Flex Ltd.

- The company expects CapEx (capital expenditures) to be in the range of $1.4 billion to $1.6 billion for fiscal year 2027. - Free cash flow conversion is expected to be approximately 60%, excluding costs associated with the spin transaction. - Capital deployment for key projects in Cloud and Power Infrastructure is already underway and will remain elevated through fiscal year 2027. - They expect this elevated investment level to be unique to fiscal year 2027, with CapEx normalizing in fiscal year 2028. - No explicit mention of new fundraising through debt or equity during the call. - The company is focused on strong cash flow generation and shareholder returns, including share repurchases. - Overall, the financing appears to come from operational cash flows and existing resources rather than new debt or equity issuance.

- Capital deployment is already underway for projects with hyperscalers, including Google, covering power infrastructure, thermal systems, and complex hardware manufacturing. - Elevated investment levels are expected through fiscal year (FY) 2027 to support CPI growth and expanded capacity needs. - FY 2027 will see unique, higher capex due to these growth investments. - CapEx is expected to return to historical levels in FY 2028: approximately 2.5% to 3% of revenue for CPI and below 2% for ITS and RMS. - The company plans continued disciplined capacity expansion with a focus on margin expansion and growth in high-return areas, including health care and data center infrastructure. - Strategic investments include the acquisition of Electrical Power Products (EP2) to enhance power portfolio for utility-grade and grid modernization solutions. - Post-spin, both Flex and SpinCo will pursue tailored capital allocation aligned with their respective growth and margin priorities.

- **Cloud and Power Infrastructure (CPI) segment:** - Expected revenue growth of 65% to 75% in fiscal 2027. - Further acceleration with growth over 80% projected for fiscal 2028. - Growth driven by increasing demand from hyperscalers, neoclouds, colos, and utilities. - **Post-spin Flex (RemainCo):** - Targeting low to mid-single-digit revenue growth in fiscal 2027 and beyond. - Growth focus on regulated and technology-driven markets such as healthcare, warehouse automation, and networking related to data center infrastructure. - **Overall company:** - Fiscal 2027 revenue expected between $32.3 billion and $33.8 billion, up 18% at midpoint. - **Segment dynamics:** - CPI growth to continue through fiscal 2028 and potentially beyond. - Significant investment in capacity with multiyear contracts supporting sustained growth. - **Market trends:** - Addressable data center market expanding rapidly with power growth outpacing cloud growth.

- Fiscal 2027 revenue expected between $32.3B and $33.8B, up 18% at midpoint. - Adjusted operating margin forecasted between 7% and 7.1%, up approx. 80 basis points. - Adjusted EPS expected between $4.21 and $4.51, up 32% at midpoint (full year). - FY 2027 guidance: RMS revenue up low to mid-single digits, ITS flat to low single digits, CPI revenue up 65% to 75%. - CPI segment growth continues strong with 80%+ growth expected in FY 2028. - Margin expansion expected with CPI margins to recoup 100 basis points losses in FY 2027 and expand 50-100 basis points in FY 2028. - First quarter FY 2027 EPS expected $0.86 to $0.92, up 24%. - Focus on both growth and margin expansion post spin for Flex and SpinCo. - Free cash flow conversion expected approx. 60% excluding spin costs.

- Flex secured significant business, including a multiyear contract with Google and multiple other hyperscalers, neoclouds, colos, and utilities. - The multiyear contracts span multiple product lines and customers, supporting strong CPI growth expectations of 65%-75% in FY ’27 and over 80% in FY ’28. - The company's order book is robust, underpinning foundational investments in power and cooling infrastructure to support data center markets through FY ’28 and FY ’29. - Growth is driven by ramping multiple hyperscaler deals and programs signed that are expected to continue expanding beyond FY ’28 into FY ’29. - Capacity is being added to fulfill these multiyear commitments, with factories set up to enable ongoing growth. - The strategic focus includes expanding geographic reach and product portfolio, as well as scaling operational capabilities for full product and service integration models.