Sanmina (SANM) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 ended with revenue of $7.57 billion, Q4 revenue of $2.02 billion, and non-GAAP EPS of $1.43, all exceeding outlook and showing strong sequential growth.

• FY24 was a transition year with inventory adjustments and a challenging first half, but the second half showed momentum, margin stability, and ongoing diversification in growth markets.

• Diversified end markets: industrial, medical, defense, and automotive comprised 65% of annual revenue; communications networks and cloud infrastructure 35%.

• Manufacturing footprint aligns with customer needs, supporting consistent cash generation and disciplined capital allocation.

• Book-to-bill ratio was 1-to-1 in Q4, indicating stable demand.

Financial highlights

• Q4 non-GAAP gross margin was 8.7% and operating margin 5.3%; non-GAAP EPS was $1.43, up 14% sequentially.

• FY24 non-GAAP diluted EPS was $5.28; GAAP diluted EPS was $3.91.

• Cash and equivalents at Q4 end were $626 million; liquidity of $1.5 billion; no outstanding revolver borrowings.

• Free cash flow was $29 million for Q4 and $231 million for FY24; cash flow from operations was $340 million for FY24.

• Inventory turns improved to 5.4x from 4.9x prior quarter.

Outlook and guidance

• FY25 expected to be a growth year, with high single-digit revenue growth, margin expansion, and EPS growth.

• Q1 FY25 guidance: revenue $1.925–$2.025 billion, non-GAAP EPS $1.30–$1.40, non-GAAP gross margin 8.4%–8.8%, operating margin 5.3%–5.7%.

• New tax rate range for Q1 FY25: 20%–22%.

• Capital expenditures for Q1 FY25 expected at $30 million.