FLEX REPORTS SECOND QUARTER FISCAL 2025 RESULTS
Flex (NASDAQ: FLEX) reported its Q2 fiscal 2025 results with net sales of $6.5 billion and GAAP net income of $214 million. The company achieved GAAP EPS of $0.54 and adjusted EPS of $0.64. For Q3 FY2025, Flex projects revenue between $6.0-6.4 billion and GAAP EPS of $0.42-0.48. The company updated its FY2025 guidance, expecting revenue of $24.9-25.5 billion and GAAP EPS of $1.77-1.89. The quarter also featured the announcement of the pending Crown Technical Systems acquisition, aimed at expanding into higher value markets.
Flex (NASDAQ: FLEX) ha riportato i risultati del secondo trimestre dell'esercizio fiscale 2025 con vendite nette di $6,5 miliardi e un utile netto GAAP di $214 milioni. L'azienda ha raggiunto un utile per azione GAAP di $0,54 e un utile per azione rettificato di $0,64. Per il terzo trimestre dell'FY2025, Flex prevede ricavi compresi tra $6,0 e $6,4 miliardi e un utile per azione GAAP di $0,42-0,48. L'azienda ha aggiornato le sue previsioni per l'FY2025, aspettandosi ricavi tra $24,9 e $25,5 miliardi e un utile per azione GAAP di $1,77-1,89. Nel trimestre è stata anche annunciata l'acquisizione in sospeso di Crown Technical Systems, mirata a espandere la presenza in mercati di maggiore valore.
Flex (NASDAQ: FLEX) informó sus resultados del segundo trimestre del año fiscal 2025 con ventas netas de $6.5 mil millones y un ingreso neto GAAP de $214 millones. La compañía logró un EPS GAAP de $0.54 y un EPS ajustado de $0.64. Para el tercer trimestre de FY2025, Flex proyecta ingresos entre $6.0 y $6.4 mil millones y un EPS GAAP de $0.42 a $0.48. La compañía actualizó su guía para FY2025, esperando ingresos de $24.9 a $25.5 mil millones y un EPS GAAP de $1.77 a $1.89. El trimestre también presentó el anuncio de la adquisición pendiente de Crown Technical Systems, destinada a expandirse en mercados de mayor valor.
Flex (NASDAQ: FLEX)는 2025 회계연도 2분기 실적을 발표하며 순매출 $6.5 billion 및 GAAP 순이익 $214 million을 기록했습니다. 회사는 GAAP 주당순이익(EPS) $0.54와 조정 주당순이익 $0.64를 달성했습니다. 2025 회계연도 3분기에 대해 Flex는 수익이 $6.0-6.4 billion 사이에 있을 것으로 예상하며, GAAP EPS는 $0.42-0.48로 예상하고 있습니다. 회사는 2025 회계연도를 위한 가이던스를 업데이트하며 수익이 $24.9-25.5 billion 및 GAAP EPS가 $1.77-1.89일 것으로 예상하고 있습니다. 이번 분기에는 가치 높은 시장으로의 확장을 목표로 하는 Crown Technical Systems의 인수 발표도 있었습니다.
Flex (NASDAQ: FLEX) a annoncé ses résultats pour le deuxième trimestre de l'exercice fiscal 2025, avec des ventes nettes de 6,5 milliards de dollars et un bénéfice net GAAP de 214 millions de dollars. L'entreprise a atteint un BPA GAAP de $0,54 et un BPA ajusté de $0,64. Pour le troisième trimestre de l'exercice fiscal 2025, Flex prévoit des revenus compris entre 6,0 et 6,4 milliards de dollars et un BPA GAAP de $0,42 à $0,48. L'entreprise a mis à jour ses prévisions pour l'exercice fiscal 2025, s'attendant à des revenus de 24,9 à 25,5 milliards de dollars et un BPA GAAP de $1,77 à $1,89. Ce trimestre a également vu l'annonce de l'acquisition en attente de Crown Technical Systems, visant à s'étendre vers des marchés de plus grande valeur.
Flex (NASDAQ: FLEX) hat die Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 bekanntgegeben, mit Nettoumsätzen von 6,5 Milliarden Dollar und einem GAAP-Nettoeinkommen von 214 Millionen Dollar. Das Unternehmen erreichte ein GAAP-EPS von $0,54 und ein bereinigtes EPS von $0,64. Für das dritte Quartal FY2025 erwartet Flex einen Umsatz zwischen 6,0 und 6,4 Milliarden Dollar sowie ein GAAP-EPS von $0,42-0,48. Das Unternehmen hat seine Prognose für FY2025 aktualisiert und rechnet mit Einnahmen von 24,9 bis 25,5 Milliarden Dollar und einem GAAP-EPS von $1,77-1,89. Im Quartal wurde auch die bevorstehende Übernahme von Crown Technical Systems angekündigt, um in höherwertige Märkte zu expandieren.
