SANMINA CORP

Previous wording

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to our expectations for future events and time periods. All statements other than statements of historical fact are statements that could be deemed to be forward-looking statements, including any statements regarding trends in future revenue or results of operations, gross margin, operating margin, expenses, earnings or losses from operations, or cash flow; plans, strategies and objectives of management for future operations and the anticipated benefits of such plans, strategies and objectives; future economic conditions or performance; any statements regarding litigation or pending investigations, claims or disputes; future cash outlays for, and benefits of acquisitions and other strategic transactions, including our Indian joint venture and acquisition of ZT Systems; expected restructuring costs and benefits; the adequacy of our current liquidity and the availability of additional sources of liquidity; the potential impact of any future pandemics on our business, results of operations and financial condition; the potential impact of supply chain shortages and inflation on our business; the future impact of tariffs, export controls and evolving trade policies on our business; future tax rates and tax policies and our expectations concerning developments in the audit by the IRS of certain tax returns filed by us, including the potential impact of the IRS revenue agent’s report received by us in November 2023; the expected impact of accounting pronouncements not yet adopted; future repurchases of our common stock; our expectations or beliefs; and assumptions underlying any of the foregoing. Generally, the words “anticipate,” “believe,” “plan,” “expect,” “future,” “intend,” “may,” “will,” “should,” “estimate,” “predict,” “potential,” “continue” and similar expressions identify forward-looking statements. Our forward-looking statements are based on current expectations, forecasts and assumptions and are subject to risks and uncertainties, including those contained in Part II, Item 1A of this report. As a result, actual results could vary materially from those suggested by the forward-looking statements. We undertake no obligation to publicly disclose any revisions to these forward-looking statements to reflect events or circumstances occurring subsequent to filing this report with the Securities and Exchange Commission (the “SEC”). Investors and others should note that Sanmina announces material financial information to our investors using our investor relations website (http://ir.sanmina.com/investor-relations/overview/default.aspx), SEC filings, press releases, public conference calls and webcasts. We use these channels to communicate with our investors and the public about Sanmina, its products and services and other issues. It is poss…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 as amended (the “Exchange Act”). These statements relate to our expectations for future events and time periods. All statements other than statements of historical fact are statements that could be deemed to be forward-looking statements, including any statements regarding trends in future revenue or results of operations, gross margin, operating margin, expenses, earnings or losses from operations, or cash flow; plans, strategies and objectives of management for future operations and the anticipated benefits of such plans, strategies and objectives; future economic conditions or performance; any statements regarding litigation or pending investigations, claims or disputes; future cash outlays for, and benefits of acquisitions and other strategic transactions, including our Indian joint venture and acquisition of ZT Group Int’l, Inc. (“ZT Systems”); expected restructuring costs and benefits; the adequacy of our current liquidity and the availability of additional sources of liquidity; the potential impact of any future pandemics on our business, results of operations and financial condition; the potential impact of supply chain shortages and inflation on our business; the future impact of tariffs, export controls and evolving trade policies on our business; future tax rates and tax policies and our expectations concerning developments in the audit by the Internal Revenue Service (“IRS”) of certain tax returns filed by us, including the potential impact of the IRS revenue agent’s report received by us in November 2023; the expected impact of accounting pronouncements not yet adopted; future repurchases of our common stock; our expectations or beliefs; and assumptions underlying any of the foregoing. Generally, the words “anticipate,” “believe,” “plan,” “expect,” “future,” “intend,” “may,” “will,” “should,” “estimate,” “predict,” “potential,” “continue” and similar expressions identify forward-looking statements. Our forward-looking statements are based on current expectations, forecasts and assumptions and are subject to risks and uncertainties, including those contained in Part II, Item 1A of this report. As a result, actual results could vary materially from those suggested by the forward-looking statements. We undertake no obligation to publicly disclose any revisions to these forward-looking statements to reflect events or circumstances occurring subsequent to filing this report with the Securities and Exchange Commission (the “SEC”). Investors and others should note that Sanmina announces material financial information to our investors using our investor relations website (http://ir.sanmina.com/investor-relations/overview/default.aspx), SEC filings, press releases, public conference calls and webcasts. We use these channels to commun…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We are a leading global provider of integrated manufacturing solutions, components, products and repair, warranty service, logistics and after-market services. Our revenue is generated from sales of our products and services primarily to original equipment manufacturers (“OEMs”) that serve the industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks and cloud and AI infrastructure industries.

