FLEX - Earnings call transcript Q3 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. Welcome to Flex's Third Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I'll now turn the call over to Mr. David Rubin.

begin. may You

David Rubin

Financial Good give Fiscal Kevin. is welcome Flex's Officer, new to Chief recent and Thank Chief remarks interim Earnings morning, followed Conference Quarter Financial Chief our Advaithi; XXXX Officer, Martinez. today Kevin Call. Third Krumm; Executive our We'll you, Jaime Revathi and Officer, brief With our Q&A. me by

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

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

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

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

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

Revathi Advaithi

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

with quarterly at very came margin and Revenue let operating QX, So and results with record billion, of Slide $X.XX. X.X% at had us begin operating margins $X.X EPS in strong We on delivering another X. a EPS.

the handle clearly, incrementally achieved to a ahead, jump we through but above And in There higher be quarters this X%. six the we're QX. margin ahead as Now performing work operating the dynamics, levels. in still we fluctuations first current could we some expect is quarter again not at

execution exactly that on margin from our consistent in quarter this unit And record mix another and improvement drove efficiency business strategy point to every is important improve what margin It's to strong performance. comes of out Flex. across

other key cooling liquid Crown our very portfolio. capabilities We closed JetCool adding our data the grid Pointing on modernization. critical our technologies data S&P to in well out both and and in capabilities center as chip our expands as announced excited adds to Systems Crown Systems the XXX. our acquisitions, direct center a few to previously JetCool to opportunities quarter. also MidCap We're join power highlights expanding

X. turning Slide Now to

lot want people has for the through acknowledge in discuss to week. think I there I sift the to been trends early, that this I plenty quarter, Before there's a of It's and noise how the the expect But to and hear days. growth In data this center in important a similar coming our year-over-year we XX% is why quarter, you'll grew quarter. next continue here. business minute,

comes is underlying major the and technology increasingly more transition Our towards compute, opportunity AI. just driven from by than dense this

from headlines, road. will if the drive pessimistic increasing chip this you the this we're week's from needs down and still most transition consistently even So these power seen Also markets. This view throughout we still because echoing level previous data headed cycles That's before a multiyear the CAGR remember, center said to have XX%. center the data center. data we have we in closer take expect

X better and across the last more This mix the executed a because we've to have there's efficient been truth is the lot entire noise portfolio, continued years, we and is deliver. through yet cycles. company of becoming Lastly, over the our a improved

So comes whatever to continue tomorrow, focus headlines we'll strategy. this on

and from strength coming expected, as markets. QX data from with moving solutions health The some in trends consumer-related Now on. center, were additional largely

grew difficult comps. This despite year-over-year business XX% robust quarter, a increasingly center our data

resulting portfolio hyperscale fewer suppliers. our to our from looking place power continue expansion. help seeing greater more sustained emphasis We're demand in and tailored cloud We for on see integration solutions from cloud AI-driven and hyperscalers programs

plus and spans the a the Flex integrated and This customers. product our a only strategy, you fully EMS that's grid power portfolio plus offering services, Through from our all is true with products services to way offering differentiator, can see the provider that vertical cloud chip. growth comprehensive racks, is whose our encompasses from resonating

advanced device a very scale. we in before, medical mentioned exceptional I design capabilities manufacturing have give As QX. in we some technology demand saw strong perspective, medical and FDA-regulated To at

we diverse space. set the a of med-tech see longer-term opportunities out, Looking in

as with includes had course, medical technologies we GLP-X drug also recent this Of but where devices, well injectors. win markets our a delivery as equipment med the

the med Now lived. but be long to tend tech contracts ramps take time,

our strategy So building growth. future pipeline the for is about

we mentioned, automotive. and and capabilities softer in Still, we previously both trends compute towards the remains in technology intact, trends we longer-term seeing are and these demonstrated we As modernization powertrain near-term have have areas. advanced market-leading of

