Flex (FLEX) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue was $6.5 billion, with record adjusted operating margin of 5.5% and adjusted EPS of $0.64; GAAP net income was $214 million and adjusted net income $255 million.

• Strong performance in Cloud, Power, and Medical Devices, with data center portfolio growing 40% year-over-year.

• Announced acquisition of Crown Technical Systems for $325 million to enhance power distribution and modular power pod capabilities.

• Nextracker spin-off completed in January 2024; no discontinued operations income in Q2 FY2025.

Financial highlights

• Gross profit reached $554 million (8.5% margin), with operating income at $358 million (5.5% margin); GAAP operating income was $297 million (4.5% margin).

• Adjusted EPS increased to $0.64 from $0.57 year-over-year; GAAP EPS was $0.54, up from $0.45.

• Free cash flow for Q2 was $219 million, totaling $451 million year-to-date.

• Cash and cash equivalents at quarter-end were $2.6 billion; total debt was $3.7 billion.

• Repurchased $757 million in shares in the first half of FY2025; $1.5 billion remains under repurchase authorization.

Outlook and guidance

• Q3 FY2025 revenue guidance: $6.0–$6.4 billion; adjusted operating income: $335–$365 million; adjusted EPS: $0.60–$0.66.

• FY2025 revenue guidance: $24.9–$25.5 billion; adjusted operating margin 5.4%–5.5%; adjusted EPS $2.39–$2.51.

• Crown Technical Systems acquisition impact excluded from guidance.

• Management expects current liquidity and capital structure to be adequate for future commitments.