Seagate Technology Holdings plc Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarterly Performance (Fiscal Q4 2025 – June Quarter)

  • Revenue: $2.44B, up 13% sequentially and 30% year-over-year.
  • Non-GAAP gross margin: 37.9%, up 170 bps sequentially, a record high.
  • Non-GAAP operating margin: 26.2%, up 270 bps sequentially.
  • Non-GAAP EPS: $2.59, near the high end of guidance.
  • Hard drive revenue: $2.3B, up 14% sequentially.
  • Exabyte shipments: 163 EB vs. 144 EB in March quarter.
  • Nearline shipments: 137 EB, up 14% sequentially and 52% year-over-year.
  • Mass capacity revenue: Over $2B, up 15% sequentially and 40% year-over-year.
  • Free cash flow: $425M, nearly doubling from $216M in prior quarter.
  • Cash position: $2.2B liquidity, including $1.3B undrawn credit.
  • Debt reduced by ~$150M; gross debt now ~$5B; net leverage 1.8x.

Full Fiscal Year 2025 Performance

  • Revenue: $9.1B, up nearly 40% year-over-year.
  • Non-GAAP operating profit: $2.1B, more than tripling year-over-year.
  • Non-GAAP EPS: $8.10.
  • Free cash flow returned to shareholders: ~75% of FY25 FCF.
  • CapEx: $265M, ~3% of revenue.

Strategic & Market Highlights

  • HAMR (Mozaic) drives ramping quickly; three major CSPs already qualified.
  • 24TB–28TB PMR drives set a record for quarterly nearline shipments.

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Operator: Welcome to the Seagate Technology Fiscal Fourth Quarter and Fiscal Year 2025 Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Shanye Hudson, Senior Vice President, Investor Relations. Please go ahead, ma'am. Shanye Hudson: Thank you. Hello, everyone, and welcome to today's call. Joining me are Dave Mosley, Seagate's Chief Executive Officer; and Gianluca Romano, our Chief Financial Officer. We've posted our earnings press release and detailed supplemental information for our June quarter and fiscal year-end results on the Investors section of our website. During today's call, we'll refer to GAAP and non-GAAP measures. Non-GAAP figures are reconciled to GAAP figures in the earnings press release posted on our website and included in our Form 8-K. We've not reconciled certain non-GAAP outlook measures because material items that may impact these measures are out of our control and/or cannot be reasonably predicted. Therefore, a reconciliation to the corresponding GAAP measures is not available without unreasonable effort. Before we begin, I'd like to remind you that today's call contains forward-looking statements that reflect management's current views and assumptions based on information available to us as of today and should not be relied upon as of any subsequent date. Actual results may differ materially from those contained in or implied by these forward-looking statements as t

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