Current wording

We are a leading global provider of integrated manufacturing solutions, components, products and repair, warranty service, logistics and after-market services. Our revenue is generated from sales of our products and services primarily to original equipment manufacturers (“OEMs”) that serve the industrial and energy, medical, defense and aerospace, automotive and transportation, communications networks and cloud and artificial intelligence (“AI”) infrastructure industries.

Previous wording

Components, Products and Services (“CPS”). Components include advanced PCBs, backplanes and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic injected molded parts. Products include optical, radio frequency (“RF”) and microelectronic design and manufacturing services from the Company’s Advanced Microsystems Technologies division; multi-chip package memory solutions from the Company’s Viking Technology division; high-performance storage platforms for hyperscale and enterprise solutions from the Company’s Viking Enterprise Solutions division; defense and aerospace products, design, manufacturing, repair and refurbishment services from the Company’s SCI Technology, Inc. (“SCI”) subsidiary; and cloud-based smart manufacturing execution software from the Company’s 42Q division. Services include design, engineering, and logistics and repair.

Current wording

Components, Products and Services (“CPS”). Components include advanced PCBs, backplanes and backplane assemblies, cable assemblies, fabricated metal parts, precision machined parts, and plastic injected molded parts. Products include optical, radio frequency and microelectronic design and manufacturing services from the Company’s Advanced Microsystems Technologies division; multi-chip package memory solutions from the Company’s Viking Technology division; high-performance storage platforms for hyperscale and enterprise solutions from the Company’s Viking Enterprise Solutions division; defense and aerospace products, design, manufacturing, repair and refurbishment services from the Company’s SCI Technology, Inc. (“SCI”) subsidiary; and cloud-based smart manufacturing execution software from the Company’s 42Q division. Services include design, engineering, and logistics and repair.

Previous wording

Our only reportable segment for financial reporting purposes is IMS, which represented approximately 90% of our total revenue for the six months ended March 28, 2026. Our CPS business consists of multiple operating segments which do not individually meet the quantitative thresholds for being presented as reportable segments. Therefore, financial information for these operating segments is combined and presented in a single category entitled “CPS”.

Current wording

Our only reportable segment for financial reporting purposes is IMS, which represented approximately 90% of our total revenue for the nine months ended June 27, 2026. Our CPS business consists of multiple operating segments which do not individually meet the quantitative thresholds for being presented as reportable segments. Therefore, financial information for these operating segments is combined and presented in a single category entitled “CPS”.

Previous wording

Sales to our ten largest customers represent approximately 70% of net sales. Net sales from these customers are derived from multiple segments. Two customers represented 10% or more of our net sales for the three and six months ended March 28, 2026. One customer represented 10% or more of our net sales for the three months ended March 29, 2025 and none for the six months ended March 29, 2025.

Current wording

Sales to our ten largest customers represent 67% of net sales. Net sales from these customers are derived from multiple segments. One customer represented 10% or more of our net sales for the three months ended June 27, 2026 and two customers represented 10% or more of our net sales for the nine months ended June 27, 2026. No customer represented 10% or more of our net sales for the three and nine months ended June 28, 2025.

Previous wording

On October 27, 2025 (the “Closing Date”), we completed the acquisition of ZT Systems (“ZT Acquisition”) for a purchase consideration of $1.62 billion, consisting of cash of $1.356 billion, net of $295 million cash acquired, and 1,151,052 shares of our common stock valued at $155 million, which we released out of treasury stock. The Seller is also entitled up to $450 million in contingent cash consideration upon the achievement of certain gross profit and revenue metrics during the three-year period following the Closing Date. Additionally, we recognized $170 million fair value of contingent cash consideration liability as of March 28, 2026. As part of the ZT Acquisition, AMD has entered into a strategic relationship with us as a U.S.-based new product introduction (“NPI”) manufacturing partner of choice to accelerate quality and time-to-deployment of AMD AI rack and cluster-scale systems for cloud customers.

