Flex Ltd【FLEX】株式ニュース

Flex Announces Intention to Spin Off its Cloud and Power Infrastructure Segment into a New Independent Publicly Traded CompanyMay 5, 2026 4:06 PM
PR Newswire (US) Spin-off will create two companies with distinct growth strategies that are poised to drive significant customer and shareholder valueNews summaryThe new company ("SpinCo") will be a high-growth critical digital and electrical infrastructure company, delivering end-to-end power and thermal management technologies and integrated infrastructure systems for AI data centers and mission-critical applications.Flex will continue as a leading advanced manufacturing company, designing and building highly complex products and services at global scale for premier brands across diversified end markets, with a disciplined focus on portfolio optimization, durable cash flow, and shareholder returns.Revathi Advaithi will become CEO of SpinCo. She will also serve as Chairman of the Board of Directors of Flex for a transitional period upon the completion of the spin-off.Michael Hartung will be named CEO of Flex.Transaction intended to be tax-free to shareholders and targeted to close in the first quarter of calendar 2027.AUSTIN, Texas, May 5, 2026 /PRNewswire/ -- Flex (NASDAQ: FLEX) today announced that its Board of Directors has unanimously approved moving forward with a plan to spin off its Power and Cloud portfolio from Flex, creating two independent, publicly traded companies, each optimally positioned to serve their customers and create value for their shareholders."Today's announcement is the next step in a deliberate transformation that has reshaped Flex into a technology-focused industrial company over the past seven years," said Revathi Advaithi, Chief Executive Officer of Flex. "By creating two focused, independent companies, we are giving SpinCo the platform to build and scale the products and digital infrastructure that the world's most demanding AI workloads depend on, and Flex the focus to deliver advanced manufacturing solutions at global scale for diversified industries. We believe each company will have the strategic clarity and dedicated leadership to drive exceptional outcomes for its respective customers and shareholders. I'm excited to be part of the journey for both companies."Benefits of the spin-offAs separate companies, SpinCo and Flex are expected to benefit from:Sharpened strategic focus and executionDistinct financial profiles and capital allocation policiesImproved transparency around performance and expectationsUnique investment approaches to fund long-term profitable growthTwo leading companies with distinct growth strategiesSpinCo: A global leader in critical digital infrastructure, delivering end-to-end power and thermal management technologies for AI data centers and mission-critical applications SpinCo enables the scalable and reliable deployment of high-density digital and electrical infrastructure for diverse end markets like AI data centers and utilities. By integrating power, cooling, and compute at the system level, SpinCo delivers coordinated, system-level solutions designed to replace fragmented, multi-vendor approaches—enabling customers to achieve faster time-to-capacity, improved infrastructure reliability, and scalable performance as power densities and thermal complexity continue to increase.SpinCo is well positioned to benefit from long-duration secular trends, including electrification, rising power intensity, and increasing infrastructure complexity. These dynamics are driving a sustained, multi-year buildout of digital infrastructure, particularly as artificial intelligence adoption accelerates. With a differentiated technology portfolio spanning power distribution, thermal management, and integrated infrastructure systems, from grid to chip, deep customer relationships, and a globally integrated engineering, manufacturing, and service model spanning 22 engineering and manufacturing centers, SpinCo is positioned to grow share and pursue targeted acquisitions to expand its capabilities.As an independent company with experienced leadership and dedicated capital allocation, SpinCo will have the operational focus and strategic flexibility to execute on its growth opportunities. Flex is targeting SpinCo to generate approximately 65% - 75% revenue growth in fiscal 2027, with an acceleration to 80%+ in fiscal 2028.Flex: A future-ready manufacturing partner designed for speed, scale, and resilienceFollowing the spin-off, Flex will continue to operate as a leading global manufacturing partner organized into two segments—Integrated Technology Solutions and Regulated Manufacturing Solutions—delivering design, vertically integrated manufacturing, and supply chain solutions enabled by automation, digital factories, and advanced processes. The company will serve the healthcare, industrial, automotive, communications, and lifestyle end markets. As customers face increasing product complexity, tighter development timelines, and growing regionalization requirements, Flex will help accelerate time to market and enable global scale through its end-to-end capabilities. With more than 75 manufacturing and logistics sites across 30 countries, Flex provides customers with sourcing flexibility and operational resilience