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Flex Reports Robust Financial Results for FY 2025

Flex Ltd. (NASDAQ: FLEX) has recently disclosed the financial results for its fourth quarter and the entire fiscal year ending on March 31, 2025. The results indicate a strong performance, reflecting significant growth across several key metrics.

Fourth Quarter Highlights

For the fourth quarter of FY 2025, Flex reported net sales of $6.4 billion, a substantial increase compared to prior periods. The company achieved a GAAP operating income of $305 million, coupled with an adjusted operating income of $396 million. Impressively, the GAAP net income attributable to Flex Ltd. amounted to $222 million, and the adjusted figure stood at $285 million. Earnings per share also reflected this growth, with a GAAP EPS of $0.57 and an adjusted EPS of $0.73.

CEO Revathi Advaithi expressed pride in the results, stating, “We had a very strong finish to the year, with record adjusted operating margins for both Q4 and the full year, and we delivered our fifth consecutive year of double-digit adjusted EPS growth.” Advaithi also highlighted an ongoing shift towards more profitable business segments, especially regarding data center customers, indicating sustained demand.

Fiscal Year 2025 Overview

Looking back at the full fiscal year, Flex generated net sales of $25.8 billion, indicating a slight downturn from the previous year's $26.4 billion. The company reported a GAAP operating income of $1.169 billion and an adjusted operating income of $1.459 billion. Overall, the GAAP net income was $838 million, while adjusted net income reached $1.055 billion. The full year ended with a GAAP EPS of $2.11 and adjusted EPS of $2.65.

The fiscal year concluded with an optimistic outlook. Flex plans to continue addressing shifting market demands and investing in efficient and innovative production practices.

Strategies for the Future

For the first quarter of fiscal year 2026, Flex anticipates revenue between $6.0 billion and $6.5 billion. The expected GAAP operating income is projected to range from $278 million to $318 million, while adjusted operating income forecasts position it between $330 million and $370 million. This positive trend is evident in the guidance for GAAP EPS, expected between $0.46 and $0.54, and adjusted EPS projected to be in the $0.58 to $0.66 range, accounting for certain stock-based compensation and intangible amortization expenses.

Fiscal Year 2026 Projections

Moreover, for the entire fiscal year 2026, Flex anticipates total revenues to land between $25.0 billion and $26.8 billion. The forecast indicates a continued increase in EPS, with GAAP expected to range from $2.35 to $2.55 and adjusted from $2.81 to $3.01.

Flex's leadership is enthusiastic about future prospects, confident that investments in technology and sustainable practices will fortify the company’s market position. The management team will host a conference call and live webcast to delve deeper into these results and guidance, offering insights into strategy and expectations for the upcoming fiscal challenges.

Conclusion

With a solid finish in FY 2025 and an optimistic outlook for FY 2026, Flex remains committed to driving technological advancement and expanding its manufacturing capabilities to meet global demand. Their sustained investment in innovation and efficiency signifies a strong foundation for continued success in a rapidly evolving industry. As Flex navigates the future, stakeholders can expect a proactive approach to adapting to market dynamics while embracing opportunities for growth.