stockrowWhat it does
Sanmina manufactures electronic components and complete products for other companies, primarily original equipment manufacturers (OEMs). These customers sell products in industrial, medical, defense and aerospace, automotive, communications networks, and cloud infrastructure markets. Founded in 1980, Sanmina is headquartered in San Jose. Jure Sola is its chairman and chief executive officer.
The company can work on a product from its early design through production and after-sale support. Its engineers help develop and test designs; its factories make circuit boards, cables, metal parts and other components; and its assembly operations combine those parts into finished systems. Sanmina also manages materials, fulfills orders, arranges logistics and repairs products after they are sold.
For example, its work can include assembling and testing electronics for medical devices, communications equipment or data centers. It also sells products and services of its own, including memory and storage platforms, optical and radio-frequency technology, defense products and manufacturing software.
Sanmina locates facilities near customers and their markets or in lower-cost manufacturing locations. Its customers can use individual services or combine design, component manufacturing, assembly and support within a single manufacturing program.
How it makes money
Sanmina earns revenue by selling manufacturing services, components, products and related services to equipment makers. In fiscal 2025, Integrated Manufacturing Solutions represented approximately 80% of total revenue; in the third quarter of fiscal 2026, company revenue was $3.46 billion.
Integrated Manufacturing Solutions, or IMS, assembles and tests printed circuit boards and complete products. It also fulfills orders: Sanmina can build a system to an equipment maker’s specifications or configure it for an end customer, then deliver it to the customer, a distributor or the end user. IMS is the company’s reportable segment.
Components, Products and Services, or CPS, makes items such as circuit boards, cables, metal parts and molded plastics. Its businesses also offer memory and storage products, optical and microelectronic services, defense products, engineering, repair and manufacturing software. CPS represented approximately 20% of fiscal 2025 revenue.
Sanmina has historically had substantial recurring sales to existing customers. Major customer supply agreements typically run for three to five years, but generally do not require minimum purchases. Some agreements include cost-reduction objectives that can reduce revenue and profitability. Customers are typically liable for unused materials ordered against an agreed procurement plan, although the arrangements can vary.
Sanmina says providing several services on a program, such as making components as well as assembling a product, can improve margins. Product mix also matters: high-volume, less-complex manufacturing services typically have lower gross margins than more-complex, lower-volume services.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Reportable Segment - IMS | $6.6 billion | 40.0% | 7.98% |
| IMS Third Party Revenue | $6.5 billion | 39.8% | 7.94% |
| Other Segments - CPS | $1.7 billion | 10.4% | 6.20% |
| CPS Third Party Revenue | $1.6 billion | 9.86% | 5.28% |
Customers and how it sells
Sanmina sells primarily to OEMs serving industrial, medical, defense and aerospace, automotive, communications networks and cloud infrastructure markets. Its sales teams work with customers’ engineering and technical staff, and account teams coordinate services across Sanmina’s locations. Finished products can be delivered to an OEM, a distribution channel or an end customer.
One customer accounted for 10.1% of net sales in fiscal 2025. Sanmina’s major customer agreements generally permit orders to be canceled or rescheduled, subject to applicable charges. The company also works with customers on joint design: customers provide market knowledge and product requirements, while Sanmina supplies engineering and production-introduction services.
In fiscal 2025, Americas revenue was $4.7 billion and Asia Pacific revenue was $2.6 billion. Sanmina generated about 80% of net sales from products manufactured in its foreign operations that year. It had approximately 39,000 employees in 20 countries as of September 27, 2025, including temporary employees.
Sanmina also operates an Indian joint venture with Reliance. The company says it has expanded its footprint there and is focused on filling the additional space.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Americas | $4.7 billion | 57.2% | 17.4% |
| Asia Pacific | $2.6 billion | 32.1% | 2.07% |
| EMEA | $866.4 million | 10.7% | −17.3% |
Suppliers and costs
Sanmina purchases electronic components and other materials from a wide range of suppliers. Its supply-chain work includes planning, purchasing, transportation and warehousing. A common enterprise system gives manufacturing locations access to inventory planning and purchasing information, while the company seeks to consolidate spending across its operations.
Manufacturing costs include materials, labor and subcontractor costs, as well as the cost of facilities, equipment and processes. Sanmina locates some operations in lower-cost regions and invests in factory automation, process improvements and robotics. New customer products can require start-up spending on tooling and processes.
Component prices, shortages and longer lead times can affect results. Sanmina says shortages were constraining growth in fiscal 2026. Customer forecasts also influence how much material the company orders; inventory increases have reduced operating cash flow in the past.