amid ongoing supply chain and geopolitical disruptions. Following the spin-off, the company is expected to continue to be well-positioned to benefit from long-term secular growth trends, including the expansion of connected medical devices, drug delivery systems, energy infrastructure, robotics, satellite communications, and advanced networking. With a simplified portfolio and sharper strategic focus, we believe Flex is positioned to expand margins and actively optimize its portfolio toward higher-growth opportunities—driving strong cash flow and shareholder returns over the next few years.Flex, excluding SpinCo, is expected to be strongly positioned for low-to-mid-single-digit growth, continued margin expansion, cash generation, and a robust capital return framework."After more than 20 years with the company, I'm honored to help lead Flex into its next chapter," said Michael Hartung. "We're well positioned to build on our longstanding foundation of global scale, operational excellence, and deep customer partnerships across regulated and technology-driven industries. By remaining focused on our strategic priorities and executing our proven playbook, we will continue to be the global manufacturer behind the products and systems that keep the world running, while delivering meaningful, long-term value for our customers and shareholders."Additional details of the transaction will be posted on the company's website.Citi, PJT Partners and BofA Securities are serving as financial advisors to Flex in connection with the spin-off.Media, Investors, & AnalystsMichelle Simmons
Senior Vice President, Global Investor Relations and Public Relations
(669) 242-6332
michelle.simmons@flex.comMedia
press@flex.comDan Moore / Ed Hammond / Clayton Erwin
Flex-CS@collectedstrategies.comForward-Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate," "believe," "expect," "intend," "may," "plan," "project," "will," and similar expressions identify forward-looking statements. These forward-looking statements include, without limitation, statements regarding the planned spin-off of our cloud and power infrastructure business into an independent, publicly traded company; the expected timing of the spin-off and the ability to complete the spin-off; the anticipated benefits of the spin-off, including enhanced strategic focus, financial flexibility, and value creation for shareholders; the expected tax-free treatment of the spin-off for U.S. federal income tax purposes; the expected future performance of each company following completion of the spin-off; management changes and leadership of each company; and statements about business strategies, growth opportunities, market position, and financial outlook for each company. These forward-looking statements are based on current expectations, estimates, and assumptions involving risks and uncertainties that could cause 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.Risks and uncertainties related to the proposed spin-off include, but are not limited to: uncertainties as to whether the spin-off will be completed and the timing thereof; the possibility that various conditions to the completion of the spin-off may not be satisfied or waived; the possibility that the spin-off will not qualify for the expected tax-free treatment for U.S. federal income tax purposes; the risk that the spin-off may be more difficult, time-consuming, or costly than expected, including the impact on Flex's resources, systems, procedures, and controls; the possibility that the strategic, operational, and financial benefits of the spin-off may not be achieved or may take longer to achieve than expected; the failure to obtain, or delays in obtaining, required legal, regulatory or other approvals necessary to complete the spin-off; disruption from the spin-off, including potential adverse effects on relationships with customers, suppliers, employees, and other business partners; competitive responses to the announcement or completion of the spin-off; diversion of management's attention from ongoing business operations; the possibility of disputes, litigation, or unanticipated costs in connection with the spin-off; uncertainty regarding the financial performance of either company following the spin-off; negative effects of the announcement or pendency of the spin-off on the market price of Flex's securities and/or on Flex's financial performance; the ability to achieve anticipated capital structures, credit ratings, and financing in connection with the spin-off; the ability to retain key personnel; impacts of geopolitical conflicts; and any changes in general economic and/or industry-specific conditions. Additional information concerning risks relating to our business 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. All forward-looking statements are made as of the date hereof, and Flex assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. View original content to download multimedia:https://www.prnewswire.com/news-releases/flex-announces-intention-to-spin-off-its-cloud-and-power-infrastructure-segment-into-a-new-independent-publicly-traded-company-302763151.htmlSOURCE Flex Original: Flex Announces Intention to Spin Off its Cloud and Power Infrastructure Segment into a New Independent Publicly Traded Company

