Slides
Page 1
Q1 Fiscal 2026 Financial Results January 26, 2026
Page 2
Today’s Presenters Jure Sola Chairman & CEO Jon Faust EVP & CFO 2
Page 3
Certain statements made during this presentation, including our financial outlook for the second quarter fiscal 2026 and growth expectations for fiscal 2026, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including the risk that the integration of and expected benefits from the ZT Systems acquisition may not be realized or may take longer to realize than anticipated; adverse changes in the key markets we target, in particular the cloud and AI infrastructure sectors; the impact of recent or future changes in tariffs and trade policy, which may adversely affect our costs, supply chain, and customer demand; our reliance on a limited number of customers for a substantial portion of our sales; risks arising from our international operations and expansion into new geographic markets; geopolitical uncertainty, and the other risk factors set forth in the Company's annual and quarterly reports filed with the Securities Exchange Commission. In addition, during the course of today's presentation, we will refer to certain non-GAAP financial information. A reconciliation of such non-GAAP financial information to their most directly comparable GAAP measures are included on slide 23 of this presentation. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law. Safe Harbor Statement 3
Page 4
Cash Flow From Operations $179M Non-GAAP Operating Margin 6.0% Q1’26 Highlights Revenue $3.19B Executing to the plan Delivered results at the high-end of our outlook Solid operational execution Excellent cash management Strong Momentum Non-GAAP Diluted EPS $2.38 Refer to GAAP to non-GAAP reconciliation on slide 23. 4
Page 5
Financial Overview Jon Faust
Page 6
Non-GAAP Financial Highlights Q1 FY’26* Outlook WAS Revenue $3.19B $2.9B - $3.2B Operating Margin 6.0% 5.6% - 6.1% Diluted EPS $2.38 $1.95 - $2.25 Great Start to Fiscal 2026 Refer to GAAP to non-GAAP reconciliation on slide 23. *Results include two months of ZT Systems results of operations. 6
Page 7
$113 $192 5.6% 6.0% Q1'25 Q1'26* $180 $298 9.0% 9.3% Q1'25 Q1'26* $2,006 $3,190 Q1'25 Q1'26* $1.44 $2.38 Q1'25 Q1'26* Revenue Non-GAAP Gross Profit & Gross Margin Non-GAAP Operating Profit & Operating Margin Non-GAAP Diluted Earnings Per Share Non-GAAP P&L Performance ($ in millions, except per share data) Refer to GAAP to non-GAAP reconciliation on slide 23. *Q1’26 includes two months of ZT Systems results of operations. 7 59.0% 66.1%
Page 8
Revenue and non-GAAP gross margin for IMS segment and CPS category includes inter-segment revenues that are eliminated under GAAP, and in the case of gross margin, excludes the same items that are excluded from the calculation of non- GAAP gross margin for the consolidated business. *Results include two months of ZT Systems results of operations. $1,623 $2,791 7.9% 8.7% Q1'25 Q1'26* Integrated Manufacturing Solutions $416 $434 12.5% 12.9% Q1'25 Q1'26* Components, Products and Services Segment Reporting: Revenue and Non-GAAP Gross Margin ($ in millions) 8
Page 9
Balance Sheet ($ in millions) Industry Leading Balance Sheet Key Takeaways: Strong cash position No borrowings under $1.5 billion Revolver at quarter end Substantial liquidity: $3.6 billion Q1 non-GAAP pre-tax ROIC: 32.1% Net leverage ratio: 0.8x Substantial liquidity is the sum of cash and cash equivalents, availability on the revolver and other foreign facilities. ROIC (a measure the efficiency at which a company spends the capital contributed by stockholders and lenders to generate returns ) is calculated as annualized non-GAAP operating income divided by average invested capital. Invested capital is defined as total assets (not including cash and cash equivalents and deferred tax assets) less total liabilities (excluding short -term and long-term debt). Average invested capital is the average of invested capital as at the end of current and prior quarter. Net leverage ratio is calculated as debt minus cash and cash equivalents, divided by annualized non- GAAP EBITDA. 9 12/27/2025 Cash and cash equivalents 1,416 Accounts receivable, net 2,646 Contract assets 431 Inventories 3,053 Property, plant and equipment, net 955 Deferred income tax assets 379 Other assets 921 Total assets 9,801$ Accounts payable 2,348 Deferred revenue and customer advances 1,251 Short-term debt 172 Long-term debt 1,999 Other liabilities 1,370 Total stockholders' equity 2,661 Total liabilities and stockholders' equity 9,801$