Current wording

On October 27, 2025 (the “Closing Date”), we completed the acquisition of ZT Systems (“ZT Acquisition”) for a purchase consideration of $1.62 billion, consisting of cash of $1.356 billion, net of $295 million cash acquired, and 1,151,052 shares of our common stock valued at $155 million, which we released out of treasury stock. The seller is also entitled to up to $450 million in contingent cash consideration upon the achievement of certain gross profit and revenue metrics during the three-year period following the Closing Date. Additionally, we recognized $183 million fair value of contingent cash consideration liability as of June 27, 2026. As part of the ZT Acquisition, AMD has entered into a strategic relationship with us as a U.S.-based new product introduction (“NPI”) manufacturing partner of choice to accelerate quality and time-to-deployment of AMD AI rack and cluster-scale systems for cloud customers.

Previous wording

We believe our end-to-end manufacturing solutions combined with our global supply chain management expertise differentiate us from our competitors and enable us to better serve the needs of OEM customers. However, our business faces many challenges. For example, we compete with a number of companies in each of our key end markets. This includes companies that are much larger than we are and smaller companies that focus on a particular niche product, service or end market. Although we believe we are well-positioned in each of our key end markets and offer many advantages compared to our competitors, profitably growing revenues are often constrained by intense competition. Additionally, we are impacted by macroeconomic challenges such as tariffs, inflation, supply chain constraints, foreign currency fluctuations, high interest rates, market volatility and recession concerns that have been and could be in the future exacerbated by geopolitical environment such as the conflict in the Middle East and related supply disruptions, tensions between the U.S. and other nations and the war in Ukraine.

Current wording

We believe our end-to-end manufacturing solutions combined with our global supply chain management expertise differentiate us from our competitors and enable us to better serve the needs of OEM customers. However, our business faces many challenges. For example, we compete with a number of companies in each of our key end markets. This includes companies that are much larger than we are and smaller companies that focus on a particular niche product, service or end market. Although we believe we are well-positioned in each of our key end markets and offer many advantages compared to our competitors, profitably growing revenues are often constrained by intense competition. Additionally, we are impacted by macroeconomic challenges such as tariffs, inflation, supply chain constraints including component shortages or price increases, foreign currency fluctuations, high interest rates, market volatility and recession concerns that have been and could be in the future exacerbated by geopolitical environment such as the conflict in the Middle East and related supply disruptions, tensions between the U.S. and other nations and the war in Ukraine. Further, uncertainties around U.S. tariffs, retaliatory tariffs from other countries, and import/export restrictions may impact customer decisions to use our services in certain manufacturing locations and increase the complexity and cost of our supply chain. Although our customers are generally liable for tariffs and price increases we pay for components and finished products, our gross margins could be impacted if we are unable to fully recover these costs. The timing of tariff or component price increase recoveries from customers could adversely affect our operating cash flow in a given period.

Previous wording

Net sales increased 102% in the three months ended March 28, 2026 compared to the three months ended March 29, 2025, and 80.5% in the six months ended March 28, 2026 compared to the six months ended March 29, 2025, primarily in the cloud infrastructure end market, driven by the ZT acquisition, new program wins and program ramp-ups in our communications networks and medical end market.

Current wording

Net sales increased 70% in the three months ended June 27, 2026 compared to the three months ended June 28, 2025, and 76.8% in the nine months ended June 27, 2026 compared to the nine months ended June 28, 2025, primarily in the cloud infrastructure end market, driven by the ZT Acquisition, new program wins and program ramp-ups in our communications networks end market.