FLEX REPORTS THIRD QUARTER FISCAL 2026 RESULTSFebruary 4, 2026 7:05 AM
PR Newswire (US)

Reported net sales of $7.1 billion, up 8% versus the prior year, exceeding our guidance.Raising full-year net sales, adjusted operating margin and adjusted EPS guidance.Delivered a record GAAP operating margin of 5.5%, and a record adjusted operating margin of 6.5%, our fifth consecutive quarter with an adjusted operating margin of 6% or greater.Reported GAAP EPS of $0.64, and a record adjusted EPS of $0.87.AUSTIN, Texas, Feb. 4, 2026 /PRNewswire/ -- Flex (NASDAQ: FLEX) today announced results for its third quarter ended December 31, 2025.Revathi Advaithi, CEO of Flex, stated: "Our strong performance continued in the third quarter, with results exceeding our guidance across all metrics. This performance reflects the strength of our diversified business model across industries, including Data Center. As we look ahead, we are confident in our ability to serve as a strategic enabler for our customers as they navigate an increasingly complex and dynamic world."Third Quarter Fiscal Year 2026 GAAP Summary:Net Sales: $7.1 billionGAAP Operating Income: $389 millionGAAP Net Income: $239 millionGAAP Earnings Per Share: $0.64Cash provided by Operating Activities: $420 millionThird Quarter Fiscal Year 2026 Non-GAAP Summary:Adjusted Operating Income: $460 millionAdjusted Net Income: $326 millionAdjusted Earnings Per Share: $0.87Free Cash Flow: $275 millionAn explanation and reconciliation of GAAP financial measures to non-GAAP financial measures is presented in Schedules II and V attached to this press release.Fourth Quarter Fiscal Year 2026 Guidance: Net Sales: $6.75 billion to $7.05 billion, growth of 8% at the midpointAdjusted Operating Income: $445 million to $475 million*Adjusted EPS: $0.83 to $0.89*, growth of 18% at the midpointInterest & Other: approximately $54 millionAdjusted income tax rate: 21%*Weighted average shares outstanding: approximately 375 millionFiscal Year 2026 Guidance Updated:Net Sales: $27.2 billion to $27.5 billion, growth of 6% at the midpointAdjusted Operating Margin: 6.3%*Adjusted EPS: $3.21 to $3.27*, growth of 22% at the midpointInterest & Other: $178 million
Fiscal Year 2026 Guidance
Prior
UpdatedNet Sales$26.7 - $27.3 billion
$27.2 - $27.5 billionAdjusted Operating Margin*6.2% - 6.3%
6.3 %Adjusted EPS*$3.09 - $3.17
$3.21 - $3.27Interest & Other$180 - $190 million
~$178 million*This is a forward-looking non-GAAP financial measure that cannot be reconciled to its equivalent GAAP financial measure without unreasonable effort for the reasons set forth in Schedule V attached to this press release.Webcast and Conference CallThe Flex management team will host a conference call today at 7:30 AM (CT) / 8:30 AM (ET), to review third quarter fiscal 2026 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 FlexFlex (Reg. No. 199002645H) is the manufacturing partner of choice that helps leading brands design, build, and manage products that improve the world. With a global footprint spanning 30 countries, Flex delivers advanced manufacturing and supply chain solutions, innovative products and technology, and lifecycle services that support customers from concept to scale. In the AI era, Flex is helping customers accelerate data center deployment by solving power, heat, and scale challenges through cutting-edge power and cooling technology and scalable IT infrastructure solutions.ContactsInvestors & Analysts
Michelle Simmons
Senior Vice President, Global Investor Relations and Public Relations
(669) 242-6332
Michelle.Simmons@flex.comMedia & Press
press@flex.comForward-Looking StatementsThis 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 inflationary pressures, currency volatility, stagflation, slower economic growth or recession, and high or rising interest rates, could have on our business and demand for our products; geopolitical uncertainties and risks, including impacts from trade conflicts, the termination and renegotiation of international trade agreements and trade policies, a further escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, or the ongoing conflicts between Russia and Ukraine and in the Middle East, any of which could lead to disruption, instability, and volatility in global markets and negatively impact our operations and financial performance; supply chain disruptions, including those involving suppliers who are sole or primary sources, logistical constraints, 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, including semiconductors, labor and energy; 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; that the expected revenue and margins from recently launched programs may not be realized; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; the possibility that benefits of our restructuring actions may not materialize as expected; 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 adversely affect our operations; risks associated with acquisitions and divestitures, including the possibility that we may not fully realize their projected benefits; hiring and retaining key personnel; that recent changes or future changes in tax laws in certain jurisdictions where we operate could materially impact our tax expense; litigation and regulatory investigations and proceedings; risks related to the spin-off of Nextracker, and the transactions related thereto, including the qualification of these transactions for their intended tax treatment; the impact and effects on our business, results of operations and financial condition of union disputes or other labor disruptions as well as unforeseen or catastrophic events; 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 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, misuse or breach of license agreements; physical and operational risks from natural disasters, severe weather events, or climate change; we may be exposed to product liability and product warranty liability; we may be exposed to financially troubled customers or suppliers; our compliance with legal and regulatory requirements; changes in laws, regulations, or policies that may impact our business, including those related to trade policy and tariffs and climate change; our ability to meet sustainability, including environmental, social and governance, expectations or standards or achieve sustainability goals.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 FLEXUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts)

