Flex Ltd. (FLEX) Bundle
A Brief History of Flex Ltd.
Flex Ltd. is a global leader in supply chain solutions and manufacturing services, with a history that reflects significant growth, strategic acquisitions, and market adaptations. Established in 1969, the company has evolved from a small manufacturing firm into a multi-billion-dollar enterprise specializing in diversified manufacturing and supply chain solutions.
Financial Performance and Key Metrics as of 2024
For the six-month period ending September 27, 2024, Flex Ltd. reported total revenues of $12.9 billion, a decrease of 7% compared to the $13.8 billion in the same period of the previous year. The net income for the same period was $353 million, compared to $414 million in the previous year.
| Period | Net Sales (in millions) | Net Income (in millions) | Gross Profit Margin |
|---|---|---|---|
| Q2 2024 | $6,545 | $214 | 8.1% |
| Q2 2023 | $6,933 | $228 | 7.5% |
| 6-Months 2024 | $12,859 | $353 | 7.8% |
| 6-Months 2023 | $13,825 | $414 | 7.2% |
Segment Performance
Flex Ltd. operates through two main segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). In the three-month period ending September 27, 2024, the segment performance was as follows:
| Segment | Net Sales (in millions) | Segment Income (in millions) | Segment Margin |
|---|---|---|---|
| Flex Agility Solutions | $3,606 | $218 | 6.1% |
| Flex Reliability Solutions | $2,939 | $159 | 5.4% |
Recent Developments
As of September 27, 2024, Flex Ltd. had cash and cash equivalents of approximately $2.6 billion and total bank and other borrowings of around $3.7 billion. The consolidated effective tax rate for the company was 19% for the three-month period ended September 27, 2024, up from 14% for the same period in the previous year.
During the six-month period, Flex Ltd. repurchased approximately 25.1 million shares at a cost of $757 million. This was part of a broader strategy to enhance shareholder value through share buybacks.
Outlook
Looking forward, Flex Ltd. aims to adapt to the changing market dynamics, focusing on enhancing operational efficiencies and expanding its service offerings to meet the evolving needs of its global customer base.
A Who Owns Flex Ltd. (FLEX)
Major Shareholders
As of 2024, the ownership structure of Flex Ltd. is characterized by a mix of institutional and individual investors. The largest shareholders include:
| Shareholder | Ownership Percentage | Shares Held (millions) |
|---|---|---|
| BlackRock, Inc. | 8.2% | 32.2 |
| The Vanguard Group, Inc. | 7.5% | 29.3 |
| State Street Corporation | 4.9% | 19.3 |
| Invesco Ltd. | 4.0% | 15.6 |
| Other Institutional Investors | 45.4% | 178.3 |
| Insider Ownership | 3.0% | 11.8 |
| Public Float | 27.0% | 106.3 |
Institutional Ownership
The institutional ownership of Flex Ltd. reflects a significant portion of the company's shares held by various institutional investors. As of September 2024, approximately 70% of the total shares are held by institutional investors, indicating strong confidence in the company's management and strategy.
Insider Ownership
Insider ownership is relatively modest, with executives and board members holding about 3.0% of the company. This includes shares held through stock options and restricted stock units.
Stock Performance and Market Capitalization
Flex Ltd. has shown resilience in its stock performance, trading at approximately $31.00 per share as of late September 2024. The market capitalization is around $12.2 billion, reflecting the company's substantial position in the manufacturing and supply chain solutions sector.
Recent Share Repurchase Activity
Flex Ltd. has been active in its share repurchase program, repurchasing approximately 25.1 million shares at a total cost of $757 million during the six-month period ended September 27, 2024. This program is part of a broader strategy to enhance shareholder value.
Financial Overview
For the six-month period ending September 27, 2024, Flex Ltd. reported net sales of approximately $12.9 billion, with a net income of $353 million. The company’s operations are divided into two main segments: Flex Agility Solutions and Flex Reliability Solutions, contributing significantly to its revenue streams.
| Segment | Net Sales (in billions) | Contribution Percentage |
|---|---|---|
| Flex Agility Solutions | $6.97 | 54% |
| Flex Reliability Solutions | $5.89 | 46% |
Conclusion of Ownership Structure
The ownership structure of Flex Ltd. reflects a robust mix of institutional and retail investors, with major stakes held by leading investment firms. The company's financial performance and strategic initiatives, including share repurchase programs, indicate a focus on enhancing shareholder value and maintaining strong market positioning.
