Sanmina Corporation has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations. The company, headquartered in San Jose, California, offers integrated manufacturing solutions, components, products, repair, logistics, and after-market services globally. Sanmina operates in two primary businesses: Integrated Manufacturing Solutions and Components, Products, and Services. These segments encompass a wide range of offerings, including product design and engineering, assembly and test services, direct order fulfillment, supply chain management, and manufacturing of various components and systems.
In its 10-K report, Sanmina Corporation's Management's Discussion and Analysis of Financial Condition and Results of Operations highlights several key points. The company's revenue is primarily generated from sales to original equipment manufacturers (OEMs) across various industries, with its Integrated Manufacturing Solutions segment representing approximately 80% of its total revenue in 2024. Sanmina's strategy focuses on leveraging its product and service offerings, advanced technologies, and global capabilities to penetrate diverse end markets and achieve operating margins that exceed industry standards.
The report also addresses trends and uncertainties impacting Sanmina's business, including intense competition in key end markets, macroeconomic challenges such as inflation and supply chain constraints, and geopolitical conflicts. Despite these challenges, the company remains focused on improving operations, building flexibility and efficiencies, and diversifying into mission-critical markets.
Furthermore, the 10-K report outlines critical accounting policies and estimates used by Sanmina, with a focus on revenue recognition and inventory valuation. The company recognizes revenue for the majority of its contracts on an over time basis, and it regularly evaluates the carrying value of its inventories to reduce excess and obsolete items to their estimated net realizable values.
As a result of these announcements, the company's shares have moved 0.5% on the market, and are now trading at a price of $78.74. Check out the company's full 10-K submission here.
