FabrinetNYSE: FN

Investor Presentation 3FQ26

· MarketScreener
Watch Fabrinet explain itFabrinet (FN) Q4 2026 Earnings Call · Replay · Aug 17
COMPANY OVERVIEW

1

May 4, 2026

Fabrinet Overview



Fabrinet West

Santa Clara

VitroCom

New Jersey

Fabrinet

Israel

Casix

Fuzhou

Fabrinet

Pinehurst / Chonburi



  • Global leader in advanced precision optical/ electronic/mechanical manufacturing services

  • Focus on mission-critical components and modules in any mix and any volume

  • Serving growing industrial markets

    • Telecom and Datacom Optical Communications

    • High-Performance Computing

    • Automotive and Industrial Lasers

    • Medical and Other components and sub-systems

      • >16,000 employees

      • >3.7 million sq. ft.

      • Factories in Thailand, China, New Jersey, California, and Israel

  • Long-lasting customer relationships with programs extending from new product introduction (NPI) to volume production

  • Highly seasoned management team with extensive and diversified manufacturing experience in OEM and EMS industries







CORE VALUES

Total Customer Satisfaction Sustainable Manufacturing Positive Work Environment Integrity

FN

Markets and Products



Optical Communications

  • Transceivers

  • Modulators

  • Optical Amplifiers

  • ROADM

  • Silicon Photonics

  • Line Cards

  • Network Systems

Automotive

  • EV Charging

  • LIDAR

  • LED & Laser Lighting

  • Safety & Control Sensors

  • Pressure & Temperature Sensors

Industrial Lasers

  • Lasers

  • Solid-State Lasers

  • Gas Lasers

  • Ultrafast Lasers

High-

Performance Computing

  • Complex PCBA

  • Medical Diagnostics

  • Metrology & Instrumentation



Customiz Optics and Passive Devices - Vertical Integration

  • Beam Splitters, Prisms, Laser Crystals, Waveplates, Ferrules



Other

Efficient Global Manufacturing Footprint



Casix, China

Vitrocom, NJ, USA



Custom Optics



Precision Optical and Electronic

Packaging and Assembly

Pinehurst Campus, Thailand

Chonburi Campus, Thailand



Quickturn NPI Services

Fabrinet Israel



Fabrinet West, CA, USA



Investment Highlights



✓

Large and growing addressable markets



✓

Differentiated business model with low-cost structure



✓

Highly differentiated expertise in precision manufacturing

technologies enabling next-generation products



✓

Strong, long-term relationships with industry-leading OEMs



✓

Demonstrated track record of consistent growth and profitability



✓

Experienced management team with history of execution



Strong Revenue Trends



QUARTERLY CONSOLIDATED REVENUE ($M)



1,500

1,000

500

656 753

910

685

978

804

713

834

1,133

732

872

1,214

0

Jun'23 Jun'24 Jun'25 Sep'23 Sep'24 Sep'25 Dec'23 Dec'24 Dec'25 Mar'24 Mar'25* Mar'26

Optical communications Non-optical communications

OPTICAL COMMUNICATIONS REVENUE ($M)

NON-OPTICAL COMMUNICATIONS REVENUE ($M)



689

747

833

596 626

647

657

591

502

533

568

1,000

800

600

400

200

0

889

350

300

326

221

231

215

154 157

152 178

145 186

140

300

250

200

150

100

50

0



*The quarter ended March 28, 2025 includes a non-cash stock-based accounting contra-revenue adjustment of $(3.9) million

Consistent Profitability



NON-GAAP GROSS MARGIN AND NON-GAAP OPERATING MARGIN (1)



% of Sales

15.0%

10.0%

12.6% 12.4% 12.0% 12.1%

5.0%

0.0%

10.6%

10.5%

10.2%

10.7%

FY24 FY25 3Q25 3Q26

Gross margin Operating margin

RETURN ON INVESTED CAPITAL (2)



50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

38.1% 39.1% 41.8%

35.7%

FY24 FY25 3Q25 3Q26

  1. Excludes share based compensation, executive separation cost, depreciation of fair value uplift/intangibles, restructuring costs, etc. See Appendix for a reconciliation to most comparable GAAP measures.