Previous wording

Gross margin decreased to 8.8% from 8.9% for the three months ended March 28, 2026 and March 29, 2025. Gross margin decreased to 8.3% from 8.6% for the six months ended March 28, 2026 and March 29, 2025. IMS gross margin increased to 8.5% from 7.7% for three months ended March 28, 2026 and March 29, 2025. IMS gross margin increased to 8.6% from 7.8% for the six months ended March 28, 2026 and March 29, 2025. The increase in gross margin is driven by the ZT acquisition. CPS gross margin decreased to 11.6% from 13.9% for the three months ended March 28, 2026 and March 29, 2025. CPS gross margin decreased to 12.2% from 13.2% for the six months ended March 28, 2026 and March 29, 2025. The change in gross margin is due to customer mix.

Current wording

Gross margin increased to 10.5% from 8.9% for the three months ended June 27, 2026 and June 28, 2025. Gross margin increased to 9.0% from 8.7% for the nine months ended June 27, 2026 and June 28, 2025. IMS gross margin increased to 10.2% from 7.5% for the three months ended June 27, 2026 and June 28, 2025. IMS gross margin increased to 9.1% from 7.7% for the nine months ended June 27, 2026 and June 28, 2025. The increase in gross margin is driven by the ZT Acquisition and product mix. CPS gross margin decreased to 12.8% from 14.7% for the three months ended June 27, 2026 and June 28, 2025. CPS gross margin decreased to 12.4% from 13.7% for the nine months ended June 27, 2026 and June 28, 2025. The decrease in gross margin is primarily due to manufacturing inefficiencies.

Previous wording

Selling, general and administrative expenses for the three months ended March 28, 2026 and March 29, 2025 were $114 million and $76 million, respectively. As a percentage of net sales, selling, general and administrative expenses were 2.8% and 3.8% for the three months ended March 28, 2026 and March 29, 2025, respectively. The increase in absolute dollars was primarily due to costs related to the ZT acquisition and stock compensation expense from new equity grants and variable compensation.

Current wording

Selling, general and administrative expenses for the three months ended June 27, 2026 and June 28, 2025 were $109 million and $70 million, respectively. As a percentage of net sales, selling, general and administrative expenses were 3.2% and 3.4% for the three months ended June 27, 2026 and June 28, 2025, respectively. Selling, general and administrative expenses for the nine months ended June 27, 2026 and June 28, 2025 were $338 million and $217 million, respectively. As a percentage of net sales, selling, general and administrative expenses were 3.2% and 3.6% for the nine months ended June 27, 2026 and June 28, 2025, respectively. The increases in absolute dollars were primarily due to the ZT Acquisition and professional fees.

Previous wording

Research and development expenses were $8 million and $7 million for three months ended March 28, 2026 and March 29, 2025, respectively. As a percentage of net sales, research and development expenses were 0.2% and 0.4% for three months ended March 28, 2026 and March 29, 2025, respectively. Research and development expenses were $17 million and $14 million for six months ended March 28, 2026 and March 29, 2025, respectively. As a percentage of net sales, research and development expenses were 0.2% and 0.4% for six months ended March 28, 2026 and March 29, 2025, respectively. Research and development expenses remain consistent as a percentage of revenues for both the reporting periods.

Current wording

Research and development expenses were $8 million and $8 million for the three months ended June 27, 2026 and June 28, 2025, respectively. As a percentage of net sales, research and development expenses were 0.2% and 0.4% for three months ended June 27, 2026 and June 28, 2025, respectively. Research and development expenses were $25 million and $22 million for nine months ended June 27, 2026 and June 28, 2025, respectively. As a percentage of net sales, research and development expenses were 0.2% and 0.4% for nine months ended June 27, 2026 and June 28, 2025, respectively. Research and development expenses remained consistent for both reporting periods.

Previous wording

Acquisition, integration and others were $73 million and $116 million for the three and six months ended March 28, 2026 respectively, and were related to the ZT Acquisition. Acquisition, integration and others for the three months ended March 28, 2026 primarily consist of a fair value adjustment of $59 million for contingent consideration and acquisition, integration and others for the six months ended March 28, 2026 primarily consists of a fair value adjustment of $59 million for contingent consideration and professional service fees of $45 million.

