FLEX - Earnings call transcript Q1 2025

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Operator

Good morning, and thank you for standing by. Welcome to Flex's First Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I will now turn the call over to Mr. David Rubin.

You may begin.

David Rubin

Darryl. you, Thank welcome conference and first fiscal quarter Good to earnings call. XXXX morning, Flex's today Executive soon With our our is me Chief Officer, CFO, Martinez. Lundstrom; Interim Chief Officer, Paul and be our to Jaime Financial Advaithi; Revathi

available This by and on We for replay as section the for of earnings Investor today's copy will summary and flex.com. Q&A. Slides press will Relations a remarks release corporate as call financials our call recorded website. brief the give be is followed being well are on at available

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

our otherwise and discussion today's For stated, will in in of forward-looking section our and Risk statements. Please is or these in to a Factors unless statements no the year-over-year change appendix found to these see of information in recent we the SEC. Note a non-GAAP well be full as financials to on results Relations growth this basis be and in in all the undertake Investor measures the full reconciliations press can obligation filings presentation, subject with most summary uncertainties, website. metrics release and please risks non-GAAP the slides note, cautionary GAAP be on provided as of posted presentation the all will the update

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

Revathi Advaithi

coming $X.X joining slightly results today. Slide a expectations. on prior solid with Thank had you, morning, you in billion, off Starting X. David. Good at our with our thank revenue us above and We for QX

a automotive adjusted at are But in in margin also end $X.XX we In our what we seeing addition, our about talk power delivered say came markets ramps mentioned following X.X% key better of our moment. large EPS. I'll cloud, and business. in operating QX adjusted Also of the we program multiple trends our across the that quarter, I'd mark are and expectations. last previous would start overall,

to we As strong through we expected, fiscal made expect continued we and progress. the begin for very year. maintain of quarter prudent in to year. Overall, of the and remains and as tailwinds full QX, the strong just back positive our achieving it believe full execution outlook half our given year I'm confidence the current these generate our our was the revenue, programs guidance. proud results bolster environment in macro dynamic it's And QX this

Slide turning X. Now to

our to end some of demand strong The Industrial power AI for and in demand our our markets. CEC as for business drive data transition Looking cloud products our our business. center at key solutions as continues in the well

Simply solution from portfolio. As is center enabling offer our comprehensive and power recent customers an with to product you cloud vertically the IT center offering addresses services cloud our combined faster. our XX% of Day, end-to-end data recall we Investor our manufacturing data integrated put, move and

happening for our positioned EMS and Our to from aspects are clearly long-term for power It's grid transition AI-driven the customers value services of products also cloud breadth combination strategy. to and truly chip key provides has the the well differentiated, growth the is fueling us which one from product technology to and of of edge. services plus Flex. This our

automotive. to moving Now

industry latest calendar the the of bit global soften year. Some expectations for research a indicated vehicle unit has will

increasing about the concerns there market based continue automotive wins are the both adoption. we However, to outperform and pace of EV content. Clearly, on new expect to

electrification of as will However, the the change continue. in be we majority longer-term EV less the sentiment is the transition typically by agnostic to revenue believe automotive affected powertrain. Overall, our recent will we towards

be in interest technology, which in this an transition. hybrid may increased important Additionally, bridge we see

to internal hybrid require additional For power as opportunities content engines. gain and compared EV they offer systems Flex, both combustion

advanced of solutions combination which So compute differentiation. taking Flex competitive power further back, products, and our are strengthens of many step IP, our a

Now to digital health. looking

soft the we're market, We approaching which supply-demand demand equilibrium. against a device near-term for has medical signs equipment balanced been There medical see continue several strong quarters. some to are continuing the case

of recovery full remains However, the timing uncertain. the

here changes that part there markets. is factors. serve are remain with important to combined complex including in The increasingly positioned industry, health these opportunities shrinking and the technology we significant well form changes translate These devices to long-term care strong

this Now and time we're strong This strategy and deliver the continue strong a record executing will expansion, generation. in cash future our very through own has also We're you cycle. see well by dynamic foundation double-digit prepare to longer-term markets our and results, for can highly margin to opportunities. build key growth with taking EPS

We are excited very about our future.

