Sanmina’s $1.4 Billion Debt Raise for Acquisition Could Be a Game Changer for SANM

• On October 20 and 27, 2025, Sanmina Corporation amended its credit agreement, introducing a new US$600 million delayed draw term loan A facility and securing an additional US$800 million incremental term loan B facility, primarily to fund an acquisition and related transactions.
• The refinancing of Sanmina's prior credit facility and the establishment of these amended loan structures underscore the company’s commitment to scaling operations and supporting large-scale growth initiatives.
• We'll explore how Sanmina’s recent debt financing actions to support its acquisition ambitions may influence its investment narrative moving forward.

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Sanmina Investment Narrative Recap

To be a Sanmina shareholder, you need confidence in its ability to scale through acquisitions and execute in growth markets, particularly data center and AI infrastructure segments. The company's recent US$1.4 billion in new debt facilities, aimed at funding a major acquisition, strengthens the near-term growth catalyst but does not materially reduce the key integration and inventory risks tied to the ZT Systems deal.

Among recent announcements, Sanmina’s guidance for Q4 2025 stands out, with expected revenue between US$2.0 billion and US$2.1 billion. This signals the company’s focus on capturing immediate market momentum, but investors will remain attentive to how new debt and acquisition execution may affect margins and cash flows.

But before considering the upside, investors should be aware that, should the integration of ZT Systems underperform or inventory risks materialize…

Read the full narrative on Sanmina (it's free!)

Sanmina's outlook anticipates $9.7 billion in revenue and $375.6 million in earnings by 2028. This forecast implies a 6.4% annual revenue growth rate and an earnings increase of $116.4 million from the current $259.2 million.

Uncover how Sanmina's forecasts yield a $158.50 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community place Sanmina’s fair value between US$39 and US$224 per share, highlighting sharply different outlooks. While the ZT Systems acquisition could double net revenue over three years, you will want to consider multiple viewpoints when weighing future performance.

Explore 3 other fair value estimates on Sanmina - why the stock might be worth less than half the current price!

Build Your Own Sanmina Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sanmina research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Sanmina research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sanmina's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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