Sanmina Corporation (SANM): Business Model Canvas [Dec-2025 Updated]

Honestly, mapping out the current business model for Sanmina Corporation is crucial right now, especially with the recent integration of ZT Systems changing the game for their Cloud and AI infrastructure play. As someone who has spent two decades looking under the hood of complex manufacturers, I can tell you their strategy hinges on being the single partner for high-tech, long-lifecycle products, moving beyond simple assembly. With Fiscal Year 2025 revenue hitting $8.1 billion and a cash position of $926 million as of late September 2025, their global footprint and focus on supply chain resilience are the real assets. You need to see exactly how their Key Activities and Customer Segments align with this new, more specialized focus-so dive into the full Canvas breakdown below to see the nuts and bolts of their 2025 operating structure.

Sanmina Corporation (SANM) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power Sanmina Corporation's operations as of late 2025. These aren't just names on a slide; they represent tangible financial commitments and strategic alignments critical to hitting the reported fiscal year 2025 numbers.

Strategic suppliers for raw materials and components

Sanmina Corporation's vertically integrated model allows it to supply critical components, which is key to managing supply chain volatility. The company's gross margin for fiscal year 2025 was reported at 8.8%, up from 8.5% in 2024. The Components, Products and Services (CPS) segment, which includes advanced PCBs, cable assemblies, and fabricated metal parts, generated approximately 20% of total revenue in 2025.

The company generated $621 million in cash flow from operations for the full fiscal year 2025.

Joint venture with Reliance Industries for Indian market expansion

The joint venture with Reliance Strategic Business Ventures Limited (RSBVL), a subsidiary of Reliance Industries Limited (RIL), completed its transaction in October 2025. This entity is capitalized with over $200 million of cash to fund growth.

The ownership structure is set with RSBVL holding a 50.1% equity stake and Sanmina Corporation holding the remaining 49.9%. The JV prioritizes high technology infrastructure hardware across several sectors:

• Communications networking (including 5G and hyperscale datacenters)
• Medical and healthcare systems
• Industrial and cleantech
• Defense and aerospace

Technology partners like AMD and NVIDIA for Viking Edge AI solutions

Viking Enterprise Solutions, a division of Sanmina Corporation, announced its Viking Edge AI appliance on June 17, 2025. This solution integrates specific partner technologies to deliver real-time AI inferencing.

The appliance combines:

• AMD CPUs
• NVIDIA accelerated computing
• NVIDIA DPUs (Data Processing Units)

This product line benefits from the broader AI hardware market, which data suggests is growing at a compound annual rate of over 30% through 2025.

Long-term integrated relationships with key technology partners

Sanmina Corporation became a preferred New Product Introduction (NPI) manufacturing partner for AMD's cloud rack and cluster-scale AI solutions following an agreement announced in May 2025. Sanmina agreed to purchase the ZT Systems' U.S.-headquartered data center infrastructure manufacturing business from AMD for $3 billion in cash and stock. This deal includes a contingent payment of up to $450 million.

Sanmina Corporation's total revenue for fiscal year 2025 was $8.1 billion. The company stated a longer-term goal for operating margin between 6% and 7%.

The nature of these long-term relationships is reflected in the following operational metrics for fiscal year 2025:

Logistics and third-party repair/aftermarket service providers

Sanmina Corporation's end-to-end approach includes aftermarket support, which falls under the Components, Products and Services (CPS) segment. This segment, which covers services like logistics and repair, contributed approximately 20% of the total revenue in 2025. Selling, general and administrative expenses for 2025 were $290 million.

The company's working capital was approximately $2.0 billion as of September 27, 2025.

Sanmina Corporation (SANM) - Canvas Business Model: Key Activities

You're looking at the core engine of Sanmina Corporation as of late 2025, right after they closed a transformative deal. The Key Activities section of the Business Model Canvas shows you exactly what the company spends its time and capital doing to deliver value.

End-to-end electronics manufacturing and assembly (EMS) remains the bedrock of Sanmina Corporation's operations. This is primarily captured in the Integrated Manufacturing Solutions (IMS) segment. For the fiscal year ended September 27, 2025, this segment was responsible for approximately 80% of the company's total revenue. Total annual revenue for fiscal year 2025 reached $8.1 billion.

The activity of Design, engineering, and product lifecycle management services is bundled into the Components, Products and Services (CPS) segment. This segment contributed about 20% of the total $8.1 billion revenue in fiscal year 2025. To support this, Research and development expenses for design and engineering support in 2025 totaled $31 million, which represented 0.4% of net sales for that year.

