Sanmina Corporation Reports 8.1% Revenue Growth to $1.98 Billion in Q2 Fiscal 2025

Sanmina Corporation reported a notable increase in financial performance for the second quarter of fiscal 2025, with net sales reaching $1.98 billion, an 8.1% rise from $1.83 billion in the same period last year. For the six months ending March 29, 2025, total revenue was $3.99 billion, up 7.6% from $3.71 billion in the prior year. The company's gross profit also improved, totaling $176.2 million for the quarter, compared to $154.8 million a year earlier, reflecting a gross margin increase to 8.9% from 8.4%. Net income attributable to common shareholders was $64.2 million, or $1.18 per share, compared to $52.5 million, or $0.94 per share, in the previous year.

The company experienced significant operational changes, particularly in its Integrated Manufacturing Solutions (IMS) segment, which accounted for approximately 80% of total revenue. The IMS segment reported sales of $1.59 billion, a 9.6% increase from $1.45 billion in the prior year. The Components, Products, and Services (CPS) segment also saw growth, with sales rising to $391.9 million from $383 million. The increase in revenue was primarily driven by a ramp-up in programs within the telecommunications end market, which saw a 20.3% increase in sales.

Sanmina's operational metrics showed improvements in working capital management, with cash and cash equivalents increasing to $647.1 million as of March 29, 2025, from $625.9 million at the end of the previous fiscal year. The company reported a working capital of $2.0 billion, up from $1.9 billion. Additionally, the company repurchased $100 million worth of its common stock during the six months ended March 29, 2025, as part of its ongoing stock repurchase program, which has a remaining authorization of $253 million.

The company also noted changes in its tax provision, with a lower effective tax rate of 20% for the quarter, down from 26% in the prior year, attributed to a favorable jurisdictional mix of earnings and discrete tax events. However, Sanmina continues to face challenges, including macroeconomic factors such as inflation, supply chain constraints, and geopolitical tensions, which could impact future performance. The company remains focused on diversifying into mission-critical markets and optimizing its product mix to drive growth.

Looking ahead, Sanmina's management expressed confidence in its ability to meet working capital requirements and continue generating cash from operations. The company plans to enhance its operational efficiencies and adapt to changing market conditions while navigating the complexities of its business environment.