Celestica vs. Sanmina: Which EMS Stock is the Better Buy?

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Celestica, Inc. (CLS) and Sanmina Corporation (SANM) are two prominent players in the electronics manufacturing services industry. Celestica is one of the largest electronics manufacturing services companies in the world, primarily serving original equipment manufacturers, cloud-based and other service providers and enterprises from several industries. Sanmina emphasizes engineering and fabricating complex components and also providing complete end-to-end supply chain solutions to Original Equipment Manufacturers across various end markets. Both companies are strategically positioned in the EMS landscape and have the wherewithal to cater to the evolving demands of business enterprises.

Why it matters

The electronics manufacturing services (EMS) industry is highly competitive, with Celestica and Sanmina facing stiff competition from major players like Jabil, Flex, and Foxconn. The ability to capitalize on the growing demand for AI-driven data center infrastructure and maintain strong financial performance and liquidity will be key factors in determining which company emerges as the better investment option.

The details

Sanmina is benefiting from healthy traction in its Integrated Manufacturing Solutions segment, which is directly tied to the AI data center capex cycle. The company is also expanding its manufacturing capabilities in Houston, TX to develop a comprehensive range of leading-edge energy products to support the growing demand. Celestica boasts a robust portfolio of enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions and servers. The company is actively collaborating with industry leaders like AMD and Broadcom to further augment its portfolio offerings.

• In the first quarter of 2026, Sanmina's Integrated Manufacturing Solutions segment generated $2.79 billion in revenues, up 72.2% year over year.
• In the fourth quarter of 2025, Celestica generated $250.6 million in cash from operations compared with $143.4 million in the year-ago quarter.
• As of Dec. 27, 2025, Sanmina had $1.42 billion in cash and cash equivalents and $2 billion in long-term debt.
• As of Dec. 31, 2025, Celestica had $595.6 million in cash and cash equivalents, with the long-term portion of borrowings under the credit facility and finance lease obligations of $750.5 million.

What’s next

Celestica and Sanmina will continue to compete for market share in the growing AI data center infrastructure market. Investors will closely watch the companies' ability to win new contracts, maintain profitability, and generate strong cash flows to fund growth initiatives.