"Revenue, gross margin, operating margin and non-GAAP earnings per share were either met or exceeded our outlook. So overall, a good quarter."
— Jon Faust
03Detailed Report
SANM
Company SANM
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Sanmina delivered a solid first quarter of fiscal 2025, posting revenue of $2.01 billion and non-GAAP EPS of $1.44, with non-GAAP gross margin at 9.0% and non-GAAP operating margin at 5.6%. The IMS (Integrated Manufacturing Solutions) segment led growth with revenue of $1.62 billion (+7.8% YoY), while CPS (Components, Products and Services) revenue was $416 million (+5.4% YoY). The company maintained a strong balance sheet, ending the quarter with $642 million in cash and no outstanding borrowings on its $800 million revolver, and a net debt position of approximately negative $267.8 million when netting debt against cash. Management signaled ongoing investments to capture growth opportunities in cloud infrastructure, AI-enabled networks, and defense/aerospace, while reiterating a long-term operating margin target of 6%+, supported by ongoing margin expansion in CPS and favorable mix in IMS. The outlook for fiscal 2025 remains constructive, with expected high-single-digit revenue growth and a second-quarter non-GAAP EPS range of $1.30–$1.40, highlighting the company’s confidence in a diversified, multi-end-market expansion path and disciplined capital allocation.
Key Performance Indicators
Revenue
Increasing
2.01B
QoQ: -0.55% | YoY: 7.02%
Gross Profit
Increasing
167.92M
8.37% margin
QoQ: -1.97% | YoY: 4.40%
Operating Income
Increasing
88.61M
QoQ: -1.09% | YoY: 1.18%
Net Income
Increasing
65.00M
QoQ: 5.90% | YoY: 13.90%
EPS
Increasing
1.20
QoQ: 9.09% | YoY: 18.81%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $2.01B in Q1 FY25, +7.0% YoY; Gross Margin (non-GAAP): 9.0%; Operating Margin (non-GAAP): 5.6%; Net Income (non-GAAP basis): not separately disclosed in press but implied by EPS of $1.44; EPS (non-GAAP): $1.44 vs. prior year up ~10.8% on an as-reported basis; EPS (diluted GAAP): $1.16; Net Income: $65.0M; Cash Flow from Operations: $63.9M; Free Cash Flow: $46.9M; Cash and Cash Equivalents: $642.4M; Revolver: $0 borrowings; Inventory (net of customer advances): ~$1.3B; Total Assets: ~$4.812B; Total Liabilities: ~$2.390B; Equity: ~$2.250B; Book-to-bill: 1.0x; Top 10 Customers Revenue Share: 50.1%; Net Debt: negative $267.8M; ROIC (pre-tax): 23.5%; Debt/Capital: 14.3%; Gross Leverage: 0.49x; Capex (TTM): 1%).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.01B
7.02%
-0.55%
Gross Profit
167.92M
4.40%
-1.97%
Operating Income
88.61M
1.18%
-1.09%
Net Income
65.00M
13.90%
5.90%
EPS
1.20
18.81%
9.09%
Key Financial Ratios
Gross Profit Margin
Weak
8.37%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
4.42%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
3.24%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.35%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.89%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.06
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.17
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
15.98x
P/E ratio in line with market averages
Price to Book
Fair Value
1.85x
Price-to-book ratio reasonable for profitable companies
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