Page 10
Q1 FY’26 Cash Flow Highlights Solid Cash Generation 10Free cash flow = Net cash provided by operating activity adjusted for net purchases of property and equipment. Refer to slide 24 for a reconciliation of free cash flow. Refer to GAAP to non-GAAP EBITDA reconciliation on slide 26. Cash Flow from Operations: $179 million Net CapEx: $87 million Investing in growth markets, technology and capabilities to support long-term growth Free Cash Flow: $92 million Non-GAAP EBITDA: $230 million Share Repurchases: 516 thousand shares for $79 million $160 million available under the authorized share repurchase program at end of Q1
Page 11
Capital Allocation Strategy Remains Intact 11 Maximizing Shareholder Value Organic Growth Reduce Debt Share Repurchases Focused on Growth ROI Based Approach Strategic M&A and Partnerships
Page 12
Q2 FY’26 Outlook Revenue Non-GAAP Operating Margin* Non-GAAP Diluted EPS* $3.1B - $3.4B 5.7% - 6.2% $2.25 - $2.55 *This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort. 12
Page 13
Business Overview Jure Sola
Page 14
Q1 FY’26 Overview 14 Strong results Revenue and non-GAAP operating margin at the high-end of our outlook Non-GAAP diluted EPS exceeded our outlook FY’26 tracking to our expectations Consistent Execution – Driving Financial Performance
Page 15
Revenue by End-Market ($ in millions) Q1 FY’26* Q1 FY’25 Communications Networks Cloud & AI Infrastructure $1,964 $737 Industrial & Energy Medical Defense & Aerospace Automotive & Transportation $1,226 $1,269 Total $3,190 $2,006 15 *Q1’26 includes two months of ZT Systems results of operations. Well Diversified
Page 16
End-Market View: Positive Trends Communications Networks and Cloud & AI Infrastructure High Density/Performance Networks Strong demand for high performance switches and enterprise storage Growing optical advanced packaging High performance systems – 400G, 800G and 1.6T Cloud & AI Infrastructure Strong growth opportunities Well positioned in Cloud and AI end-market Strong pipeline of new projects for second half CY’26 and ’27 Industrial & Energy, Medical, Defense & Aerospace, and Automotive & Transportation Industrial & Energy Great customer base Strong demand for power to support AI data centers Safety and surveillance equipment New projects in the pipeline to drive future growth Medical Well diversified within the market Drug delivery devices to grow in FY’26 and ‘27 Solid opportunities to drive growth in FY’26 Defense & Aerospace Continue to see strong demand This segment continues to do well Strong opportunities in the pipeline Automotive & Transportation Short-term stable Great customer base, new opportunities to drive future growth 16
Page 17
Where we are at: Integration is on track Immediately accretive to EPS ZT Systems margins in line with core Sanmina Strong management and technical team in place Where we are headed: Expect more growth in second half of CY’26 driven by new projects Goal to double Sanmina revenue in two years - on track to deliver $16B+ in CY’27 Pursuing vertical integration opportunities 17 Sanmina / ZT Systems Update Executing to the Plan FULL SYSTEM INTEGRATION FOR AI DATA CENTERS AT SCALE
Page 18
Sanmina’s Priorities 18 Focus on Customers 1 Drive Profitable Growth 4 Execute on ZT Systems Opportunities 3 Leader in Technology 2 Broaden and deepen customer partnerships Competitive advantage Large opportunities Building “Big” for the future Maximize Shareholder Value
Page 19
Summary 19 Great start to FY’26 Expect core Sanmina to grow high single digits Strong demand for AI hardware in the second half of CY’26 and beyond Capacity and power requirements to support customer demand for AI Data Centers Ongoing diversification in growth markets Manufacturing footprint well aligned with customer requirements – strong U.S. presence Remain Focused on Sanmina’s Strategy & Be a Partner of Choice to Market Leaders
Page 20
Consolidated Financial Statements Reconciliation of GAAP vs. Non-GAAP Quarter Ended: December 27, 2025
Page 21
