FLEX REPORTS SECOND QUARTER FISCAL 2025 RESULTS
AUSTIN, Texas, Oct. 30, 2024 /PRNewswire/ -- Flex (NASDAQ:FLEX) today announced results for its second quarter ended September 27, 2024.
Second Quarter Fiscal Year 2025 Highlights:
Net Sales: $6.5 billion
GAAP Operating Income: $297 million
Adjusted Operating Income: $358 million
GAAP Net Income attributable to Flex Ltd: $214 million
Adjusted Net Income attributable to Flex Ltd: $255 million
GAAP Earnings Per Share: $0.54
Adjusted Earnings Per Share: $0.64
An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules II and V attached to this press release.
"In fiscal Q2, our teams delivered another quarter of strong results," said Revathi Advaithi, CEO of Flex. "This quarter we announced the pending Crown Technical Systems acquisition, another great example of our strategy to grow in higher value markets, and generate long-term shareholder value through continued margin expansion, EPS growth, and cash generation."
Third Quarter Fiscal 2025 Guidance
Revenue: $6.0 billion to $6.4 billion
GAAP Operating Income: $257 million to $287 million
Adjusted Operating Income: $335 million to $365 million
GAAP EPS: $0.42 to $0.48.
Adjusted EPS: $0.60 to $0.66 which excludes $0.08 for stock-based compensation expense, $0.07 for net restructuring charges, and $0.03 for net intangible amortization.
Fiscal Year 2025 Guidance Updated
Revenue: $24.9 billion to $25.5 billion
GAAP EPS: $1.77 to $1.89
Adjusted EPS: $2.39 to $2.51 which excludes $0.30 for stock-based compensation expense, $0.19 for net restructuring charges and $0.13 for net intangible amortization.
Webcast and Conference Call
The Flex management team will host a conference call today at 7:30 AM (CT) / 8:30 AM (ET), to review second quarter fiscal 2025 results. A live webcast of the event and slides will be available on the Flex Investor Relations website at http://investors.flex.com. An audio replay and transcript will also be available after the event on the Flex Investor Relations website.
About Flex
Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world. Through the collective strength of a global workforce across 30 countries and responsible, sustainable operations, Flex delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets.
Contacts
Investors & AnalystsDavid RubinVice President, Investor Relations(408)
Media & PressYvette LorenzDirector, Corporate PR and Executive Communications(415)
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause the actual outcomes and results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that we may not achieve our expected future operating results; the effects that the current and future macroeconomic environment, including inflation, slower growth or recession, and currency exchange rate fluctuations, could have on our business and demand for our products; supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand; the impact of fluctuations in the pricing or availability of raw materials and components, labor and energy, and logistical constraints; risks related to the spin-off of Nextracker, and the transactions related thereto, including the qualification of these transactions for their intended tax treatment; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits, including the planned Crown Technical Systems acquisition; the possibility that regulatory and other approvals and conditions to Crown Technical Systems acquisition are not received or satisfied on a timely basis or at all, or that the acquisition will not close or that the closing may be delayed; and other events that could adversely impact the completion of the acquisition or the anticipated benefits of the acquisition, including industry or economic conditions outside of our control; geopolitical risks, including impacts from the termination and renegotiation of international trade agreements and trade policies, the ongoing conflicts between Russia and Ukraine and in the Middle East, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; the effects that current and future credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations to us and our ability to pass through costs to our customers; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; hiring and retaining key personnel; litigation and regulatory investigations and proceedings; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our business, including those related to climate change; the possibility that benefits of the Company's restructuring actions may not materialize as expected; that the expected revenue and margins from recently launched programs may not be realized; our dependence on industries that continually produce technologically advanced products with short product life cycles; the short-term nature of our customers' commitments and rapid changes in demand may cause supply chain issues, excess and obsolete inventory, and other issues which adversely affect our operating results; our dependence on a small number of customers; our industry is extremely competitive; we may be exposed to financially troubled customers or suppliers; the success of certain of our activities depends on our ability to protect our intellectual property rights and we may be exposed to claims of infringement or breach of license agreements; a breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and disrupt our operations; physical and operational risks from natural disasters, severe weather events, or climate change; our ability to meet environmental, social and governance expectations or standards or achieve sustainability goals; we may be exposed to product liability and product warranty liability; that recent changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; and the impact and effects on our business, results of operations and financial condition of a public health issue, including a pandemic, or catastrophic event.
Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K and in our subsequent filings with the U.S. Securities and Exchange Commission. Flex assumes no obligation to update any forward-looking statements, which speak only as of the date they are made.
SCHEDULE I
FLEX
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
Three-Month Periods Ended
September 27, 2024
September 29, 2023
GAAP:
Net sales
$ 6,545
$ 6,933
Cost of sales
5,998
6,411
Restructuring charges
16
3
Gross profit
531
519
Selling, general and administrative expenses
216
221
Restructuring charges
2
—
Intangible amortization
16
17
Operating income
297
281
Interest expense
53
49
Interest income
16
15
Other charges (income), net
(4)
14
Income from continuing operations before income taxes
264
233
Provision for (benefit from) income taxes
50
32
Net income from continuing operations
214
201
Net income from discontinued operations, net of tax
—
205
Net income
214
406
Net income attributable to noncontrolling interest
—
178
Net income attributable to Flex Ltd.
$ 214
$ 228
GAAP EPS
Diluted earnings per share from continuing operations
$ 0.54
$ 0.45
Diluted earnings per share from discontinued operations
—
0.06
Diluted earnings per share attributable to the shareholders of Flex Ltd.
$ 0.54
$ 0.51
Diluted shares used in computing per share amounts
400
448
See Schedule II for the reconciliation of GAAP to non-GAAP financial measures. See the accompanying notes on Schedule V attached to this press release.
FLEX
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
Six-Month Periods Ended
September 27, 2024
September 29, 2023
GAAP:
Net sales
$ 12,859
$ 13,825
Cost of sales
11,825
12,810
Restructuring charges
32
20
Gross profit
1,002
995
Selling, general and administrative expenses
429
456
Restructuring charges
11
6