OEM auto these So succeed as progress, in are these we transitions. technology customers will confident trends important enable to our we

reflecting is go, portfolio the Now important to and all create capture we evolved strategy. and come in opportunities our our on of Cycles diversification part markets. better an of have overall, but end

of also we're tariffs. getting some briefly to the want around questions I address

tariffs geographies? are time Or but Remember, the supply other of has now. helped environment in that customers major geopolitical We is and shift the we and asked, X.X frequently U.S.? ugly our to across manufacturing then crisis years does chain navigate through manufacturing does will it to list more multiple few COVID, reality events. continue flux a Only then an for expand been the the global have tell,

events. been set partners, trends motion Stepping both clearly resualization by is these in back, a and Flex facilitator preeminent manufacturing previous one have the of global of beneficiary who

in established includes a This America, one the the massive footprints supply global U.S. and largest North footprint. of significant in chains We capabilities with diversified have

a Now is no are recovery played on for sometimes say out a round. Flex, a be add, and just cost, I'd there we are timing, risks tariffs dynamic there it hasn't the lag that to broader closely. monitoring that how very such something are in not is it environment and it last That's as volumes, issue. pass-through macro can but impact in been potential big a slowing

embedded in The our their we the to resiliency adapt past, and customers adaptability in we're and competency. And supply ready have as manufacturing chain help core our are strategies.

evolves. the However, landscape

Martinez your stepping managing Lastly, thank our CFO. did and in I as at I job contributions to Jaime, transition, for Jaime excellent to this Interim want Flex. look you forward an future

welcome tough financial with our for ready strategy. I'm CFO, I'm ago, across He weeks strong Krumm. Along Kevin sure very joined align with he's brings new our that, but excited a industries experience multiple that few us to Kevin questions. all the longer-term

to who will you Kevin? through over call the results and our take financial turn Kevin, I'll So guidance.

Kevin Krumm

Revathi, morning, you, everyone. good Thank and

Before been leadership like I forward to thank and throughout provided get transition with has forward. started, Jaime. partnering The to him I look Flex we I this excellent, has both as move too would help he

you, Jaime. So thank

our X. Slide with performance on Starting financial

margin continued points. Adjusted across and operating substantial to $XXX $X.X a was growth points increased Gross improvement, X.X%, Third XXX of to a billion. above X% gross quarterly new This all mix solutions basis $XXX driven driven data quarter was consumer-related at The our end million million, was profit up primarily markets. margins by cost basis XXX revenue and strong operating business was income execution. performance health year-over-year by by margin record X.X%, totaled driven expectations with up and units. favorable improvements center, gross

year-over-year a share. earnings flex $X.XX of increased Finally, for quarter per adjusted share to new record XX% the per

or mix like improving that's multiple out dug and is me I've from this stood It's now two coming efficiency consistent Revathi margin to reiterate over something every it. I'd company. unit. to said, driving years as in business one really just This into not improvement

really building portfolio that right to a think I it power the the speaks of in and markets. end diversified doing

business in we to the this challenged favorable our environment. next revenue this quarterly offsetting record quarter remains weak auto, Operating playing to $X quarterly all In in the units. and sequentially by and devices power which billion, for medical cost margin on as was $XXX driven year-over-year and broad-based income flat You X.X% a million, of execution turn was slide. on a strong segment improved can and again continued see both mix operating by at Reliability, out improvement segment macro results strength

end strong improving consumer-related and was to record operating also sequentially X.X% revenue driven cost with In Agility, income margins and $XXX execution. on was a million billion, to by strong $X.X up year-over-year X% Operating markets. and continued cloud improvements mix

which Slide on million flow working firmly capital target of cash cash in plus. million the us full deliver $XXX positions million, we $XXX Free our free to cash $XXX was of quarter to flow, strong by X. year-to-date, have delivered Moving year flow management. continued driven Fiscal

days. are repurchased approximately and On In have X% working over XX% shares, $XXX approximately the a topic million down X.X normalized inventory advances now third million million improve, fiscal stock, capital, of year-over-year. continued totaling stock. working we to level of we quarter, year-to-date, net XX and of $XXX sequentially Inventory repurchased days of at the net of capital

