In This Article:
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Revenue: $1.98 billion, up 8.1% year-over-year.
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Non-GAAP EPS: $1.41 per share, up 7.8% year-over-year.
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Non-GAAP Gross Margin: 9.1%, up 20 basis points year-over-year.
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Non-GAAP Operating Margin: 5.6%, up 20 basis points year-over-year.
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Cash and Cash Equivalents: $647 million.
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Inventory Turns: 5.9 times, improved from 5.0 times year-over-year.
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Non-GAAP Pre-tax ROIC: 23%, up from 22% year-over-year.
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Cash Flow from Operations: $157 million for the quarter.
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Capital Expenditures: $31 million for the quarter.
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Free Cash Flow: $126 million for the quarter.
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Share Repurchase: Approximately 1.03 million shares for $84 million.
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IMS Revenue: $1.60 billion, up 9.8% year-over-year.
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IMS Non-GAAP Gross Margin: 7.7%, flat year-over-year.
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CPS Revenue: $411 million, up 3.3% year-over-year.
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CPS Non-GAAP Gross Margin: 13.9%, up 100 basis points year-over-year.
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Third Quarter Revenue Outlook: $1.925 billion to $2.025 billion.
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Third Quarter Non-GAAP EPS Outlook: $1.35 to $1.45.
Release Date: April 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sanmina Corp (NASDAQ:SANM) delivered solid revenue of $1.98 billion for the second quarter, up 8.1% compared to the same period a year ago.
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Non-GAAP EPS exceeded expectations at $1.41 per share, reflecting strong financial performance.
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The company maintained a strong balance sheet with cash and cash equivalents of $647 million and no outstanding borrowings on its $800 million revolver.
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Sanmina Corp (NASDAQ:SANM) reported a non-GAAP operating margin of 5.6%, which is towards the high end of their outlook.
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The company is making strategic investments in capacity and technology across the US, India, and Mexico to support future growth.
Negative Points
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There is considerable uncertainty around tariffs, which could impact customer demand and the company's operations.
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Operating expenses were above outlook due to targeted investments, which could pressure margins if not managed carefully.
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The automotive market remains challenging, although there was double-digit growth in this segment year over year.
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Inventory levels increased by 9% sequentially, which could impact cash flow if not managed effectively.
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A major program was pushed out for redesign, which could affect short-term revenue growth.
Q & A Highlights
Q: Did you see any pull forward of demand in fiscal 2Q ahead of the potential tariff increases? And have any of your customers asked you to move manufacturing around to different regions? A: Jure Sola, CEO, stated that there was no significant movement of demand due to tariffs in the last quarter. Customers are as uncertain about the tariffs as Sanmina is. However, Sanmina has a strong global footprint to support customers locally and minimize tariff impacts. Discussions with customers are ongoing, but no major changes have occurred in the last 90 days.