Flex Ltd. (FLEX) Mission Statement
Company Overview
Flex Ltd. operates as one of the world's largest providers of supply chain solutions, with extensive manufacturing capabilities and a global presence. As of the six-month period ended September 27, 2024, the company reported revenues of $12.9 billion and a total revenue of $26.4 billion for the fiscal year ended March 31, 2024.
Mission Statement
Flex Ltd.'s mission is to provide innovative and sustainable solutions for its customers, emphasizing agility, reliability, and efficiency in manufacturing and supply chain management. The company aims to leverage technology and global resources to enhance customer satisfaction and operational excellence.
Financial Performance Overview
For the three-month period ended September 27, 2024, Flex Ltd. reported:
- Net income from continuing operations: $214 million
- Net income for the six-month period: $353 million
- Basic earnings per share from continuing operations: $0.54
- Gross profit: $531 million
- Operating income: $297 million
Segment Performance
The company's performance is evaluated based on two main segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The following table summarizes segment income and margins for the three-month and six-month periods ended September 27, 2024:
| Segment | Segment Income (3-Months) | Segment Margin (3-Months) | Segment Income (6-Months) | Segment Margin (6-Months) |
|---|---|---|---|---|
| Flex Agility Solutions | $218 million | 6.1% | $397 million | 5.7% |
| Flex Reliability Solutions | $159 million | 5.4% | $306 million | 5.2% |
Operational Metrics
Flex Ltd. continuously evaluates its operational metrics to ensure alignment with its mission. Key operational metrics include:
- Gross margin for the three-month period ended September 27, 2024: 8.1%
- Gross profit for the six-month period: $1.0 billion
- Cash provided by operating activities: $659 million
- Adjusted free cash flow: $451 million
Debt and Liquidity Position
As of September 27, 2024, Flex Ltd. had:
- Cash and cash equivalents: $2.6 billion
- Bank and other borrowings: $3.7 billion
- Debt maturity scheduled for 2025: $532 million
- Revolving credit facility available: $2.5 billion
Conclusion
Flex Ltd. is committed to its mission of delivering innovative solutions while maintaining a strong financial position and operational efficiency. The company's focus on agility and reliability continues to drive its success in the competitive supply chain market.
How Flex Ltd. (FLEX) Works
Business Overview
Flex Ltd. is one of the world's largest providers of global supply chain solutions, with revenues of $12.9 billion for the six-month period ended September 27, 2024, and $26.4 billion for the fiscal year ended March 31, 2024. The company operates approximately 100 facilities across 30 countries on four continents.
Financial Performance
For the three-month period ended September 27, 2024, Flex reported:
- Net income from continuing operations: $214 million
- Net income for the six-month period ended September 27, 2024: $353 million
- Basic earnings per share from continuing operations: $0.54
Revenue Breakdown
The following table outlines the net sales by segment for Flex Ltd.:
| Segment | Three-Month Period Ended September 27, 2024 (in millions) | Three-Month Period Ended September 29, 2023 (in millions) | Six-Month Period Ended September 27, 2024 (in millions) | Six-Month Period Ended September 29, 2023 (in millions) |
|---|---|---|---|---|
| Flex Agility Solutions | $3,606 | $3,618 | $6,971 | $7,219 |
| Flex Reliability Solutions | $2,939 | $3,315 | $5,888 | $6,606 |
| Total Net Sales | $6,545 | $6,933 | $12,859 | $13,825 |
Regional Sales Distribution
The following table details the net sales by region for Flex Ltd.:
| Region | Three-Month Period Ended September 27, 2024 (in millions) | Three-Month Period Ended September 29, 2023 (in millions) | Six-Month Period Ended September 27, 2024 (in millions) | Six-Month Period Ended September 29, 2023 (in millions) |
|---|---|---|---|---|
| Americas | $3,147 | $3,141 | $6,165 | $6,174 |
| Asia | $2,020 | $2,377 | $3,927 | $4,699 |
| Europe | $1,378 | $1,415 | $2,767 | $2,952 |
| Total Net Sales | $6,545 | $6,933 | $12,859 | $13,825 |
Cost of Sales and Gross Profit
Cost of sales for the three-month period ended September 27, 2024 was $6.0 billion, resulting in a gross profit of $531 million. This represents a gross margin of 8.1%.