Third quarter as approximately full cash our quarter year X% at $XXX target end capital $X.X of net revenue of billion. to the completed totaled JetCool for we acquisitions, CapEx Crown expenditures. third continue balance the and Having million the was

fiscal turn business our Please to outlook. Slide for fourth X quarter

digits flat a soft strong digits revenue Solutions by expect revenue demand. continued landscape. to to down to automotive expected mid-single to flat For balanced Solutions, up with strength Reliability be in mid-single be is we against power Agility driven continued cloud

the for fiscal now fourth quarter I'll on guidance XX. focus Slide on

the in the range of with is year which for adjusted billion million, billion, and be operating full million. $XXX expense be around around to our other revenue For with we $XX XX% expect Interest million $X QX, rate expectations. expect in income to $XXX and we to the $X.X between is quarter, and line tax adjusted estimated

million between shares on adjusted weighted diluted anticipate EPS be approximately we $XXX per to share $X.XX and based average $X.XX outstanding. Lastly,

full $X.XX $X.XX and to expect between adjusted Looking guidance this to to We follows. operating be to X.X% and billion $XX.X revenue per margin billion, be on following At share. $XX.X we X.X% point, between slide. at finish and now XXXX fiscal year the expect between year and our as EPS full adjusted be

now over the call With Q&A. that, turn I begin back the to to will operator

Operator

Goldman question Mark from Delaney [Operator is Instructions] Our first from Sachs. coming

Mark Delaney

again cloud Starting the the in hoping factors growth or a to XX% and want to recognizing had readiness the good am any chain better if evaluate the for like have out near the you've timing in from I potential perhaps understand change approaches? revenue due growth magnitude of quarters standpoint few Blackwell from quarter. a next And training over of intermediate build row with term, north and customers ramp that AI pace cloud or to AI a expecting to seen now infrastructure supply lower-cost here? to that

Revathi Advaithi

were said of customers we when I'd anything changing and AI. the guidance to XX-plus quarter, of XX% that's think space, more the all at say, data we and a we're in terms infrastructure digestion to was the expect nothing DeepSeek expect AI for space. script being this over XX%. because reason we last that. it we suppliers of of in in I I'd noise And Yes, said start of then first long from the say in applications longer-term we is, around with term, we next is center percent that we out kind Mark, our that's particularly least related all in our that I of the why infrastructure off. these in days, heard I'll new gave the this my most of market, in common history And growth and said different or couple continue capacity guidance importantly, build we seen associated terms the giving centers, because XX would of in build-out than data pretty to the say hearing last other years of we have too. really moments haven't the

As good cost for this, everyone. result of lower a is

the the and so we need dense with power compute. for continued bullish overall about feel And pretty infrastructure build-out

good given. number we next long-term space. quarter's feel our a that achievable So but for about We is growth also this very our think have growth, XX% that

Mark Delaney

think get you previously fiscal other getting to the was there so my to, much and margins, prior I sooner by question Very was outlook the guided And than X%, on congratulations 'XX. on helpful. to

expand you You operational And how get to to factors other you already versus is factors spoke the fiscal early quite this of you of considering can that talk year. from variables investors recognize it's not these be whether X% like some mix level just some about Maybe can 'XX the about get just efficiencies? X% key should led year? next the much some But or to guidance. you maybe sustain to

Revathi Advaithi

Yes.

I we down to expect yet be said there'll X%. the level. around I'm until be we remarks that -- stabilize don't take fluctuations I think in some it But next I Mark, want up you my and this quarter think sure to because bank to opening I guys

and In at terms we've of prudent how our been we look always about guidance long-term long-term guidance, that.

is come Our mix margin you over I X want fully important and exactly stories improvement I'm break And from the efficiency. much very consistently to last how years. has is sure from mix But for up, much efficiency. portfolio out efforts. and huge business two not almost It's part a their every focused efficiencies factory how mixing is and I'd from have margin say our overall of improvement on and important been

with year. our ahead give what guidance, terms talk margin guide, you couple longer-term 'XX FY add? in you a of but we'll guide. of for little 'XX about anything revise told we'll to a to more we're In yet of we Kevin, months, kind and yes, willing then FY long-term of anything and back full So come not

Kevin Krumm

No.