- Strong Q2 performance with $6.5 billion in net sales
- Healthy profitability with $214 million GAAP net income
- Strategic acquisition of Crown Technical Systems to expand in higher value markets
- Positive full-year guidance with revenue projected at $24.9-25.5 billion
- Sequential revenue decline expected in Q3 guidance ($6.0-6.4B vs Q2's $6.5B)
- Lower Q3 EPS guidance ($0.42-0.48) compared to Q2 actual ($0.54)
Insights
Flex delivered a solid Q2 fiscal 2025 with
The pending Crown Technical Systems acquisition aligns with Flex's strategic focus on higher-value markets. The full-year guidance update, projecting
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:
to$6.0 billion $6.4 billion - GAAP Operating Income:
to$257 million $287 million - Adjusted Operating Income:
to$335 million $365 million - GAAP EPS:
to$0.42 .$0.48 - Adjusted EPS:
to$0.60 which excludes$0.66 for stock-based compensation expense,$0.08 for net restructuring charges, and$0.07 for net intangible amortization.$0.03
Fiscal Year 2025 Guidance Updated
- Revenue:
to$24.9 billion $25.5 billion - GAAP EPS:
to$1.77 $1.89 - Adjusted EPS:
to$2.39 which excludes$2.51 for stock-based compensation expense,$0.30 for net restructuring charges and$0.19 for net intangible amortization.$0.13
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 & Analysts
David Rubin
Vice President, Investor Relations
(408) 577-4632
David.Rubin@flex.com
Media & Press
Yvette Lorenz
Director, Corporate PR and Executive Communications
(415) 225-7315
Yvette.Lorenz@flex.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
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
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 | ||
Intangible amortization | 32 | 37 | ||
Operating income | 530 | 496 | ||
Interest expense | 109 | 105 | ||
Interest income | 32 | 31 | ||
Other charges (income), net | (3) | 25 | ||
Income from continuing operations before income taxes | 456 | 397 | ||
Provision for (benefit from) income taxes | 103 | 49 | ||
Net income from continuing operations | 353 | 348 | ||
Net income from discontinued operations, net of tax | — | 269 | ||
Net income | 353 | 617 | ||
Net income attributable to noncontrolling interest | — | 203 | ||
Net income attributable to Flex Ltd. | $ 353 | $ 414 | ||
GAAP EPS | ||||
Diluted earnings per share from continuing operations | $ 0.87 | $ 0.77 | ||
Diluted earnings per share from discontinued operations | — | 0.15 | ||
Diluted earnings per share attributable to the shareholders of Flex Ltd. | $ 0.87 | $ 0.92 | ||
Diluted shares used in computing per share amounts | 405 | 452 | ||
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 | ||||
FLEX | ||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) | ||||
(In millions, except per share amounts) | ||||
Three-Month Periods Ended | ||||
September 27, 2024 | September 29, 2023 | |||
GAAP operating income | $ 297 | $ 281 | ||
Intangible amortization | 16 | 17 | ||
Stock-based compensation expense | 28 | 28 | ||
Restructuring charges | 17 | 1 | ||
Non-GAAP operating income | $ 358 | $ 327 | ||
GAAP provision for income taxes | $ 50 | $ 32 | ||
Intangible amortization benefit | 4 | 3 | ||
Other tax related adjustments | 15 | (3) | ||
Non-GAAP provision for income taxes | $ 69 | $ 32 | ||
GAAP net income from continuing operations | $ 214 | $ 201 | ||
Intangible amortization | 16 | 17 | ||
Stock-based compensation expense | 28 | 28 | ||
Restructuring charges | 17 | 1 | ||
Legal and other | — | — | ||
Interest and other, net | (1) | 8 | ||
Adjustments for taxes | (19) | — | ||
Non-GAAP net income from continuing operations | $ 255 | $ 255 | ||
Diluted earnings per share from continuing operations: | ||||
GAAP | $ 0.54 | $ 0.45 | ||
Non-GAAP | $ 0.64 | $ 0.57 | ||
See the accompanying notes on Schedule V attached to this press release. |
FLEX | ||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1) | ||||
(In millions, except per share amounts) | ||||
Six-Month Periods Ended | ||||
September 27, 2024 | September 29, 2023 | |||
GAAP operating income | $ 530 | $ 496 | ||
Intangible amortization | 32 | 37 | ||
Stock-based compensation expense | 60 | 60 | ||
Restructuring charges | 42 | 24 | ||
Legal and other | — | 3 | ||
Non-GAAP operating income | $ 664 | $ 620 | ||
GAAP provision for income taxes | $ 103 | $ 49 | ||
Intangible amortization benefit | 7 | 6 | ||
Other tax related adjustments | 13 | 6 | ||
Non-GAAP provision for income taxes | $ 123 | $ 61 | ||
GAAP net income from continuing operations | $ 353 | $ 348 | ||
Intangible amortization | 32 | 37 | ||
Stock-based compensation expense | 60 | 60 | ||
Restructuring charges | 42 | 24 | ||
Legal and other | — | 3 | ||
Interest and other, net | (1) | 9 | ||
Adjustments for taxes | (20) | (12) | ||
Non-GAAP net income from continuing operations | $ 466 | $ 469 | ||
Diluted earnings per share from continuing operations: | ||||
GAAP | $ 0.87 | $ 0.77 | ||