Three-Month Periods Ended

December 31, 2025
December 31, 2024GAAP:

Net sales$                           7,058
$                           6,556
Cost of sales6,373
5,952
Restructuring charges6
10
Gross profit679
594
Selling, general and administrative expenses270
241
Restructuring and impairment charges5
2
Intangible amortization15
17
Operating income389
334
Interest expense58
57
Interest income15
16
Other charges (income), net25
5
Equity in earnings (losses) of unconsolidated affiliates(1)
—
Income before income taxes320
288
Provision for (benefit from) income taxes81
25
Net income$                              239
$                              263

GAAP EPS
Diluted earnings per share $                             0.64
$                             0.67
Diluted shares used in computing per share amounts376
394

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. FLEXUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts)

Nine-Month Periods Ended

December 31, 2025
December 31, 2024GAAP:

Net sales$                         20,437
$                        19,415
Cost of sales18,541
17,777
Restructuring charges31
42
Gross profit1,865
1,596
Selling, general and administrative expenses763
670
Restructuring and impairment charges54
13
Intangible amortization52
49
Operating income996
864
Interest expense161
166
Interest income38
48
Other charges (income), net19
(1)
Equity in earnings (losses) of unconsolidated affiliates(26)
(3)
Income before income taxes828
744
Provision for (benefit from) income taxes198
128
Net income$                              630
$                              616

GAAP EPS
Diluted earnings per share $                             1.66
$                             1.54
Diluted shares used in computing per share amounts379
401

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. SCHEDULE II  FLEXRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share amounts and percentages)

Three-Month Periods Ended

December 31, 2025
December 31, 2024

GAAP operating income and margin %$                          3895.5 %
$                          3345.1 %
Intangible amortization15

17

Stock-based compensation37

33

Restructuring and impairment charges9

12

Customer related asset impairment (recoveries)(2)

(2)

