Earnings call transcript Q1 2024

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Operator

Good afternoon and thank you for standing by. Welcome to Flex’s First Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to Mr. David Rubin.

begin. may You

David Rubin

Financial be Good at fiscal Jenny. is as recorded Slides welcome Flex’s financials by our to Chief give Both Thank remarks brief the on are earnings afternoon, well of conference quarter followed Chief and for flex.com. Advaithi; XXXX Officer, call today Paul earnings call. first Lundstrom. being a Executive available section will is you, Q&A. Revathi and This Officer, With our today’s will our for as press on the and available Investor copy call corporate release summary replay Relations and website. me

could forward-looking current differ to our a today’s These actual risks assumptions. materially. As are that based involve statements, expectations call cause and on our contains results statements reminder, uncertainties which and

our full please risks filings discussion statements no update subject we undertake in our statements. these these the most cautionary obligation change, to Note Risk information and section with presentation, SEC. of release a Factors and press recent see this forward-looking For uncertainties, the or to the in is in

otherwise reconciliations unless in appendix note, year-over-year our metrics as well slides financials again The Relations will today’s summary a posted results to be all and found on all Investor please Lastly, growth be non-GAAP will non-GAAP full as presentation basis. can on provided be GAAP measures stated, of the in the website.

our to CEO. Now, call to Revathi? I’d like turn over the

Revathi Advaithi

Good David. afternoon, you joining you, Thank thank today. for us and

X. billion, exceptionally and QX. Revenue margin QX year, in Adjusted consistent strong last flat slide Overall, X.X% of Starting quarter. in with long-term deliver is our came which new on another at As results. EPS. was in we $X.XX operating progress move fiscal came at delivered our strategy adjusted into we $X.X solid year’s we it continue make fiscal to our with and results

another significant completed own the but step still yet we about offering forward. for July company, On this a of XX% marks Xrd, follow-on Nextracker. We

Now X. slide turning to

at the looking soft core factors, interest continue rates Flex few higher normalization facing with to a trends dynamic from we quarter in navigate in current Consumer fundamentals, line areas. lingering the spending with in post-COVID remained including expectations. Now, relatively markets several macro environment and our

last indicators. experienced and some slowing is indicated performing we so IT, our continue expectations quarter, far we but As to enterprise also to demand monitor in prior we it

other a difficult the comp year also On XX% grew year. we faced after CEC, in last this hand, it

having most one our we diversified well continue and portfolio. strength in our markets, driven However, to secular benefits the of see of that’s of

center. changing the this while the has From requirements business. little our driving around a of hype I AI means from now. data right help to to are and of at and should generative new highly compute it’s of has I opportunities, lot This are We in AI needs been power for manufacturing now trend requirements can the a already intensive. a know separate it fiction, some Maybe technical these perspective, led all There’s creating changing a least us. that little what say, however, fact for

design configuration, the more have we expertise additional critical computing, needs intensive power of changes which ramping of driving to we changes developed we’ve business means our unique course, and seeing drive strong helped And share of is half this the talked to to and in on digit about including integrated same based led driven the design, in triple offering cloud wins, by our what’s growth cloud conversions. CEC, additional That module example, power, With year. year. customer solution, power suited GPU-based is for in what value In and gains our bespoke solutions. new back fulfillment are in have adoption the manufacturing capabilities core These cloud that’s added vertically a one our last here.

It’s over evolve time. safe as technical cloud applications change to will say, needs

have highly positioned at to be scale, operating capture continue well so these to we adaptable platform, a We opportunities.

strong Now, switching remain and CapEx gears hospital a procedure is intact. demand is bit, healthcare steady. little trends Elective

slowing this of appears but demand equipment from We’re for medical a related an to strong in after period life some normalization testing exceptionally pandemic. experiencing the sciences, result of products extended largely

looking business strong. trends, long-term built the space, are based automotive geographic Now, and remained on have transitions by ADAS demand customer at we a important our customer EV and and Technology driven diversity.

