Sanmina Corporation announced the construction of a new, state‑of‑the‑art factory in Houston, Texas, that will produce medium‑voltage distribution transformers, instrument transformers and switchgear. Production is slated to begin in 2027, and the company has already secured initial customer commitments for the facility.
The expansion is part of Sanmina’s broader strategy to diversify beyond its traditional electronics manufacturing services. By entering the energy infrastructure market, the company taps a growing demand for grid modernization, renewable‑energy integration and advanced power‑distribution solutions. The Houston plant will leverage Sanmina’s engineering and manufacturing expertise to deliver high‑quality, medium‑voltage equipment that meets the needs of utilities and industrial customers.
Sanmina’s recent financial performance underscores the company’s capacity to support this investment. In Q3 fiscal 2025, Sanmina reported revenue of $2.04 billion, up 10.5% year‑over‑year, and diluted EPS of $1.26, a $0.33 beat over analyst expectations. The company guided for Q4 fiscal 2025 revenue of $2.0–$2.1 billion and non‑GAAP diluted EPS of $1.52–$1.62, reflecting confidence in continued demand. Management noted that the new Houston plant will add to near‑term free‑cash‑flow pressure, but the long‑term upside is expected to offset the initial capital outlay.
CEO Jure Sola said, “We are very pleased to announce this expansion of Sanmina’s Energy‑related business. The transmission, distribution and storage of electric power provides an excellent fit for our core competencies in engineering and manufacturing to deliver cutting‑edge medium‑voltage and high‑voltage equipment.” Končar Group CEO Gordan Kolak added, “We are delighted to partner with Sanmina to design a custom medium‑voltage transformer. This collaboration accelerates Končar’s growth in the U.S. market and brings our decades of transformer expertise to a new customer base.”
The announcement was well received by investors, building on the positive market reaction to Sanmina’s strong Q4 fiscal 2025 results, the completion of the ZT Systems acquisition, and the company’s upbeat revenue guidance. Analysts highlighted the strategic shift into energy infrastructure as a key tailwind for future growth, while noting the short‑term capital intensity of the new plant.
The Houston facility positions Sanmina to capture a share of the expanding U.S. energy market, diversify its revenue mix, and strengthen its competitive advantage in high‑margin power‑equipment manufacturing. While the initial investment will increase capital expenditures and pressure free cash flow in the near term, the long‑term benefits of entering a high‑growth sector are expected to enhance shareholder value and support sustained earnings growth.
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