Sanmina (SANM) investor relations material

Executive summary

• Q3 FY25 revenue reached $2.04B, up 10.9% year-over-year, with non-GAAP EPS of $1.53, both exceeding outlook and driven by strong demand in communications, cloud, and medical markets.

• Operational efficiencies, favorable business mix, and robust cash generation contributed to strong margins.

• Net income attributable to common shareholders was $68.6M, up 33% year-over-year.

• Announced strategic acquisition of ZT Systems, expected to double net revenue within three years and be accretive to non-GAAP EPS in the first year post-closing.

• Customer base and new program pipeline continue to expand, supporting confidence in future growth.

Financial highlights

• Q3 non-GAAP gross margin was 9.1%, a 60 bps improvement year-over-year; GAAP gross margin was 8.9%.

• Non-GAAP operating margin reached 5.7%, up 40 bps year-over-year; GAAP operating margin was 4.7%.

• Non-GAAP diluted EPS grew 22.8% year-over-year to $1.53; GAAP diluted EPS was $1.26.

• Cash and equivalents at $798M; free cash flow for Q3 was $168M.

• Nine-month revenue up 8.7% year-over-year; non-GAAP EPS up 13.5%.

Outlook and guidance

• Q4 revenue expected between $2.0B and $2.1B; midpoint implies 6.8% full-year growth.

• Q4 non-GAAP EPS guidance: $1.52–$1.62; midpoint up 9.8% year-over-year.

• Management anticipates continued momentum into fiscal 2026 based on customer trends and new wins.

• ZT Systems acquisition on track to close by year-end 2025, expected to be accretive to non-GAAP EPS in first year.

• Full-year capex expected at 1.8% of revenue; Q4 capex around $65M.