Q1 2027 Flex Ltd Earnings Call Transcript
Key Points
- Flex Ltd (FLEX) reported strong revenue growth of 21% year-over-year, reaching $7.9 billion in Q1 fiscal 2027.
- The company achieved record adjusted earnings per share of $1, up 39% year-over-year.
- The Cloud and Power Infrastructure segment grew by 35% year-over-year, with expectations for further growth and margin expansion in the second half of the fiscal year.
- Flex Ltd (FLEX) has been added to the S&P 500, reflecting its progress and strategic strength.
- The company is well-positioned to benefit from long-term secular growth trends in healthcare, robotics, and warehouse automation.
- Free cash flow was negatively impacted by one-time cash costs of $24 million related to the announced spin-off.
- Inventory levels increased by 24% year-over-year, which could indicate potential inefficiencies or challenges in inventory management.
- The Integrated Technology Solutions segment faced weakness in consumer-related end markets, which offset some of the gains from communications.
- The company's free cash flow conversion guidance was reduced to approximately 40% due to costs associated with the spin-off.
- There are ongoing challenges related to capacity investments and ramping up manufacturing infrastructure for the Cloud and Power Infrastructure segment.
Thank you for standing by. Welcome to Flex's first quarter fiscal 2027 earnings conference call. Presently, all participants are in the listen-only mode.
After the speaker's remarks, there'll be a question-and-answer session. If you'd like to ask a question, please press *1 on your phone. If you'd like to withdraw your question, please press *2. As a reminder, this call is being recorded. I will now turn the call over to Mrs. Michelle Simmons. Mrs. Simmons, you may begin.
Good morning, and thank you for joining us today for Flex's first quarter fiscal 2027 earnings conference call. With me today is Revathi Advaisi, our Chief Executive Officer Kevin Crum, our Chief Financial Officer and Michael Hartung, our Chief Commercial Officer.
Slides for today's call as well as a copy of the earnings press release are available on the Investor Relations section at flex.com. This call is being recorded and will be available for replay on our corporate website. Today's call
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