Best manufacturing stocks to invest in 2026

The manufacturing sector remains a critical engine of global economic growth, blending innovation, scale, and operational excellence. With advancements in automation, electrification, and sustainability, top manufacturing companies are leading the way into the future.

Celestica leads as a global electronics manufacturing services provider, delivering design, engineering, and supply chain solutions to technology companies worldwide. Powell Industries delivers critical electrical infrastructure and power distribution equipment, supporting data centers and industrial facilities globally. Power Solutions specializes in custom-engineered power systems and engines for industrial and on-road applications, capitalizing on electrification trends.

Investors seeking durable, well-run businesses with strong cash flow should pay attention to this segment. These manufacturing leaders stand out for operational discipline and exposure to long-term infrastructure, electrification, and automation demand in 2026.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • Celestica (NYSE:CLS)

    Celestica Incorporated is a global leader in electronics manufacturing services, providing design, engineering, and supply chain solutions to companies across various industries. Founded in 1994 and headquartered in Toronto, Canada, the company has grown into a key player in the technology and manufacturing sectors, delivering high-quality, customized solutions to some of the world`s leading brands. Over the years, Celestica has established itself as a trusted partner for companies seeking comprehensive manufacturing and supply chain expertise.

    Celestica`s core business revolves around offering end-to-end product lifecycle solutions, including design, prototyping, manufacturing, and after-market services. It serves industries such as aerospace, defense, healthcare, industrial, and communications, providing critical components and systems that enhance performance and efficiency. With a focus on innovation, sustainability, and operational excellence, Celestica helps its clients accelerate time-to-market while optimizing costs and maintaining high reliability.

    Celestica financial statements

    Analysts recommendation: 1.5

    Financial Health

    • Return on assets (ROA): 11.44%
    • Return on equity (ROE): 37.3%
    • Return on investment (ROI): 24.77%

    Profitability

    • Gross margin: 11.76%
    • Operating margin: 8.5%
    • Net profit margin: 6.35%

    Growth

    • EPS (past 5 years): 46.52%
    • EPS (current): 6.16
    • EPS estimate (next quarter): 1.76
    • EPS growth (this year): 52.66%
    • EPS growth (next year): 42.62%
    • EPS growth (next 5 years): 43.85%
    • EPS growth (quarter-over-quarter): 206.97%
    • Sales growth (past 5 years): 10.38%
    • Sales growth (quarter-over-quarter): 27.79%

    💡 Why invest in Celestica?

    Celestica demonstrates strong manufacturing capabilities in electronics and advanced technology sectors worldwide:

    • Technology Growth Exposure: Celestica benefits directly from the expansion of cloud computing, 5G networks, and IoT devices through its manufacturing partnerships with leading technology companies across multiple high-growth sectors.
    • Complex Manufacturing Capabilities: The company specializes in high-mix, low-volume production that requires advanced technical capabilities, providing competitive advantages in serving demanding customers with sophisticated requirements.
    • Global Network Operations: Celestica operates manufacturing facilities across multiple continents, providing geographic diversification and supply chain resilience that helps mitigate regional disruptions and optimize costs.
    • Diverse Customer Portfolio: The company serves customers across communications, enterprise, aerospace, defense, industrial, and healthcare sectors, reducing dependence on any single market segment for revenue generation.

    🐌 Key considerations before investing in Celestica

    Celestica faces intense competitive margin pressures in the global electronics manufacturing industry worldwide:

    • Customer Concentration Risk: A significant portion of revenue comes from a limited number of large technology companies, creating concentration risk that could impact financial performance if major customers reduce orders.
    • Technology Evolution Challenges: The company must continuously invest in new technologies and capabilities to remain relevant to customers, requiring significant capital expenditures and workforce training investments.
    • Geopolitical Risk Exposure: Global operations expose the company to trade tensions, tariffs, and regulatory changes across multiple jurisdictions, potentially impacting supply chains and manufacturing costs significantly.
    • Competitive Pressure Risk: The electronics manufacturing services industry is highly competitive with pressure on margins and pricing power, requiring continuous efficiency improvements to maintain profitability.

    Final thoughts on Celestica

    Celestica represents a solid investment opportunity in the electronics manufacturing services sector, offering exposure to multiple technology megatrends through its diversified customer base and global manufacturing capabilities. The company`s expertise in complex, high-mix manufacturing provides competitive advantages in serving demanding customers across various industries. However, investors should be aware of the concentration risk from major customers and the ongoing pressure from intense competition in the EMS industry.

  • Powell Industries (NYSE:POWL)

    Powell Industries is a leading provider of custom-engineered electrical equipment and services for the energy, industrial, and utility sectors. Founded in 1947 and headquartered in Houston, Texas, the company specializes in manufacturing complex power distribution and control solutions. With a strong presence in North America and international markets, Powell Industries serves industries such as oil and gas, petrochemicals, mining, and renewable energy.