we’re $X higher towards way and value drive its makes levels business engagements. automotive revenue, multiple on adding billion our deeper As in valued to

the Our next-gen year. from momentum record our mobility bookings from bookings to on building fiscal That’s last grow. continue

technology comes industry. engineering demands automotive design from All experience of decades of our expertise, and with proven of the multi-disciplined this and unique capabilities, our the

important another global secular benefiting all trend is Now, we’re which renewable from energy transition. the

both we in just to We’re currently positioned EV fast microinverter are examples charger how well are U.S., the ramping help of energy. these and production two enable the shift and renewable global to

was revenue industrial $X.X billion billion hardware related within unit. our $X.X renewables business our over year, just Last

fully this to We expect rules are renewables year the and again finalized improving long-term IRA as prospects understood. and of with benefits the grow

portfolio a an the managing to time. and and Again, over through diversified customer attribute a cycles product, from consistent delivering important having is geographic results perspective

very We of strong, the continue optimistic outsourced believe about to manufacturing and fundamentals our remain are we future.

customers continue capabilities long-term competitive capabilities come. need and will core is By of value providing in a services, we on manufacturing the growth across advantage. where to to our secular wide them drive our leveraging the creation drivers, globe, Our on years our capitalizing focus and range the

it to take to With Paul that, I’ll through our turn you financials. over

Paul Lundstrom

Okay. Revathi. Thank you,

X. with begin performance on I’ll our first slide quarter

gross year-over-year. quarter. at million up at improving per difficult the $X.XX flat X.X%. from Operating year-over-year for Revenue in line was share headwind revenue down came profit is Nextracker non-controlling some slowing. interest. and points includes was which and quarter sequentially, in comp $XXX profit came Gross with in Earnings with margins and typical totaled X.X%, XX $X.XX That basis X% operating $XXX margin of seasonality. First million billion, against X% was with macro-related a at $X.X was

results income strong as such increased first Reliability was revenue next the continued on growth gen slide. next mobility, segment to trends Turning to quarter and billion. secular cloud renewables $X.X XX% momentum, The driven by was a our with and as navigated programs, X%, for Operating volumes we inflation to operating lingering segment semiconductor on margin and XX% production sequentially as and improved power. labor ramping $XXX up increased million, critical disruptions. this

enterprise revenue helped some down maintain at to XX% but as and end down In $X.X in tough Agility, income operating IT. million, and consumer focused of cost was margins parts combination XX%, Operating billion, expected comps, strong weakness execution was markets a a management in continued $XXX softness of X.X%. due

in year-over-year. was Nextracker XX% more $XX was a Operating income what at last it operating Finally, delivering than Nextracker XX.X% million, margin. up revenue at solid million, came double $XXX year,

QX continued improvements in Moving flow on to the decreasing slightly slide with inventory X. net total cash quarter. Inventory into

seeing We’re of signs recovery.

X% CapEx However, QX million, at we inventory continue a on to slow to target net totaled revenue. expect $XXX unwind. will of be

We complex growth continued expect levels as automation as markets. increasingly for fiscal solutions. full we well with and labor the as optimization as investment and machine invest important technologies XXXX, learning advanced in in similar total such These products, future to drive changing Agility are continue to investments

increased along $XXX Free our the driven with and investments million, of by capital in cash outflow advances was flow reductions CapEx. business, of in working an timing

line be the capital continue $XXX flow to million of priorities, indicated, our In to $XXX previously to expect cash back we we back improve be to and expect stock half free more. or with weighted bought million we FYXX in cash As worth allocation progressively through quarter.

end. July that closed after offering note, I’ll quickly on the everyone Xrd our that On remind quarter Nextracker follow-on

quarter. net proceeds received we for this it not of final while So, our included was $XXX in cash balance million,

to quarter, cash this Although we carrying we no maintain position, and continue I level mentioned as intention a strong indefinitely. cash have of of last

have will the the continue best shareholders. to consistently and years of we we’ve As interest allocate in and several over our demonstrated last capital

fiscal XX segment turn Please for quarter. the outlook to slide a second for

and up to our consumer in the down we mid-single-digit moderate growth in Solutions, Reliability at with albeit continued segment a to For to low-double-digits markets expected both expect devices. weakness is for pace. end mid-single affecting be more and this lifestyle growth consumer markets, Revenue end revenue Agility in flat

and comms, of planned the spending by of impacted adjustments IT be will ramps cloud enterprise back CEC half year. infrastructure in the our ahead

