Flex reported strong second-quarter results, driven by robust data center demand and disciplined execution, leading to raised full-year guidance for net sales, adjusted operating margin, and adjusted EPS. The company achieved a record adjusted EPS and maintained its adjusted operating margin above 6% for the fourth consecutive quarter.
Net sales increased 4% year-over-year to $6.8 billion, at the top end of guidance.
positiveAdjusted operating margin was 6.0%, marking the fourth consecutive quarter at or above 6%.
positiveRaised full-year guidance for net sales, adjusted operating margin, and adjusted EPS.
positiveReported record adjusted EPS of $0.79.
positiveGAAP operating margin was 4.4%, below the adjusted operating margin of 6.0%.
attentionGAAP EPS of $0.52 includes $41 million, or $0.11 per share, of costs associated with missile strike damage at the Ukraine facility.
attentionInventories increased to $5.27 billion from $5.07 billion in the prior quarter.
attentionBank borrowings and current portion of long-term debt increased to $676 million from $1.209 billion in the prior quarter.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We achieved a record Q2, and we continue to execute with discipline and deliver value for customers across business segments.
As we continue to shift our portfolio toward higher margin businesses, we remain confident in our data center position and ability to offer complete, integrated solutions to the world’s leading technology companies as they navigate the AI era.
Delivered GAAP operating margin of 4.4%, and adjusted operating margin of 6.0% marking the fourth consecutive quarter at or above an adjusted operating margin of 6%.
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