Legal and other12

5
Non-GAAP operating income and margin %$                          4606.5 %
$                          3996.1 %

GAAP provision for income taxes$                             81

$                             25

Intangible amortization benefit4

3

Other tax related adjustments1

27
Non-GAAP provision for income taxes$                             86

$                             55

GAAP net income $                          239

$                          263

Intangible amortization15

17

Stock-based compensation37

33

Restructuring and impairment charges9

12

Customer related asset impairment (recoveries)(2)

(2)

Legal and other12

5

Interest and other, net21

6

Adjustments for taxes(5)

(30)
Non-GAAP net income$                          326

$                          304

Diluted earnings per share:

GAAP $                         0.64

$                         0.67

Non-GAAP$                         0.87

$                         0.77

Free Cash Flow:

Net cash provided by operating activities420

413

Net capital expenditures(145)

(107)

Free cash flow$                          275

$                          306

See the accompanying notes on Schedule V attached to this press release.
FLEXRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share amounts and percentages)

Nine-Month Periods Ended

December 31, 2025
December 31, 2024

GAAP operating income and margin %$                          9964.9 %
$                          8644.5 %
Intangible amortization52

49

Stock-based compensation108

93

Restructuring and impairment charges83

54

Customer related asset impairment (recoveries)(2)

(2)

Legal and other27

5
Non-GAAP operating income and margin %$                       1,2646.2 %
$                       1,0635.5 %

GAAP provision for income taxes$                          198

$                          128

Intangible amortization benefit12

10

Other tax related adjustments29

40
Non-GAAP provision for income taxes$                          239

$                          178

GAAP net income $                          630

$                          616

Intangible amortization52

49

Stock-based compensation108

93

Restructuring and impairment charges83

54

Customer related asset impairment (recoveries)(2)

(2)

Legal and other27

5

Equity in losses of unconsolidated affiliates25

—

Interest and other, net18

5

Adjustments for taxes(41)

(50)
Non-GAAP net income$                          900

$                          770

Diluted earnings per share:

GAAP $                         1.66

$                         1.54

Non-GAAP$                         2.37

$                         1.92

Free Cash Flow:

Net cash provided by operating activities1,272

1,072

Net capital expenditures(424)

(315)

Free cash flow$                          848

$                          757

See the accompanying notes on Schedule V attached to this press release.
SCHEDULE III FLEXUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In millions)

As of December 31, 2025
As of March 31, 2025ASSETS

Current assets:

Cash and cash equivalents$                                  3,057
$                          2,289
Accounts receivable, net of allowance3,837
3,671
Contract assets881
616
Inventories5,549
5,071
Other current assets1,828
1,194Total current assets15,152
12,841

Property and equipment, net2,393
2,330Operating lease right-of-use assets, net667
562Goodwill1,375
1,341Other intangible assets, net300
343Other non-current assets933
964Total assets$                                20,820
$                        18,381

LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:

Bank borrowings and current portion of long-term debt$                                      675
$                          1,209
Accounts payable6,482
5,147
Accrued payroll and benefits590
560
Deferred revenue and customer working capital advances 1,959
1,957
Other current liabilities1,150
977Total current liabilities10,856
9,850

Long-term debt, net of current portion3,760
2,483Operating lease liabilities, non-current583
456Other non-current liabilities500
590Total liabilities15,699
13,379Total shareholders' equity5,121
5,002Total liabilities and shareholders' equity$                                20,820
$                        18,381

SCHEDULE IV FLEXUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)

Nine-Month Periods Ended

December 31, 2025
December 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income$                            630
$                            616
Depreciation, amortization and other impairment charges433
401
Changes in working capital and other, net209
55
Net cash provided by operating activities1,272
1,072

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment(431)
(326)
Proceeds from the disposition of property and equipment7
11
Acquisition of businesses, net of cash acquired(40)
(347)
Proceeds from divestiture of businesses, net of cash held
in divested businesses(4)
—
Other investing activities, net(4)
21
Net cash used in investing activities(472)
(641)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from bank borrowings and long-term debt1,251
499
Payments of bank borrowings, long-term debt and other
financing liabilities(542)
(58)
Payments for repurchases of ordinary shares(744)
(958)
Other, net(11)
(7)
Net cash used in financing activities(46)
(524)