    The company`s core business revolves around designing and producing switchgear, motor control centers, bus duct systems, and other power management solutions. Powell Industries focuses on delivering highly reliable and safe electrical infrastructure that ensures operational efficiency and minimizes downtime. By integrating advanced automation and engineering expertise, the company continues to support critical industries with innovative and robust power solutions.

    Powell Industries financial statements

    Analysts recommendation: 2.33

    Financial Health

    • Return on assets (ROA): 13.37%
    • Return on equity (ROE): 32.17%
    • Return on investment (ROI): 28.17%

    Profitability

    • Gross margin: 29.37%
    • Operating margin: 21.22%
    • Net profit margin: 16.37%

    Growth

    • EPS (past 5 years): 59.82%
    • EPS (current): 14.88
    • EPS estimate (next quarter): 2.92
    • EPS growth (this year): 12.2%
    • EPS growth (next year): 8.62%
    • EPS growth (next 5 years): 8.84%
    • EPS growth (quarter-over-quarter): 11.98%
    • Sales growth (past 5 years): 16.32%
    • Sales growth (quarter-over-quarter): 8.3%

    💡 Why invest in Powell Industries?

    Powell Industries offers several potential advantages for investors seeking exposure to the industrial and energy sectors:

    • Critical Infrastructure Provider: The company`s products serve as critical components in power distribution and control systems, making it a vital part of the energy infrastructure that supports essential industrial operations worldwide.
    • Broad Customer Portfolio: Powell Industries serves a wide range of industries including oil and gas, petrochemicals, mining, and renewable energy sectors, effectively reducing reliance on any single market segment.
    • Innovation Focus Strategy: The company consistently invests in research and development initiatives to enhance product offerings, develop advanced automation solutions, and meet evolving customer needs in the electrical equipment market.
    • International Footprint Reach: With operations spanning multiple countries and international markets, Powell Industries can effectively capitalize on growth opportunities in various regions while diversifying geographic revenue sources.

    🐌 Key considerations before investing in Powell Industries

    Powell Industries faces significant cyclical demand pressures in the power distribution equipment sector continuously:

    • Industrial Cycle Exposure: The company`s performance experiences significant influence from economic cycles, as industrial activity levels and capital expenditure decisions directly impact demand for electrical equipment.
    • Market Competition Intensity: The electrical equipment market operates with intense competition from both established industry players and new entrants, creating pressure on pricing, market share, and profit margins.
    • Commodity Input Volatility: Fluctuations in the prices of raw materials including copper, steel, and other essential components can significantly impact manufacturing costs and overall profitability during supply disruptions.
    • Regulatory Compliance Requirements: The electrical industry operates under various safety, environmental, and technical regulations that can affect product design specifications, manufacturing processes, and operational costs.

    Final thoughts on Powell Industries

    Powell Industries` focus on critical infrastructure, diversified customer base, and commitment to innovation make it an attractive investment for those seeking exposure to the industrial and energy sectors. However, economic cycles, competition, commodity prices, and regulatory factors necessitate careful consideration. Thorough research on Powell Industries` product pipeline, market expansion plans, and financial performance is crucial before investing.

  • Power Solutions (NYSE:PSIX)

    Power Solutions International, Inc. designs, engineers, and manufactures a wide range of engines and power systems for industrial and on-road applications. Founded in 1985 and headquartered in Wood Dale, Illinois, the company has strategically pivoted towards the high-growth data center power generation market. This shift has been a major catalyst, with the company`s stock price soaring over 800% in the last year amid strong demand for backup power solutions driven by the AI boom.

    The company`s primary business involves providing customized, emission-certified power systems, including natural gas and diesel-powered electric generators. Its Power Systems segment, which now accounts for the majority of sales, is experiencing rapid growth fueled by hyperscalers expanding their data center capacities. PSI`s ability to offer integrated and custom-engineered power solutions positions it as a key supplier in the critical infrastructure needed to support uninterrupted power for AI and cloud computing.

    Power Solutions financial statements

    Analysts recommendation: 1

    Financial Health

    • Return on assets (ROA): 16.6%
    • Return on equity (ROE): 118.49%
    • Return on investment (ROI): 39.12%

    Profitability

    • Gross margin: 27.57%
    • Operating margin: 13.91%
    • Net profit margin: 17.94%

    Growth

    • EPS (past 5 years): 51.02%
    • EPS (current): 5.26
    • EPS estimate (next quarter): 0.64
    • EPS growth (this year): 59.9%
    • EPS growth (next year): 17.56%
    • EPS growth (next 5 years): 45.14%
    • EPS growth (quarter-over-quarter): 59.18%
    • Sales growth (past 5 years): -2.71%
    • Sales growth (quarter-over-quarter): 62%

    💡 Why invest in Power Solutions?