So our far, the projections. deceleration is consistent with

our for XX quarterly guidance. slide Onto

adjusted $X.X revenue $XXX expect be Interest income is of and $X.X estimated to other billion the between and million. to operating million range $XXX with We in around billion million. $XX

approximately the approximately We IPO. be for around expect EPS from of quarter. $X.XX that the $X.XX shares includes expense all resulting impact non-controlling to translate million Nextracker guidance of This XXX between XX% on to adjusted And average based outstanding. rate tax to the and the $X.XX, interest weighted $X.XX

expense, between EPS revenue from the X% and $X.XX margin billion year at share. following Looking expect with interest and of $XX.X $X.XX we full follow-on slide, the resulting is which operating between on approximately XX%. XX% year up from This currently between $X.XX our in $X.XX includes to a impact to $X.XX guidance, ownership now the our and billion and our X.X% adjusted to prior $XX.X non-controlling full adjusted guidance going and $X.XX from offering Nextracker

our begin I’d emphasize in we Q&A, our Before our like to strategy and conviction portfolio.

of mitigates world diversified The and strength While underlying continued our uncertainty, to our macro business us faces see customer we momentum continue of and business. base inherent solid and gives the and the exposure. confidence drivers portfolio significantly in geopolitical well-rounded our

Q&A. With it that, to turn Jenny I’ll begin back to

Operator

you. Thank

Delaney from Instructions] of now will question Sachs. Goldman portion today’s We [Operator The begin the first Mark call. from is question-answer

Mark Delaney

reached highest many at the X.X%. …Margins level years, in

can there. saw better think Nextracker, Maybe bit think improvement by you of you that an year that, reported as us in about I given you in margins course, the is progresses. some sequential strength you But segment understand the important factor Reliability. how a also help

steady by and levels at margins? takes puts of should in implied we any be it as guidance, pretty think considering I sorts to but segment, relates these

Paul Lundstrom

Mark. Yes,

I’m sequentially that. just were the see kind much, to through So question. different the take segments. Maybe much you glad asked very better Margins and you were happy of first, we

ago, Nextracker, logistics through still they that, out steel had the challenges first know, you all year their all, So look as as you year, that they and back QX of back. trough a for margins Nextracker and backlog of for couple that, a were were coming repricing years margins of getting

quarter an of execution margin. team in their but also comp, strong I’ll easy XX% So lapping at say the from the north really Nextracker

was really, to see. good that So really

but came the business. if a where declines You look bit, down Look, look in within you double-digit at segments other that of volume was was sequentially, good. Agility, the down little at part really Agility, volume lifestyle two

within think the unit richer As to that be margin knows, everyone I business Agility. tends

managing And on I decrementals job so they think if at a fantastic that. I look did their lower volume,

see So, to that. thrilled

months the very of number what important doing And then nine if look Reliability you last gen the accelerate we next at story six a to over been, has Reliability, to can programs.

we as You saw QX here of last in QX into and and Reliability QX. a margins huge in moved year, X% improvement

of million quarter. to $XX through margins. see profit On dropped team it. happy is enough can’t XX%, very the execution which incremental of about strong I at this incremental sales, say that Very

Mark Delaney

using next some with hand higher helpful in such context. order how you Company’s product thinking Anord some need are the about opportunities capabilities? what even those secular on you at look Thinking you acquisitions for and you of you cash to the That’s add the level Thanks. Flex spoke properly of some and changes and akin about opportunities And that as did AI. several what When to mentioned capabilities? consider electrification underway address years, in maybe M&A areas would type the Mardix the in over to, may you

Revathi Advaithi

it both is power relates in say electrification both and us. I’d what to important as to both are CEC our cloud AI Mark, business and Yes.