A massive recent activity is Integrating the ZT Systems acquisition into Cloud and AI infrastructure. This strategic move, which involved acquiring ZT Systems' manufacturing business from AMD, has a total potential deal value of up to $3 billion, including $2.25 billion in cash. Sanmina Corporation anticipates this integration will add an estimated $5-$6 billion in annual revenue run-rate, effectively doubling its revenue scale within three years. The company recorded $34 million in acquisition and integration charges related to ZT Systems in fiscal year 2025.

Global supply chain management and risk mitigation is a constant, critical activity that supports all end-markets, including the strong Communications Networks and Cloud and AI Infrastructure segments. The operational efficiency from this management is reflected in the cash generation figures for the period.

The commitment to Investing in factory automation, robotics, and AI for efficiency is ongoing. While specific 2025 capital expenditure figures dedicated solely to these areas aren't broken out separately in the latest reports, the company's prior year investment shows the trend: in fiscal 2024, Sanmina reinvested $109 million into equipment upgrades, facility expansions, and technology advancements. The company explicitly states its intent to continue investing in these areas to further enhance efficiency output.

Here's a quick look at the financial scale of the core manufacturing and services split for fiscal year 2025:

The operational results from these activities in fiscal year 2025 underscore the scale of execution:

• Fiscal Year 2025 Total Revenue: $8.1 billion.
• Fiscal Year 2025 Non-GAAP Operating Margin: 5.7%.
• Fiscal Year 2025 Cash Flow from Operations: $621 million.
• Fiscal Year 2025 Free Cash Flow: $478 million.
• Ending Cash and Cash Equivalents (September 27, 2025): $926 million.
• Q4 2025 Non-GAAP Diluted EPS: $1.67.

The outlook for the next quarter, Q1 fiscal 2026 ending December 27, 2025, projects revenue between $2.9 billion to $3.2 billion, showing the immediate impact expected from the ZT Systems integration ramping up.

Sanmina Corporation (SANM) - Canvas Business Model: Key Resources

You're looking at the core assets Sanmina Corporation is relying on to execute its strategy as of late 2025. These aren't just line items; they are the engines driving their end-to-end manufacturing solutions.

First, let's talk about the physical foundation. Sanmina Corporation maintains a global manufacturing footprint with facilities strategically placed across key regions to meet customer production requirements worldwide. This physical reach is a massive asset for managing complex supply chains and geopolitical risk.

Here's a snapshot of where that footprint is concentrated, focusing on their Design & Engineering Centers of Excellence:

The people and the know-how are just as critical. Sanmina Corporation backs this physical presence with significant advanced technical capabilities and engineering expertise. They have dedicated design and engineering centers that house substantial intellectual capital.

Here's the quick math on their engineering talent pool:

• Design engineers: more than 600 dedicated staff.
• Manufacturing engineering & test engineering resources: an additional 2,500 personnel.

This deep bench supports their work across high-growth segments like Cloud and AI Infrastructure, Medical, and Defense and Aerospace.

Next, we look at specialized Intellectual Property (IP). The Viking Enterprise Solutions division is a key resource here. Viking Enterprise Solutions is a market leader in high-performance storage platforms for data centers globally. Their IP is centered on advanced data center products, including solid-state memory and disk-based storage server appliances, and JBOD storage systems. They recently announced the Viking Edge AI, an Edge AI Computational Storage Appliance, which combines AMD CPUs, NVIDIA accelerated computing, and NVIDIA DPUs.

The 42Q division provides another layer of proprietary resource: their 42Q cloud-based smart manufacturing execution software (MES). This is a full-featured, multi-tenant, cloud-based system developed by manufacturers for manufacturers. It's designed to accelerate digital factory transformation, offering advantages in efficiency and cost over older, on-premise systems.

• Deployment time: Can be configured and integrated in just a few weeks, with some deployments ranging from 4 to 12 weeks.
• Functionality: Provides full product traceability, route enforcement, cycle time monitoring, asset performance tracking, and electronic work instructions.
• Architecture: Accessible, reliable, scalable, and secure, and certified for deployment on SAP S/4HANA Cloud Private Edition, release 2023.

Finally, you can't ignore the balance sheet strength. As of the fiscal year end on September 27, 2025, Sanmina Corporation held $926 million in cash and cash equivalents. That's a strong liquidity position to fund operations and strategic moves. For context, their working capital was approximately $2.0 billion on that same date.

It's a solid mix of physical assets, specialized technology, and financial backing. Finance: draft 13-week cash view by Friday.