    Power Solutions provides essential industrial infrastructure and critical energy support services to customers:

    • Data Center Dynamo: The company`s strategic focus on providing backup power generators for data centers is its primary growth engine, placing PSIX in a highly lucrative and rapidly expanding market segment.
    • Impressive Financial Performance: PSIX has demonstrated remarkable financial transformation, reporting strong revenue growth and significant net income increases while consistently beating earnings estimates and showing operational excellence.
    • Strong Profit Margins: The company boasts a healthy gross margin of 29.7% that has been improving year-over-year, indicating efficient operations and strong pricing power for its in-demand products in the competitive market.
    • Strengthening Financial Health: Management has been actively improving the company`s balance sheet by paying down debt, with this financial discipline expected to generate significant free cash flow and enhance shareholder value.

    🐌 Key considerations before investing in Power Solutions

    While PSIX is currently in the fast lane, potential investors should be aware of a few cautionary flags on the road ahead:

    • Majority Ownership Control: Weichai America Corp. is the majority owner of PSIX, creating significant concentration risk where strategic decisions could potentially favor the parent company's interests over minority shareholders.
    • Data Center Dependence: The company`s recent success is heavily tied to the continued expansion of data centers, creating significant risk if this sector experiences slowdowns or reduced capital investment in infrastructure.
    • Industrial Competition Intensity: PSIX faces stiff competition from larger, more established players in the industrial power systems market with greater resources, market reach, and established customer relationships.
    • Geopolitical Trade Risks: The company has acknowledged the evolving tariff environment as a potential risk, with changes in trade policy potentially introducing supply chain disruptions and increased manufacturing costs.

    Final thoughts on Power Solutions

    Power Solutions International has successfully engineered a powerful pivot into the data center market, resulting in explosive growth and a revitalized financial profile. The tailwinds from the AI revolution provide a strong runway, but the journey is not without risks, including competitive pressures and the influence of its majority owner. For investors who believe the data center boom is just getting started, PSIX offers a compelling opportunity to plug into a high-growth story.

  • Modine Manufacturing (NYSE:MOD)

    Modine Manufacturing Company is a diversified thermal management technology company that designs, manufactures and sells heat transfer and heat storage products for a wide range of applications. Founded in 1916 and headquartered in Racine, Wisconsin, company operates through two primary segments: Vehicular Thermal Solutions and Performance Technologies. Modine serves customers in automotive, commercial vehicle, off-highway, industrial, and HVAC markets, providing solutions for engine cooling, power electronics cooling, and climate control systems.

    Modine has been strategically focusing on higher-growth markets, particularly in electric vehicle thermal management, data center cooling, and commercial HVAC applications. The company has made significant investments to expand its capabilities in power electronics cooling and battery thermal management, positioning itself to benefit from the electrification trend across various industries. Modine's global footprint includes manufacturing facilities across North America, Europe and Asia, allowing it to serve a diverse international customer base with localized production and support.

    Modine Manufacturing financial statements

    Analysts recommendation: 1.12

    Financial Health

    • Return on assets (ROA): 9.06%
    • Return on equity (ROE): 19.48%
    • Return on investment (ROI): 11.18%

    Profitability

    • Gross margin: 24.16%
    • Operating margin: 10.91%
    • Net profit margin: 6.93%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 3.47
    • EPS estimate (next quarter): 0.99
    • EPS growth (this year): -3.5%
    • EPS growth (next year): 35.9%
    • EPS growth (next 5 years): 26.64%
    • EPS growth (quarter-over-quarter): -3.51%
    • Sales growth (past 5 years): 5.51%
    • Sales growth (quarter-over-quarter): 12.3%

    💡 Why invest in Modine Manufacturing?

    Modine manufactures thermal management and fluid handling solutions for diverse industrial sectors globally today:

    • Essential Thermal Solutions: Modine provides critical heating and cooling systems that are fundamental requirements for buildings, vehicles, and industrial equipment, creating consistent demand across multiple market cycles and seasons.
    • Sustainability Leadership Focus: The company prioritizes energy-efficient thermal management solutions that align with growing demand for green buildings, electric vehicle infrastructure, and environmentally conscious industrial practices.
    • Diversified Market Exposure: Modine serves automotive, commercial HVAC, industrial equipment, and data center markets, reducing dependence on any single industry while capturing growth across multiple expanding sectors.
    • Global Manufacturing Footprint: With operations spanning North America, Europe, and Asia, Modine benefits from geographic diversification, local market access, and the ability to serve multinational customers effectively.

    🐌 Key considerations before investing in Modine Manufacturing

    Modine faces significant economic cycle exposure and intense global competitive industry pressures continuously:

    • Competitive Market Pressure: The thermal management industry includes established global players and regional manufacturers competing for market share, potentially pressuring margins and requiring continuous innovation investments.
    • Construction Cycle Dependency: Modine building sector sales correlate with construction activity and economic conditions, making the company vulnerable to downturns in commercial and residential building markets.
    • Commodity Price Volatility: Fluctuations in steel, aluminum, and other commodity prices directly impact manufacturing costs and profitability, requiring effective supply chain management and pricing strategies.
    • Compliance Cost Challenges: The HVAC and automotive industries face evolving energy efficiency standards and safety regulations that increase product development costs and require ongoing compliance investments.