that been results We last while, business EV year perform in seen our in continuing the growth overall and came of we it a for business have in the and investing this are in our and of you the bookings the electrification year. to with have how automotive

really investments So, in our we feel there. good

opportunity investments to platform design EV they for our customers that We when use use have want made creates to platform. a

we us they as So give their us joint if house design full do want manufacture. we with can can to own do contract that that design manufacturing them a for to a or as

really feel good electrification our position as there. So about we whole, a

we technology opportunities be At there nice the is. tuck-in And there us. this our did cash of automotive it’s love to we portfolio it well. if gaps Anord time, I’d really around on Will buybacks, for use do But we electrification always came significant really then have is but for the always that as if acquisitions? say would add-ins possible. for focus for look returns don’t in

So feel we that. good about

for the AI, happening from particular you the this is a in expecting customers be a say I’d cloud have important second to around from the thing able that’s ramp is perspective, to CEC on and scale us, big customer. fast. platform we this of are most year half have issue that, that That

I are looking if on best GPU are at point, And customers Flex at for it. use look power But the good fully But already with are we capability very do the in cash areas, developed, power to integrated needs industrial have acquisition from From be products is looking there growth and we’ll that’s capability. have product complex, needs. see one for perspective, a to very that’s potential. have both from business, specific for I’d of will plug-in any is embedded power launch our that these think side. side, of this those vertically buybacks. that that have doing. I very technology mean, You we our with the customers a products launched in that of And say, very is don’t other yes, customer, And CEC strong what at there. lot we we

Operator

Thank you.

Bhattacharya is your of Please Your question. next question from Bank from America. Ruplu ask

Ruplu Bhattacharya

Hi. Thanks for taking my questions.

million all First full margins or much looks that declined on are higher came the the bps Is same. XXX the maybe XX like X.X%. up on by Agility XX, XX non-controlling sorry, on compared in guidance EPS the from year remains and for lower bps mean, And guidance sequentially, interest bps. of $XXX I range especially Reliability, XXX because to margins you like to side, your -- revenues, the Nextracker? better, in it one But, XQ, margins, taking your

think are you we you will -- to that devices can do the be lifestyle lower throughout and sustain year guiding level a that because consumer at So, weaker?

Paul Lundstrom

Yes.

questions, good appreciate I Ruplu. So it.

on all, So first of just comment your EPS. NCI and

performance. Agility, took across margin in was terms We you looked in board. up Nextracker in really right. of Reliability did an Things better We the and good the Like margin said, are rate. You QX. it

that very heard the The NCI about sequentials. So, see, right way. comments answer, and you’re to nice that to Mark you absolutely, was the on my just thinking

know, so interest went more bit prepared you headwind, we a to and headwind called stake our out in little As remarks. XX% that the from XX% down is there or NCI and minority

That’s So it. how about to you’re think right.

where margins softer XX% were lower I But which revenue. within declines. units last they lifestyle is better business say. over been pretty end seeing It’s Sequentially we markets. of soft are here’s about business. couple and of Agility, we’re terms lifestyle Agility the -- considering things would decrementals, the tends for in of In sort was volume what decremental Agility the XX%, telegraphing devices, of had to good that the segment for It only they the be had the everyone quarters, three consumer that in to on margin consumer revenue,

thrilled cost the volume. north to really of X% you all I team of like was the when strong need despite have reduction And strong convert. pulling lower the pressure, things margins top to the and so see And volumes. quarter, to have levers by does execution line in That to the continue to said, we margins. it sort pull softer it mitigate still was And

Revathi Advaithi

so at And like are it’s Yes. in this. of down really performance time moving, performs good And market. instability terms Agility this to talked there’s we’ve how see end always how about a a much margin when in markets like

standpoint margin like in see And from how this. performing a to they’re so a fantastic this well is time

feel we year. good So, the about

quarter, our QX. fiscal We’re still in the first

full So, it’s is. way a we it good year think time to hold the

a have where do, feel overall margins to terms come in. good I prudent think it’s but in thing of

Ruplu Bhattacharya

do of ROIC, you it’s quarters that for invested the on your do mean, ask that do target goodwill. the been in you are like on the what’s metric? over couple things range I Thanks. low-XX% over XX%, me some next that? what of or couple a see like And What target, including how you quarters you trending potentially improve last Looks trending follow-on return that Let question to years? the can of capital.