Current wording

Acquisition, integration and others were $21 million and $137 million for the three and nine months ended June 27, 2026 respectively, and were related to the ZT Acquisition. Acquisition, integration and others for the three months ended June 27, 2026 primarily consist of a fair value adjustment of $13 million for contingent consideration and acquisition, integration and others for the nine months ended June 27, 2026 primarily consists of a fair value adjustment of $72 million for contingent consideration and professional service fees of $53 million.

Previous wording

Interest expense was $32 million and $5 million for the three months ended March 28, 2026 and March 29, 2025, respectively and $57 million and $10 million for the six months ended March 28, 2026 and March 29, 2025, respectively. The increase in interest expense for both periods is primarily due to interest incurred on the new term loans with higher aggregate borrowing amount of $2.2 billion compared to $0.3 billion for the three and six months ended March 29, 2025.

Current wording

Interest expense was $32 million and $5 million for the three months ended June 27, 2026 and June 28, 2025, respectively and $89 million and $15 million for the nine months ended June 27, 2026 and June 28, 2025, respectively. The increase in interest expense for both periods is primarily due to interest incurred on the new term loans with higher aggregate borrowing amount of $2.2 billion compared to $0.3 billion for the three and nine months ended June 28, 2025.

Previous wording

Provision for income taxes for the three months ended March 28, 2026 and March 29, 2025 was $33 million (25% of income before taxes) and $18 million (20% of income before taxes), respectively. The effective tax rate was higher for the three months ended March 28, 2026 primarily due to change in the jurisdictional mix of earnings and non-deductible acquisition related charges.

Current wording

Provision for income taxes for the three months ended June 27, 2026 and June 28, 2025 was $66 million (35% of income before taxes) and $19 million (20% of income before taxes), respectively. Provision for income taxes for the nine months ended June 27, 2026 and June 28, 2025 was $110 million (29% of income before taxes) and $52 million (19% of income before taxes), respectively. The effective tax rates were higher for the three and nine months ended June 27, 2026 primarily due to non-deductible acquisition related charges and the closure and settlement of the fiscal 2008 through 2010 IRS audit.

Previous wording

Cash and cash equivalents were $1.6 billion as of March 28, 2026 and $926 million as of September 27, 2025. Restricted cash and cash equivalents as of March 28, 2026 were $50 million. Our cash levels vary during any given quarter depending on the timing of collections from customers and payments to suppliers, borrowings under our credit facilities, sales of accounts receivable under numerous programs we utilize, repurchases of common stock and other factors. Our working capital was $3.2 billion and $2.0 billion as of March 28, 2026 and September 27, 2025, respectively.

Current wording

Cash and cash equivalents were $1.8 billion as of June 27, 2026 and $926 million as of September 27, 2025. Restricted cash and cash equivalents as of June 27, 2026 were $42 million. Our cash levels vary during any given quarter depending on the timing of collections from customers and payments to suppliers, borrowings under our credit facilities, sales of accounts receivable under numerous programs we utilize, repurchases of common stock and other factors. Our working capital was $3.4 billion and $2.0 billion as of June 27, 2026 and September 27, 2025, respectively.

Previous wording

Net cash provided by operating activities was $577 million for the six months ended March 28, 2026. Our working capital metrics tend to fluctuate from quarter to quarter based on factors such as the linearity of our shipments to customers and purchases from suppliers, customer and supplier mix, the extent to which we factor customer receivables and the negotiation of payment terms with customers and suppliers. These fluctuations can significantly affect our cash flows from operating activities.

Current wording

Net cash provided by operating activities was $702 million for the nine months ended June 27, 2026. Our working capital metrics tend to fluctuate from quarter to quarter based on factors such as the linearity of our shipments to customers and purchases from suppliers, customer and supplier mix, the extent to which we factor customer receivables and the negotiation of payment terms with customers and suppliers. These fluctuations can significantly affect our cash flows from operating activities.

Previous wording

During the six months ended March 28, 2026, we generated $437 million of cash from earnings, excluding non-cash items, and $141 million of cash due primarily due to decreases in accounts receivables, inventories, and accrued liabilities and other. The decrease in accounts receivable, inventories, and accrued liabilities was due to timing of customer payments and settlements, and inventory sell-through.