Lundstrom probably well you for the of with next journey. Jaime organization. will Paul thoughtful new partner permanent that, you and him company. Reliability financial leaving we our update. our be Group Paul opportunity me step CFO been in a take SVP leader as a a pursue role over pass a a Martinez, interim saw behalf PE-backed conduct I'll the call our the great Paul release, team, a has earnings through the the we to his to strong stage to entire wish for Jaime as of private and Paul? in in CFO. With of to search will Finally, On and

Paul Lundstrom

fantastic. of part the script to last and, say, Okay. team. maybe been years the from transformation really just this have a course, of And absolutely being part just have break business of enjoyed quick I hey, minute X I'll being

is think culture here something at special. Flex I the truly

So I'll begin quarter on X. Slide the with that, performance first on

profit margins year-on-year in X% year-over-year. XX basis gross X.X%, margin improving the basis quarter, in $X.XX revenue about at $XXX million, sequentially for came with quarter down as X%. That profit points per and And was increasing year-over-year. at share Operating was First operating improving earnings at also was $X.X million XX up expected. Gross adjusted came totaled $XXX X.X%, billion. points and

medical billion, was $XXX more you favorable than year-over-year. devices. $X.X in segment expected and was first next operating quarter If margin demand look stronger income our and by X% at revenue on slide, anticipated, better Operating the $X.X million, robust the by operating at mix was were increase million strong flat led revenue than achieved in team Through power Margins results typical execution, Reliability management, in operating came a margin. and with an $XXX led also year-over-year. Agility at line was cost effective of cloud. income X.X% XX% seasonality. In in billion, Agility, strength

X. Moving to QX CapEx Slide on cash flow $XXX totaled million. net

to year-over-year. and we and our by inventory happy We fiscal the this to to again as of year, X% reduced revenue report growth For net of expect productivity. I'm full quarter. maintain inventory in continue invest future improved net we target XX% X% sequentially also

in received coming There cash strong may quarters. Free the was QX in the in quarter quarter, so gradual the continued a benefit lighter. was a reductions inventory little flow timing expect be very just the cash late a in from of We $XXX million. little

However, our of we plus. reach target track million year full $XXX remain on to

you Jaime? and shares demonstrated During of we we XX several Jaime million it totaling $XXX QX, continue best years, over the allocate over going our interest of guidance. now will will We who shareholders. I'm with have approximately billion. about quarter And buyback. have repurchased to to exited of as the walk we through balances to capital Martinez, the last consistently our million hand $X.X in cash

Jaime Martinez

outlook Slide XX second turn you, fiscal Paul. the segment for Please quarter. our Thank to for

by power high-single-digit with For to weakness and Reliability industrial. trend Solutions, tempered center largely in devices, we cloud, to data down medical macro-driven mid-teens expect in be revenue core

For non-cloud Agility flat expected QX, slightly is related IT largely softness is cloud, by Solutions This driven continued be to network. offsetting and down. to in revenue enterprise strength in

guidance. our for quarterly to XX Moving Slide

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

adjusted $X.XX million translates $X.XX average on and tax the All to between approximately weighted expect this rate quarter. outstanding. EPS around shares We XX% XXX be based that to

guidance Looking following at slide. our full the year on

full early Revathi we're the guidance. given As our it's mentioned, year year, in maintaining

and $XX.X back operating comments. We expect between between Revathi X.X% to her and to for margin $X.XX with X.X% the $X.XX. With EPS turn I'll $XX.X revenue call Revathi? and adjusted adjusted that, between final billion, billion

Revathi Advaithi

Thank you, Jaime.

through Before growth, revenue reiterate Q&A, shareholder we margin I'd to generation. and EPS and expansion value profitable to our cash commitment like start creating

aligning potential. with drivers, end and product are plus macro with high-value secular strong growth on markets strategy EMS We plus our significant services focusing

Our will operator ongoing capabilities sustained you continued creates manufacturing for joining again growth and us to which call our turn Q&A. our to expanding us differentiation lead for and positions I'll profitability, to and advanced and technical the the focus value over shareholders. Thank on creation for back begin

Operator

[Operator from first Our Samik with line come JPMorgan. of Instructions] Chatterjee the questions