Operator

today coming Ruplu Bank Your America. from Bhattacharya with is question next of

Ruplu Bhattacharya

lines you Kevin, administration the about talk mean, it a with the forward have And wanted how otherwise, new more I I and it total possible? automation. companies -- for of move you whether Flex start the may installing U.S.? wish policies, a to good in working with matter to to is with space and Can how around? landed mean, you Revathi, on is manufacturing way move much Is to to I manufacturing some how does especially white lower guys in a Look to high-level or there is tariffs mean, that U.S., board. the cost I to manufacturing. And have? respect easy with you. question.

So mean, drive a U.S.? there more in is I to way manufacturing efficiency the

Revathi Advaithi

-- of first X Ruplu last see, world world, would across done our say the been rebalancing efficiency is the the across manufacturing efficiently right? as supply that of all terms we've these both through Yes. metrics chains we've the and also PP&E years, in as and gone So for we've footprint moving can our very world. of I you around

efficient similar to very last and moving very U.S. readily We've moving the how the a manufacturing managed So constraint in conversation see to have -- because been space in to U.S. to the manufacturing the is U.S. years. the few we've that. not available easily the we this. had all about And I space be is for

around be people, issue costs, optimistic than labor issue bigger factories, added all on more I else. in on costs this. going use into the which automation, AI terms landed of that's progress the of down will the to of work projection. being think in will U.S. larger in of amount be continue anything would U.S. I'd those come I finding kind say the to But constraints tends the very efficiency, landed with the all say in future around The I'm made

right people and So efficiency. an on I'd at all U.S. automation we hiring will be the about right time biggest to the if say be add Space manufacturing will at place It more issue. not the focus is the

Ruplu Bhattacharya

investors plans sir, you Or X can base side Or new still ask XX%, business, sense expand? Any you business power you if your this target dig specifically on do would do a deeper Okay. grow appreciated. can just your existing center and with If on be about customers? term, you're you on customers? how XX%. XX% is Crown a Can the on that, long getting with you to now that details, hyperscale Technologies, target can side, the both you said audience? rely And you've client into your have but you data bit see And growing does customer? compute give you just and growth, the good little your had power for I

Revathi Advaithi

colos. them of Ruplu, by growth our most never have Yes. as of cover work in that associated The our of the hyperscalers, power. I'd cover say, we on and business, first would hyperscaler that kind start in hyperscalers, we saying across side of terms we is integration been space. we've I revenue cover system in We X and same our multiple

is a of small of it's cover diversified centers. in as well them space, base pretty And a So hyperscalers. are There very handful of colos, our today know, right? terms a are we all and you There customer few today. data

with a come growth there's existing the and will continuing lot So from customers, available to existing growth with grow of customers.

So difference I being our see, the big adding to overall, more portfolio.

So in it the It center, which us in couldn't increase what voltage we to that U.S., Crown is capability we before. the the do participate pods before medium in power to the gives does capability. connect utility a business couldn't gives do data our from grid to us U.S.

So existing them cover all from adding new customers growth of of because today. with we level all some portfolio, get but we

I And capabilities set up. good So feel like pretty center our data has been we're business adding how JetCool. new about

XX% long-term guidance growth XX% of the is based portfolio expansion current kind space. the So in growth on you're the organic seeing and today, of prudent

Ruplu Bhattacharya

said it's know that mean one know if dividend quick. Prior of make Kevin, in more just it's you one I have? not early, mean about Flex of but you, this? shareholders? I you how at but when. early to a if, know for do can is returns I capital you thoughts don't matter about how any CFO are but think days thinking I I I a

Kevin Krumm

those right are, on they're balancing investing allocation continue return with in has we'll and ones the Flex priorities that the business. X better to stated long-term are to And opportunities our weeks. technologies Thanks and a capabilities our M&A will where add the at X for and that be say But opportunistically I'll versus answer what -- of at are Ruplu. are priorities in for think We good still when I'll question, we via priorities have after to look business. you months balance shares. looking capital a capital we organic I think, looking I forward. securing today growth as business, our for got move this shareholders. via CapEx sort And to a invest lot continue the We to going continue to be return for of of our