Effect of exchange rates on cash and cash equivalents14
(48)
Net change in cash, cash equivalents, and restricted cash
equivalents768
(141)
Cash, cash equivalents, and restricted cash equivalents,
beginning of period2,289
2,474
Cash, cash equivalents, and restricted cash equivalents,
end of period$                         3,057
$                        2,333

SCHEDULE VFLEX AND SUBSIDIARIES
NOTES TO SCHEDULES I and IITo supplement Flex's unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including non-GAAP operating income, non-GAAP net income and non-GAAP net income per diluted share. These supplemental measures exclude certain legal and other charges, restructuring charges, customer-related asset impairments (recoveries), stock-based compensation expense, intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Flex's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Flex's results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company's performance.In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company's operating performance on a period-to-period basis because such items are not, in our view, related to the Company's ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management's incentive compensation is determined using certain non-GAAP measures. Also, when evaluating potential acquisitions, we exclude certain items described below from consideration of the target's performance and valuation. Since we find these measures to be useful, we believe that investors benefit from seeing results "through the eyes" of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company's GAAP financials, provide useful information to investors by offering:the ability to make more meaningful period-to-period comparisons of the Company's ongoing operating results;the ability to better identify trends in the Company's underlying business and perform related trend analysis;a better understanding of how management plans and measures the Company's underlying business; andan easier way to compare the Company's operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.We present forward-looking non-GAAP financial measures in our fourth quarter and full year fiscal 2026 guidance, including adjusted operating income, adjusted operating margin, adjusted income tax rate, and adjusted EPS. We do not provide a reconciliation of these measures to the most directly comparable GAAP measures because the information necessary to do so is not available without unreasonable effort due to the inherent variability, complexity, and uncertainty in forecasting certain items required for such a reconciliation. These items may include restructuring charges and impairment charges, among others. The information that is unavailable could be material and could significantly affect our GAAP results.The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share units granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.Restructuring and impairment charges include severance charges at existing sites and corporate SG&A functions as well as asset impairment, and other charges related to the closures and consolidations of certain operating sites and targeted activities to restructure the business. These costs also include asset impairment charges related to assets significantly impacted by the geopolitical events on the basis of management's best estimate of the recoverable value of assets. These costs may vary in size based on the Company's initiatives, are not directly related to ongoing or core business results, and do not reflect expected future operating expenses. These costs are excluded by the Company's management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures.During the three and nine-month periods ended December 31, 2025, the Company recognized approximately $4 million and $37 million of restructuring charges, respectively, most of which related to employee severance. During the three and nine-month periods ended December 31, 2024, the Company recognized $12 million and $54 million of restructuring charges, respectively, most of which related to employee severance.During the three and nine-month period ended December 31, 2025, the Company recognized $5 million and $46 million, respectively, in asset impairments, inventory write-downs and other charges as a result of an August 21, 2025 missile strike on the Company's Mukachevo, Ukraine operations located in Western Ukraine. The August 21, 2025 missile strike represents an unusual and infrequent event as hostilities related to the Russian invasion of Ukraine have been primarily focused in Eastern Ukraine. The missile strike caused substantial destruction, disrupted Mukachevo's normal operations and Flex initiated contingency manufacturing plans at alternative manufacturing facilities. The Company expects additional immaterial near-term inefficiencies as Mukachevo's operations are restored.Customer related asset impairments (recoveries) may consist of non-cash impairments of property and equipment to estimated fair value for customers from whom we have disengaged or are in the process of disengaging as well as additional provisions for doubtful accounts receivable for customers that are experiencing financial difficulties and inventory that is considered non-recoverable that is written down to net realizable value. In subsequent periods, the Company may recover a portion of the costs previously incurred related to assets