Paul Lundstrom

Yes. things. funny And one We ROIC of XX%. target those is of north

our XX%, you the on you’re leaving be that could target If overall accretive table investments investors. to

rather our rather that I of be solid benefit. is a say, peg ROIC north all investors so, to And of would job And but XX%. not that so number, our just hard would maintain certainly

Operator

is from Samik one Morgan. next The from JP Chatterjee

Samik Chatterjee

of consensus where consensus year, one you out relative bit a to I maybe appreciating other maybe side I you have cloud what driven curious, Thank of the like end with was, where you. you would about, think looks any that about a or the that there’s on year loaded side. start visibility is backend customer even seeing the you expect, guess, in look get you a bit that there than how said, I bit I’m where more markets if in line revenue year of consensus you’re more if on the I they’re it like more sort that certain to back by just full when have call more like with in half relation where really engagement tracking the And was. largely follow-up. you can expecting are But enterprise sort segments loaded really sort talked a activity consumer. in in isn’t And here, of backend the you a a that headwind I to number? with know you are at

Revathi Advaithi

Yes. probably will have add. start Samik, I’ll Paul and something then to

higher think us first second pretty I have the to for is than usual First revenue be it’s half half.

definitely strong It first then us. very for pretty right? an that’s was half. So fiscal ‘XX And was common unusual year,

was half the improved year. say half. X% up back you comps if that I second would ‘XX, of at the in the first fiscal half So, look the over

have And you that trends had before similar so, see. we

year. I than more last And this normalization we what would say so, expect saw year we

really acceleration. bookings what feel if volume second so expectation cloud the we has the we’ll about some lapse will then, good have a anticipate the is we in second new half, already and for second half. power some and that strong markets. the us increase you first improvement that much have half drive Reliability is our also don’t in half, difficult And what’s will at a driving look strong comps. consumer I in And

macro out say in for to sense makes environment. then have. And pan year plus to us very I’d will So overall, trying forecast we’re the think the dynamic way we it a

end market in accurate usually our such even dynamic been prudent We’re in five the -- with terms and a very last years forecast in fairly have environment.

lastly, And very volumes importantly that move confident very in we target. then I say, our EPS also is would are around, but

So, I that. don’t you’ll know, add to Paul, if anything

Paul Lundstrom

to That’s clear, you. Nice other Samik. welcome, than No. hear to say, from

Samik Chatterjee

these No, customers with does How with points the putting on for an related relation on you. cloud decision are traditional opportunity engagements. you. that? even a just them. maybe margin competitive of, an what follow-up, higher you’re And AI you run maybe that engagements the is up talked you curious making landscape I’m thank do them? a related there higher a profile with these that you on sort to my of the the of some sort premium if get And rate mix see take margin sort in bit business look what more have to Thank or drive the to to opportunity about AI you of sort opportunity

Revathi Advaithi

in, play really seen years profile right is the the say, consistently on that Flex over can almost that move we has you’ve focused years. And provide participate out last Samik, with in last five solutions customers margin that working in where done up. I’d end all our Yes. five markets we what

in about scale, of you amount like what’s AI, how it Can product, And into talking improvements going capable time. of of can like new brainstorm short said, scale? a of products? customer scale you are With their is lot capable because complex the is the beginning, products terms talking you we in to really handling we’re in important Are with product significant Are I you of comments complexity market. this? of a in the my quickly making

the a consistent, high very price those has we side, partner customers So who things. are that be for do for and is from of CEC kinds will are things main a those capability, technology the command looking premium

our helps definitely and margin. of in So terms overall mix that

will many that And on then industrial own. with who with There’s we we products. suppliers are products power on on there come very the the the of premium out been a already premium We at those base are qualifying designs to side, capable significant our those our embedded a And year. command developing side, products. that. not last are that customers the those some for premier we’ve very in And

I only So, next markets I we shown that the don’t shiny we if have for would go like participate mean, say, profile, end margin we yes, consistently bicycle. we in the

same would profiles it’ll we thing, and So, looking I would say, AI quite meet margin for. confident feel be that we’re the the

Paul Lundstrom

bicycles. No

Revathi Advaithi

No bicycles.

