Fabrinet Reports 18.6% Revenue Growth to $3.42 Billion for Fiscal Year Ending June 27, 2025

Fabrinet reported a significant increase in its financial performance for the fiscal year ending June 27, 2025, with revenues reaching $3.42 billion, an 18.6% increase from $2.88 billion in the previous fiscal year. The company's net income also rose to $332.5 million, compared to $296.2 million in fiscal year 2024. This growth was primarily driven by increased demand from key customers in both optical and non-optical communications sectors, with optical communications products accounting for 76.6% of total revenues, down from 79.4% the previous year. The company also saw a notable increase in revenues from automotive and industrial laser markets, which contributed to a 34.7% rise in non-optical communications revenue.

In terms of operational developments, Fabrinet's customer base remains concentrated, with NVIDIA Corporation and Cisco Systems, Inc. contributing 27.6% and 18.2% of total revenues, respectively. The company has continued to diversify its manufacturing services across various markets, including automotive and industrial lasers, to mitigate risks associated with customer concentration. As of June 27, 2025, Fabrinet employed approximately 16,457 full-time employees, with a significant majority based in the Asia-Pacific region, reflecting its operational focus in low-cost manufacturing geographies.

Fabrinet has also made strategic investments in expanding its manufacturing capacity, including the construction of a new facility at its Chonburi campus in Thailand, which is expected to enhance its production capabilities. The company reported capital expenditures of $130.7 million for the fiscal year, primarily related to this expansion. Additionally, Fabrinet's cash and cash equivalents totaled $306.4 million as of June 27, 2025, indicating a strong liquidity position to support ongoing operations and future growth initiatives.

Looking ahead, Fabrinet anticipates continued growth driven by the expanding optical communications market and its diversification into other sectors. The company plans to strengthen its presence in the optical communications market while leveraging its manufacturing capabilities to penetrate new markets. However, Fabrinet acknowledges potential risks, including reliance on a limited number of customers, fluctuations in foreign currency exchange rates, and the impact of global economic conditions on its operations. The company remains committed to enhancing its operational efficiency and maintaining strong relationships with its customers to navigate these challenges effectively.