Flex (FLEX) Bank of America 2026 Global Technology Conference summary

Strategic rationale and timing of the spin

• Decision to spin driven by the need for distinct management focus and capital allocation for both businesses, given their scale and growth opportunities.

• SpinCo will focus on industrial electrical transformation, while RemainCo will double down on contract manufacturing in attractive end markets.

• Timing considered optimal due to explosive growth in compute and data center infrastructure, and readiness of both businesses for independent operation.

SpinCo business profile and growth outlook

• SpinCo comprises cloud, cooling, and power businesses, targeting AI infrastructure and grid transformation.

• Revenue was $6.7B last year, with guidance for 70% growth this year and 80% next year, driven by AI infrastructure investment.

• Bookings visibility is strong through 2027 (90% booked) and 2028 (70% booked), with further guidance expected at Investor Day.

• Portfolio expected to balance short, mid, and long cycle businesses over the next 3-5 years, with continued investment in services and product flow.

Segment performance, margins, and competitive positioning

• Both cloud and power segments are expected to grow at similar high rates; power will outpace cloud this year, with the reverse next year.

• Operating margin for SpinCo was 9.2% last year; power segment in mid-teens, cloud slightly lower, with margin expansion expected as scale and complexity increase.

• Margin profile currently trails peers due to recent build-out and heavy investment, but is expected to catch up over time.

• SpinCo is positioned as the only end-to-end provider across hyperscalers, neoclouds, colos, silicon providers, and utilities, offering integrated solutions from metalwork to power modules.