Sanmina Delivers Strong Q1 2025 Performance with Revenue Growth and Margin Expansion
Sanmina, a leading electronics manufacturing services (EMS) company, has reported strong first-quarter fiscal 2025 performance, exceeding market expectations across key financial metrics. According to the company's recent earnings conference call transcript, Sanmina delivered sales revenue of $2.01 billion for Q1 FY 2025, representing a 7.0% increase compared to the same period a year ago.
More impressively, the company's non-GAAP operating margin reached 5.6%, exceeding its own outlook commitment and signaling a significant expansion in profitability. Additionally, Sanmina's non-GAAP gross margin stood at 9.0%, outperforming expectations as well. The company's bottom-line performance was equally impressive, with non-GAAP diluted earnings per share (EPS) coming in at $1.44, surpassing its outlook.
In a prepared statement, Jure Sola, Chairman and Chief Executive Officer of Sanmina, acknowledged the company's leadership team and employees for their dedication and excellent service to customers, highlighting that these factors contributed to the strong Q1 results.
Executive Vice President and Chief Financial Officer Jon Faust credited the entire Sanmina team with delivering a solid start to the new fiscal year. He emphasized that the company is on a good trajectory for FY 2025, driven by growth in the communications networks and cloud infrastructure end markets. These areas saw significant revenue growth during Q1, accounting for the bulk of the overall increase.
Sanmina's focus on expanding margins and driving growth will likely remain a priority as it navigates the remainder of FY 2025. The company has outlined its long-term financial goals to drive growth and expand margins, with these objectives well-positioned given its current momentum. With this performance, Sanmina solidifies its position as a leading EMS provider, and investors may continue to watch for further progress toward these ambitious targets.
The Q1 FY 2025 results demonstrate Sanmina's ability to deliver strong financial performance across multiple metrics. The company's focus on key end markets and commitment to operational excellence have positioned it well for future growth and profitability expansion. As the electronics manufacturing industry continues to evolve, Sanmina's ability to adapt and execute its strategy will likely play a significant role in shaping its success.
