Flex (FLEX) investor relations material

Data center market and growth

• Data center business projected to grow from $4.8B to $6.5B this year, a 35% YoY increase, following 50% growth the prior year.

• Power segment expected to outpace integration in growth, with both segments benefiting from a diversified customer base including hyperscalers, colos, and silicon providers.

• Recent acquisition of JetCool and a warrant agreement with Amazon are expanding enterprise and hyperscaler relationships, incentivizing further growth.

• Focus on custom applications and integrated solutions differentiates from standard ODMs and EMS competitors, supporting higher margins.

• Ongoing investments in new factories and partnerships aim to cover 80% of available data center spend, with further expansion into the utility market via acquisitions like Crown Technical.

Automotive and adjacent markets

• Automotive market faces macro and policy headwinds, with a shift from EV to hybrid/ICE, but the power platform remains agnostic and well-positioned.

• Transition to software-defined vehicles is driving demand for centralized compute platforms, allowing customers to integrate their own software.

• North America and Europe remain the largest automotive markets, with cautious engagement in China due to expected OEM consolidation.

• Platform-based offerings in power and compute are gaining traction over traditional EMS models.

Other end markets and services

• Networking business is improving, with a shift to higher complexity products and regionalized manufacturing in Mexico, Europe, and India.

• Health solutions business sees softness in equipment but strength in devices, especially continuous glucose monitoring, and future growth in drug delivery.

• Services business, including design, vertical integration, and aftermarket, operates at higher margins and increases customer stickiness.