21 December 27, 2025 September 27, 2025 ASSETS Current assets: Cash and cash equivalents $ 1,415,541 $ 926,267 Accounts receivable, net 2,646,068 1,400,129 Contract assets 430,906 425,944 Inventories 3,053,201 1,988,462 Prepaid expenses and other current assets 307,004 124,656 Total current assets 7,852,720 4,865,458 Property, plant and equipment, net 954,803 682,354 Deferred income tax assets 379,324 171,218 Goodw ill 306,680 30,386 Other assets 307,501 108,757 Total assets $ 9,801,028 $ 5,858,173 LIA BILITIES A ND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,348,214 $ 1,578,895 Accrued liabilities 627,876 179,605 Deferred revenue and customer advances 1,250,508 878,474 Accrued payroll and related benefits 216,837 167,541 Short-term debt, including current portion of long-term debt 172,000 17,500 Total current liabilities 4,615,435 2,822,015 Long-term liabilities: Long-term debt 1,998,601 282,974 Other liabilities 525,695 214,021 Total long-term liabilities 2,524,296 496,995 Stockholders' equity 2,661,297 2,539,163 Total liabilities and stockholders' equity $ 9,801,028 $ 5,858,173 Condensed Consolidated Balance Sheets Sanmina Corporation (GAAP) (in thousands) (Unaudited)
Page 22
22 December 27, 2025 December 28, 2024 Net sales $ 3,189,693 $ 2,006,348 Cost of sales 2,947,331 1,838,433 Gross profit 242,362 167,915 Operating expenses: Selling, general and administrative 114,886 70,845 Research and development 8,658 7,024 Acquisition and integration 43,363 — Amortization of intangibles 1,187 — Restructuring 670 1,436 Total operating expenses 168,764 79,305 Operating income 73,598 88,610 Interest income 8,058 3,396 Interest expense (24,722) (5,001) Other income (expense), net 4,648 (729) Interest and other, net (12,016) (2,334) Income before income taxes 61,582 86,276 Provision for income taxes 9,827 15,392 Net income before noncontrolling interest 51,755 70,884 Less: Net income attributable to noncontrolling interest 2,469 5,881 Net income attributable to common shareholders $ 49,286 $ 65,003 Net income attributable to common shareholders per share: Basic $ 0.91 $ 1.20 Diluted $ 0.89 $ 1.16 Weighted-average shares used in computing per share amounts: Basic 54,160 54,206 Diluted 55,519 55,853 Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) Three Months E nded (Unaudited)
Page 23
23 December 27, 2025 September 27, 2025 December 28, 2024 $ 242,362 $ 191,157 $ 167,915 7.6 % 9.1 % 8.4 % 5,995 5,225 5,024 49,000 — — 533 — — — — 450 — — 6,703 $ 297,890 $ 196,382 $ 180,092 9.3 % 9.4 % 9.0 % $ 168,764 $ 112,692 $ 79,305 (17,625) (11,008) (10,268) (1,187) — (43,363) (27,082) — — (1,250) — — — (169) (670) (3,420) (1,436) $ 105,919 $ 69,932 $ 67,432 $ 73,598 $ 78,465 $ 88,610 2.3 % 3.7 % 4.4 % 23,620 16,233 15,292 49,000 — 1,720 — — 43,363 27,082 — — 1,250 450 — — 6,872 670 3,420 1,436 $ 191,971 $ 126,450 $ 112,660 6.0 % 6.0 % 5.6 % $ (12,016) $ (5,128) $ (2,334) 1,345 — — (4,710) — — (3,745) — — $ (19,126) $ (5,128) $ (2,334) $ 9,827 $ 21,364 $ 15,392 28,199 4,604 8,880 $ 38,026 $ 25,968 $ 24,272 $ 49,286 $ 48,066 $ 65,003 118,373 47,985 24,050 (7,110) — — (28,199) (4,604) (8,880) $ 132,350 $ 91,447 $ 80,173 Bas ic $ 0.91 $ 0.90 $ 1.20 Diluted $ 0.89 $ 0.88 $ 1.16 Bas ic $ 2.44 $ 1.71 $ 1.48 Diluted $ 2.38 $ 1.67 $ 1.44 Bas ic 54,160 53,567 54,206 Diluted 55,519 54,860 55,853 (1) December 27, 2025 September 27, 2025 December 28, 2024 $ 5,995 $ 5,225 $ 5,024 17,274 10,621 9,962 351 387 306 $ 23,620 $ 16,233 $ 15,292 (2) (3) (4) (5) (6) (7) (8) Adjustments for taxes include the tax effects of the various adjustments that w e exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items. Relates to amortization of intangible assets acquired from the ZT acquisition. Represents expenses, charges and recoveries associated w ith certain legal matters. Relates to the amortization of the fair value step up on inventory from the ZT acquisition. Relates to fees on the bridge loan facility as w ell as professional and legal fees incurred in connection w ith the ZT acquisition. Related to gain on sale of equity interest. Selling, general and administrative Cost of sales Three Months Ended Relates to accounts receivable and inventory w rite-dow ns associated w ith distressed customers. Total Research and development Non-GAAP