Samik Chatterjee

current if well results you strong headwinds, the of follow-up. still Maybe of where terms can I revenues industrial business side in with first on question more markets seeing in in that the sounds trough you those thoughts seeing the here. start headwinds bit as your Where of Congrats rundown improvement think some greater are have on you're you still. just others? a for facing a terms the that headwinds Maybe are is a than terms end as brief And your past we visibility in of seeing do with consumer, if you're can on of segments cycling the share like there? on my

Revathi Advaithi

continued that the feeling space. that headwind that's some I indicating say is the though downside probably that would industrial, is with important say, I bottomed and industry one seeing would can described would in say the where is the risks, out be the that definitely, most, that. would the I start I I'd renewable say consumed. say, we're as inventory will I particularly you of places still it's think I'd in it,

an uptick So start we seeing should there.

seen the in of would On have business are softness, quite our consumer would say we terms I in overall side, we but revenue. consumer I stabilized, say,

our continues headwind then health the And overall, places so agnostic the space. Automotive we the I I'd those feel there devices are I could to X in grow good say look our on I'd about But say, -- then in is the And cloud, say, those, end some see power if center is So we're some say side, markets, that. the still pretty the and But the us strong. there you both space strong would I place strong on be solution, data is tailwind said, for headwind. IT lastly, at space. then telecom really would really our to that I powertrain. because

it's good offset So each to other.

you hopefully, some that gives So color.

Samik Chatterjee

come here portfolio investors by the improving taking questions triggered using Revathi, at bank businesses of through that some sort from on rationalization areas of lower of any company is of seen more there? portfolio look one focused you within contemplating more I've the in that the the first actions likely your opportunity is, margins more would are some margin look of and the on taking to the recently front, actions to terms And off? a to any roll now have particularly on that be to portfolio them at and you Any the stronger thoughts half you of

Revathi Advaithi

have is Yes. mix, you say and one to focus on focus who keep value storyline to X business end thing winning our and I'd your day. really improving stick to that to units, mix consistently ready I've that do within units business the and pay within something X markets leaders customers is I'll changing the are said single the go paid business better they to So are every those right? on that

power portfolio us thing high that. would on clean around I center making and the double growth second the data and the side, seen by is, have our like that's one of profitability down compute areas say. And in significance better investments of you you So and saw then

and on investments business with that So about services. the a down we and We $X doubling helps product-wise there, commercially, been change talked service we're both investments billion have mix. making the same

is automotive. kind portfolio that's areas changing Flex about point portfolio this center me, of I'm better within and units data and itself in and driving rationalization X like mix the thinking how So running that portfolio for rationalization. really at business the the high-growth And

So in nothing big planning the here.

Operator

of come with next from line Sheerin Our Stifel. the questions Matt

Matthew Sheerin

we billion talking you and Is billion in business. question are billion the and that Could the coming traditional the or had quarters about $X from about $X you've right? the in think targeted in cloud. ramping revenue, -- talk talking in business from both how And business. in A customers run been regarding of strength terms power that from rate your your it's about? $X core terms of power seeing you that I know still ramp, you're many so I

Revathi Advaithi

in back business in $X Day, step question. Matt, Investor the you kind term between gave trajectory around we that billion, about $X power $X right? we said Investor the thank very around today Day. And said space. is billion the what about feel our for CEC I'd let's our longer billion good business and say and our the CEC power industrial for the and portfolio in We of IT data in growth business we talk center

up say as quarter, a we we the And we around think space. of in then I than a $X said discussed. rates becoming XX% business. I would eventually growth power to ramp an more building grew aggregate, this XX% billion kind that

As the XX% feel on. new growth kind I year, say I more we through about continue programs of ramp, longer-term would have coming forecast. the a to I which rate gave you guys, was many good of a trajectory we

we very I shows rates know, would that it those feel we will Matt, you we hopefully, if about and quarter-by-quarter our run that have I I Investor say, but a that. hit So good playbook, gave don't Day -- in will execution,

Matthew Sheerin

for talk being differentiator opportunity? power and these deals many leveraging other is could Is cloud as you're because the And opportunities to won you that key question this then So how that cross-selling about you're those skill here? dynamics consigned sets a clearly could talk business And please? about your to you is just I the business. regarding are of both would you expected versus And start of of inventory that, continuing have on actually build some inventory because of ramp inventory. Okay.

