Sanmina Corporation (SANM) Q2 2025 Earnings Report

Sanmina delivered a solid second quarter of fiscal 2025 with revenue of $1.984 billion, up 8.1% year over year, and non-GAAP EPS of $1.41, placing results toward the high end of the company’s outlook. Non-GAAP gross margin stood at 9.1% with a 5.6% non-GAAP operating margin, driven by favorable mix and operating efficiency, while continued investment in growth initiatives kept non-GAAP operating expenses slightly above initial expectations. IMS (Integrated Manufacturing Solutions) revenue grew 9.8% to $1.60 billion, and CPS (Components, Products and Services) grew 3.3% to $411 million, underscoring a diversified end-market exposure with CN and Cloud Infrastructure representing ~37% of revenue. The balance sheet remains exceptionally strong with cash of $647 million, no revolver borrowings, and substantial liquidity (~$1.5 billion). Net debt remained negative at approximately $338 million, highlighting a robust cash position even after a $84 million share repurchase during the quarter. Management signaled disciplined capital allocation, with capex guidance of roughly 2% of revenue for the full year and potential investments to expand capacity and capabilities in the U.S., India, and Mexico to support data-center and high-margin opportunities. The company remains cautiously constructive on FY25, guiding Q3 revenue of $1.925–$2.025 billion and full-year revenue growth of 6%–8%, while acknowledging tariff uncertainty and its potential impact on demand. The management cadence remains focused on expanding margins toward a longer-term target of 6%+ operating margin, supported by ongoing investments in higher-growth, higher-margin end-markets and a robust, diversified portfolio.