Sanmina Corporation (SANM) - Canvas Business Model: Value Propositions

You're looking at how Sanmina Corporation positions itself to win business in the complex electronics manufacturing services (EMS) space as of late 2025. The core value is simplifying complexity for Original Equipment Manufacturers (OEMs) by owning the entire process.

End-to-end manufacturing: single partner for full product lifecycle

Sanmina Corporation offers a complete suite of services, meaning a customer can start with design and go all the way through to aftermarket support, all under one roof. This single-partner approach is central to their offering, especially within the Integrated Manufacturing Solutions (IMS) segment, which accounted for approximately 80% of total revenue in fiscal year 2025. The Components, Products and Services (CPS) segment made up the remaining 20%. This structure is designed to reduce customer friction and speed up time-to-market.

The end-to-end solution set includes:

• Product design and engineering, including concept development.
• Manufacturing of components, subassemblies, and complete systems.
• High-level assembly and test procedures.
• Direct order fulfillment and logistics services.
• After-market product service and support.
• Global supply chain management expertise.

Here's a look at the margin profile across the two main reported businesses for fiscal year 2025:

The higher margin in CPS shows the value placed on the advanced components they produce. That's a key differentiator.

Supply chain resilience via diversified, global/regional footprint

You see the value here in mitigating the geopolitical and tariff risks that have plagued the industry. Sanmina Corporation's manufacturing footprint is spread across 20 countries on four continents, which helps align production closer to customer needs globally. This physical diversification is backed by a strong balance sheet; as of September 27, 2025, the company reported a debt to capital ratio of only 10.6%, which is significantly lower than the industry average of 38%. That low leverage provides substantial financial resilience to navigate supply chain disruptions.

Specialized high-performance platforms for Cloud and AI markets

Sanmina Corporation is clearly doubling down on the highest-growth, highest-complexity areas. The strategic acquisition of ZT Systems for $1.6 billion was explicitly to expand capabilities in this area. Strength in this market is already showing up in the numbers; Cloud and AI Infrastructure revenue in the fourth quarter of fiscal 2025 reached $849 million, up from $765 million in the fourth quarter of fiscal 2024. Overall, the Communications Networks and Cloud and AI Infrastructure end-markets were noted as primary growth drivers for the full fiscal year 2025, which saw total revenue of $8.1 billion.

Focus on complex, high-technology products with longer lifecycles

The company targets markets where products are inherently complex and subject to rapid technological change or strict regulatory requirements. This focus naturally leads to products with longer expected lifecycles compared to consumer electronics. The structure itself supports this: the IMS segment, handling high-level assembly and test, drives the majority of the revenue base. The overall non-GAAP operating margin for the full fiscal year 2025 was 5.7%, an expansion of 30 basis points year-over-year, signaling that the mix is shifting toward higher-value work.

Tailored solutions and aftermarket support for mission-critical markets

A significant portion of Sanmina Corporation's business is concentrated in sectors where failure is not an option, such as Medical, Defense, and Aerospace. These mission-critical markets demand the highest levels of quality assurance and long-term support. The value proposition here is the integration of repair and refurbishment services alongside manufacturing. For the full fiscal year 2025, the Industrial, Energy, Medical, Defense, Aerospace, and Automotive sectors combined accounted for 59% of total revenue. The company generated $478 million in free cash flow for fiscal year 2025, which supports sustained investment in these high-reliability areas.

Finance: draft the Q1 FY2026 cash flow projection incorporating the ZT Systems run-rate by Monday.

Sanmina Corporation (SANM) - Canvas Business Model: Customer Relationships

You're building a business that relies on deep, long-lasting relationships with Original Equipment Manufacturers (OEMs), so Sanmina Corporation's approach here is key to understanding their stability. They explicitly state a core component of their strategy is to secure and retain long-term customer partnerships with leading companies in growth industries. This isn't just talk; the average relationship Sanmina Corporation has with its customers is well over 20, 25 years. They view themselves as an extension of their customers, focusing on protecting those relationships through transparency and execution.

For collaborative design and engineering support, which is essentially co-creation, Sanmina Corporation backs this up with investment. Research and development expenses for fiscal year 2025 were $31 million, which was higher than the prior year, primarily due to increased spending on design and engineering support for existing projects. This shows they are actively investing engineering resources directly into the customer's product lifecycle, not just manufacturing.