Current wording

During the nine months ended June 27, 2026, we generated $658 million of cash from earnings, excluding non-cash items, and $44 million of cash primarily due to decrease in accounts receivable, deferred revenue and customer advances, and accrued liabilities and other, offset by increase in prepaid expenses and other assets. The decrease in accounts receivable, deferred revenue and customer advances, and accrued liabilities was due to timing of customer payments and settlements. The increase in prepaid expenses and other assets was due primarily to increase in income tax receivables and advance deposits made in the ordinary course of business, partially offset by amortization of the existing prepayments.

Previous wording

Net cash used in investing activities was $1.5 billion for the six months ended March 28, 2026. During the six months ended March 28, 2026, we used $1.4 billion for the ZT Acquisition, used $144 million of cash for capital expenditures and received $9 million from the sale of certain equity investments.

Current wording

Net cash used in investing activities was $1.3 billion for the nine months ended June 27, 2026. During the nine months ended June 27, 2026, we used $1.1 billion for the ZT Acquisition, used $244 million of cash for capital expenditures and received $9 million from the sale of certain equity investments.

Previous wording

Net cash provided by financing activities was $1.6 billion for the six months ended March 28, 2026. During the six months ended March 28, 2026, we borrowed $2.2 billion for the ZT Acquisition and incurred $29 million of debt issuance costs, used $239 million of cash to repurchase common stock, withheld $56 million payments to tax authorities for stock-based compensation activity and repaid $302 million of borrowings.

Current wording

Net cash provided by financing activities was $1.6 billion for the nine months ended June 27, 2026. During the nine months ended June 27, 2026, we borrowed $2.2 billion for the ZT Acquisition and incurred $29 million of debt issuance costs, used $239 million of cash to repurchase common stock, withheld $60 million payments to tax authorities for stock-based compensation activity and repaid $302 million of borrowings.

Previous wording

As of March 28, 2026, there were $2.2 billion loans outstanding under the New Credit Facility. Additionally, $9 million of letters of credit were outstanding. Under the New Credit Facility, we have $600 million available to borrow under Term Loan A and $1.5 billion available to borrow under the revolving credit facility.

Current wording

As of June 27, 2026, there were $2.2 billion loans outstanding under the New Credit Facility. Additionally, $12 million in letters of credit were outstanding. Under the New Credit Facility, we have $600 million available to borrow under Term Loan A and $1.5 billion available to borrow under the revolving credit facility.

Previous wording

The New Credit Facility requires us to comply with certain financial covenants, namely (i) a minimum consolidated cash interest coverage ratio of not less than 3.00 to 1.00 and (ii) a maximum consolidated total net leverage ratio of not greater than 4.00 to 1.00, in each case, measured at the end of each fiscal quarter on the basis of a trailing 12-month look-back period. In addition, the New Credit Facility requires us to comply with customary affirmative and negative covenants which limit our ability and our subsidiaries to, among other things, incur debt, grant liens, make investments, make certain restricted payments, prepay subordinated indebtedness and sell assets, subject to certain exceptions and baskets. The New Credit Facility also includes covenants that require us to file quarterly and annual financial statements with the SEC on a timely basis. As of March 28, 2026, we were in compliance with all these covenants. See Note 5, “Debt” of the notes to the Condensed Consolidated Financial Statements contained in this report for details.

Current wording

The New Credit Facility requires us to comply with certain financial covenants, namely (i) a minimum consolidated cash interest coverage ratio of not less than 3.00 to 1.00 and (ii) a maximum consolidated total net leverage ratio of not greater than 4.00 to 1.00, in each case, measured at the end of each fiscal quarter on the basis of a trailing 12-month look-back period. In addition, the New Credit Facility requires us to comply with customary affirmative and negative covenants which limit our ability and the ability of our subsidiaries to, among other things, incur debt, grant liens, make investments, make certain restricted payments, prepay subordinated indebtedness and sell assets, subject to certain exceptions and baskets. The New Credit Facility also includes covenants that require us to file quarterly and annual financial statements with the SEC on a timely basis. As of June 27, 2026, we were in compliance with all these covenants. See Note 5, “Debt” of the notes to the Condensed Consolidated Financial Statements contained in this report for details.

