Q3 2025 Electronics Manufacturing Services Review

This document is a quarterly review of the electronics manufacturing services (EMS) sector for Q3 2025. It outlines the ongoing normalization process that began in 2024, which has transitioned into an environment focused on execution. Original Equipment Manufacturers (OEMs) are prioritizing supply chain resiliency, visibility, and proximity, particularly in North America and Europe. The report details how demand related to AI infrastructure and high-reliability programs has stabilized the market amidst softer industrial and consumer volumes. It also discusses the mixed performance of public EMS equities, highlighting that larger, diversified providers generally performed better due to their scale and exposure to growing markets. The document notes that M&A activity has remained consistent, with a focus on small-tier EMS consolidations. Looking forward, the report anticipates a significant increase in M&A activity as companies seek to capitalize on growth opportunities in the electronics sector. It emphasizes the importance of executional discipline for EMS providers to meet evolving customer requirements.