Flex Ltd. Reports 4% Revenue Growth to $13.4 Billion, Net Income Rises to $391 Million

Flex Ltd. reported its financial results for the six-month period ending September 26, 2025, revealing a net sales increase of 4% to $13.4 billion, compared to $12.9 billion for the same period in the previous year. The company's net income for the six months rose to $391 million, up from $353 million, reflecting a growth in profitability. The gross profit margin improved to 8.9% from 7.8%, attributed to favorable product mix and operational efficiencies. The company’s earnings per share for the period were $1.05, compared to $0.89 in the prior year.

In terms of operational performance, Flex's two segments, Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS), contributed to the revenue growth. FAS saw a 7% increase in sales, driven by strong demand in the Communications, Enterprise, and Cloud (CEC) markets, while FRS experienced a modest 1% growth, primarily from its Industrial business. The Americas region accounted for 51% of total sales, with a notable increase of $0.6 billion, while sales in Asia and Europe remained stable.

The company faced significant challenges during the reporting period, including a missile strike on its Mukachevo, Ukraine facility, which resulted in $41 million in asset impairments and inventory write-downs. This incident disrupted operations and led to the activation of contingency manufacturing plans. Despite these challenges, Flex managed to maintain a strong cash position, ending the period with $2.2 billion in cash and cash equivalents, and reported cash provided by operating activities of $852 million.

Strategically, Flex has been active in expanding its capabilities, including the acquisition of a manufacturing business in Poland for $35 million, which is expected to enhance its FRS segment. The company also initiated a share repurchase program, repurchasing approximately 12.9 million shares for $544 million during the six-month period. Looking ahead, Flex anticipates continued growth driven by demand in its core markets, although it remains cautious about potential impacts from geopolitical tensions and global economic conditions. The company expects to leverage its extensive manufacturing network and operational efficiencies to navigate these challenges effectively.