Revathi Advaithi

here. all Matt, good questions Great. Okay.

the So lifting deliver portfolio me product the kind created. about organization structure I've the thing that let plus of we that the EMS and of on most our cross-selling. of to we services where heavy done create good feel One create in strategy, have really we that, said overall have to kind this start plus

we that organization, the Within delivers have critical Anord Mardix power.

that's services power revenue $X billion an that group We have embedded group. of then the And have we delivering today.

kind will across what but ] cross-selling seeing just So Colo [ customers. we of data is centers, also the do we not opportunities hyperscalers, are

full to sure organization that So we our we are of make cross-selling aligning that take advantage opportunities.

that is to the to focus incentivized to drive able So alignment, this making to organization right we sure opportunities cross-selling that be those is on will continue structure -- on has execute opportunities. cross-selling and

you'll last worked organizational continue it's ago The years of for was drive us see time in well did so And that and change. change. out X to really I us organizational terms

when consigned this that focus significant across and them decision-making, the So inventory our opportunity. On customers worth we to pluses I'd of past of and in kind impact support I that is inventory, in kind it that make. are our business in have rate. that's minuses those an of will on are business. any cross-selling important the see we normal about part don't said terms say, inventory, discussing decisions or of overall run But we revenue this And

we to consigned, As go direction customers that build want way. the of in model the

really So change. no

Matthew Sheerin

luck to Okay. And Paul, of you. best

Paul Lundstrom

Thanks, Matt. Appreciate it.

Operator

from the with Wang questions of come next Our line George Barclays.

Dong Wang

assets horizon. services. but some of Anord Mardix through on of power kind kind of you That's bolt-on IP, the kind are just looking you also Previously, to opportunities at own of Firstly, about assets. maybe unpack can value-added kind talked you guys acquisition potentially of related

saw ] more to the as high of give the So you a targeting in you color term areas because near grade around higher-margin little [ or those kind portfolio business, towards can are shifting just the portfolio? maybe enhance further bit the term medium you

Revathi Advaithi

of off I follow-up continue me M&A. the the in you let talked -- George, do an Day I've again. said and Investor about power growth keep in the good valuation. we that guys as But last opportunities both And prudent power see is that seeing. That to as expansion looking that you terms I'll from time, start our to past focus do feel to about on in capacity position there We there for. have bolt-on our the which hear opportunity the to is accelerate the that business. expansion for embedded are the it Okay. we what space. the we described it we're for, power. it and in has also margin we're to we thesis in critical returns you have markets terms which in with and good being the very bolt-on good are things And since right required driving up way is that in to end for you've really look we assets this executed that continue right drive and to looking the we'll is has to have we to a M&A our sure can expansion and making of on great And to know, said, feel right

that's M&A. we So how think about

need the portfolio assets good overall, finish the we're the can't and may we second your really our continue -- power results. focus we be we'll of well do our of to to, for that wherever what that come So end huge right good see to looking think in feel able markets. a look really terms growth along, assets not of going we're right we be terms if we'll in terms But what but to But high-growth part at not in look driving now. question can for we that it. Really out feel we'll accelerated super-selective, We in of terms of George, you that's in organically.

Dong Wang

quick if in a Great. can I I quickly. squeeze have follow-up

so holding under about of, mid-teens talked of in think still the kind assets, of rate, power revenue much that's the talked kind growing now, run the kind creation you eventually billion you kind Just margin $X I $X investor of the of margin, Xx by higher on especially billion, that's guys community. to

the cooling sort even the maybe power around sort liquid the Blackwell, to transition more pitch fever as curious of is as of we Just becomes critical. world

the does change architecture Blackwell the of kind sort eventually margin for behind critical you guys? such growing a driver power, embedded billion? And of the revenue to impact using the the show products the underlying growth $X the and driver how you your profile So with strong can power,

