Sanmina reported a solid fourth quarter (Q4 2024) with revenue of approximately $2.02 billion, up 9.6% sequentially, and non-GAAP earnings per share (EPS) of $1.43, beating the high end of the stated outlook. Gross margin expanded to 8.7% (8.7% of revenue) and non-GAAP operating margin was 5.3%, within the previously communicated 5%–6% target band. Management attributed the quarter’s strength to execution discipline and favorable mix, particularly within the CPS segment, while IMS margins declined modestly on mix dynamics but are deemed capable of expansion in the coming year. The company exited FY2024 with a robust balance sheet—no net debt, about $626 million in cash, and roughly $1.5 billion of liquidity—alongside notable cash flow generation: full-year operating cash flow of $340 million and free cash flow of $231 million. Bookings remained solid (book-to-bill ~1:1), and customer concentration remained moderate (Top 10 customers represented 51.3% of revenue, with no single customer >10%).
Management provided a constructive outlook for FY2025, guiding to high-single-digit revenue growth, modest gross margin expansion (8.4%–8.8%), and non-GAAP EPS of $1.30–$1.40 for the first quarter, with CapEx around $30 million. The narrative centered on continued diversification into high-margin opportunities within cloud infrastructure and communications networks, AI-enabled manufacturing and data-center adjacencies, and targeted investments to support long-term growth. Athwart the near-term transition year, Sanmina aims to unlock margin expansion via mix, operating leverage, and SG&A/OPEX discipline, while returning capital to shareholders through opportunistic buybacks. The management tone signals confidence in an improving visibility environment, incremental program wins, and the strategic value of the Reliance Industries joint venture in India as a lever for future growth. Overall, the combination of a strong balance sheet, diversified end markets, and a clear path to margin expansion supports an constructive long-term investment thesis, albeit with exposure to manufacturing cycles and inventory normalization dynamics.