Summary
Flex Ltd. reported solid revenue growth for the six-month period ended September 26, 2025, with net sales increasing by 4% year-over-year to $13.4 billion. This growth was primarily driven by strong performance in the Communications, Enterprise, and Cloud (CEC) sector within the Flex Agility Solutions (FAS) segment, fueled by increased demand in data center cloud. The Flex Reliability Solutions (FRS) segment also saw modest growth, with strength in the Industrial sector, though the Automotive business experienced a decline. The company demonstrated improved profitability, with gross margins expanding year-over-year due to a favorable mix and operational execution. Net income for the six-month period was $391 million, an increase from $353 million in the prior year's comparable period, reflecting effective cost management and segment performance. The company also highlighted its ongoing commitment to returning capital to shareholders through share repurchases, with $1.5 billion available under its current repurchase program as of September 26, 2025. Financially, Flex maintained a healthy liquidity position with $2.2 billion in cash and cash equivalents and access to a $2.75 billion revolving credit facility. A significant event during the quarter was a missile strike on the company's Ukraine facility, resulting in $41 million in charges for impairments and inventory write-downs; however, the company has activated contingency plans to mitigate the impact.
Financial Highlights
50 data points| Revenue | $6.80B |
| Cost of Revenue | $6.18B |
| Gross Profit | $614.00M |
| SG&A Expenses | $260.00M |
| Operating Income | $296.00M |
| Interest Expense | $47.00M |
| Net Income | $199.00M |
| EPS (Basic) | $0.53 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Basic) | 374.00M |
| Shares Outstanding (Diluted) | 380.00M |
Key Highlights
- 1Net sales increased 4% year-over-year to $13.4 billion for the six-month period ended September 26, 2025, driven by strong demand in data center cloud within the CEC sector.
- 2Gross margin improved to 8.9% for the six-month period, up from 7.8% in the prior year, attributed to favorable product mix and operational efficiency.
- 3Net income rose to $391 million for the six-month period, up from $353 million in the comparable prior-year period.
- 4The company generated $852 million in cash from operating activities and $573 million in free cash flow for the six-month period.
- 5Flex Ltd. ended the period with $2.2 billion in cash and cash equivalents, indicating a strong liquidity position.
- 6The company incurred $41 million in charges related to a missile strike on its Ukraine facility, impacting restructuring and impairment costs.
- 7Shareholder returns remain a focus, with $1.5 billion available for future share repurchases as of September 26, 2025.