Fabrinet achieved record fourth-quarter revenue of $1.316 billion, representing 45% year-over-year growth across its business segments. The company implemented a new revenue reporting structure organized around three end-market categories: Data Centers, Communications Infrastructure, and Automotive/Industrial, to better align reporting with how its optical and electronic products are deployed.
Data center revenue grew 68% year-over-year to $669 million and now accounts for 51% of total company revenue. Within this segment, Data Center Interconnect (DCI) products reached an annualized revenue run rate exceeding $1 billion, reflecting what management characterized as strong demand for interconnectivity solutions. The company attributed sustained growth to increasing manufacturing complexity and revenue density in advanced products requiring precision optical assembly and fusion splicing capabilities.
Fabrinet maintained strong operating leverage with operating expenses representing just 1.3% of revenue despite investments in capacity expansion. Management provided first-quarter revenue guidance between $1.375 billion and $1.425 billion, assuming continued momentum across transceivers, DCI, and high-performance computing programs. The company is executing a substantial capacity expansion plan targeting an increase in total revenue run rate potential from the current $5.3 billion to between $12.5 billion and $14 billion in coming years, with Building 10 in Chonburi expected to be completed by early 2027 and new transceiver programs anticipated to begin ramping this quarter.
The company recorded a $57.4 million provision related to Thailand’s new top-up tax regime under the OECD Global Minimum Tax Framework and recognized a $56.7 million non-cash accounting gain from remeasurement of its Raytec investment. Fabrinet acquired a 200,000 square foot facility in Navanakorn and a 130,000 square foot campus in Santa Clara to support long-term growth and new product introduction services. Management noted that while supply constraints for certain components persist, these factors have been incorporated into current guidance.
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