Non-GAAP | $ 1.15 | $ 1.04 | ||
See the accompanying notes on Schedule V attached to this press release. |
SCHEDULE III | ||||
FLEX | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(In millions) | ||||
As of September 27, 2024 | As of March 31, 2024 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 2,601 | $ 2,474 | ||
Accounts receivable, net of allowance for doubtful accounts | 3,502 | 3,033 | ||
Contract assets | 595 | 249 | ||
Inventories | 5,466 | 6,205 | ||
Other current assets | 1,187 | 1,031 | ||
Total current assets | 13,351 | 12,992 | ||
Property and equipment, net | 2,254 | 2,269 | ||
Operating lease right-of-use assets, net | 581 | 601 | ||
Goodwill | 1,146 | 1,135 | ||
Other intangible assets, net | 223 | 245 | ||
Other non-current assets | 1,031 | 1,015 | ||
Total assets | $ 18,586 | $ 18,257 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Bank borrowings and current portion of long-term debt | $ 531 | $ — | ||
Accounts payable | 5,144 | 4,468 | ||
Accrued payroll and benefits | 473 | 488 | ||
Deferred revenue and customer working capital advances | 2,134 | 2,615 | ||
Other current liabilities | 1,024 | 968 | ||
Total current liabilities | 9,306 | 8,539 | ||
Long-term debt, net of current portion | 3,178 | 3,261 | ||
Operating lease liabilities, non-current | 476 | 490 | ||
Other non-current liabilities | 623 | 642 | ||
Total liabilities | 13,583 | 12,932 | ||
Total Flex Ltd. shareholders' equity | 5,003 | 5,325 | ||
Total liabilities and shareholders' equity | $ 18,586 | $ 18,257 |
SCHEDULE IV | ||||
FLEX | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(In millions) | ||||
Six-Month Periods Ended | ||||
September 27, 2024 | September 29, 2023 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 353 | $ 617 | ||
Depreciation, amortization and other impairment charges | 257 | 260 | ||
Changes in working capital and other, net | 49 | (514) | ||
Net cash provided by operating activities | 659 | 363 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of property and equipment | (214) | (319) | ||
Proceeds from the disposition of property and equipment | 6 | 19 | ||
Other investing activities, net | 2 | 3 | ||
Net cash used in investing activities | (206) | (297) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from bank borrowings and long-term debt | 499 | 2 | ||
Payments of bank borrowings, long-term debt and other financing liabilities | (57) | (398) | ||
Payments for repurchases of ordinary shares | (757) | (506) | ||
Proceeds from issuances of Nextracker shares | — | 552 | ||
Payment for purchase of Nextracker LLC units from TPG | — | (57) | ||
Other, net | (6) | (53) | ||
Net cash used in financing activities | (321) | (460) | ||
Effect of exchange rates on cash and cash equivalents | (5) | — | ||
Net change in cash and cash equivalents | 127 | (394) | ||
Cash and cash equivalents, beginning of period | 2,474 | 3,294 | ||
Cash and cash equivalents, end of period | $ 2,601 | $ 2,900 |
SCHEDULE V | |
FLEX AND SUBSIDIARIES | |
(1) | To supplement Flex's unaudited selected financial data presented consistent with
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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:
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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:
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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.
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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.
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Restructuring 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 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.
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During the three and six-month periods ended September 27, 2024, the Company recognized approximately
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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 issues on a global basis as well as acquisition related costs. During the first half of fiscal year 2024, the Company accrued for certain loss contingencies where losses were considered probable and estimable. 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. No such costs were incurred in the first half of fiscal year 2025.
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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. Excluding these amounts provides investors with a basis to compare Company performance against the performance of other companies without this variability.
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Adjustments for taxes relate 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. During the three and six-month periods ended September 27, 2024, the Company recognized a |
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SOURCE Flex
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