Customers are generally liable for tariffs Sanmina pays on components and finished products, but the company’s gross margins could suffer if it cannot recover the full cost. The timing of reimbursement can also affect operating cash flow.
- Revenue$8.1B
- Cost of revenue−$7.4B
- Research and development−$31.1M
- Selling, general and administrative−$290.2M
- Other operating costs−$40.5M
- Operating income$354.6M
Competitive position
Sanmina competes with domestic and foreign electronics manufacturing service providers, diversified manufacturing service providers and design providers. The companies it faces vary by solution and geography. Customers can also choose to manufacture products themselves rather than outsource them. The company’s competitive disclosures do not name specific competitors.
Sanmina identifies manufacturing technology, quality, geographic footprint, delivery, responsiveness, value-added services and price as important competitive factors. It works in markets where products can require specialized manufacturing processes, regulatory compliance and certifications. Its services range from design and prototyping to component production, assembly, logistics and repair.
Our reading: The breadth of those services can help Sanmina retain customers across a product’s life cycle, but customers’ ability to cancel orders and the absence of minimum purchase commitments limit the protection provided by supply agreements.
Our reading: Design expertise, manufacturing capabilities and regulatory certifications can make Sanmina useful on complex programs, but competition remains substantial and varies by market.
Our reading: A global footprint and coordinated purchasing provide another source of differentiation for customers seeking regional production and supply-chain services; they also require Sanmina to manage operations and suppliers across multiple jurisdictions.
Growth opportunities
Sanmina seeks to grow by selling more services to existing customers, attracting new programs and expanding in markets that use complex products. It also pursues transactions that can add customers, technologies, services and geographic markets. Its strategy includes investing in manufacturing technology and offering joint design and new-product introduction services.
In October 2025, Sanmina acquired the data-center infrastructure manufacturing business of ZT Systems, excluding certain research and development functions. The acquisition was intended to expand its presence in cloud and artificial intelligence infrastructure. Sanmina has since secured additional orders for next-generation accelerated compute and says it is working with customers to finalize production schedules and operating models.
The company says it is investing in power, liquid cooling, test capacity and automation for that work. It is also expanding metal fabrication capacity for AI system racks and capabilities for circuit boards used in AI, aerospace and defense products. Sanmina says it has won additional core-business programs involving new customers and platforms since the ZT Systems acquisition.
For fiscal 2026, Sanmina expects revenue of $14.0 to $14.3 billion. It also says it is confident in achieving $16 billion plus in fiscal 2027. Those expectations depend on customer forecasts and the progress and timing of manufacturing programs.
- $6.7BFY2021
- $7.9BFY2022
- $8.9BFY2023
- $7.6BFY2024
- $8.1BFY2025
- $14.0BFY2026 guidance
Structural risks
- Customer orders: Major supply agreements generally do not require minimum purchases. Customers can cancel or reschedule orders, and Sanmina generally does not obtain firm, long-term purchase commitments. Changes in customer forecasts can also leave it holding materials or inventory.
- End-market demand and competition: Weakness in customers’ markets, failure of their products to gain acceptance, or pricing pressure can reduce orders or profitability. Sanmina also faces competition from other manufacturers and from customers that choose to produce in-house.
- Supply and costs: Component shortages, extended lead times, changes in component prices and rising labor costs can affect operations. Tariffs and changes in trade policy can raise costs; Sanmina may not always recover the full amount from customers promptly.
- Program execution: New products can require spending on tooling and processes before production ramps. Sanmina must replace declining sales from programs reaching the end of their lives or from customers ending relationships.
- International and regulatory exposure: Foreign operations expose Sanmina to trade restrictions, political conditions and currency fluctuations. Its activities are also subject to environmental, export, government-contracting and medical-product regulations.
Leadership
Co-founder Jure Sola serves as both chairman and chief executive officer.
| Name | Role | Since | Total pay |
|---|---|---|---|
| Jure Sola | Chairman and Chief Executive Officer | 2020 | — |
| Jonathan Faust | Executive Vice President, Chief Financial Officer | 2023 | — |
| Alan Reid | Executive Vice President, Global Human Resources | 2012 | — |
| Charles C. Mason | Executive Vice President, Worldwide Sales | 2023 | — |
Bottom line
Our reading
Our reading: Sanmina combines contract manufacturing with component production, engineering and after-sale services, giving it several ways to participate in customers’ product programs. Its expansion into data-center infrastructure adds a growth opportunity, but results remain exposed to customer order timing, component availability, investment needs and the successful ramp of new programs.