Operator

from next from is Your question Sheerin Stifel. Matt

Matt Sheerin

your and Yes. around Thanks -- revenue certainly, a afternoon. comments inventory and continues on which good mean dollar bloated, basis, on I fairly Question a Paul day’s to be basis.

some about times, talked you there’s because this still to quarters? customers over on parts do How still keep asking about few and Is hard being lead that elevated think inventory out the we relatively unwind that playing are next slow. hand? get to You

Paul Lundstrom

unwind. bloated, will don’t be gradual word be I I inventory will to mean, Yes. love but the

I be inventory to think have we customers continues And many But have blended our short-term support buffer we you ago, that of more plan in to stock, back, medium-term. think levels that and will wanted inventory to sort look carry and of been into with I support sort needed short-term, cases, our that of end the XX expectation carrying months -- customers. unwind. just

last the basically inventory higher you customers sort working levels. or look have carry you that’s of cash capital significant we of the flow, advances, giving cash support had free from If to two year dynamics as over know, those

here happen is, the gradually will down. come quarters over next inventory see to levels going what’s you several so And

see also will levels You capital working advance down. come gradually

flow is And advances, inventory we will the over carrying happen more balance see time, are will cash what we of start to I sheet two because you So, pull than sides back. will those items improve. are opposite think slowly

As feel I kind confident the there. of full surprise of look free generation. everything cash to We on cash at outlook. No in least free. at year, no still is plus million the I change moment our the would say, $XXX change

Matt Sheerin

Got it.

remaining then Okay. stake out? follow-up, Thanks for just that. that. about as how should that regarding strategy in XX% What that the we have And you just my and the Nextracker, and plays exit think

Revathi Advaithi

Matt, we what consistent very have about been in and followed said we have through. we have Nextracker,

can event that You took standalone in Nextracker company, continue a we place with that will and with last follow-on. our that to better see always have the as do And I would said say, execute we will direction.

no on change So that.

Operator

ask [Operator Your Fox Advisors. from question. is Instructions] from Steven next your question Fox Please

Steven Fox

I could. Good if Hi. Two afternoon. questions

First you down that bit further, more follow-up. normal had versus XX% maybe margins break of Reliability little then the a all, business. us give a what incremental little Can Paul, was a on the mentioned And you what’s episodic? I

Paul Lundstrom

Sure.

Profit XX%. the So up XX% $XX XX%. up Sales were math. me, XX%. excuse was million, up -- I Sales mean, profit quick here’s Reliability, was were operating I wish. up

XX% So, referred that the that’s to. I drop

of So preparing We that We ahead sort hiring generation QX meant as ramps. resources. that number of a had had program were some of accelerate Reliability tough. made curve. in lot business QX and of these investments the labor. we stranded next We we to a some And were stranded were

your on as so, those all volume resources become effect and incrementals. it fully huge a And just comes utilized, has

was it. across board. essentially would was of lot And say, the it So, that I I think a

right quarter-over-quarter. energy for stuff industrial ramping was a bunch in business Reliability health number We business a much automotive me, up of of as We well. The got -- now. programs. in the They going on are did renewable better solutions sequentially excuse

by So, than last half better say business what business back would the and I we across saw the performance of much in strong board, year.

Steven Fox

How about And automation I we expand on talk kind just sponsored? machine invest mentioned internal during this you generally Thank to just return those Can is investments, there? the you. AI in capabilities? those things and your that assume think meant you’re how get investments do learning. Are what to those where decisions on CapEx you or then making customer you about are investments? of Are commentary, just

Revathi Advaithi

a it’s say both. would I Yes. mix of

We’re learning automation, to machine improving factory related definitely in factory investments like processes that. things or our automation making or planning our

that. definitely So, investments making on

of improve think, about helps improving quality whether And that right? productivity their I standpoint. from think an kind also but customer a example, overall flex capability you quality helps your inspection as a performance,

are a will to machine many time. capability that that deploy like there examples correct itself can where So, you use vision and with self-learn

these be of funded by performance. would things to better customer kinds the funded and or by So, productivity drive quality either us

customer drives for productivity driving the of an factory investments say the belief also that’s power some that But I’d and most is of us, those for it for kind investments we’re more is perspective, are some would the business. AI a it generative for come the space. what of in So, automation, I say of mainly our is but our are driven, That’s from deployments design product industrial, business.