Net income attributable to common shareholders GAAP Net income attributable to common shareholders per share: Non-GAAP Net income attributable to common shareholders per share: Weighted-average shares used in computing per share amounts: Stock compensation expense w as as follow s: Non-GAAP Provision for income taxes Adjustments for taxes (8) Operating income adjustments (see above) Adjustments: Adjustments for taxes (8) GAAP Net income attributable to common shareholders Interest and other, net (see above) Gain on sale of investment (7) Adjustments Legal (4) Non-GAAP Interest and other, net GAAP Provision for income taxes Others Distressed customer charges (5) Non-GAAP Operating margin Non-GAAP Operating income Loss on debt extinguishment GAAP Interest and other, net GAAP Operating margin Stock compensation expense (1) Adjustments Amortization of intangible assets (3) Legal (4) Amortization of inventory fair value adjustment (2) Acquisition and integration costs (6) Others Distressed customer charges (5) Non-GAAP Operating expenses GAAP Operating income Non-GAAP Gross margin GAAP Operating expenses Adjustments Stock compensation expense (1) Legal (4) Acquisition and integration costs (6) Amortization of intangible assets (3) Legal (4) Amortization of intangible assets (3) Amortization of inventory fair value adjustment (2) Distressed customer charges (5) Non-GAAP Gross profit GAAP Gross profit GAAP Gross margin Stock compensation expense (1) Adjustments Three Months E nded Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (Unaudited)
Page 24
24 December 27, 2025 December 28, 2024 Net income before noncontrolling interest $ 51,755 $ 70,884 Depreciation and intangibles amortization 39,531 31,845 Amortization of inventory fair value adjustment 49,000 — Other, net 17,794 21,154 Net change in net w orking capital 20,648 (59,945) Cash provided by operating activities 178,728 63,938 Proceeds from sales (purchase) of investments 8,710 (300) Net purchases of property, plant and equipment (86,769) (16,921) Cash paid for businesses acquisition, net of cash acquired (1,355,801) — Cash used in investing activities (1,433,860) (17,221) Proceeds from long-ter m debt 2,200,000 — Repayment of borrow ings (301,875) (4,375) Repurchases of common stock (79,794) (16,113) Payments for tax w ithholding on stock-based compensation (33,715) (8,343) Debt issuance costs (28,703) — Cash provided by (used in) financing activities 1,755,913 (28,831) Effect of exchange rate changes (187) (1,344) Net change in cash, cash equivalents and restricted cash equivalents $ 500,594 $ 16,542 Free cash flow : Cash provided by operating activities $ 178,728 $ 63,938 Net purchases of property & equipment (86,769) (16,921) $ 91,959 $ 47,017 Three Months E nded (Unaudited) (in thousands) (GAAP) Sanmina Corporation Condensed Consolidated Cash Flow
Page 25
25 December 27, 2025 December 28, 2024 GAAP Operating income $ 73,598 $ 88,610 x 4.0 4.0 Annualized GAAP Operating income 294,392 354,440 Average invested capital (1) ÷ 2,389,593 1,915,460 GAAP Pre-tax ROIC 12.3 % 18.5 % Non-GAAP Operating income $ 191,971 $ 112,660 x 4.0 4.0 Annualized non-GAAP Operating income 767,884 450,640 Average invested capital (1) ÷ 2,389,593 1,915,460 Non-GAAP Pre-tax ROIC 32.1 % 23.5 % (1) Invested capital is defined as total assets (not including cash and cash equivalents and deferred tax assets) less total liabilities (excluding short-term and long-term debt). Average invested capital is the average of invested capital as at the end of current and prior quarter. Three Months E nded (Unaudited) ($ in thousands) Pre-Tax Return on Invested Capital (ROIC) Sanmina Corporation
Page 26
26 December 27, 2025 December 28, 2024 EBITDA GAAP Operating Income $ 73,598 $ 88,610 Amortization of inventory fair value adjustment 49,000 — Depreciation and intangibles amortization 39,531 31,845 GAAP EBITDA $ 162,129 $ 120,455 GAAP EBITDA Margin 5.1 % 6.0 % Non-GAAP Operating Income $ 191,971 $ 112,660 Depreciation 37,811 31,845 Non-GAAP EBITDA $ 229,782 $ 144,505 Non-GAAP E BITDA Margin 7.2 % 7.2 % Sanmina Corporation Three Months E nded (Unaudited) (in thousands) Reconciliation of GAAP to Non-GAAP Measures: E BITDA
Page 27
