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Sanmina to Build Houston Factory for Energy Gear, Signs Končar Co-Design Deal as 2027 Start Nears

Investor cash-burn worries drove a roughly 7% midday share drop.

Overview

  • The company unveiled a new Houston, Texas plant to make medium-voltage distribution transformers, instrument transformers and switchgear.
  • Sanmina said production is expected to begin in 2027 and noted that initial customer commitments are already in place.
  • A new agreement with Croatia’s Končar calls for co-designing a custom medium-voltage transformer for the U.S. market and exploring broader cooperation.
  • Shares fell about 7.3% through midday after the announcement, according to Yahoo Finance’s market update.
  • Analysts polled by S&P Global Market Intelligence, as reported by Yahoo Finance, expect significant free-cash-flow outflows in 2025–2026, with commentary pointing to higher capex and profit-sharing concerns as drivers of the sell-off.