• The Foxconn for a diverse array of industries, from healthcare devices to automotive components.
• Like Amazon Web Services (AWS), but for designing, manufacturing, and managing the supply chains of physical products for other businesses.

• Manufacturing Services: Provides advanced manufacturing and assembly for electronic products across diverse industries, from medical devices to data centers.
• Design and Engineering Services: Offers product conceptualization, design, engineering, and prototyping to bring new products to market efficiently.
• Supply Chain Services: Manages global supply chain operations, including materials procurement, logistics, and distribution for clients.
• Aftermarket and Lifecycle Services: Delivers post-manufacturing support such as repair, refurbishment, and reverse logistics to extend product lifecycles.

Major Customers of Flex (FLEX)

Flex (symbol: FLEX) primarily operates as an Electronics Manufacturing Services (EMS) provider, selling its services and manufactured products to other companies (B2B).

Due to the nature of its business and confidentiality agreements with its clients, Flex typically does not publicly disclose the names of its specific major customers. The company emphasizes a diversified customer base to avoid dependency on any single client.

According to Flex's fiscal year 2023 10-K filing, no single customer accounted for more than approximately 7% of its net sales, and its top five customers collectively accounted for approximately 25% of its net sales. This indicates a broad base of large Original Equipment Manufacturers (OEMs) across various industries rather than a reliance on a few dominant customers.

While specific names are not disclosed by Flex as "major customers," based on the industries it serves and common knowledge of large OEMs that utilize contract manufacturing services, the following are examples of the types of leading companies that would likely be among Flex's significant clients:

• Microsoft (MSFT): For products such as Xbox gaming consoles and various enterprise hardware.
• Cisco Systems (CSCO): For networking, communications, and data center equipment.
• Hewlett Packard Enterprise (HPE): For servers, storage, and other enterprise IT solutions.
• Tesla (TSLA): For various automotive electronics and components.
• Medtronic (MDT): For medical devices and health solutions.

These examples represent the kind of large, multinational corporations across the technology, automotive, and healthcare sectors that rely on Flex for design, manufacturing, and supply chain services.

The key risks to Flex's business include:

• Supply Chain Disruptions and Geopolitical Instability: Flex faces ongoing challenges due to global economic conditions, including inflationary pressures, currency volatility, and geopolitical instability, which have impacted and may continue to affect its business operations and financial condition. Tariffs and trade restrictions, particularly between the U.S. and China, also pose a risk of increased product input costs and potential contraction in customer demand. Geopolitical upheaval specifically has the potential to severely impact Flex's supply chain operations.

• Customer Concentration and Pricing Pressure: Flex has significant exposure to a handful of hyperscalers and giant tech accounts. This concentrated customer base means that any customer loss, pricing pressure, shortfalls in program execution, or program ramp delays could quickly dent the company's outlook and lead to episodic volatility in its top line. The company also faces lower pricing power due to these large customer relationships.

• Regulatory and Compliance Issues: The revoked SEC registration for Flex could lead to lost revenue or litigation and suggests deeper compliance issues within the company. This regulatory "black eye" has the potential to deter new clients and investors, further compounding existing business challenges.

There are two clear emerging threats for Flex (FLEX):

1. Disruptive potential of advanced additive manufacturing (3D printing) for mass production: If advanced additive manufacturing technologies, such as industrial metal 3D printing, multi-material printing, or sophisticated polymer printing, achieve cost-effectiveness and scalability for the mass production of complex components and integrated electronic assemblies, it could fundamentally alter traditional manufacturing supply chains. This shift could enable customers to produce highly customized products, components, or even entire products on-demand and closer to their end markets, potentially reducing their reliance on traditional large-scale contract manufacturers like Flex for certain product categories. Evidence includes continuous and accelerating research, development, and commercialization efforts by major industrial players (e.g., Velo3D, Desktop Metal, HP, GE Additive) focused on increasing print speed, material compatibility, part size, and reducing the cost per part for industrial-scale production, indicating a clear trend towards greater capability and economic viability.