Operator

is question from Next Chase. coming Chatterjee Samik JPMorgan from

Samik Chatterjee

near to with bit a I forward can look start I maybe you. more guess Kevin, working if term.

amongst drivers a guide saw terms own beating sort You you And consumer. quarter your talked of in strength have data the revenue strong million. the you of about as by $XXX centers about revenue, did as well in

XQ about of sustainability some not which we upside sort that been you're to more numbers, forward why sort sequential any some guide incremental revenue of seeing driving have the terms that to moderation the of of that's As seem FXQ, implying are sort in that on sequential you seeing there the a curious of specifically we moderation there is just that if think autos? revenue? Just might into sort Or of XQ for of in headwinds concern XQ? be pull

Revathi Advaithi

I line into usually much very is guide Samik, QX like seasonality usually down account. in right, and our with X% that the very much would between sequentially takes which is And quarters. that say the expect QX between we QX,

up in we So due we very think little QX margins, strong. on centers tax much of rate health QX X.X%. mainly -- XX% have that's guide much then our bit terms QX Data but is very And down It be like it's very plays EPS sequentially. being will sequentially, to the line still flat out a year-over-year. with is mix said our change. what right? to we see kind in XX%, of But QX, around

on QX. to in we say, of for even I revenue QX levels upside compared seen the guide historical seasonality would our have So spot pretty is, with

you. So feel about quite guide that good giving I we're

Samik Chatterjee

data piece more to it. And Got center then maybe a just the every back in dive again detail. into bit Okay.

programs some are for across we And all. you overall to us servers, think how with of data your front different for with servers? work I relation are traditional of your the engagement the some help forecast helping clusters or them you to us seeing to exposure sort think Can where servers center that of of and of now sort customers these versus GPU is mentioned, on in of hyperscalers about growth hyperscalers rack or ASICs. custom and ballpark GPU spending you traditional sort to custom ASIC much versus with sort as of sort hyperscalers CPU

Revathi Advaithi

is of don't few you're have of aware, And willing Yes, one I towards a and I non-MAGX colo Samik, the to hyperscaler whole we that is don't only even say all as be them, know importantly the reasons we that thing. thing is accelerate but specifically. transparency most of cost us what on DeepSeek data in would model a AGI. work think you're type both for centers much that with doing such good industry markets. of think the way more a touched been pretty with the working that broken end would in kind being we competitive give for any I'd larger their you there's not clarity and -- have open Mark what seeing. is all and well driving but right? going a do, customers. to We And and impacted source efforts that's companies. that as It's from in being applications, exposure GPU a not out also the I because Samik, our the to hyperscalers between for are say question, think news the And ASIC, down and and recent So we not and hyperscalers briefly it's significant generate with way around because good hyper-performance

few weeks, weak, more good. conversations is same Europe. right? infrastructure that country general, the towards And that in in same on any applications, the see we in high-density compute, in So and don't power, And changing. all customers lot the is a this that we've of really had even with last of Power acceleration

customers. are give and sure want don't not exposure the versus hearing And say two. breakout So to hyperscale. very I concern line And on we're ASIC forecasts I'm our any between our I from much the I GPU would in with what see with

Operator

from Steven from is next Your coming Fox Fox Advisors. question

Steven Fox

makes wouldn't Maybe helping But your companies. hyperscale just out that's maybe why remarks you margins? growth following Revathi, how Can in the on doing to up mentioned then some us the prepared wondering, break in how you give you're tailored I that. And solutions It color was maybe you want a I sense more had exposure. on the with silicon follow-up.