    Final thoughts on Modine Manufacturing

    Modine Manufacturing leadership in essential thermal management solutions, sustainability focus, and diversified market exposure create compelling opportunities for investors seeking exposure to critical industrial infrastructure. However, the company competitive pressures, construction cycle dependency, and commodity cost volatility require careful evaluation of cyclical risks. Like a reliable climate control system that maintains optimal conditions behind the scenes, Modine offers steady growth potential for investors who understand both the opportunities and challenges of the industrial thermal management sector.

  • Hanza (ST:HANZA)

    Hanza Holding AB is a leading Nordic manufacturing partner that provides comprehensive electronics manufacturing services and mechanical production solutions to technology companies across multiple industries including medtech, cleantech, and industrial automation. Founded in 2008 and headquartered in Stockholm, Sweden, the company has built a unique manufacturing ecosystem through strategic acquisitions and organic growth, creating a network of specialized production facilities across the Nordic region and Central Europe. Hanza has established itself as a preferred manufacturing partner for innovative companies by combining advanced manufacturing capabilities with supply chain optimization and engineering expertise.

    The company`s core operations encompass electronics manufacturing services (EMS), mechanical manufacturing, and integrated supply chain solutions delivered through a cluster-based production model that optimizes efficiency and reduces costs for customers. Hanza operates manufacturing facilities in Sweden, Finland, Estonia, Poland, and the Czech Republic, serving clients in high-growth sectors such as medical technology, clean energy, industrial automation, and telecommunications. With the continued trend toward manufacturing nearshoring, increasing demand for specialized production capabilities, and growing focus on supply chain resilience, Hanza is strategically positioned to capitalize on the evolving manufacturing landscape while helping Nordic companies maintain competitive advantages through local production expertise.

    Hanza financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 4.68%
    • Return on equity (ROE): 12.54%
    • Return on investment (ROI): 10.6%

    Profitability

    • Gross margin: 43.8%
    • Operating margin: 8.26%
    • Net profit margin: 3.64%

    Growth

    • EPS (past 5 years): 22.9%
    • EPS (current): 4.45
    • EPS estimate (next quarter): 13.8
    • EPS growth (this year): 87.8%
    • EPS growth (next year): 18.4%
    • EPS growth (next 5 years): 16.8%
    • EPS growth (quarter-over-quarter): 31.2%
    • Sales growth (past 5 years): 28.4%
    • Sales growth (quarter-over-quarter): 26.8%

    💡 Why invest in Hanza?

    Hanza provides specialized electronics manufacturing and contract manufacturing services to global customers worldwide:

    • Cluster-Based Manufacturing Model: Hanza operates an innovative production cluster system that optimizes manufacturing efficiency, reduces logistics costs, and provides supply chain resilience through distributed facilities.
    • High-Growth Sector Focus: The company serves rapidly expanding industries including medtech, cleantech, and industrial automation, providing exposure to secular growth trends and premium pricing opportunities.
    • Nearshoring Trend Benefits: Hanza capitalizes on growing trend of companies moving production closer to end markets, offering Nordic customers local manufacturing alternatives with shorter lead times, improved supply chain reliability.
    • Strategic Acquisition Growth: The company has demonstrated successful acquisition integration capabilities, creating value through strategic purchases of complementary manufacturing businesses and expanding service offerings.

    🐌 Key considerations before investing in Hanza

    Hanza faces substantial economic pressures and intense competitive market challenges in global sectors worldwide:

    • Client Dependency Risk: The company`s revenue depends on relationships with key customers in specialized industries, creating vulnerability to contract losses, customer consolidation, or changes in strategies.
    • Cyclical Industry Exposure: Manufacturing services are subject to economic cycles and customer demand fluctuations, making revenue and profitability vulnerable to downturns in served industries and conditions.
    • Integration Execution Challenges: Continued growth through acquisitions requires successful integration of diverse manufacturing operations, cultures, and systems, with execution risks that could impact operational efficiency.
    • Cost Inflation Pressures: The company faces ongoing challenges from rising labor costs, energy prices, and raw material inflation that can pressure margins if not passed through to customers successfully through price adjustments.

    Final thoughts on Hanza

    Hanza`s cluster-based manufacturing model, high-growth sector focus, nearshoring trend benefits, and acquisition-driven expansion create compelling opportunities for investors seeking exposure to the evolving specialized manufacturing services market. However, the company`s customer concentration risks, cyclical industry exposure, integration challenges, and cost inflation pressures require careful evaluation of the operational complexities in manufacturing services investing. Like a versatile production partner who adapts to changing industrial needs, Hanza offers growth potential for investors who understand both the opportunities and challenges of the dynamic Nordic manufacturing landscape.

