Sanmina Corporation (SANM) Stock Analysis

Sanmina's Integrated Manufacturing Solutions segment, covering printed circuit board assembly, high-level assembly and test, and direct order fulfillment, generated approximately 80% of total 2025 revenue, with the remaining approximately 20% from the Components, Products and Services segment. The company employs 39,000 people (including 4,000 temporary) across 20 countries on four continents, serving OEMs in industrial, medical, defense and aerospace, automotive, and communications networks and cloud infrastructure markets.

Sanmina generates revenue primarily from manufacturing services provided to OEMs on a customer-order basis, with no firm long-term purchase commitments from customers. The IMS segment serves as the higher-volume base, while CPS — spanning advanced PCBs, backplanes, cable assemblies, fabricated metal parts, precision machined parts, memory modules, optical and RF microelectronic solutions, and defense products through the SCI Technology subsidiary — carries higher margins. Defense capabilities through SCI are subject to ITAR, Export Administration Regulations, and U.S. government cost accounting standards. The company serves cloud service providers and data center operators in a market noted in the 10-K as "highly competitive, particularly in the area of price." Sales to the ten largest customers have historically represented approximately half of net sales. Sanmina operates facilities in lower-cost locations including China, India, Malaysia, Mexico, and Thailand to serve customer cost objectives, though U.S. trade policy has imposed broad tariff increases on components imported from those countries.