Fri, Jul 26, 8:03 PM (43 days ago)
Flex Ltd.'s Q1 FY2025 financial results reflect a decrease in net sales to $6.3 billion, down 8% from $6.9 billion in Q1 FY2024, driven by declines in both Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). FAS saw a 7% drop due to lower demand in the Communications, Enterprise, and Cloud (CEC) and Lifestyle segments, partially offset by growth in Consumer Devices. FRS experienced a 10% decline, primarily in the Industrial and Health Solutions segments. Gross profit slightly decreased to $471 million, with gross margins improving to 7.5% from 6.9% due to favorable mix and cost savings. Operating income rose to $233 million from $215 million, aided by reduced SG&A expenses and lower restructuring charges. The effective tax rate increased to 28% from 10%, impacting net income from continuing operations, which fell to $139 million from $147 million. Cash flow from operations was $340 million, with adjusted free cash flow at $232 million. The company repurchased $457 million of shares, leaving $556 million available under the current buyback program. Future liquidity appears strong, with $2.2 billion in cash and equivalents and $3.2 billion in debt.