impaired or reduced to net realizable value. During the three and nine-month periods ended December 31, 2025, the Company recognized approximately $2 million of customer related asset recoveries. During the three and nine-month periods ended December 31, 2024, the Company recognized approximately $2 million of customer related asset recoveries. These costs are excluded by the Company's management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures.Legal and other consist primarily of costs not directly related to core business results and may include matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims and other costs such as acquisition and portfolio optimization related costs and asset impairment. These costs are excluded by the Company's management in assessing current operating performance and forecasting its earnings trends and are therefore excluded by the Company from its non-GAAP measures. During the three and nine-month periods ended December 31, 2025, the Company incurred approximately $12 million and $27 million, respectively, related to other costs. During the three and nine-month periods ended December 31, 2024, the Company accrued for a $5 million asset impairment where losses were considered probable and estimable.Equity in losses of unconsolidated affiliates consists of various other types of items that are not directly related to ongoing or core business results, such as significant gains or losses associated with certain non-core investments. The Company excludes these items because they are not related to the Company's ongoing operating performance or do not affect core operations. Excluding these amounts provides investors with a basis to compare Company performance against the performance of other companies without this variability. During the nine-month period ended December 31, 2025, the Company recognized approximately $25 million of equity in losses from a reduced valuation of a certain non-core investment fund. No such event occurred in the nine-month period ended December 31, 2024.Interest and other, net consist of various other types of items that are not directly related to ongoing or core business results, such as the gain or losses related to certain divestitures, currency translation reserve write-offs upon liquidation of certain legal entities, debt extinguishment costs and impairment charges or gains associated with certain non-core investments. The Company excludes these items because they are not related to the Company's ongoing operating performance or do not affect core operations. During the three and nine-month periods ended December 31, 2025, the Company incurred $21 million and $18 million, respectively, predominantly related to an impairment of a non-core unconsolidated cost method investment. During the three and nine-month periods ended December 31, 2024, the Company incurred $6 million and $5 million, respectively. Excluding these amounts provides investors with a basis to compare Company performance against the performance of other companies without this variability.Adjustments for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures in order to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable. Effective in fiscal year 2026, the Company adopted an annual normalized tax rate for the purpose of determining the tax effect of non-GAAP adjustments. In estimating the normalized tax rate, the Company utilizes a full-year projection of earnings that considers the mix of earnings across tax jurisdictions, existing tax positions and other significant tax matters.During the three and nine-month periods ended December 31, 2025, the Company recognized a $5 million and $41 million net tax benefit, respectively, and during the three and nine-month periods ended December 31, 2024, the Company recognized a $30 million and $50 million net tax benefit, respectively, related to the tax effects of various adjustments. For the three and nine-month periods ended December 31, 2025, the Company incurred a charge to income tax expense of $19 million related to the resolution of a tax dispute with a foreign tax authority related to fiscal years 2010 through 2020. For the three and nine-month periods ended December 31, 2024, the Company recognized approximately $26 million of interest recoverable on prior periods taxes paid by one of our Brazilian subsidiaries.Free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions, repurchase company shares and for certain other activities. The Company's free cash flow is defined as cash flows from operating activities, less net purchases of property and equipment and proceeds from the disposition of property and equipment ("net capital expenditures"), allowing us to present free cash flow on a consistent basis for investors.During the three and nine-month periods ended December 31, 2025, the Company recognized $275 million and $848 million of free cash inflow, respectively. During the three and nine-month periods ended December 31, 2024, the Company recognized $306 million and $757 million of free cash inflow, respectively. Free cash flow is not a measure of liquidity under U.S. GAAP, and may not be defined and calculated by other companies in the same manner.

View original content to download multimedia:https://www.prnewswire.com/news-releases/flex-reports-third-quarter-fiscal-2026-results-302678824.htmlSOURCE Flex

Original: FLEX REPORTS THIRD QUARTER FISCAL 2026 RESULTS