The high-touch, tailored service model addresses the complexity of their OEM clients, who operate across diverse, complex end markets. Sanmina Corporation serves medical, defense, aerospace, communication, cloud infrastructure, automotive, industrial, and energy sectors. The Integrated Manufacturing Solutions (IMS) segment, which handles much of this complex manufacturing, represented approximately 80% of total revenue in 2025. The Components, Products and Services (CPS) segment, which includes specialized offerings, saw its gross margin increase to 13.9% in 2025, suggesting value capture on more complex or specialized work.

Here's a quick look at the scale of the customer base and the overall financial picture for fiscal year 2025:

The aftermarket services component is integrated into their end-to-end offering, which includes product designing, manufacturing, assembling, testing, and aftermarket support. This comprehensive approach allows customers to rely on a single partner throughout the entire product lifecycle management. The acquisition of ZT Systems is also set to deepen this by adding capabilities expected to contribute an additional $5-$6 billion annual net revenue run-rate over three years, further expanding the scope of services offered to hyperscale and AI infrastructure customers.

You should monitor the continued strength in segments like Communications Networks and Cloud and AI Infrastructure, as these drove performance in the fourth quarter of 2025. Finance: draft the Q1 2026 customer pipeline review by February 15th.

Sanmina Corporation (SANM) - Canvas Business Model: Channels

You're looking at how Sanmina Corporation gets its complex manufacturing solutions and products into the hands of its Original Equipment Manufacturer (OEM) customers. The channel strategy is deeply integrated with its global operational footprint, which is a key differentiator in the Electronics Manufacturing Services (EMS) space.

The primary channel is a direct sales force targeting those large OEMs across industries like industrial, medical, defense and aerospace, automotive, communications networks, and cloud infrastructure. Honestly, this direct approach makes sense when you're dealing with the complexity Sanmina manages. To give you a sense of customer concentration, sales to the company's ten largest customers represented approximately 50% of net sales for fiscal year 2025.

This direct engagement is supported by a massive, geographically optimized network. Sanmina Corporation maintains manufacturing facilities in 20 countries on six continents, strategically locating operations near end-markets or in lower-cost areas. The operational scale is significant, with the company supporting customers from 21 countries on four continents as of late 2024. This physical presence is the backbone for delivering end-to-end design, manufacturing, and logistics.

Product divisions also act as direct sales channels for specific offerings. Viking Enterprise Solutions (VES), for instance, directly markets its high-performance storage platforms for data centers. The Components, Products and Services (CPS) business, which houses divisions like Viking Technology, is a key channel for advanced components. For the fiscal year 2025, the Integrated Manufacturing Solutions (IMS) segment, which includes direct-order-fulfillment, was the dominant revenue driver, while the CPS business made up the remainder.

Here's the quick math on how those two major segments, which represent the core delivery channels, performed financially in fiscal year 2025:

What this estimate hides is that the IMS segment's gross margin saw a slight increase from 7.5% in 2024 to 7.7% in 2025, while the CPS segment saw a more notable jump to 13.9% from 12.8% in 2024. The total net sales for fiscal year 2025 reached $8.128 billion.

Finally, digital channels are crucial for supply chain visibility and customer interaction, especially for existing clients. The 42Q division offers a cloud-based Manufacturing Execution System (MES) that integrates data from global factories and suppliers. This platform is designed for rapid deployment, ranging from 4-12 weeks, and Sanmina Corporation has connected more than 25,000 pieces of manufacturing equipment to this cloud solution. The 42Q solution is deployed in over 60 manufacturing facilities globally.

The digital channel capabilities include:

• Unified Data Ecosystem for supply data consolidation.
• Real-time Analytics for immediate operational metrics.
• Enhanced Quality Monitoring for faster deviation response.
• Rapid deployment ranging from 4-12 weeks.

Finance: draft 13-week cash view by Friday.

Sanmina Corporation (SANM) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Sanmina Corporation as of late 2025, right after they closed out fiscal year 2025. The company serves a diverse set of Original Equipment Manufacturers (OEMs) across several high-tech, capital-intensive industries. Sanmina reported total revenue for fiscal year 2025 of $8.1 billion.

The customer base is managed through two primary internal reporting structures, Integrated Manufacturing Solutions (IMS) and Components, Products and Services (CPS), though the market-facing segments are what really matter for this part of the canvas. For fiscal year 2025, the IMS segment generated approximately 80% of total revenue, while the CPS business accounted for about 20% of total revenue.

Based on Q4 fiscal year 2025 results, Sanmina provided a specific revenue split across their key end-markets. Honestly, this Q4 data gives us the best near-term look at where the business is leaning, especially with the recent ZT Systems acquisition boosting the Cloud/AI side.