Previous wording

During the six months ended March 28, 2026, we repurchased 1.6 million shares of our common stock for $239 million under stock repurchase programs authorized by our Board of Directors. Subsequent to the end of the second quarter of 2026, our Board of Directors authorized the repurchase of up to $600 million of our common stock in the open market or in negotiated private transactions. These programs have no expiration dates and the timing of repurchases will depend upon capital needs to support the growth of our business, market conditions and other factors. Although stock repurchases are intended to increase stockholder value, they also reduce our liquidity. As of March 28, 2026, the amount available under these programs is immaterial.

Current wording

During the nine months ended June 27, 2026, we repurchased 1.6 million shares of our common stock for $239 million under stock repurchase programs authorized by our Board of Directors. During the three months ended June 27, 2026, our Board of Directors authorized the repurchase of up to $600 million of our common stock in the open market or in negotiated private transactions. These programs have no expiration dates and the timing of repurchases will depend upon capital needs to support the growth of our business, market conditions and other factors. Although stock repurchases are intended to increase stockholder value, they also reduce our liquidity. As of June 27, 2026, an aggregate of $600 million remained available under these programs.

Previous wording

We are party to a Receivables Purchase Agreement, as amended (the “RPA”), with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers. The amount available under the RPA is uncommitted and, as such, is available at the discretion of our third-party banking institutions. Under the New Credit Facility, the percentage of our total trade receivables that can be sold and outstanding at any time is 50%. Therefore, as of March 28, 2026, a maximum of $1.3 billion of sold receivables could be outstanding at any point in time under this program, as amended, as required by our Credit Agreement. Trade receivables sold pursuant to the RPA are serviced by us.

Current wording

We are party to a Receivables Purchase Agreement, as amended (the “RPA”), with certain third-party banking institutions for the sale of trade receivables generated from sales to certain customers. The amount available under the RPA is uncommitted and, as such, is available at the discretion of our third-party banking institutions. Under the New Credit Facility, the percentage of our total trade receivables that can be sold and outstanding at any time is 50%. Therefore, as of June 27, 2026, a maximum of $1.1 billion of sold receivables could be outstanding at any point in time under this program, as amended, as required by our Credit Agreement. Trade receivables sold pursuant to the RPA are serviced by us.

Previous wording

We enter into forward interest rate swap agreements with independent counterparties to partially hedge the variability in cash flows due to changes in the Secured Overnight Financing Rate benchmark interest rate associated with anticipated variable rate borrowings. In addition, we entered into a total return swap contract to manage the equity market risks associated with our deferred compensation plan liabilities. See Note 4, “Financial Instruments” of the notes to the Condensed Consolidated Financial Statements contained in this report for details.

Current wording

We enter into forward interest rate swap agreements with independent counterparties to partially hedge the variability in cash flows due to changes in the Secured Overnight Financing Rate benchmark interest rate associated with anticipated variable rate borrowings. In addition, we enter into a total return swap contract to manage the equity market risks associated with our deferred compensation plan liabilities. See Note 4, “Financial Instruments” of the notes to the Condensed Consolidated Financial Statements contained in this report for details.

Previous wording

In the ordinary course of business, we are or may become party to legal proceedings, claims and other contingencies, including environmental, regulatory, warranty and employee matters and examinations by government agencies. As of March 28, 2026, we had accrued liabilities of $38 million related to such matters. Additionally, we recognized a $170 million contingent cash consideration liability arising from the ZT Systems acquisition which is classified as other long-term liabilities in the condensed consolidated balance sheets. The estimated range of undiscounted payment in respect of the contingent consideration from no payout to $450 million. We cannot accurately predict the outcome of these matters or the amount or timing of cash flows that may be required to defend ourselves or to settle such matters or that these reserves will be sufficient to fully satisfy our contingent liabilities.

