Fabrinet (FN) Reports Fourth Quarter And Fiscal Year 2025 Financial Earnings Results

Fabrinet (FN) today announced its financial results for the most recent quarter, revealing a mixed performance. The company reported earnings per share of $2.42, falling short of analysts’ expectations of $2.64, marking a miss of 21.8 cents. However, Fabrinet exceeded revenue estimates, posting $909.7 million, which is an increase of $26.6 million compared to the anticipated $883.1 million.

Key Highlights:

• Record fourth quarter revenue of $910 million, exceeding guidance.
• Fiscal Year 2025 revenue increased by 19% year-over-year to $3.4 billion.
• GAAP net income for Q4 FY2025 was $87.2 million, up from $81.1 million in Q4 FY2024.
• Non-GAAP net income for Q4 FY2025 was $95.6 million, compared to $88.0 million in Q4 FY2024.
• Guidance for Q1 FY2026 expects revenue between $910 million to $950 million and GAAP net income per diluted share between $2.48 to $2.63.

Fabrinet reported exceptional financial results for the fourth quarter and fiscal year 2025, with record revenues and net income. CEO Seamus Grady highlighted the strong momentum, stating, “Our fourth quarter was exceptional, capping off a remarkable year with strong momentum.” The company achieved a quarterly revenue of $910 million, surpassing its guidance, and a fiscal year revenue of $3.4 billion, marking a 19% increase from the previous year. The non-GAAP earnings per share also reached an all-time high, reflecting the company’s effective execution and growing demand across its business segments.

Looking ahead, Fabrinet provided optimistic guidance for the first quarter of fiscal year 2026, projecting revenues between $910 million and $950 million. The expected GAAP net income per diluted share is forecasted to be between $2.48 and $2.63. Grady expressed confidence in the continuation of favorable trends, indicating that the company remains well-positioned to capitalize on the growing demand in its markets.

Fabrinet (FN) has shown a remarkable price trajectory over the past year, with a notable 41.56% increase, reflecting strong investor confidence in the company’s growth potential. Over the last three months alone, the stock surged by 42.50%, indicating a robust upward momentum that has caught the attention of market analysts. Despite a slight dip of 1.59% in the past week, the overall trend remains positive, bolstered by impressive fundamental metrics. The company boasts a price-to-earnings ratio of 36.27, which, while on the higher side, is supported by a solid earnings growth rate of 16.82% over the past two years. Additionally, Fabrinet’s revenue has grown at a commendable 12.52% CAGR, and its free cash flow has skyrocketed by an impressive 65.27% during the same period. With a return on invested capital of 20.77% and a net profit margin of 10.03%, Fabrinet demonstrates strong operational efficiency and profitability. As the company continues to capitalize on its growth strategies, investors will be keenly watching how these metrics evolve in the coming quarters.

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company’s products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products. It serves original equipment manufacturers of optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company was incorporated in 1999 and is based in George Town, the Cayman Islands.