  2. Return on Invested Capital = non-GAAP net income divided by average invested capital. Invested capital = total debt + shareholder equity - cash & equivalents, marketable securities and restricted cash. For ROIC in the current fiscal quarter and the prior year fiscal quarter, non-GAAP net income is annualized by multiplying the fiscal quarter's non-GAAP net income by 4. See Appendix for a reconciliation to most comparable GAAP measures.

Recent Financial Performance



Key Financials

$Millions (USD), except per share figures

3 months ended

27-Mar-26 28-Mar-25(1)

  • Record Q3 revenue of $1,214

million exceeded guidance

  • Q3 non-GAAP operating

margin was 10.7%

  • Q3 non-GAAP EPS of $3.72

exceeded guidance, and was a new record

Revenue $1,214.3 $871.8

Y-o-Y change

39%

19%

Gross profit (non-GAAP) (2)

$146.9

$104.4

Gross margin (non-GAAP) (2) 12.1% 12.0%

Operating profit (non-GAAP) (2)

$129.7

$88.7

Operating margin (non-GAAP) (2)

10.7%

10.2%

Net Income (GAAP)

$125.2

$81.3

Net Income (non-GAAP)(2)

$134.9

$91.2

Diluted EPS (GAAP)

$3.45

$2.25

Diluted EPS (non-GAAP) (2)

$3.72

$2.52

  1. The quarter ended March 28, 2025 includes a non-cash stock-based accounting contra-revenue adjustment of $(3.9) million

  2. See Appendix for a reconciliation to most comparable GAAP measure

    Strong Balance Sheet Supports Growth Strategy



    Selected Items

    $Millions (USD)

    As of March 27, 2026

    Cash, cash equivalents(1)

    $945.9

    Working capital (2)

    $925.5

    Property, plant & equipment, net

    $525.0

    Total debt (3)

    $0.0

    Total shareholders' equity

    $2,304.7

    1. Cash & cash equivalents include marketable securities and restricted cash

    2. Calculated as Trade accounts receivable + Inventory - Trade accounts payable

    3. Calculated as the sum of current & long-term debt, net of unamortized debt issuance costs

Revenue Mix



F3Q24

F4Q24

F1Q25

F2Q25

F3Q25

F4Q25

F1Q26

F2Q26

F3Q26

Optical Communications

81%

79%

78%

78%

75%

76%

76%

73%

73%

Datacom

52%

53%

53%

46%

38%

40%

37%

33%

29%

Telecom

48%

47%

47%

54%

62%

60%

63%

67%

71%

Non-Optical Communications

19%

21%

22%

22%

25%

24%

24%

27%

27%

Optical and non-optical revenue mix presented as % of total revenue Datacom and telecom revenue mix presented as % of optical revenue

Revenue by Product Category ($Millions USD)



F3Q24

F4Q24

F1Q25

F2Q25

F3Q25

F4Q25

F1Q26

F2Q26

F3Q26

Optical Communications

$591.4

$596.4

$626.3

$647.1

$657.2

$688.7

$746.9

$832.6

$888.7

Datacom

305.5

314.7

328.9

299.1

251.1

276.9

273.1

278.1

260.4

Telecom

286.0

281.7

297.4

348.0

406.1

411.8

473.8

554.4

628.3

DCI1

71.5

73.9

71.8

100.0

103.4

107.0

138.1

142.2

196.9

Non-Optical Communications

$140.1

$156.9

$177.9

$186.5

$214.62

$221.0

$231.2

$300.3

$325.6

High-Performance Computing

15.4

85.6

106.7

Automotive

73.6

86.0

102.7

104.2

129.5

127.9

121.9

117.0

115.5

Industrial Laser

30.3

32.1

35.3

37.5

40.5

39.7

39.7

41.4

44.2

Other

36.1

38.7

39.8

44.7

44.62

53.4

54.2

56.4

59.2

Total Revenue

$731.5

$753.3

$804.2

$833.6

$871.82

$909.7

$978.1

$1,132.9

$1,214.3

1 DCI (Datacenter Interconnect) revenue is included in Telecom revenue

2 The quarter ended March 28, 2025 includes a non-cash stock-based accounting contra-revenue adjustment of $(3.9 million)

