Sanmina Corporation

What they do

Sanmina provides integrated manufacturing solutions, components, products and repair, logistics and after-market services, primarily to OEMs. The company operates as two businesses: Integrated Manufacturing Solutions (IMS), which includes PCB assembly and test, high-level assembly and test, and direct order fulfillment, and Components, Products and Services (CPS), which includes advanced PCBs, backplanes, cable assemblies, precision machined parts, memory solutions, storage platforms, defense and aerospace products, and manufacturing software. With 39,000 employees across 20 countries, Sanmina manages customer products throughout their life cycles, from design and engineering to after-market service and support.

Revenue drivers

• Integrated Manufacturing Solutions (IMS) — PCB assembly and test, high-level assembly and test, and direct order fulfillment; generated approximately 80% of total revenue in 2025.
• Components, Products and Services (CPS) — Advanced PCBs, backplanes, cable assemblies, fabricated metal parts, precision machined parts, memory solutions, storage platforms, defense and aerospace products, and manufacturing software; generated approximately 20% of total revenue in 2025.
• Communications Networks and Cloud Infrastructure — Serves cloud service providers and data center operators; a substantial portion of revenue comes from communications equipment customers, a highly competitive market particularly on price.
• Industrial, Medical, Defense and Aerospace, Automotive — Targets complex mission-critical products subject to strict regulatory requirements and rapid technological change; includes power generation, medical devices, aerospace and automotive electronics.

Recent performance

For the third quarter of fiscal 2026 ended June 27, 2026, Sanmina reported revenue of $3.46 billion, up from $2.04 billion in the year-ago quarter. GAAP operating margin was 6.4% and GAAP diluted EPS was $2.12, compared to GAAP diluted EPS of $1.26 in the prior-year period. Non-GAAP operating margin was 8.0% and non-GAAP diluted EPS was $3.31. Cash flow from operations was $124 million and free cash flow was $24 million, with ending cash and cash equivalents of $1.84 billion.

Strategy

Sanmina's strategy is to leverage its comprehensive product and service offerings, advanced technologies and global capabilities to support OEMs in complex, mission-critical markets. The company is integrating the acquisition of ZT Group Int'l, Inc. (ZT Systems), completed in early 2026, and is pursuing synergies through vertical integration. Management is expanding capabilities and increasing capacity to support growth, with investments aimed at cloud and AI infrastructure demand. The company also formed a joint venture in India and continues to focus on diversifying across market segments and customers.

Risks

• End Market Concentration — Adverse changes in industrial, medical, defense and aerospace, automotive, communications networks or cloud infrastructure could reduce demand and harm sales.
• Customer Concentration — A substantial portion of revenue comes from communications equipment customers, including cloud service providers and data center operators, and orders can decline if these customers fail to compete effectively.
• Integration of ZT Systems — The integration of and expected benefits from the ZT Systems acquisition may not be realized or may take longer than anticipated.
• Supply Chain and Inflation — Supply chain disruptions, inflationary pressures, higher interest rates and potential recessions can affect customers' end markets and demand for Sanmina's products and services.

Outlook

For the fourth quarter of fiscal 2026 ending October 3, 2026, Sanmina expects revenue of $3.3 billion to $3.6 billion, non-GAAP operating margin of 7.5% to 8.0%, and non-GAAP diluted EPS of $3.05 to $3.35. For the full fiscal year 2026, the company updated its outlook to revenue of $14.0 billion to $14.3 billion and non-GAAP diluted EPS of $11.90 to $12.20, up from prior guidance. Management sees strong demand for fiscal 2027, with growth ramping throughout the year and into fiscal 2028, supported by momentum in core Sanmina and ZT Systems.