For the six-month period ended September 27, 2024, gross profit was $1.0 billion, or 7.8% of net sales.
Liquidity and Capital Resources
As of September 27, 2024:
- Cash and cash equivalents: approximately $2.6 billion
- Bank and other borrowings: approximately $3.7 billion
- Revolving credit facility: $2.5 billion, maturing in July 2027
Cash Flow Analysis
During the six-month period ended September 27, 2024:
- Cash provided by operating activities: $659 million
- Cash used in investing activities: $206 million
- Adjusted free cash flow: $451 million
Debt Structure
The following table summarizes Flex Ltd.'s long-term debt as of September 27, 2024:
| Debt Instrument | Maturity Date | Amount (in millions) |
|---|---|---|
| 4.750% Notes | June 2025 | $532 |
| 3.750% Notes | February 2026 | $680 |
| 6.000% Notes | January 2028 | $397 |
| 4.875% Notes | June 2029 | $656 |
| 5.250% Notes | January 2032 | $499 |
| Total Debt | $3,709 |
Shareholder Equity
As of September 27, 2024, total shareholders' equity was approximately $5.003 billion.
Segment Performance Metrics
The following table presents segment income and margins for Flex Ltd.:
| Segment | Segment Income (in millions) | Margin (%) |
|---|---|---|
| Flex Agility Solutions | $218 | 6.1% |
| Flex Reliability Solutions | $159 | 5.4% |
Flex Ltd. continues to adapt its business model to meet the demands of its clients while maintaining a robust financial structure.
How Flex Ltd. (FLEX) Makes Money
Business Segments
Flex Ltd. operates primarily through two segments: Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). For the six-month period ended September 27, 2024, the net sales breakdown was as follows:
| Segment | Net Sales (in millions) | Percentage of Total Sales |
|---|---|---|
| Flex Agility Solutions | $6,971 | 54% |
| Flex Reliability Solutions | $5,888 | 46% |
| Total | $12,859 | 100% |
Revenue Sources
Flex's revenue is generated through a mix of manufacturing services, supply chain solutions, and product design. The company serves various industries, including automotive, healthcare, and consumer electronics.
Geographical Revenue Distribution
The geographical distribution of net sales for the six-month period ended September 27, 2024, is as follows:
| Region | Net Sales (in millions) | Percentage of Total Sales |
|---|---|---|
| Americas | $6,165 | 48% |
| Asia | $3,927 | 31% |
| Europe | $2,767 | 21% |
| Total | $12,859 | 100% |
Financial Performance
For the six-month period ended September 27, 2024, Flex reported net income from continuing operations of $353 million, compared to $348 million for the same period in the previous year. The gross profit during this period was $1.0 billion, representing 7.8% of net sales.
Cost of Sales and Gross Margin
The cost of sales during the six-month period ended September 27, 2024, was $11.8 billion. The gross margin for this period improved to 7.8%, driven by operational efficiencies and cost-saving measures.
Segment Income
The segment income for both segments is as follows for the six-month periods ended September 27, 2024:
| Segment | Segment Income (in millions) | Segment Margin (%) |
|---|---|---|
| Flex Agility Solutions | $397 | 5.7% |
| Flex Reliability Solutions | $306 | 5.2% |
| Total | $703 | 5.5% |
Customer Concentration
During the three-month period ended September 27, 2024, Flex's ten largest customers accounted for approximately 44% of net sales, which reflects a significant customer concentration.
Cash Flow and Liquidity
Flex reported cash provided by operating activities of $659 million during the six-month period ended September 27, 2024. Adjusted free cash flow for the same period was $451 million, compared to $63 million in the previous year.
Debt and Financing Activities
As of September 27, 2024, Flex had cash and cash equivalents of approximately $2.6 billion and bank borrowings of approximately $3.7 billion. The company also issued $500 million of 5.250% Notes due January 2032 during the second quarter of fiscal year 2025.
Stock Repurchases
During the six-month period ended September 27, 2024, Flex repurchased approximately $757 million of its ordinary shares as part of its capital return strategy.
Conclusion
Flex Ltd. continues to adapt its business model to the evolving market conditions while maintaining a strong financial position, evidenced by its consistent revenue generation and effective cost management strategies.
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Article updated on 8 Nov 2024
Resources:
- Flex Ltd. (FLEX) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Flex Ltd. (FLEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Flex Ltd. (FLEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.