Current wording

In the ordinary course of business, we are or may become party to legal proceedings, claims and other contingencies, including environmental, regulatory, warranty and employee matters and examinations by government agencies. As of June 27, 2026, we had accrued liabilities of $48 million related to such matters. Additionally, we recognized a $183 million contingent cash consideration liability arising from the ZT Systems acquisition which is classified as other long-term liabilities in the condensed consolidated balance sheets. The estimated range of undiscounted payment in respect of the contingent consideration ranges from no payout to $450 million. We cannot accurately predict the outcome of these matters or the amount or timing of cash flows that may be required to defend ourselves or to settle such matters or that these reserves will be sufficient to fully satisfy our contingent liabilities.

Previous wording

As of March 28, 2026, we had a liability of $52 million for uncertain tax positions. Our estimate of liabilities for uncertain tax positions is based on a number of subjective assessments, including the likelihood of a tax obligation being assessed, the amount of taxes (including interest and penalties) that would ultimately be payable, and our ability to settle any such obligations on favorable terms. Therefore, the amount of future cash flows associated with uncertain tax positions may be significantly higher or lower than our recorded liability and we are unable to reliably estimate when cash settlement may occur.

Current wording

As of June 27, 2026, we had a liability of $45 million for uncertain tax positions. Our estimate of liabilities for uncertain tax positions is based on a number of subjective assessments, including the likelihood of a tax obligation being assessed, the amount of taxes (including interest and penalties) that would ultimately be payable, and our ability to settle any such obligations on favorable terms. Therefore, the amount of future cash flows associated with uncertain tax positions may be significantly higher or lower than our recorded liability and we are unable to reliably estimate when cash settlement may occur.

Previous wording

We generated $577 million of cash from operations for the six months ended March 28, 2026. Our primary sources of liquidity as of March 28, 2026 consisted of (1) cash and cash equivalents of $1.6 billion (an aggregate of $259 million of our cash is held by Sanmina SCI India Private Limited (“SIPL”) and Sanmina SCI Technology Private Limited, our existing Indian manufacturing entity, which is designated to fund its operations use); (2) our New Credit Facility, under which $1.5 billion, net of outstanding borrowings and letters of credit, and $600 million of the term loan A were available; (3) our foreign short-term borrowing facilities of $71 million, all of which was available; (4) proceeds from the sale of accounts receivable under our receivables sales programs and (5) cash generated from operations.

Current wording

We generated $702 million of cash from operations for the nine months ended June 27, 2026. Our primary sources of liquidity as of June 27, 2026 consisted of (1) cash and cash equivalents of $1.8 billion (an aggregate of $248 million of our cash is held by Sanmina SCI India Private Limited (“SIPL”) and Sanmina SCI Technology India Private Limited, our existing Indian manufacturing entities, which is designated to fund their operations); (2) our New Credit Facility, under which $1.5 billion, net of outstanding borrowings and letters of credit, and $600 million of the Term Loan A were available; (3) our foreign short-term borrowing facilities of $71 million, all of which was available; (4) proceeds from the sale of accounts receivable under our receivables sales programs and (5) cash generated from operations.

Previous wording

As of March 28, 2026, 58% of our cash balance was held in the United States. Should we choose or need to remit cash to the United States from our foreign locations, we may incur tax obligations which would reduce the amount of cash ultimately available to the United States. We believe that cash held in the United States, together with liquidity available under our Credit Agreement and cash from foreign subsidiaries that could be remitted to the United States without tax consequences, will be sufficient to meet our United States liquidity needs for at least the next twelve months.

Current wording

As of June 27, 2026, 67% of our cash balance was held in the United States. Should we choose or need to remit cash to the United States from our foreign locations, we may incur tax obligations which would reduce the amount of cash ultimately available to the United States. We believe that cash held in the United States, together with liquidity available under our Credit Agreement and cash from foreign subsidiaries that could be remitted to the United States without tax consequences, will be sufficient to meet our United States liquidity needs for at least the next twelve months.

Previous wording

As of March 28, 2026, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues, or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.

Current wording

As of June 27, 2026, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues, or expenses, results of operations, liquidity, capital expenditures, or capital resources that are material to investors.