Flex Ltd.

Company facts

Industry

Printed Circuit Boards

Headquarters

Austin, Texas

Most recent report

8-K, filed Nov 5, 2026

Incorporated

N/A

Filings on record

1,001+ filings

On EDGAR

CIK 866374

Fiscal year ends

March

Filer status

Large accelerated filer

What to read: Sep 2026 10-Q

SECSift found 3 of 13 sections worth reading, with 2 positive, 11 notable, and 4 negative flags.

• Financial Statements (Item 1)

  Two large acquisitions, a planned spin-off, and a big debt raise all happened or were announced.
  Notable

  • Flex plans to spin off its CPI segment into Axiom, a separate public company, by early 2027.
  • Goodwill rose $474M in six months, mostly from the $485M EPP acquisition.
  • One customer made up 14% of Q2 2026 net sales, mostly in the CPI segment.
  • No share repurchases in H1 2026, after $544M in buybacks in H1 2025.
  Negative

  • $4.4B in new debt (EPC Facilities) matures Oct 2027, creating a large near-term refinancing need.

• Management's Discussion (Item 2)

  Revenue up 25%, CPI segment surges 54%, $4.4B post-period acquisition, spin-off costs, and tariff refunds.
  Positive

  • Net sales up 25% to $8.5B in Q2 FY2027, with CPI segment up 54%.
  • CPI segment margin expanded 240 bps to 10.7% in Q2 FY2027, driven by Power and Cloud & Cooling.
  Notable

  • Company received majority of IEEPA tariff refunds; tariff impact on Q2 FY2027 was negligible (<1%).
  • One significant customer accounted for 14% of net sales in Q2 FY2027, mostly in the CPI segment.
  • SG&A jumped $111M in Q2 FY2027, with $110M tied to the planned CPI spin-off and recent acquisitions.
  • A $48M gain from selling a non-strategic North American business boosted other income in H1 FY2027.
  • Effective tax rate rose to 29% in Q2 FY2027 from 24% a year ago, partly due to spin-off impacts.
  • Free cash flow fell to $302M in H1 FY2027 from $573M a year ago, due to higher capex and spin-off costs.
  • After Q2, company borrowed $4.4B ($3.3B term loan + $1.1B bridge) to acquire EPC Power Corp.

• Risk Factors (Item 1A)

  New risk: $4.4B acquisition debt due Oct 2027, tied to a spin-off that may not happen.
  Negative

  • If spin-off is delayed or fails, Flex must repay or refinance up to $4.4B from other sources.
  • Flex guaranteed $2B preferred stock redemption at 115% cash or 125% in shares if spin-off fails by Dec 31, 2027.
  • Share settlement of preferred redemption would dilute Flex shareholders.

What changed: Sep 2026 vs. Jun 2026

About 21% of FLEX's Sep 2026 10-Q is new information. 59 paragraphs were added, 117 changed, and 20 removed. Below are the most important lines SECSift identified.

• Item 1 72
• Item 2 46
• Item 6 16
• Item 1A 5
• Item 5 2
• Item 4 2
• Item 3 1