2. Emergence and growth of digital manufacturing platforms and Manufacturing-as-a-Service (MaaS) providers: Companies such as Xometry, Fictiv, and Protolabs (which acquired Hubs) are rapidly expanding digital platforms that connect product developers and companies with a vast, distributed network of specialized manufacturing partners. This model emphasizes speed, flexibility, and cost-efficiency for prototyping and increasingly for low-to-mid volume production across a wide range of manufacturing technologies (e.g., CNC machining, injection molding, 3D printing, sheet metal fabrication). As these platforms mature and enhance their capabilities to handle more complex assemblies and potentially larger production volumes, they pose a threat by potentially disintermediating traditional, full-service EMS providers. They offer an agile and distributed manufacturing supply chain, allowing customers to procure manufacturing capacity more granularly and efficiently, reducing the need for a single, integrated manufacturing partner. Evidence includes significant venture capital funding, rapid growth in their user base and order volumes, continuous expansion of service offerings, and strategic acquisitions within this sector.

Here are 3-5 expected drivers of future revenue growth for Flex (FLEX) over the next 2-3 years:

1. Strong Demand in the Data Center Segment: Flex anticipates significant revenue growth from its data center business, particularly driven by increased demand for cloud and power infrastructure solutions, as well as the needs of the AI era. The company has expanded its manufacturing capacity, especially in the U.S., to meet this rising demand for critical power products like Databar, Power Distribution Units (PDUs), and Remote Power Panels (RPPs).

2. Strategic Shift Towards Higher-Margin, Technology-Driven Businesses: Flex is actively repositioning its portfolio to focus on high-value, technology-intensive offerings across its various segments. This strategic shift is aimed at improving its overall business mix and efficiency, leading to sustained margin expansion and revenue growth.

3. Expansion in High-Growth Vertical Markets: Flex is strategically investing in and focusing on high-growth markets such as healthcare and automotive technologies, including electric vehicle (EV) component manufacturing. These sectors are contributing significantly to revenue growth and are expected to continue to do so.

4. Investment in Digital Transformation and IoT Solutions: Flex is allocating resources to digital transformation and the development of IoT solutions, including the establishment of IoT Solutions Centers and platforms. This focus aims to capitalize on the growing demand for connected devices and intelligent manufacturing processes across various industries.

5. Regionalization of Supply Chains and Manufacturing Capacity: To enhance resiliency and better serve regional markets, Flex is optimizing its global footprint by increasing local manufacturing facilities and strengthening partnerships with regional customers. This includes significant expansion of its manufacturing capacity, particularly in North America, to support strategic growth areas like data centers.

Share Repurchases

• Flex Ltd.'s Board of Directors authorized a share repurchase plan of up to $1.7 billion, representing 20% of its outstanding shares, at the Annual General Meeting held on August 6, 2025.
• For the fiscal year ended March 31, 2025, Flex made payments for repurchases of ordinary shares totaling $1.257 billion.
• During the six months ended September 26, 2025, the company repurchased $544 million in shares.

Share Issuance

• In fiscal year 2024 (ended March 31, 2024), Flex received $552 million in proceeds from issuances of Nextracker shares, related to the spin-off of its subsidiary Nextracker.
• Flex's shares outstanding have shown a decline over the past few years, with 0.398 billion shares in 2025, a 9.75% decrease from 2024.

Capital Expenditures

• Flex's capital expenditures averaged $479.4 million annually for the fiscal years ending March 2021 to 2025.
• Capital expenditures for the fiscal year ended March 31, 2025, were $438 million, and for the latest twelve months ending June 27, 2025, they were $460 million.
• The primary focus of capital expenditures has been on strengthening the manufacturing footprint in regions like Mexico, the U.S., Europe, and India, and supporting long-term growth in data center infrastructure, particularly for AI-driven expansion.