  • Mueller Industries (NYSE:MLI)

    Mueller Industries, Inc. is a leading manufacturer and distributor of copper, brass, aluminum, and plastic products, headquartered in Collierville, Tennessee. Founded in 1917, the company has over a century of experience in providing high-quality industrial products to diverse markets. Mueller Industries operates manufacturing and distribution facilities across North America, Europe, and Asia, serving plumbing, HVAC, refrigeration, and automotive sectors.

    Mueller Industries specializes in producing tubes, fittings, valves, and other components for fluid flow systems. The company serves diverse industries with durable and reliable solutions for critical infrastructure applications. Mueller Industries maintains strong commitments to innovation while supporting global infrastructure development and industrial applications worldwide.

    Mueller Industries financial statements

    Analysts recommendation: 1

    Financial Health

    • Return on assets (ROA): 16.2%
    • Return on equity (ROE): 26.14%
    • Return on investment (ROI): 24.24%

    Profitability

    • Gross margin: 29.47%
    • Operating margin: 24.36%
    • Net profit margin: 18.1%

    Growth

    • EPS (past 5 years): 42.73%
    • EPS (current): 6.69
    • EPS estimate (next quarter): 1.67
    • EPS growth (this year): 27%
    • EPS growth (next year): 7.69%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): 26.54%
    • Sales growth (past 5 years): 9.17%
    • Sales growth (quarter-over-quarter): 8%

    💡 Why invest in Mueller Industries?

    Mueller Industries manufactures critical plumbing and HVAC system components for residential construction markets globally:

    • Industrial Manufacturing Titan: Mueller boasts a century-long legacy with leading positions in copper and brass manufacturing, translating to consistent contracts and predictable revenue streams for future growth.
    • Beyond the Pipe: Mueller expands beyond traditional copper and brass into aluminum, steel, and plastic components, plus valves and instrumentation for strategic diversification and growth opportunities.
    • Global Flow Operations: With operations spanning North America, Europe, Asia, and the Middle East, Mueller serves diverse industrial needs worldwide and accesses emerging markets with growing infrastructure demands.
    • Quality Service Symphony: Mueller thrives on its commitment to high-quality products and strong customer relationships, fostering brand loyalty and driving repeat business through superior service delivery.

    🐌 Key considerations before investing in Mueller Industries

    Mueller faces significant economic sensitivity in housing and construction sector cycles worldwide significantly:

    • Stock Valuation Concerns: Like many industrial companies, MLI`s stock can be volatile, reflecting expectations of raw material prices, economic conditions, and market sentiment requiring patient investment approaches.
    • Manufacturing Market Competition: Regional manufacturers and global conglomerates vie for market share, challenging Mueller`s position and requiring strategic competitive responses to maintain market leadership and pricing power.
    • Economic Sensitivity Jitters: Global economic downturns can significantly impact industrial spending and infrastructure projects, potentially affecting Mueller`s sales and profitability across key market segments.
    • Commodity Price Rollercoaster: Fluctuations in copper, brass, and other metal prices can significantly impact Mueller`s profitability and project costs, requiring investors to monitor commodity markets and hedging strategies carefully.

    Final thoughts on Mueller Industries

    Mueller`s diverse product portfolio, global reach, and established brand reputation create compelling opportunities for investors seeking exposure to the dynamic industrial and manufacturing sectors. However, stock volatility, rising competition, economic sensitivity, and commodity price dependence warrant careful evaluation of cyclical industrial risks. Like skilled industrial engineers who design efficient flow systems, Mueller Industries leverages its century-long expertise to deliver essential components while navigating the complex dynamics of global manufacturing markets.

  • Jabil (NYSE:JBL)

    Jabil Circuit, Inc. is a leading provider of electronics manufacturing services and supply chain solutions for diverse global industries. Founded in 1966 and headquartered in St. Petersburg, Florida, Jabil has grown into one of the world's largest electronics manufacturers. The company serves cloud infrastructure, automotive, aerospace, and consumer electronics sectors worldwide.

    The company specializes in complex manufacturing, engineering, and supply chain management that help customers optimize costs. Jabil's comprehensive services span design engineering, manufacturing, supply chain optimization, and after-sales support. Advanced electronics manufacturing capabilities drive continued growth and market leadership.

    Jabil financial statements

    Analysts recommendation: 1.5

    Financial Health

    • Return on assets (ROA): 5.16%
    • Return on equity (ROE): 47.82%
    • Return on investment (ROI): 17.08%

    Profitability

    • Gross margin: 8.94%
    • Operating margin: 4.13%
    • Net profit margin: 2.26%

    Growth

    • EPS (past 5 years): 76.36%
    • EPS (current): 6.39
    • EPS estimate (next quarter): 2.49
    • EPS growth (this year): 53.4%
    • EPS growth (next year): 15.81%
    • EPS growth (next 5 years): 17.42%
    • EPS growth (quarter-over-quarter): 53.68%
    • Sales growth (past 5 years): 1.79%
    • Sales growth (quarter-over-quarter): 18.7%

    💡 Why invest in Jabil?

