Flex Ltd. Reports 4% Net Sales Increase to $6.575 Billion in Latest Quarter

Flex Ltd. reported a net sales increase of 4% for the three-month period ending June 27, 2025, reaching $6.575 billion, compared to $6.314 billion for the same period in 2024. The company's gross profit rose to $572 million, or 8.7% of net sales, up from $471 million, or 7.5% of net sales, in the prior year. This improvement in gross margin was attributed to favorable product mix and operational efficiencies. Net income for the quarter was $192 million, translating to earnings per share of $0.51, a significant increase from $139 million and $0.35 per share in the previous year.

In terms of operational performance, Flex's Flex Agility Solutions (FAS) segment saw a 10% increase in sales, driven primarily by heightened demand in the communications, enterprise, and cloud sectors. Conversely, the Flex Reliability Solutions (FRS) segment experienced a slight decline of 2% in sales, attributed to weaker demand in core industrial and automotive markets. The company’s customer base remained stable, with its ten largest customers accounting for approximately 48% of net sales, up from 43% in the previous year.

Flex's balance sheet showed total assets of $19.132 billion as of June 27, 2025, an increase from $18.381 billion at the end of the previous fiscal year. Current assets rose to $13.467 billion, bolstered by an increase in accounts receivable and inventories. The company’s total liabilities also increased to $14.043 billion, primarily due to a rise in long-term debt, which now stands at $3.004 billion. The company repurchased 7.2 million shares during the quarter for $247 million, reflecting its commitment to returning value to shareholders.

Strategically, Flex completed the acquisition of a manufacturing business in Poland for $35 million, which is expected to enhance its capabilities in the Flex Reliability Solutions segment. The company also drew down $500 million from a delayed draw term loan to support its operational needs. Looking ahead, Flex anticipates continued growth driven by its diversified customer base and expanding market presence, although it remains vigilant regarding potential impacts from global economic conditions, including ongoing geopolitical tensions and trade tariffs.

Overall, Flex Ltd. demonstrated solid financial performance in the first quarter of fiscal year 2026, with strategic initiatives aimed at enhancing operational efficiency and expanding its market footprint. The company remains focused on leveraging its global supply chain solutions to meet evolving customer demands while navigating the complexities of the current economic landscape.