Q4 2025 Fabrinet Earnings Call Transcript
Key Points
- Fabrinet (FN) reported a record fourth-quarter revenue of $910 million, exceeding guidance and marking a 21% increase year-over-year.
- The company achieved record non-GAAP earnings of $2.65 per share for the quarter, with full-year non-GAAP EPS reaching an all-time high of $10.17.
- Fabrinet (FN) established a significant partnership with Amazon Web Services, expected to be a meaningful revenue driver in fiscal year 2026.
- Construction began on Building 10, which will add 2 million square feet of capacity, indicating plans for future growth.
- The company returned $126 million to shareholders through its buyback program, with continued repurchases expected in fiscal 2026.
- Datacom revenue was down 12% year-over-year, although it showed a sequential growth of 10%, indicating some recovery.
- The surge in demand for 1.6T products has created temporary component supply challenges, impacting near-term revenue.
- Fabrinet (FN) anticipates a sequential dip in Datacom revenue in Q1 due to supply constraints for critical components.
- Operating cash flow in the fourth quarter was $55 million, with capital expenditures rising to $50 million, resulting in a modest free cash flow of $5 million.
- The company faces temporary inefficiencies from new product ramps, which are expected to impact Q1 margins.
Good afternoon. Welcome to Fabrinet's financial results conference call for the fourth quarter of fiscal year 2025.
(Operator Instructions) As a reminder, today's call is being recorded.
I would now like to turn the call over to your host, Garo Toomajanian, VP of Investor Relations.
Thank you, operator. Good afternoon, everyone. Thank you for joining us on today's conference call to discuss Fabrinet's financial and operating results for the fourth quarter of fiscal year 2025, which ended June 27, 2025.
With me on the call today are Seamus Grady, Chief Executive Officer; and Csaba Sverha, Chief Financial Officer.
This call is being webcast. A replay will be available on the Investors section of our website, located at investor.fabrinet.com.
During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the Investors section of our website for important information, including our earnings press release and investor presentation, which
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