Sanmina Corporation · NASDAQ:SANM

Sanmina — Q2 FY2025 Earnings Presentation

26 slides from Sanmina's earnings presentation, Apr 28, 2025

  1. Slide 1: Q2 Fiscal 2025 Financial Results

    Q2 Fiscal 2025 Financial Results April 28, 2025

  2. Slide 2: Today's Presenters

    Today’s Presenters Jure Sola Jon Faust Chairman & CEO EVP & CFO 2

  3. Slide 3: Safe Harbor Statement

    Safe Harbor Statement Certain statements made during this presentation, including our financial outlook for the third quarter fiscal 2025 and expectations for fiscal 2025 generally, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securitie

  4. Slide 4: Financial Overview

    Financial Overview Jon Faust

  5. Slide 5: Non-GAAP Financial Highlights

    Non-GAAP Financial Highlights Q2 FY’25 Outlook WAS Revenue $1.98B $1.9B - $2.0B Gross Margin 9.1% 8.4% - 8.8% Operating Margin 5.6% 5.3% - 5.7% Diluted EPS $1.41 $1.30 - $1.40 Solid First Half of Fiscal 2025 Note: Refer to GAAP to non-GAAP reconciliation on slide 22. 5

  6. Slide 6: Q2 FY'25 Non-GAAP P&L Performance

    Q2 FY’25 Non-GAAP P&L Performance ($ in millions, except per share data) Revenue Non-GAAP Gross Margin $1,984 8.9% 9.1% $1,835 $181 $163 Q2'24 Q2'25 Q2'24 Q2'25 Non-GAAP Operating Margin Non-GAAP Diluted Earnings Per Share 5.4% 5.6% $1.41 $111 $1.30 $100 Q2'24 Q2'25 Q2'24 Q2'25 Note: Refer to GAAP t

  7. Slide 7: YTD FY'25 Non-GAAP P&L Performance

    YTD FY’25 Non-GAAP P&L Performance ($ in millions, except per share data) Revenue Non-GAAP Gross Margin $3,990 $3,709 9.1% 8.8% $328 $361 1H FY'24 1H FY'25 1H FY'24 1H FY'25 Non-GAAP Operating Margin Non-GAAP Diluted Earnings Per Share 5.4% 5.6% $2.84 $2.61 $223 $202 1H FY'24 1H FY'25 1H FY'24 1H FY

  8. Slide 8: Segment Reporting: Revenue and Non-GAAP Gross Margin

    Segment Reporting: Revenue and Non-GAAP Gross Margin ($ in millions) Integrated Manufacturing Solutions Components, Products and Services $1,604 $1,461 $398 $411 7.7% 7.7% 13.9% 12.9% Q2'24 Q2'25 Q2'24 Q2'25 Note: Revenue and non-GAAP gross margin for IMS segment and CPS category includes inter-segm

  9. Slide 9: Balance Sheet Highlights

    Balance Sheet Highlights ($ in millions) 3/29/2025 Cash and cash equivalents $ 647 Key Takeaways: Accounts receivable, net 1,383 Contract assets 385  Strong cash position Inventories 1,548  No borrowings under $800M Revolver at quarter end Property, plant and equipment, net 609 Deferred income tax

  10. Slide 10: Q2 FY'25 Cash Flow Highlights

    Q2 FY’25 Cash Flow Highlights Cash Flow from Operations:  $157 million Net CapEx:  $31 million Free Cash Flow:  $126 million Non-GAAP EBITDA  $139 million  1.03 million shares for $84 million Share Repurchases:  $253 million available under the authorized share repurchase program at end of Q2

  11. Slide 11: Q3 FY'25 Outlook

    Q3 FY’25 Outlook The following outlook is for the third fiscal quarter ending June 28, 2025. Q3 FY’25 Revenue: $1.925B - $2.025B GAAP Diluted EPS: $1.05 - $1.15 Non-GAAP Diluted EPS: $1.35 - $1.45 Note: The outlook and certain statements made during this presentation, including our financial outlook

  12. Slide 12: Business Overview

    SANMINA Business Overview Jure Sola

  13. Slide 13: Q2 FY'25 Overview

    Q2 FY’25 Overview  Solid execution  Revenue and non-GAAP operating margin towards the high end of our outlook  Non-GAAP gross margin and EPS exceeded our outlook  New programs ramping  Challenging market environment Strong Momentum 13

