Sanmina (SANM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached $1.98 billion, up 8.1% year-over-year, at the high end of guidance, with non-GAAP EPS of $1.41, both exceeding outlook commitments.

• Strong performance in communication networks and cloud infrastructure, which grew 20.3% year-over-year, and new program ramps contributed despite a challenging market.

• Net income attributable to common shareholders rose 22% year-over-year to $64.2 million for the quarter.

• Management remains optimistic for FY25 and beyond, citing a robust pipeline, new customer wins, and strategic expansion in higher-margin end-markets.

• Maintained strong cash generation and disciplined capital allocation, supporting ongoing investments and share repurchases.

Financial highlights

• Q2 FY25 revenue: $1.98 billion, up 8.1% year-over-year; non-GAAP gross margin: 9.1%, up from 8.9%; non-GAAP operating margin: 5.6%, up from 5.4%; GAAP operating margin: 4.6%.

• Non-GAAP operating income: $110.6 million; GAAP operating income: $91.6 million; non-GAAP EPS: $1.41, up from $1.30; GAAP diluted EPS: $1.16, up from $0.93.

• First half FY25 revenue: $3.99 billion, up 7.6% year-over-year; non-GAAP EPS: $2.84, up from $2.61.

• Cash and equivalents: $647 million at quarter end; free cash flow: $126 million for Q2.

• Repurchased 1.03 million shares for $84 million in Q2; $253 million remains on repurchase program.

Outlook and guidance

• Q3 FY25 revenue expected between $1.925 billion and $2.025 billion; non-GAAP EPS guidance: $1.35–$1.45; GAAP diluted EPS: $1.05–$1.15.

• Full-year FY25 revenue growth expected between 6%-8%; operating margin to remain in 5%-6% range short-term.

• Capital expenditures for FY25 expected at ~2% of revenue.

• Management expects FY25 to be a growth year, citing strong first-half performance and positive Q3 outlook.