Flex Ltd. Reports 8% Revenue Growth to $7.1 Billion in Third Quarter

Flex Ltd. reported its financial results for the three and nine-month periods ending December 31, 2025, revealing a notable increase in revenue and profitability compared to the previous fiscal period. For the third quarter, the company achieved net sales of $7.1 billion, an 8% increase from $6.6 billion in the same period last year. For the nine-month period, net sales reached $20.4 billion, up 5% from $19.4 billion. Gross profit for the third quarter was $679 million, representing 9.6% of net sales, compared to $594 million or 9.1% in the prior year. Net income for the quarter was $239 million, down from $263 million, while net income for the nine-month period increased to $630 million from $616 million.

The company experienced significant operational changes, including the impact of a missile strike on its Mukachevo, Ukraine facility, which resulted in $46 million in asset impairments and inventory write-downs. This incident disrupted operations and led to the activation of contingency manufacturing plans. Additionally, Flex completed the acquisition of a manufacturing business in Poland for $35 million, contributing to its growth strategy in the Flex Reliability Solutions segment. The company also issued $600 million in 5.375% notes due in November 2035 and $150 million in 5.250% notes due in January 2032, enhancing its capital structure.

Flex's operational metrics showed a diverse customer base, with its ten largest customers accounting for approximately 46% of net sales. The company reported a 7% increase in sales from its Flex Agility Solutions segment, driven by demand in the communications and enterprise cloud markets, while the Flex Reliability Solutions segment saw a 4% increase, primarily from industrial and health solutions. The company’s geographic sales distribution remained stable, with the Americas contributing 50% of net sales, followed by Asia at 30% and Europe at 20%.

Looking ahead, Flex anticipates continued growth driven by its strategic focus on advanced manufacturing capabilities and supply chain solutions. The company is committed to optimizing its operations and adapting to market demands, particularly in light of ongoing geopolitical tensions and economic uncertainties. Flex's management expressed confidence in its liquidity position, with cash and cash equivalents totaling approximately $3.1 billion as of December 31, 2025, and a revolving credit facility of $2.75 billion available for future needs. The company plans to leverage its financial strength to support growth initiatives and shareholder returns through share repurchase programs.