Fabrinet (FN) Q3 2025 Earnings Transcript

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DATE

Wednesday, April 30, 2025 astatine 10 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Seamus Grady

• Chief Financial Officer — Csaba Sverha

• Vice President of Investor Relations — Garo Toomajanian

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Full Conference Call Transcript

Garo Toomajanian: Thank you, operator, and bully afternoon, everyone. Thank you for joining america connected today’s league telephone to sermon Fabrinet’s fiscal and operating results for the 3rd 4th of fiscal twelvemonth 2025, which ended March 28, 2025. With maine connected the telephone contiguous are Seamus Grady, Chief Executive Officer; and Csaba Sverha, Chief Financial Officer. This telephone is being webcast, and a replay volition beryllium disposable connected the Investors conception of our website located astatine investor.fabrinet.com. During this call, we volition contiguous some GAAP and non-GAAP fiscal measures.

Please notation to the Investors conception of our website for important information, including our net property merchandise and capitalist presentation, which see our GAAP to non-GAAP reconciliation arsenic good arsenic further details of our gross breakdown. In addition, today’s treatment volition incorporate forward-looking statements astir the aboriginal fiscal show of the company. Forward-looking statements are taxable to risks and uncertainties that could origin existent results to disagree materially from management’s existent expectations. These statements bespeak our opinions lone arsenic of the day of this presentation, and we undertake nary work to revise them successful airy of caller accusation oregon aboriginal events but arsenic required by law.

For a statement of the hazard factors that whitethorn impact our results, delight notation to our caller SEC filings, successful peculiar the conception captioned Risk Factors successful our Form 10-Q filed connected February 4, 2025. We volition statesman the telephone with remarks from Seamus and Csaba, followed by clip for questions. I would present similar to crook the telephone implicit to Fabrinet’s CEO, Seamus Grady. Seamus?

Seamus Grady: Thank you, Garo. Good afternoon, and acknowledgment to everyone joining america today. We had a precise beardown 3rd 4th with gross of $872 million, which was supra our guidance range. Our execution successful the 4th was besides beardown and we generated non-GAAP net per stock of $2.52, which was besides supra our guidance range. Looking much intimately astatine our beardown quarterly results, we saw continued maturation successful Optical Communications. Telecom gross was peculiarly exceptional and much than offset an anticipated diminution successful Datacom revenue.

Our Telecom growth, which was up 42% from a twelvemonth agone and 17% from Q2 was driven by a operation of contributions from caller strategy wins, continued 400ZR momentum for information halfway interconnect applications and the strengthening telecom market. We’re assured that our beardown telecom trends volition widen into the 4th quarter. With respect to Datacom, we proceed to spot near-term softness owed to a merchandise modulation astatine a ample customer. However, we stay optimistic astir a instrumentality to Datacom maturation arsenic request for 1.6T devices increases and with the steepest portion of the 1.6T ramp yet to come. In Non-Optical Communications revenue, automotive again saw beardown maturation with gross up 76% from a twelvemonth agone and 24% from Q2.