Revathi Advaithi

I'd how the they're technology power you each Whether think hyperscalers their unique they're of but is and look configures right? are is would they're say different. silicon very own terms and if configuring on the at same power power, structured, customizes differently. own or You the products the using each using of And and their their it one racks, their products -- their -- right? also cooling one applications in kind how are all same, of

even So for more Crown. products the anything really to capability gives what seen gets And we've hyperscalers things important. engineering JetCool, stronger us to individual like with that's growth added the that the like now products complex with to hyperscaler addition of If each portfolio and And configure what is JetCool only ability have their with customize that today. want. drives we things the

just I'd of customize bullish for about specialty our quite but to our our feel capability our integration customers. Steve, So capability I not say, each

Steven Fox

question. just a And helpful. then had medical super I That's Great.

of sort for kind piece the come quarters? any talking few you're medical It you of of maybe And how the now. devices. the over So leading relative growth view next strength on that give But a like that back? right of could business sense -- sounds when equipment maybe about us can

Revathi Advaithi

devices med-device are I just I moving increases see say manufacturing part smaller don't chronic more a down would right? just just in about. products because more management general, growth, seeing much Yes, that terms really on in growth we're about and the excited very see itself, mean, But devices, forward talk we those form of I focus of that are what lot. a you that I of diabetes complexity We disease is smaller in driving is med-device would going say, on first factors what's the huge

pretty feel devices So I strong about.

side, delivery around longer On we've up, time. ramp the drug that so wins to injectors, again, term take GLP-X but some will had

have calendar COVID. that med-equipment talked place, over slowing the we through some On we lot to left of from for that least And 'XX, about it inventory particularly to has was stabilize. start muted, stabilize it there. last not a excess we from We're started there few years we right growth the but will as from to now, and think -- will it there continue think over recover and that, planning at be but will

and business. So really feel good growth health solutions prospects about that overall, for

Operator

from Next question is coming Barclays. George from Wang

George Wang

Congrats on the quarter to guide.

likely Just on whether a of could to liquid double-click the more to rack the curious within lead And beef-up integration. of JetCool. in liquid just cooling CSP cooling in chip of direct sharings kind capability some the the

just whether vertical Al on focus because tools a you JetCool maybe more approved share versus about kind bit integration? can seeing kind gains you're through of already talk So prior rack of of

Revathi Advaithi

are I of in to right? I you share speaks And for or itself, growth relatively say, would George, would say gaining we industry not. seeing whether XX% what the that is Yes. terms our compare can

So being has the growth just in been share say, very on say commenting very, gain space, this -- with said, directly without our on our JetCool I acquisition closed. overall I bullish. would That would

the is continue lot from industry air more that. on a to to liquid. versus come going air So to liquid, And to move then

solution to overall the this itself, that don't That's that to lot heat an directly past. today. us JetCool. about what have and I the we think in and a generated really so part Air solve liquid cooling in as been play important chip it's way but to that will we've clear always the power drove make much better continue very of needs portfolio, of see a to the about with decision investing in talked We've transition. role, about a

high-performing from our our today. really in I such working having think what customers. definitely So has and But terms with JetCool on don't changed pipeline results cool we're liquid our capability that's the in conversation of

that. I'd come So on say more to

George Wang

of on just overall you into Revathi, power content in power the you terms Blackwell GPU side are kind follow-up, of the share shops in on of growing, of are should BXXX about think unpack seeing more gain in power, rack seeing flash you pie half, we especially the the pressure just how a can how embedded rack terms just sort embedded the also more from term, maybe And Great. versus per weight should of increased just and PSU? in have the within kind And side? back medium PSU/PDU the some head of we GPU much as power BXXX, likely which

Revathi Advaithi

say Yes. at more it's term in anything, think it's racks, has changed content of in I'd I kind integration solution terms all, don't if say, the and these the medium the itself. I in overall power it lower would George. that think not I of much

terms So technology itself. power in requirements itself. issues moving with improving and capability those scale kind requirements some from from our business, our of haven't the itself. in we said all just have and density on before, rack of of kind kind of seen I content, as the are heat very within any And And up working to all embedded customers within change overall we interesting of XXX-kilowatt I'd power say, we to the rack deal are XXX issues improving that

only with industry is, DeepSeek Net-net, has So the in at day, what density compute way. big if this say around end a industry of good noise the the applications this major a it the you kind still changes overall applications no AI and be take see George, I'd terms a and growth be then going step the happened developed it's if back of cost And say change. a and market We I'd because in think lower like in stronger DeepSeek drive more entry. to thing There's that the big barrier of whole a will itself. going is deal. as lower cost to for to is thing with