Revathi Advaithi

that whether is the George, we happening. driving, this We're architecture racks think or accelerated that to that it's XX-kilowatt go customers I'd Blackwell use customers say other will proprietary architecture right? and really are power important, hearing in be any our of

feel need are is that given $X I'll that our you why -- to does both critical And businesses. And we kind considerable So with expanding of that our and rate and required drive underappreciated you, growth we power about technology and billion. from which from we when we embedded value. that's power $X always will agree expertise the have execution you billion say confident more

So with that. I have to disagree nothing on that

On integration today would participate from we way the liquid us And technology terms in cooling of I do side, pollination perspective. clear of embedded but hyperscale say in those with a for just that with manufacturing a the a in not very to power will solutions, key liquid cross-technology between a continue cooling of customers and cross-selling, businesses. differentiator the technology both be technology terms

really off are kind of investments terms feel in good us. for It's in -- paying So data about our good overall IT and power investments centers. they're of and those

Operator

the with come of Our Advisors. from next Fox questions Fox line Steven

Steven Fox

for First appreciation you've my thought I for I'd about question, company, the all the show done Paul, just buyback. you ask

lot already to for cash back especially year? of done flow forward, shares since through on sticking you're You've $XXX your thinking a buying the million the What's quarter. this going free

Paul Lundstrom

Yes.

think over of a the on come great to to Flex that. of continue More weeks. is next in we'll couple investment and continue to we kind lean So

Board up our process, per coming have our as and reauthorizes. the We that's when Meeting General Annual usual

a probably worth stock. bought weeks. But quarter, more color in million of get bit And so another about couple we $XXX in little you'll back the of

of last little doing the of look we've by And down Steven. share I night, count million I couple of a we over out count. think took years, the XX a about last think just taken bit XX%. was back I shares

that so money a lot puts is. last where value And definitely with And a we the are think years. of our our our program mouth I over company created couple of we've buyback

Steven Fox

globally as or of at to of to at been least. A still look on the news work et through they're you forward. in footprint tariffs and then, ability to an the different a with these going opinions of lot different customers maybe other Great. to politics And say see handle opportunity customers' get cetera, how Is do the from some these don't maybe enacted tariffs, going there lot How your there's best And issues. last get Revathi, Flex weeks few enacted? more trade of for changes? wins, luck governments

Revathi Advaithi

creating our it is and good creates X thrown say plans with Steven, chaos are new Yes, because of them our And changes supply in on tariffs, these gets this making prepared. our every number that executing that around the that I would focus really forward big customers to last to prove really conversation look X, on tremendous a that proactively at is sure part years, and we're chain. with for in it, what is a real customers focus

executed conversation, that was common would So every it's participate our help new And almost is how right? about so implemented our part with to tariffs days X and even we I in it's new become DNA, C-suite for set conversation in. on unfortunately, supply sure of execute and having a say, a well customer their strategy we news, time resilient. customers is be of get can of every planning chain if are really become a strategies strategy? So with I make some what new And should them that ago, I the our same these

us, does So for really provide help customers ours opportunities on would it a I disruption kind But our like the this opportunities they want. want. of of what not companies say creates lots for really we focus deliver to

Operator

Instructions] America. [Operator Bhattacharya of Bank come with next the Ruplu questions line of Our from

Ruplu Bhattacharya

first ramps. with Last that XQ impact my needing best next us Paul, I'm was you great wondering Maybe invest give and about I'll can to you fiscal that ramps less had margins. new question you. and program with you in you new expected? program than these details talked going impact your if more And to Was it quarter, was working you wishing assignment. the for start on

growth and 'XX, do coming when fiscal steady revenue state? from program for these much to they ramps get how the Specifically is of

Paul Lundstrom

appreciate of first all, Ruplu. comments, Yes. Well, I the

the had for talking ramps of of As ago and we that first as QX. number yes, the a where stepped into sequential QX quarter quarter, change quarter. the recall of were And the anticipating the we sort about sort about conversations we were between first a we

say up mentioned with quarter I it ago noncapitalizable about costs doing had was little period the anticipated. less facilitizing overall year-on-year, a would great which a spending frankly, had than that what ramp to saw I we was, what than better CapEx CapEx, and bit certainly sequentially. with QX all with thought. associated was margin what -- comes You stuff performance, even better strong readiness. I with associated see. Really

we going work to continue ramps. the we're to As look ahead,

going had go we Revathi out through earlier, as up way number with moving all of be of year. the the we're cloud As pointed a to sort ramps

we through And progress think what's the expecting up leading margin that through as the But expansion so we're pretty year. and year. be we sequential steady to ramping will that's I mix the the

systems arrow all moment quarter. at say happy the was performance. with would an I Very QX So up definitely go and the

