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 at or above outlook; new programs ramped despite a challenging market.

• Net income attributable to common shareholders rose 22% year-over-year to $64.2 million for the quarter; GAAP diluted EPS was $1.16, up from $0.93.

• First half FY25 revenue was $3.99 billion, up 7.6% year-over-year; non-GAAP EPS up 8.8%.

• Maintained strong cash generation and operational execution, with management confident in FY25 growth.

• Book-to-bill ratio around 1:1, indicating stable demand and a well-diversified customer base.

Financial highlights

• Q2 non-GAAP gross margin was 9.1%, up from 8.9% year-over-year; GAAP gross margin was 8.9%.

• Non-GAAP operating margin was 5.6%, up from 5.4% year-over-year; GAAP operating margin was 4.6%.

• Non-GAAP operating income was $110.6 million; GAAP operating income was $91.6 million.

• Cash and equivalents at quarter end were $647 million; no outstanding borrowings on $800 million revolver.

• Free cash flow was $126 million for the quarter; operating cash flow for the first half was $221 million.

Outlook and guidance

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

• Full-year FY25 revenue growth expected between 6.0% and 8.0%.

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

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

• Focus remains on higher-value, mission-critical markets and improved operational efficiency.