    Jabil demonstrates strong competitive positioning in diversified global electronics manufacturing and logistics sectors worldwide:

    • Market Diversification Benefits: Jabil serves diversified end markets across healthcare, automotive, industrial, cloud and consumer, which reduces reliance on any one product cycle and helps stabilize demand in downturns.
    • AI Infrastructure Momentum: Management is prioritizing cloud and AI data center infrastructure, including a planned multi-year $500 million U.S. manufacturing investment, supporting growth in servers, networking and power.
    • Scaled Global Operations: With a distributed manufacturing and supply-chain network across the Americas, Europe and Asia, Jabil can localize production, qualify alternate suppliers and respond quickly to customer ramps.
    • Long Duration Programs: Deep experience in regulated programs (healthcare and automotive) plus design, test and aftermarket services increases switching costs for customers and supports longer contracts than typical EMS work.

    🐌 Key considerations before investing in Jabil

    Jabil faces significant economic sensitivity and intense global competitive industry challenges worldwide significantly:

    • Structurally Thin Margins: Electronics manufacturing services is a scale business with structurally thin margins; wage inflation, unfavorable mix or pricing pressure from large OEMs can quickly compress profitability.
    • Major Customer Concentration: A meaningful portion of revenue comes from a handful of large customers, so a lost program, insourcing decision or product transition at a major OEM could impact utilization and earnings.
    • Geopolitical Supply Risks: Global operations expose Jabil to tariffs, trade restrictions, and geopolitical shocks; disruptions in components or logistics can delay shipments, increase costs and damage relationships.
    • Capex Execution Risks: Expanding into fast-growing AI and infrastructure programs requires capital spending and flawless execution; delays, quality issues or excess capacity can lead to charges and lower returns.

    Final thoughts on Jabil

    Jabil combines global scale, deep manufacturing know-how, and integrated supply chain services with an increasing focus on cloud and AI infrastructure programs. The mix of regulated and infrastructure end markets can support steadier demand and stickier customer relationships over time. Still, investors should weigh structurally thin EMS margins, customer concentration, and execution risk as the company ramps capital-intensive programs.

  • Hawkins (NASDAQ:HWKN)

    Hawkins, Inc. is a specialty chemical company that manufactures, blends, and distributes industrial and water treatment chemicals throughout the United States. Founded in 1938 and headquartered in Minnesota, the company has grown through strategic acquisitions and organic expansion to become a leading regional supplier of specialty chemicals. The company has demonstrated consistent operational performance with steady revenue growth and strong market positions in its core geographic markets.

    The company's core business encompasses three main segments: industrial chemicals for manufacturing processes, water treatment chemicals for municipal and industrial applications, and health and nutrition products for food and pharmaceutical industries. Hawkins operates through a network of distribution facilities and manufacturing plants that enable efficient service delivery to customers across diverse end markets. Looking ahead, the company continues to pursue strategic acquisitions, expand its product portfolio, and strengthen customer relationships while maintaining operational efficiency and financial discipline.

    Hawkins financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 8.9%
    • Return on equity (ROE): 17.49%
    • Return on investment (ROI): 10.52%

    Profitability

    • Gross margin: 23.03%
    • Operating margin: 12.1%
    • Net profit margin: 7.95%

    Growth

    • EPS (past 5 years): 24.79%
    • EPS (current): 3.98
    • EPS estimate (next quarter): 0.74
    • EPS growth (this year): -6.9%
    • EPS growth (next year): 13.31%
    • EPS growth (next 5 years): 1.71%
    • EPS growth (quarter-over-quarter): -6.24%
    • Sales growth (past 5 years): 12.52%
    • Sales growth (quarter-over-quarter): 13.5%

    💡 Why invest in Hawkins?

    Like a reliable chemical supplier serving essential industries, Hawkins demonstrates compelling competitive advantages:

    • Essential Products Portfolio: Focus on critical industrial and water treatment chemicals creates stable demand from customers who require consistent supply for ongoing operations and regulatory compliance, supporting continuous operations.
    • Regional Distribution Network: Strategic network of facilities across key markets enables efficient logistics, strong customer service, and competitive advantages through proximity to end users, reducing lead times and stockouts.
    • Acquisition Growth Strategy: Proven track record of successful acquisitions expands geographic reach, adds complementary products, and generates synergies while maintaining disciplined capital allocation, reinforcing market position.
    • Recurring Revenue Base: Long-term customer relationships and consumable product nature generate predictable revenue streams with high retention rates across industrial and municipal customer segments, enhancing planning visibility.

