and restricted cash equivalents	$          128,500		$          (31,849)		$          340,360		$          (41,710)
Free cash flow:
Cash provided by operating activities	$          199,079		$            51,875		$           620,657		$           340,216
Net purchases of property, plant and equipment	(62,304)		(22,597)		(142,476)		(109,196)
	$          136,775		$            29,278		$          478,181		$          231,020

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

FAQ

What did Sanmina (SANM) report for fiscal 2025 revenue on Nov 3, 2025?

Sanmina reported $8.1 billion in revenue for fiscal 2025.

How much cash did Sanmina (SANM) generate from operations in FY25?

Sanmina generated $621 million of cash flow from operations in FY25.

What is Sanmina's (SANM) fiscal Q1 2026 revenue and EPS guidance?

Sanmina guided fiscal Q1 2026 revenue of $2.9B–$3.2B and non-GAAP diluted EPS of $1.95–$2.25.

How did Sanmina's (SANM) non-GAAP diluted EPS change in fiscal 2025?

Non-GAAP diluted EPS increased 14.4% in fiscal 2025 to $6.04.

What shareholder returns did Sanmina (SANM) make in FY25?

Sanmina repurchased approximately 1.44 million shares for about $114 million in FY25.

What risks did Sanmina (SANM) highlight related to ZT Systems acquisition?

Sanmina noted integration risks and that expected benefits from the ZT Systems acquisition may take longer to realize.