Slide 1: Q3 FY25 Earnings Presentation
Q3 FY25 Earnings Presentation Quarter End: December 31, 2024 Earnings Announcement: January 29, 2025
Slide 2: Risks and non-GAAP disclosures
Risks and non-GAAP disclosures This presentation 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
Slide 3: Business update
Business update Revathi Advaithi Chief Executive Officer
Slide 4: Executive summary
Executive summary Q3 FINANCIAL PERFORMANCE Revenue Adj. operating income Adj. net income Adj. earnings per share $6.6B $399M $304M $0.77 HIGHLIGHTS Record quarterly adjusted gross profit, operating profit, operating margin, and EPS results Margin improvement based on favorable mix and strong operati
Slide 5: Q3 FY25 Business update
Q3 FY25 Business update MARKET TRENDS GLOBAL TRENDS AI / Cloud Transformation Digital Healthcare Automotive Regionalization • Broad based demand • Medical Device • Demand muted from • Resiliency and from Hyperscale, Colo demand remains strong inventory correction, adaptability in our core: and semic
Slide 6: Financial results
Financial results Kevin Krumm Chief Financial Officer
Slide 7: Key financials
Key financials MARKET DYNAMICS Q3FY24 Q3FY25 FLEX • High demand across our data center, medical device, consumer-related portfolios Revenue $6,421M $6,556M • Beneficial mix driving margin improvement in Adj. Gross Profit / Margin $500M / 7.8% $610M / 9.3% both Reliability and Agility segments • Rema
Slide 8: Q3 FY25 Segment performance
Q3 FY25 Segment performance REVENUE A ADJ. OPERATING INCOME ADJ. OPERATING MARGIN TOTAL FLEX REVENUE ($B) Y/Y GROWTH ($M) Y/Y GROWTH % Y/Y CHANGE RELIABILITY $3.0 0.1% $198 24.8% 6.7% 130 bps $6.6B 45% AGILITY 55% $3.6 3.9% $227 30.2% 6.3% 120 bps CORPORATE SERVICES -- -- ($26) -- -- -- AND OTHER B
Slide 9: Cash flow overview
Cash flow overview CAPITAL EXPENDITURES, NET A ($M) ($M) Q3F25 FYTD GAAP NET INCOME $263 $616 $128 Depreciation, Amortization and other Impairment Charges 144 401 $108 $100 $107 Change in Working Capital and other, net 6 55 $77 Q3F24 Q4F24 Q1F25 Q2F25 Q3F25 OPERATING CASH FLOW 413 1,072 Capital expe
Slide 10: Q4 FY25 business outlook
Q4 FY25 business outlook RELIABILITY Industrial Data center power demand strong, offsetting soft core industrial Health Solutions Medical device demand intact, med equipment recovery timing uncertain Automotive Automotive macro-related challenges remain AGILITY CEC Cloud strength offsetting muted co
Slide 11: Q4 FY25 guidance
Q4 FY25 guidance Revenue Adj. operating incomeA Adj. earnings per shareB $6.0B - $6.4B $360M - $400M $0.65 - $0.73 GAAP $286M - $326M GAAP $0.48- $0.56 Interest expense Adj. income tax rate Weighted avg. shares outstanding $45M 19% 394M A. Adjusted operating income excludes approximately $32 million
Slide 12: FY25 outlook and updated guidance
FY25 outlook and updated guidance $25.4 - $25.8B revenue • Continued strong execution in a dynamic market • Operating profit and EPS benefiting 5.6% - 5.7% adj. operating margin A from continued mix improvement towards higher value opportunities • Continued focus on efficiency gains $2.57 - $2.65 ad
Slide 13: Thank you.
Thank you. For more information, please visit investors.flex.com
Slide 14: Appendix
Appendix flex.
Slide 15: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter-ended Quarter-ended Quarter-ended Quarter-ended December 31, 2024 September 27, 2024 December 31, 2023 September 29, 2023 % of % of % of % of revenue revenue revenue revenue ($ in Millions) GAAP gross profit $594 9.1% $531 8.1% $433 6.7%
Slide 16: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended December 31, 2024 September 27, 2024 December 31, 2023 September 29, 2023 ($ in Millions) GAAP operating income $334 $297 $198 $281 Intangible Amortization 17 16 17 17 Stock-based compen
Slide 17: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- ended ended ended ended ($ in Millions, except for EPS) December 31, 2024 September 27, 2024 December 31, 2023 September 29, 2023 GAAP net income from continuing operations $263 $214 $129 $201 Intangible amorti
Slide 18: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- ended Ended December 31, 2024 December 31, 2024 ($ in Millions) ($ in Millions) Segment income: Reconciliation of segment income Flex Agility Solutions $227 GAAP Operating Income $334 Flex Reliability Solutions 198 Intangible am
Slide 19: Appendix: Reconciliation of GAAP to Non-GAAP Measures
Appendix: Reconciliation of GAAP to Non-GAAP Measures Quarter- Quarter- Quarter- Quarter- Quarter- Quarter- ended Ended ended ended ended ended ($ in Millions) December 31, 2024 September 27, 2024 June 28, 2024 March 31, 2024 December 31, 2023 September 29, 2023 Net cash provided by operating activi