Appendix



Non-GAAP Reconciliation of Gross Margin and Operating Margin



Reconciliation of GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Profit and Non-GAAP Gross Margin

(in thousands of U.S. dollars)

Three Months Ended

March 27, 2026 June 27, 2025 March 28, 2025

Twelve Months Ended

June 27, 2025 June 30, 2024

Revenue

$ 1,214,293

$ 909,692

$ 871,799

$ 3,419,327 $

2,882,967

Gross profit (GAAP)

$ 144,339

$ 111,291

$ 102,183

$ 413,349 $

356,118

Share-based compensation expenses

2,531 2,573 2,221

10,456

7,203

Gross profit (Non-GAAP)

$ 146,870 $ 113,864 $ 104,404

$ 423,805 $

363,321

Gross margin (GAAP)

11.9%

12.2%

11.7%

12.1%

12.4%

Gross margin (Non-GAAP)

12.1%

12.5%

12.0%

12.4%

12.6%

Reconciliation of GAAP Operating Profit and GAAP Operating Margin to Non-GAAP Operating Profit and Non-GAAP Operating Margin

(in thousands of U.S. dollars)

Three Months Ended

March 27, 2026 June 27, 2025 March 28, 2025

Twelve Months Ended June 27, 2025 June 30, 2024

Revenue

$ 1,214,293

$ 909,692

$ 871,799

$ 3,419,327 $

2,882,967

Operating profit (GAAP)

$ 120,044

$ 89,056

$ 78,856

$ 324,447

$ 277,605

Share-based compensation expenses

8,541

8,101

7,783

33,004

28,374

Severance payment

613

-

-

748

-

Legal and litigation

497

250

827

1,077

-

Restructuring and other related costs

-

69

1,264

1,436

32

Operating profit (Non-GAAP)

$ 129,695 $ 97,476 $ 88,730

$ 360,712 $

306,011

Operating margin (GAAP)

9.9%

9.8%

9.0%

9.5%

9.6%

Operating margin (Non-GAAP)

10.7%

10.7%

10.2%

10.5%

10.6%

Non-GAAP Reconciliation of Net Profit and EPS



Reconciliation of GAAP measures to non-GAAP measures

(in thousands of U.S. dollars, except per share data)

FQ3'26

March 27, 2026

Net income Diluted EPS

FQ2'26

December 26,2025

Net income Diluted EPS

FQ3'25

March 28, 2025

Net income

Diluted EPS

GAAP measures

Items reconciling GAAP net income & EPS to non-GAAP Related to cost of revenues:

125,213

3.45

112,628

3.11

81,290

2.25

Share-based compensation expenses Total related to cost of revenues

Related to selling, general and administrative expenses: Share-based compensation expenses

Legal and litigation

Severance payment and others

Total related to selling, general and administrative expenses

Related to other income and expense:

Restructuring and other related costs Total related to other income and expense

Total related to net income & EPS

Non-GAAP measures

Shares used in computing diluted net income per share GAAP diluted shares

Non-GAAP diluted shares

2,531

0.07

2,644

0.07

2,221

0.06

2,531

0.07

2,644

0.07

2,221

0.06

6,010

497

613

0.16

0.02

0.02

6,113

254

-

0.17

0.01

-

5,562

827

-

0.16

0.02

-

7,120

0.20

6,367

0.18

6,389

0.18

-

-

-

-

1,264

0.03

-

-

-

-

1,264

0.03

9,651

0.27

9,011

0.25

9,874

0.27

134,864

3.72

121,639

3.36

91,164

2.52

36,301

36,301

36,253

36,253

36,172

36,172

Attention: This is an excerpt of the original content. To continue reading it, access the original document here.

Earlier from Fabrinet

All Fabrinet news releases