Flex Ltd

Strong Q1 performance (Flex RemainCo overall): - Revenue $7.9B, +21% YoY. - Adjusted gross margin 9.6% (+50 bps YoY). - Adjusted operating profit $534M, +35% YoY; adjusted operating margin 6.7% (+70 bps YoY). - Adjusted EPS $1.00, +39% YoY (record adjusted EPS mentioned). - Segment highlights: - RMS: $2.7B (+12% YoY), margin 6.6% (+130 bps YoY) driven by industrial. - ITS: $3.1B (+20% YoY), margin 5.2% (+10 bps YoY) with communications strength offset by consumer weakness. - CPI (Cloud & Power Infrastructure / SpinCo subject to spin): $2.2B (+35% YoY), adjusted margin 9.7% (+20 bps YoY) driven by power growth and cloud/cooling ramp.

CPI growth & margin: accelerating back-half, largely capacity-driven (visibility strong): - CPI full-year guidance (per Krumm): revenue +65% to +75% YoY (with power growth faster than cloud). - “Back-half loaded” plan reiterated: Q1 CPI growth ~35%, guiding to Q2 +45% to +55%, then sustaining full-year 65%–75%. - Management cited demand/“booked business” visibility of 90%+ for the next three quarters. - Cooling (JetCool) is positioned as nascent but a meaningful long-term growth driver; cold plates capability exists and CDUs are in qualification with customers to scale.

Forecast / FY2027 outlook raised/updated (Flex consolidated): - Revenue $33.7B–$35.2B, +23% at midpoint YoY. - Adjusted operating margin 7.7%–8.2% (about +80 bps YoY at midpoint). - Adjusted EPS $4.42–$4.74 (+39% at midpoint). - CapEx $1.5B–$1.6B. - Free cash flow conversion: updated to ~40% (from 60% previously) because spin-off-related costs are now included—this is a notable “negative”/constraint for cash generation, not earnings.