Operator

Cross question And your Shannon Suisse. is from from last Credit

Shannon Cross

announced least IRA. the about was Revathi, funded pointed the and could by within I facility of as you recently terms of I in South that the in somewhat at supported being with Enphase industrial, if talk wondering was saw Carolina, you to Columbia, or opening

next just this I’m of wondering thinking of sort So, couple money follow you’re government the a about coming have we’ll then, how it, And over results within how years? up. of manifest see I itself some stimulus Flex’s through Thanks. that’s and

Revathi Advaithi

renewables say for that energy. U.S. Yes. IRA perspective, at the in looks growth I would driving from

that will customers. be on U.S. is the by growth our is funded For Shannon manufacturing. focused mainly That impact biggest us,

U.S. a capability take manufacturing like is advantage Enphase classic pivot So things example to of customers that. quickly we’re seeing of IRA. But to

how us customers of advantage and in helps that think a environment. Enphase view we how that that and inverter fit all into standpoint, the customers incentives to still play other growth those we for run out, is there. up I that taking in I for would margin say from done really be a the long the that But be and our work opportunity there’s there’s really ramping should all space are

in growth our results and to that. U.S. related overall several see do we or as announcements you’ve to seen IRA infrastructure So, it manufacturing

Shannon Cross

could maybe quarter. Paul, cash, about we Nextracker repurchase? of cash do about stock How proceeds a into then that? this you’ve what think but then you need last and is you And of I coming little got loaded share the this you purchase should to had talk you those you’re sale are run million Great. that bit the of back some timing, generate $XXX I bought balance, How to if sort thinking free excess cash And cash think share the cash. your think about business? year, pace balance obviously, backend understand more -- you is and flow going cash then we

just wondering return to it about you’re how thinking shareholders? So, terms you. Thank of in

Paul Lundstrom

Yes.

we couldn’t a be up we to able to the step So, to pleased up because quarter first compared and in -- we’re trade. in of the QX locked what challenge sort was QX. did repo really were of Nextracker of because

plus, for so done with something in that. quarter, in XX or shareholders. average XXX at getting happy XX price And million other the or That’s really an so the great way, by the first

to core credit of do Just valuation Flex and the our looking the full is at does relative giving EMS. you of Nextracker. It parts undervalued seem for that, sum and kind

sense long disconnects to makes so, like And it think we as in the we as that, be see market.

given in I few ended a to maybe a if little trough we’re say $X challenging going QX, bit, specifically ago, continue well the inventory last about we’re market. Not up things of million, cash But you $X.X just which if you on like XXX like, necessary. ask do but to several the years hard X.X say, where we’re would X.X, going what’s the from think excludes of and $XXX follow-on, need what good Shannon, on and the number over here billion. situations. say That’s give be chain probably peak, million would take question, sort you another looked other And to supply so in plus years, billion. going use a QX, north we you will I the to cash peg

now. We good think the number capital cash. share Revathi one out it’s allocation is investors excess have makes to We as ago, accretive priority a And pointed minutes XX right our maybe sense repo option. as and

Operator

continue, more time. questions No sir. you. at this Thank Please

Revathi Advaithi

Okay. you hard shareholders and of want behalf to our all and team you, give Thank to And work their I Flex and want to customers everyone. continued their the for for thank Thank And Flex entire you. I support. your course, sincere thank trust globe the a of then, team, our dedication. across to on partnership, leadership our for

Operator

and this today’s Ladies you. Thank conference. gentlemen, concludes

Flex (FLEX) 26 Jul 232024 Q1 Earnings call transcript