Ruplu Bhattacharya

ask Okay. as my I'll Maybe in. well follow-up can chime Revathi and you

unchanged. XQ the Street keeping a is range for and $XXX you're above looks maybe XQ. of year the EPS $X.XX And like your $X.XX reported and million fiscal You you're like $XXX million, fiscal and it midpoint revenue guiding the full above yet guide

incremental is that fiscal half? the the any mean, question Revathi, upside, where we second second where the is there expect is, incremental would weakness in -- what fiscal if I should in there half? So first -- And

Revathi Advaithi

and executed we top this see us. terms is Ruplu, say, about would really in QX the performance of -- well, I both year. really feel full margin Yes. line and We fiscal for good

the our that guidance with that's think is line the gradually going said beginning we in and ramp we're to how are see in in we performing. QX what I year

into And read to say year kind say, of would would much in I I early shows would that's it. and thing way lot to a And prudent main full out of it I the the So in I beat we're year about in $X.XX how feel continued in it's thing wouldn't QX very I about and and playing year, It's good with really full we planning now. would the right on. QX, think too makes early do right? QX, from again, acceleration sense is. the say guidance. the keep is a it even year that's what the that's

Operator

the Our KeyBanc line next from questions Markets. of Barger Steve with come Capital

Jacob Moore

on Moore You've for got Steve. Jacob

one for me. First

One that Flex how driving much I past fiscal has think, and how appliable come to factory core that months, fiscal efficiencies gained Can is 'XX, is the against probably of still for XX in over this was opportunities X and goal for improvements year? progress talk left squeeze or the opportunity along the productivity. you of to out

Revathi Advaithi

transformations that automation and that big I you improve see about have for that's new from in room terms -- much it's Day, productivity and say you of the significant executing details itself. I how in of that the not expect general some Investor teams gains. break will we're from perspective, of a to terms have happening expect one would this we was AI, to how of driving then shows is -- improvement in Flex. continuous in manufacturing is the factory margin or those it's meaningful think We factory term, a much. and software But But I of of focus my automation will of in Flex. in that. of long if to favorite amount impact I'd and have Yes, back that chart impact a as hardware topics mix year, specific some say I step technology productivity, out guidance, don't come terms a there pretty a whether from of terms our and productivity for whether say to in I'll say would shift we think that just lots our factory our give opportunities, showed just because terms productivity little for from baked the continue to

flow you through Paul? don't it you focus of change comes would it from margin a improvement, anything factory. I'll from And I us. very comes and some every that that's add if mix for big our at And to to it, So know, look of some expect quarter.

Paul Lundstrom

probably Just been to million. I'm operating anyway, you $X.X the is, on a nice you to 'XX Revathi's -- think year-on-year up to to well, guide, our time have glad first to of all, year-to-year, point, less midpoint coming. picked long at maybe we'll the at of $XXX going of guide It's Steve, billion 'XX. be again, but add the call. some hear about coverage. just It's about But the midpoint just our up revenue, from profit

best with we And job believe optimize with and So significant that as we our got Like and opportunity is we do higher-value tremendous course, there's down that from Look, I areas. nice of better volume Revathi, the the network. can continuing continue of said, is mix into never road. mix part to contraction that's can. And drive factory a that comes done. continue to engine just we've always lot very optimize learn. and There's profit But growth. of a factory to things as a fairly Revathi operating huge get to

on So nice the the to call. and question I appreciate hear you

Jacob Moore

additional identify model. value-add related bit about ecosystem a and second This any that you to of those a of then similar Could areas something top to a on like ]. for think areas areas looking other for there your like to you a follow-up business one see Are prior up any you add traditional to why model, where and the And little a specific you core [ Understood. ServerX EMS represent? effect question the relationship? business could that is me. apply set services you products opportunities you're margin thinking I'm