of see we'll new entrants. market So a lot

of your we is to start get from a so how how hands And on growth expensive is because non-MAGX see more difficult lot we'll it far, and products, companies, seen haven't of that. to it those and enough

actually will It industry centers bullish the in all is accelerates centers, towards and the near and power very the on move to So term as feel good data whole. infrastructure we term. the long for associated be AI. see net-net, The with we data continue a both both spend this

for so kind space. we this our about growth And . of feel good projections

Operator

Steve Barger Capital question is from coming next Markets. KeyBanc from Our

Steve Barger

back segments the of I you've business thinking I detail the question, to of just showing the versus growth positive how before What sight have to go it percentage the sustainable portfolio. all appreciate percentage lines trying clear a confidence? both takes high-level path just growth? want long And given. less great you to see about to cyclicality you to consistently a has across I'm understand where

Revathi Advaithi

first, Steve, a very question. say, I'd that's good

seen Agility Reliability. think for the portfolio clear in both chosen not our mix end to where we have are Where and we a have part to some important haven't our And decisions mix to growth you've around grow grow, not we have where and shift we markets, both consumer-related our choosing right? segments, of made portfolio. very overall lines grow. that's and particularly shift. I of grown, on We And

the this but not growth hard space achieve, of very, growth to always very I've is kind right So important. is said in

and pick we we want to So grow. choose where

The volatility other all the last is over I'll point about out Steve, X the that's think years. thing, happened

clear transitions has good growth, of say that noise will to introduced want the with a and growth OEMs, you in has new that what that make terms really kind fantastic of is perfect projecting So of all this forecast. a tell that gets had which really example to growth, noise see where is every hard you driven project there's really sight We've space, of automotive, I business few a to I growth line would right? in the next get. product directly but share years automotive interesting lot technology and a our to

I'd at really more say, would What I where pipeline for us else. about better to of our macros a anything in sight the very for growth. me will hardest to know can't we impact clear So that's to that things. and grow good time. line than And say that's commit this And feel want I how really and hard the been point forecast is than you I

Steve Barger

not progress of with to you of steps. want wanting margin to to so FY lot dollars yet, 'XX cycle. lines about unit understand from It's second from are a a you related favorable of smaller question get Meaning, just favorable here. pools fixing less I to trimming come where margins, trying I'm economics? talk were kind of is already next the incremental less been benefit where grow. just but with of accomplished, there choose curious what still saying tough Or is to sense about My large there's I'm about a with can go this very big opportunities? or to here from business going margin

Revathi Advaithi

our if there be and overall to Yes. I then more X%. asked from X% margins our between year, improved X%, same question And faster. ago around operating overall years we'll we would This obviously, And margin. a like to say, there's -- about gotten X talked grow. when was X.X% we the X.X% we've little X.X%,

lots mix It more business. feel markets opportunities both has efficiency to you complexity how about very on value and few is sure like to of focus focused products all run in a make there's to all been key I value on our end and then So And bullish, in on and those towards customers selling terms this adding have we automotive. gain data more One is clearly portfolio. centers things. our

margin beginning drives improvement, that that. are stages So in of more and the we

services shift business, business, that value-added mix focusing is and second also The on us. improvement margin our for services a is using more

automation. driven there's and story terms more margin and mix of by the just lot a products, to to say factories value-added efficiency continued and with services would be is done, yet in not would all I in the written say, So I robotics our be

few we but are yes, in with of told a 'XX. here in we'll come So months you revised we ahead guys, estimates what some back for FY

So Kevin, to you'd that. anything add

Operator

session. We turn our floor for back like further the the or reached over closing I'd to end any of comments. question-and-answer

Revathi Advaithi

thank suppliers, contributions all also and to say and for their and wanted all hard shareholders I'd Flex you. thank just the I for work most to team just and close importantly, support. And our our our then customers your and

everyone. Have So thank nice a day. you,

Operator

Thank teleconference you. today's webcast. conclude That does

this We thank your time, You a today. have wonderful day. your participation for may disconnect you line at and

Flex (FLEX) 29 Jan 252025 Q3 Earnings call transcript