DivestmentJun 24, 2026, 04:13 PM
Flex to spin off CPI segment; CEO Advaithi to lead new company; FY26 sales $27.9B
AI Summary
Flex Ltd. announced a strategic plan to spin off its Cloud and Power Infrastructure (CPI) segment into a new, independent public company, SpinCo, targeted for Q1 calendar 2027. Current CEO Revathi Advaithi will lead SpinCo, while Michael Hartung will become CEO of Flex. This announcement follows a record-breaking fiscal year 2026, with net sales of $27.9 billion, adjusted operating margin of 6.3%, and adjusted EPS of $3.30. The company also reported $1.06 billion in free cash flow and will hold its Annual General Meeting on August 5, 2026, where shareholders will vote on director re-elections, auditor re-appointment, executive compensation, share issuances, and a share repurchase mandate.
Key Highlights
- Flex plans to spin off its Cloud and Power Infrastructure (CPI) segment into a new public company (SpinCo).
- The spin-off is targeted for Q1 calendar 2027 and is intended to be tax-free for shareholders.
- CEO Revathi Advaithi will become CEO of SpinCo, and Michael Hartung will become CEO of Flex.
- Fiscal 2026 net sales reached $27.9 billion, an 8% increase year-over-year.
- Adjusted operating margin hit a record 6.3%, exceeding the 6%+ target a year early.
- Adjusted EPS was $3.30, marking the sixth consecutive year of double-digit growth.
- Free cash flow was $1.06 billion, the second straight year above $1 billion.
- Shareholders will vote on renewing a share purchase mandate for up to 20% of issued shares.
Price Impact
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