Sanmina Corporation Reports 10.9% Revenue Growth, Plans Acquisition of ZT Systems

Sanmina Corporation reported significant financial growth in its latest quarterly results, with net sales reaching $2.04 billion for the three months ended June 28, 2025, a 10.9% increase from $1.84 billion in the same period last year. For the nine months ending June 28, 2025, the company reported net sales of $6.03 billion, up 8.7% from $5.55 billion in the prior year. The gross profit for the quarter was $181.05 million, translating to a gross margin of 8.9%, compared to 8.3% in the previous year. The operating income also saw an increase, rising to $95.88 million from $82.37 million year-over-year.

The company’s financial performance was bolstered by strong demand in its Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS) segments. The IMS segment generated $1.64 billion in sales, while CPS contributed $402.30 million. Notably, the communications networks and cloud infrastructure market experienced a 19.1% increase in sales, reflecting the company's successful program wins and ramp-ups in this area. The company also reported a net income attributable to common shareholders of $68.62 million for the quarter, up from $51.60 million a year earlier.

In terms of strategic developments, Sanmina announced its intention to acquire ZT Systems, a provider of AI and general-purpose computer infrastructure, for a total consideration of approximately $2.4 billion in cash and stock. This acquisition is expected to close by the end of 2025, subject to regulatory approvals. The company incurred $7 million in acquisition and integration charges during the quarter, primarily related to advisory and legal fees. This move aligns with Sanmina's strategy to expand its presence in the cloud and AI sectors.

Operationally, Sanmina reported a cash and cash equivalents balance of $797.88 million as of June 28, 2025, an increase from $625.86 million at the end of the previous fiscal year. The company’s working capital also improved to $2.10 billion, up from $1.90 billion. The number of customers representing 10% or more of net sales remained stable, with no single customer exceeding this threshold in the latest quarter. The company continues to focus on enhancing operational efficiencies and diversifying its product offerings to adapt to changing market conditions.

Looking ahead, Sanmina expressed optimism about its growth trajectory, driven by ongoing demand in key markets and the anticipated benefits from the ZT Systems acquisition. However, the company acknowledged potential challenges, including macroeconomic factors such as inflation and supply chain constraints, which could impact future performance. Sanmina remains committed to optimizing its operations and expanding its market presence while navigating these uncertainties.