    🐌 Key considerations before investing in Hawkins

    Hawkins faces severe margin pressures, significant competitive challenges, and vulnerability across markets worldwide:

    • Raw Material Volatility: Dependence on commodity chemicals as raw materials exposes the company to input cost fluctuations that can pressure margins when pricing power is limited or pass-through lags, challenging timely pass-through.
    • Geographic Concentration Risk: Primary focus on Midwest and select US regions limits growth potential and creates vulnerability to regional economic downturns or competitive pressures in core markets, limiting scale and diversification.
    • Compliance Cost Pressure: Extensive environmental, safety, and transportation regulations increase operating costs and create risks from potential violations or changing regulatory requirements, raising spend on compliance systems.
    • Limited Scale Disadvantage: Smaller size compared to major chemical distributors constrains purchasing power, limits investment capacity, and reduces competitive advantages against larger industry players, hindering bargaining leverage.

    Final thoughts on Hawkins

    Hawkins' essential products portfolio, regional distribution network, and acquisition growth strategy position it as a steady performer in the specialty chemical distribution sector. However, investors must weigh the company's raw material volatility, geographic concentration, regulatory compliance burden, and limited scale that can constrain growth and profitability. Like a dependable chemical distributor serving critical infrastructure needs, Hawkins offers stable exposure to industrial and water treatment markets with the reliability of recurring revenue balanced against regional growth limitations.

  • Sanmina (NYSE:SANM)

    Sanmina Corporation is a leading integrated manufacturing solutions company providing comprehensive design, manufacturing, and supply chain management services for original equipment manufacturers across diverse technology sectors including communications networks, cloud infrastructure, automotive, industrial, defense, and medical devices. Founded in 1980 and headquartered in San Jose, California, the company has evolved from a contract electronics manufacturer into a global technology solutions provider with advanced manufacturing capabilities spanning printed circuit board assembly, system integration, precision machining, and optical, mechanical, and cable assemblies. The company has built its reputation through operational excellence, technological innovation, and strategic partnerships with leading technology companies, establishing itself as a critical enabler of complex product development and manufacturing across multiple high-growth industries.

    Sanmina operates through integrated manufacturing services that encompass product design and engineering, supply chain management, manufacturing and assembly, testing and quality assurance, and aftermarket support services across global manufacturing facilities in North America, Europe, and Asia. The company`s core activities include electronics manufacturing services (EMS), original design manufacturing (ODM), precision machining, and specialized manufacturing processes for complex products requiring advanced technical capabilities and stringent quality standards. With accelerating technology innovation, increasing product complexity, and growing demand for outsourced manufacturing solutions, Sanmina is strategically positioned to capitalize on expanding opportunities in cloud infrastructure, 5G communications, automotive electronics, and other technology-driven markets requiring sophisticated manufacturing expertise.

    Sanmina financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 4.62%
    • Return on equity (ROE): 10.87%
    • Return on investment (ROI): 9.2%

    Profitability

    • Gross margin: 8.81%
    • Operating margin: 5.2%
    • Net profit margin: 3.03%

    Growth

    • EPS (past 5 years): 17.69%
    • EPS (current): 4.46
    • EPS estimate (next quarter): 2.13
    • EPS growth (this year): -19.6%
    • EPS growth (next year): 20.13%
    • EPS growth (next 5 years): N/A
    • EPS growth (quarter-over-quarter): -19.73%
    • Sales growth (past 5 years): 3.15%
    • Sales growth (quarter-over-quarter): 3.9%

    💡 Why invest in Sanmina?

    Sanmina provides comprehensive electronics manufacturing and advanced logistics solutions to global customers worldwide:

    • Technology Trend Exposure: Strong positioning in cloud infrastructure, 5G communications, automotive electronics, and industrial automation provides exposure to high-growth sectors that drive manufacturing demand across global markets.
    • Global Production Network: Extensive footprint across key regions enables cost-effective production, flexible supply chains, and proximity to customers in major markets, supporting responsive delivery and consistent quality.
    • Advanced Capability Portfolio: Comprehensive services including system integration, precision machining, and specialized assembly create competitive advantages and higher-value offerings for demanding applications.
    • Balanced Customer Portfolio: Balanced exposure across communications, industrial, automotive, and defense sectors reduces dependence on any single market cycle and provides revenue stability during sector rotations across geographies.

    🐌 Key considerations before investing in Sanmina

    Sanmina faces significant economic sensitivity and intense competitive pressures across its global operations worldwide:

    • Low Margin Model: Thin margins and limited pricing power create vulnerability to input cost inflation, requiring continuous efficiency improvements to defend profitability in competitive contract manufacturing bids.
    • Customer Dependence Risk: Dependence on major technology customers creates concentration risk if key clients reduce orders, change suppliers, or face demand fluctuations, impacting utilization rates and cash flow.
    • Supply Chain Challenges: Global operations expose Sanmina to disruptions, component shortages, and logistics constraints that can impact production schedules, on-time delivery, and customer relationships across regions.
    • Cyclical Tech Exposure: Dependence on technology capital spending and product cycles creates vulnerability to downturns and market fluctuations that affect demand, backlog visibility, and pricing dynamics across segments.