27 Schedule 1 The statements above and financial information provided in the fourth quarter earnings release include non-GAAP measures of gross profit, gross margin, operating income, operating margin, net income, earnings per share, ROIC and EBITDA. Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other unusual or infrequent items, as adjusted for taxes, as more fully described below. Management excludes these items principally because such charges or benefits are not directly related to the Company’s ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company’s operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company’s strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of our ongoing, core business. The material limitations to management’s approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company’s liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company’s performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases. Additional information regarding the economic substance of each exclusion, management’s use of the resultant non-GAAP measures, the material limitations of management’s approach and management’s methods for compensating for such limitations is provided below. Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of equity awards granted to employees and directors, is excluded in order to permit more meaningful period-to-period comparisons of the Company’s results since the Company grants different amounts and value of equity awards each quarter. In addition, given the fact that competitors grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company’s core results with those of its competitors. Restructuring, Acquisition and Integration Expenses, which consist of employee severance, lease termination costs, exit costs, environmental investigation, remediation and related employee costs and other charges primarily related to closing and consolidating manufacturing facilities and those associated with the acquisition and integration of acquired businesses, are excluded because such charges (1) can be driven by the timing of acquisitions and exit activities which are difficult to predict, (2) are not directly related to ongoing business results and (3) generally do not reflect expected future operating expenses. In addition, given the fact that the Company’s competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges or benefits permits more accurate comparisons of the Company’s core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company’s competitors and restructuring and integration expenses include both cash and non- cash expenses. Cash expenses reduce the Company’s liquidity. Therefore, management also reviews GAAP results including these amounts. Impairment Charges for Goodwill and Other Assets, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company’s liquidity. In addition, given the fact that the Company’s competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors. Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company’s liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors because the Company’s competitors complete acquisitions at different times and for different amounts than the Company. Other Unusual or Infrequent Items, such as charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, and gains and losses on sales of assets, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company’s ongoing or core operations and are therefore not considered by management in assessing the current operating performance of the Company and forecasting earnings trends. However, items excluded by the Company may be different from those excluded by the Company’s competitors. In addition, these items include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts. Adjustments for Taxes, which consist of the tax effects of the various adjustments that we exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items. Including these adjustments permits more accurate comparisons of the Company's core results with those of its competitors. We determine the tax adjustments based upon the various applicable effective tax rates. In those jurisdictions in which we do not expect to realize a tax cost or benefit (due to a history of operating losses or other factors), a reduced tax rate is applied.
Page 28
Thank You