  14. Slide 14: Revenue by End-Market

    Revenue by End-Market ($ in millions) Q2 FY’24 Q2 FY’25 Industrial & Energy/Medical/ $1,226 $1,251 Defense & Aerospace/Automotive Communications Networks and $609 $733 Cloud Infrastructure Total $1,835 $1,984 Q2 FY’25 Top 10 Customers – 51% of Revenue 14

  15. Slide 15: FY'25 Outlook

    FY’25 Outlook Revenue Growth Margin Expansion EPS Growth Cash Generation Maximizing Shareholder Value 15

  16. Slide 16: Tariff Update

    Tariff Update  It’s still too early, and uncertainty remains  We remain in constant communication with our customers  Our single IT system is agile and responsive  Our global/regional footprint is strategically aligned to meet customer needs  We have established capacity in the U.S. Remain Focu

  17. Slide 17: Sanmina's Global/Regional Manufacturing Footprint

    Sanmina’s Global/Regional Manufacturing Footprint UNITED STATES CANADA / MEXICO Huntsville, AL Carrollton, TX Ottawa, Canada Costa Mesa, CA El Paso, TX Guadalajara, Mexico Fremont, CA Houston, TX Juarez, Mexico Newark, CA Salt Lake City, UT Monterrey, Mexico San Jose, CA Kenosha, WI Reynosa, Mexico

  18. Slide 18: Summary

    Summary  Our manufacturing footprint is well aligned to support customer needs  We are strategically expanding within end-markets that provide higher margin opportunities  We are consistently generating cash to fund the business  We will continue to execute on our strategy  We will remain focus

  19. Slide 19: Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP

    Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: March 29, 2025

  20. Slide 20: Condensed Consolidated Balance Sheets

    Sanm ina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) (Unaudited) March 29, Septem ber 28, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 647,141 $ 625,860 Accounts receivable, net 1,383,116 1,337,562 Contract assets 384,629 384,077 Inventories 1,548,093 1,44

  21. Slide 21: Condensed Consolidated Statements of Income

    Sanm ina Corporation Condensed Consolidated Statem ents of Incom e (in thousands, except per share am ounts) (GAAP) (Unaudited) Three Months Ended Six Months Ended March 29, March 30, March 29, March 30, 2025 2024 2025 2024 Net sales $ 1,984,080 $ 1,834,595 $ 3,990,428 $ 3,709,393 Cost of sales 1,80

  22. Slide 22: Reconciliation of GAAP to Non-GAAP Measures

    Sanm ina Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share am ounts) (Unaudited) Three Months Ended Six Months Ended March 29, March 30, March 29, March 30, 2025 2024 2025 2024 GAAP Gross prof it $ 176,235 $ 154,757 $ 344,150 $ 315,597 GAAP Gross margin 8.9 % 8.

  23. Slide 23: Condensed Consolidated Cash Flow

    Sanm ina Corporation Condensed Consolidated Cash Flow (in thousands) (GAAP) (Unaudited) Three Months Ended Six Months Ended March 29, March 30, March 29, March 30, 2025 2024 2025 2024 Net income before noncontrolling interest $ 70,515 $ 55,309 $ 141,399 $ 115,673 Depreciation 28,208 30,274 60,053 61

  24. Slide 24: Pre-Tax Return on Invested Capital (ROIC)

    Sanm ina Corporation Pre-Tax Return on Invested Capital (ROIC) ($ in thousands) (Unaudited) Three Months Ended March 29, March 30, 2025 2024 GAAP Operating income $ 91,616 $ 75,961 x 4.0 4.0 Annualized GAAP Operating income 366,464 303,844 Average invested capital (1) ÷ 1,920,145 1,810,627 GAAP Pre-

  25. Slide 25: Reconciliation of GAAP to Non-GAAP Measures: EBITDA

    Sanm ina Corporation Reconciliation of GAAP to Non-GAAP Measures: EBITDA (in thousands) (Unaudited) Three Months Ended March 29, March 30, 2025 2024 EBITDA GAAP Operating Income $ 91,616 $ 75,961 Depreciation 28,208 30,274 GAAP EBITDA $ 119,824 $ 106,235 GAAP EBITDA Margin 6.0 % 5.8 % Non-GAAP Opera

  26. Slide 26: Thank You

    Thank You

Sanmina — Q2 FY2025 Earnings Presentation on 6ix