FLEX LTD.

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.

Flex Ltd. announced that its Board of Directors approved the Annual Incentive Bonus Plan for fiscal year 2027. This plan offers executive officers annual cash bonuses based on achieving pre-established performance goals, including operating profit, free cash flow, and revenue targets. Target award opportunities are set at various percentages of base salary, with the CEO at 165%, the CFO at 115%, and other named executive officers between 100% and 110%.

Flex Ltd. entered into a new Credit Agreement on May 29, 2026, establishing a senior term loan credit facility totaling $1.45 billion. The facility, which was fully funded on the closing date, matures on November 29, 2027. Proceeds will be used for general corporate purposes, including the refinancing of an existing 364-day facility that previously funded the acquisition of Electrical Power Products, Inc. The agreement includes customary covenants, such as maintaining a Debt/EBITDA Ratio not exceeding 4.00 to 1.00 and an Interest Coverage Ratio not less than 3.00 to 1.00.

Flex Ltd. announced its intention to separate into two independent, publicly traded companies by the first quarter of calendar 2027. One company will comprise the Cloud and Power Infrastructure (CPI) segment, and the other will consist of the advanced manufacturing and supply chain solutions business (ITS and RMS segments). This transaction is intended to be tax-free for U.S. federal income tax purposes for shareholders. The company previously completed the spin-off of Nextracker Inc. on January 2, 2024.

Flex Ltd. announced its plan to spin off its cloud and power infrastructure business into a new independent publicly traded company, SpinCo, aiming to create two focused entities for enhanced customer and shareholder value. Revathi Advaithi will lead SpinCo, while Michael Hartung will become CEO of Flex, with the tax-free transaction expected to close in Q1 calendar 2027. Concurrently, Flex reported strong financial results for the fourth quarter and full fiscal year ended March 31, 2026, with Q4 net sales of $7.5 billion and full-year net sales of $27.9 billion, alongside record adjusted operating margins. The company also provided optimistic guidance for fiscal year 2027, projecting significant growth in net sales and adjusted EPS.

Flex Ltd. announced the completion of its acquisition of Electrical Power Products, Inc. (EP²), a leading provider of engineered-to-order electrical power control and protection systems. This strategic acquisition expands Flex's Critical Power portfolio and strengthens its market presence in utility, power generation, and data centers, supporting growth drivers like grid modernization and U.S. reshoring. Concurrently, Flex secured a new $1.45 billion senior delayed draw term loan credit facility, primarily to finance the EP² acquisition and for general corporate purposes.