Revathi Advaithi

as of the that ecosystem, center we businesses. big in bucketize big not kind opportunity but all our the terms services of say the just across would I data opportunity it Yes. has value-added has

it us. or for they whether is to it customers proposition for deliver able bring of it to So is end-to-end value really positioning product whole whether for really customers is into waste, so aftermarket important the our their remanufacturing being factories, taking our or product the as refurbishing

the of consumer logistics is whether So and businesses, of the of it, whether solutions business logistics from the reverse it's everything both in it forward the in kind it. industrial health or it's business,

products, space. of waste. We announced of of small helps taking that acquisition, the technology be in to it more that a acquisition from could really kind a it the us remanufacturing, staging or do refurbishment it So everything recently

and all and about markets, opportunities accelerating and a outside to expanding is I today end and opportunities for organizational $X both health, We the applies talked we're that say putting us big behind lot moving it billion of large being profitable. very of consumer around business both that. forward horsepower for So would CEC industrial growing and the services, in our

Operator

will questions Mark final from Goldman Sachs. come line of with Our Delaney the

Mark Delaney

of your wishing thanks much forward. and help best so Paul, all for you the going

weaker at First question some to aspirations a to areas the longer-term your pricing of been telecom, all, parts the of difficult hoping needed landscape that has if margin bit more is on that to does at on little double-click with? affect extent, more have and electronics, seen in within in like industry end Flex conditions the broadly market more that competitive so what if consumer all? And have deal industrial resulted

Revathi Advaithi

would improvement recessionary I margins itself moved kind pricing one thing seen capability the say, the up. market to industry, end and I that exists you've margin or weaker X last So would everyone's the of, has really environment for years, capability that of industry the in kind the right? Mark, X say, shown is over this

more terms You of have in overall execution. seen discipline

because would see question, pricing across an adding the end downturn You do for that all was inflationary it. has played how not behave have when us, focus always seen need the this in the environment in through you because on say held world. we out this the capacity industry same that markets. I has didn't weaker that And does through

still on through model. has of focus And hold selling for to value consistent very our is and terms operational where So can us. pricing really the in value sell we

our say, I only it in terms and longer-term position our anything, So of consolidates guidance. would margin if strengthens

Mark Delaney

political to the another supply extent candidates and customers And shown tariffs responsive the support proposed President. to already for chain in U.S. running from and of to with ability the increase in geopolitical on what manufacture an they been But want in of the what you in. of question needed that's specifically being U.S.? to kind issues regions environment. a something has about the more terms Flex to into in one have There's and order tariffs domestic or extent maybe if to talk currently manufacturing? U.S., with capacity higher would import be support there's Flex could products that increased support could in relatively And what the place enable tariffs customers investments you quickly in perhaps

Revathi Advaithi

around is say, companies opportunities focused chain our the tariffs ago, result us And what Mark, last those of earlier, shown unfortunately, a Flex would tariffs about. heard a our about this talking resiliency X, customers. And years I Yes. for movement new really another mentioned have with for big we for the creates just really has on like chaos them product supply that accelerating I've is customer I a customers. topic And what building is of us. for X as is was couple with days

So Flex takes opportunity. this really

again, I whole plan We we become would us on great, can opportunity and of complexity you based that's but the products faster these ahead. And because have then good some really it And at market, the this. execute more of not say, some it than going for provides been for customers years. through our anything, could of So plan for if anything And execute, really years the right? this the X we to have types last issues. help else this mix adds take these to of to

to this to growth really and really So resiliency. more just is it help I customers it are adds hopefully, we say our then us, build on important would for but focused

Operator

hand over now back to closing for call the will CEO I remarks.

Revathi Advaithi

Flex trust you our want and leadership our our you again thank you lastly, quarter. my continued globe everyone. forward and entire you. next Thank with shareholders to for customers dedication I for We team their give behalf joining Thanks, On continued to want thank to all partnership a speaking your really of contributions. Thank their and to I sincere for team, support. And look across for us. the you

Operator

Thank today's you for This does conference conclude call. joining.

disconnect. now may You

Flex (FLEX) 24 Jul 242025 Q1 Earnings call transcript