    Final thoughts on Sanmina

    Sanmina`s advanced manufacturing capabilities, global scale, and positioning in technology growth markets create compelling opportunities for investors seeking exposure to essential electronics manufacturing and technology supply chain services. However, margin pressures, customer concentration risks, and cyclical technology exposure require careful evaluation. Like a skilled production manager who coordinates complex processes to deliver quality products on time, Sanmina offers steady value for investors who understand the opportunities and challenges of global technology manufacturing.

  • UFP Technologies (NYSE:UFPT)

    UFP Technologies, Inc. is a leading designer and producer of custom-engineered components, primarily using foams, films, and advanced materials. Founded in 1963 and headquartered in Newburyport, Massachusetts, the company started as a small manufacturing business and has grown significantly. Over the decades, UFP Technologies has expanded its reach across various industries, including medical, automotive, aerospace, and defense, by acquiring specialized companies and continuously innovating.

    UFP Technologies specializes in creating highly engineered packaging, protective solutions, and component products that serve critical applications, particularly in healthcare and medical sectors. The company`s expertise in medical device protection, orthopedic implant packaging, and infection prevention solutions has made it a trusted partner for major manufacturers. Beyond healthcare, UFP Technologies provides advanced materials and components for industries that require precision, durability, and regulatory compliance in high-performance applications.

    UFP Technologies financial statements

    Analysts recommendation: 2

    Financial Health

    • Return on assets (ROA): 9.23%
    • Return on equity (ROE): 18.31%
    • Return on investment (ROI): 12.16%

    Profitability

    • Gross margin: 28.51%
    • Operating margin: 15.32%
    • Net profit margin: 11.22%

    Growth

    • EPS (past 5 years): 23.59%
    • EPS (current): 8.61
    • EPS estimate (next quarter): 2.07
    • EPS growth (this year): 0%
    • EPS growth (next year): 14.32%
    • EPS growth (next 5 years): 8.71%
    • EPS growth (quarter-over-quarter): 0.03%
    • Sales growth (past 5 years): 20.52%
    • Sales growth (quarter-over-quarter): 6.5%

    💡 Why invest in UFP Technologies?

    UFP Technologies demonstrates niche strengths in specialized industrial manufacturing and industrial sector solutions:

    • Advanced Material Expertise: UFP boasts expertise in diverse materials like foams, plastics, and films, utilizing advanced techniques like laminating, molding, and fabrication to create custom solutions across various industries.
    • Diversified Industry Exposure: Recognizing diverse client needs, UFP expands beyond medical devices, offering engineered components and packaging solutions to industries like aerospace, automotive, consumer goods, and electronics globally.
    • Continuous Innovation Focus: UFP prioritizes research and development, investing in advanced technologies and materials to create innovative solutions for evolving customer needs, positioning the company for future success in markets.
    • Expanding Global Footprint: With operations spanning the US, Mexico, and Europe, UFP caters to diverse client needs worldwide, providing access to emerging markets and bolstering its future growth prospects across multiple regions.

    🐌 Key considerations before investing in UFP Technologies

    UFP faces substantial economic pressures and intense competitive challenges in specialized industrial sectors worldwide:

    • Stock Valuation Volatility: Like many industrials, UFPT`s stock can be volatile, reflecting expectations of future raw material prices, economic conditions, and overall market sentiment, requiring a cautious approach with patience.
    • Intensifying Market Competition: Smaller regional manufacturers and global conglomerates are vying for market share, challenging UFP`s dominant position through pricing pressure and technological innovation in custom-engineered markets.
    • Economic Cycle Sensitivity: Global economic downturns can impact industrial spending and project development, potentially hitting UFP`s sales and profitability as customers delay capital expenditures and reduce manufacturing investments.
    • Regulatory Compliance Costs: Evolving regulations surrounding materials, environmental impact, and product safety can impact UFP`s operations and necessitate costly compliance measures, particularly in highly regulated medical markets.

    Final thoughts on UFP Technologies

    UFP Technologies` diverse material expertise, focus on innovation, global reach, and diversified client base paint a potentially promising picture for long-term investors seeking exposure to the dynamic manufacturing and packaging sectors. However, stock volatility, rising competition, economic sensitivity, and evolving regulatory landscape warrant a measured approach before investment. UFP Technologies might just find your portfolio custom-crafted for success, but thorough research on their future plans and market positioning is essential.

If you are interested in other stock categories, check out my other lists of the best AI, automotive, basic materials, beauty, brokers, cloud, communication services, conglomerate, construction, consulting, cybersecurity, defense, e-commerce, education, energy, financial, gold mining, healthcare, high dividend, hotel, industrial, insurance, quantum computing, real estate, retail, saas, semiconductor, stocks, tech, travel, utility, waste management stocks.

If you are interested specifically in European manufacturing stocks, check out my best European manufacturing stocks.