Here's a breakdown of the customer segments Sanmina supports, using the latest available segment data:

You should also note the customer concentration. For the full fiscal year 2025, the top 10 customers accounted for 51.7% of total revenue. What this estimate hides is that no single customer exceeded 10% of revenue, which is a good sign for diversification within the top tier.

Sanmina focuses on serving OEMs in these areas with end-to-end manufacturing solutions. The company's vision is to be the trusted leader accelerating customer success.

• Communications Networks/Cloud/AI saw strong growth, with Q4 FY25 revenue of $849 million.
• The combined Industrial, Energy, Medical, Defense, Aerospace, and Automotive group represented 59% of Q4 FY25 revenue.
• Overall FY2025 revenue growth was 7.4% year-over-year, reaching $8.1 billion.
• The company generated $621 million in cash flow from operations for fiscal year 2025.
• Non-GAAP diluted EPS for FY2025 was $6.04.

Finance: draft Q1 FY2026 customer mix projection by next Tuesday.

Sanmina Corporation (SANM) - Canvas Business Model: Cost Structure

You're looking at the core spending profile for Sanmina Corporation as of late 2025, right after the ZT Systems acquisition closed. The cost structure here is dominated by the direct costs of building the hardware and systems for your customers.

Cost of Revenue (materials and labor) is defintely the largest component of Sanmina Corporation's total costs. Based on the Fiscal Year 2025 results, with Net Sales at $8.13 billion and Gross Profit at $716.4 million, the implied Cost of Revenue-the direct cost of materials and labor to produce the sold goods-was approximately $7.414 billion.

This massive figure reflects the scale of their integrated manufacturing solutions business, which is heavily reliant on procuring components and managing complex assembly labor globally. Here's a quick look at the major expense categories reported for the fiscal year ended September 27, 2025:

The operating expenses, which include the costs to run the business beyond direct manufacturing, are itemized, showing where overhead and strategic spending land. You can see the breakdown of the non-CoR operating costs below:

• Selling, General, and Administrative (SG&A) expenses totaled $290 million in 2025.
• Research and development expenses were $31 million in 2025.
• Acquisition and integration charges related to ZT Systems were $34 million in 2025.

To maintain and grow capacity, Sanmina Corporation invested in its physical assets. Capital expenditures for facility and technology upgrades in 2025 totaled $184.9 million. This is a key investment to support the manufacturing base, especially as they integrate the new ZT Systems capabilities.

Also, remember that the acquisition of ZT Systems itself involved significant upfront costs outside of the purchase price; the integration charges alone hit $34 million in 2025. That's a real, immediate cost hitting the income statement for that year.

Sanmina Corporation (SANM) - Canvas Business Model: Revenue Streams

You're looking at how Sanmina Corporation actually brings in the money, which is always the most critical part of the canvas. For fiscal year 2025, which ended September 27, 2025, the total top-line number was solid, hitting $8.1 billion.

The revenue streams are clearly divided between the two main reported businesses, which is how Sanmina structures its financial reporting. Honestly, one segment clearly dominates the revenue picture.

The Integrated Manufacturing Solutions (IMS) segment is where the heavy lifting happens, covering printed circuit board assembly and test, high-level assembly and test, and direct order fulfillment. That 80% share shows where their core, complex manufacturing services revenue lies.

The Components, Products, and Services (CPS) segment, making up the remaining 20%, pulls in revenue from things like advanced PCBs, backplanes, cable assemblies, and precision machined parts. It's a diverse mix, but smaller in scale compared to IMS.

When we look at customer relationships, Sanmina Corporation definitely relies on a concentrated base, which is a key risk factor to keep in mind. Here's the quick math on that customer concentration:

• Sales to the ten largest customers represented approximately 50% of net sales for fiscal year 2025.
• The company secures these relationships through long-term supply agreements, typically with terms spanning three to five years.

This structure points to revenue that is heavily weighted toward large, established Original Equipment Manufacturers (OEMs) in their target markets. That long-term agreement structure is what helps stabilize a good chunk of the revenue base, even if the customer count is low.

Finally, don't forget the service component, which often provides stickier, higher-margin revenue. Sanmina Corporation generates revenue from aftermarket services, which is a crucial part of their overall offering.

These services include:

• Logistics support.
• Repair services.
• Design, development, and engineering services, recognized over time for certain programs.

For fiscal year 2025, the total revenue was $8.1 billion, with the IMS segment driving the majority of that figure. Finance: draft the Q1 2026 revenue projection sensitivity analysis by next Tuesday.