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Core Insights - Flex LNG declared an ordinary dividend of $0.75 per share for the quarter, resulting in a trailing twelve-month yield of 12%, supported by $410 million in cash at the end of Q1 2025 [1] - The company reaffirmed full-year 2025 revenue guidance in the range of $340 million to $360 million [1][8] Financial Performance - The balance sheet optimization program aims to unlock an additional $120 million in free cash, with plans for refinancing ships Flex Resolute and Flex Constellation [2] - At the end of Q1 2025, the company held $410 million in cash and has its first scheduled debt maturity in 2028 [2] - The refinancing initiatives are expected to lower the average cost of capital and extend debt maturities, supporting liquidity [3] Risk Management - Flex LNG increased its interest rate swap portfolio to $700 million notional by the end of Q1 2025, providing 70% hedge coverage over the next 24 months [4] - The company added an additional $150 million in swaps, increasing the total to $850 million at a weighted average rate of approximately 3.5% [5] Contractual Strength - As of May 2025, Flex LNG has a minimum contract backlog of 59 vessel-years, potentially rising to 88 years if charter options are exercised [6][7] - This exceptional contractual coverage provides predictability and cushions earnings against short-term spot rate pressure [7] Future Outlook - Management reaffirmed full-year 2025 revenue guidance of $340 million to $360 million, with debt maturities extended and interest costs reduced [8]

Customer Concentration - In fiscal year 2025, the ten largest customers accounted for approximately 44% of net sales, with no single customer exceeding 10% of total sales[17] - Sales to the ten largest customers accounted for approximately 44%, 37%, and 37% of net sales in fiscal years 2025, 2024, and 2023, respectively[85] Global Operations - Flex's global manufacturing footprint includes approximately 100 facilities in around 30 countries, employing approximately 148,000 people, with net sales distribution of 43% in North America, 17% in China, 21% in EMEA, and 19% in other regions[42] - As of March 31, 2025, the global workforce totaled approximately 148,000 employees, with 59,786 in the Americas, 59,754 in Asia, and 28,439 in Europe[51][52] - As of March 31, 2025, the company owns or leases facilities totaling approximately 48.5 million square feet, with 22.7 million square feet owned and 25.8 million square feet leased[200] Strategic Acquisitions and Investments - The company completed strategic acquisitions in fiscal year 2025, including JetCool Technologies and Crown Technical Systems, to enhance capabilities in power and cooling solutions for data centers[13] - The company has completed several acquisitions, including Crown, JetCool, and Anord Mardix, which may require additional equity or debt financing, affecting credit ratings[110] Sustainability and Corporate Responsibility - Flex's commitment to sustainability is reflected in its focus on responsible sourcing and production practices, addressing customer demands for higher standards[19] - The company aims to achieve net zero greenhouse gas emissions by 2040, as part of its sustainability strategy announced in 2022[61][63] - Flex's sustainability framework includes goals to cut operational emissions in half and provide access to mental health services for all employees[62] - The company has received multiple awards for its sustainability efforts, including recognition as one of the World's Most Ethical Companies for three consecutive years[63] - Sustainability practices are increasingly scrutinized, and failure to meet expectations could impose additional costs and harm the company's reputation[180] - The company has established sustainability goals, but evolving standards and stakeholder expectations present risks that could adversely impact business operations[182] Workforce and Talent Management - In fiscal year 2024, employees completed over 5 million hours of training programs, emphasizing the company's commitment to talent development[54] - The Flex Voice survey showed a 92% participation rate among employees, reflecting continued engagement within the workforce[56] - Flex's total rewards package is designed to attract and retain top talent, offering competitive salaries, bonuses, and equity awards[57][58] - The Compensation and People Committee oversees human capital management strategies, including corporate culture and talent retention programs[59][60] - Flex promotes a "zero-injury" culture through health and safety management systems, with specific goals to decrease safety incident rates[53] Supply Chain and Operational Challenges - Rising global uncertainties, including trade issues and labor shortages, are prompting companies to rethink production strategies and seek trusted outsourcing partners[19] - Supply chain disruptions and component shortages have previously led to curtailed production and delays in shipments, adversely affecting operating results[86] - The company has experienced shortages of semiconductor components, impacting production and scheduled shipments to customers[86] - The company’s margins and profitability may be adversely affected by increased costs from supply chain issues and inflationary pressures[86] - The short-term nature of customer commitments complicates production scheduling and resource allocation, affecting operational efficiency[83] - The company is exposed to risks from geopolitical events, which have previously caused supply chain disruptions and increased costs[90] Financial Performance and Risks - The company has faced significant investments in research and development, technology licensing, and facility expansion, which have historically adversely affected profitability[97] - Inflationary increases in raw material and labor costs have negatively impacted margins, particularly during early production ramps due to inefficiencies[98] - The company is subject to various privacy and data protection laws, including GDPR and CCPA, which may increase compliance costs and affect business operations[107] - Financial exposure to troubled customers may adversely affect financial results, including increased provisions for doubtful accounts and inventory write-offs[140] - The market price of the company's ordinary shares is volatile, influenced by factors such as operating results and macro-economic conditions[139] - Global economic conditions, including inflation and geopolitical risks, could negatively impact business operations and financial condition[147] Legal and Regulatory Compliance - The company is subject to various domestic and foreign employment laws, and violations could result in significant damages, impacting net income[179] - The company must protect its intellectual property rights, as claims of infringement could harm its competitive advantage and require significant resources for defense[166] - Compliance with regulatory quality standards for medical devices is critical, as non-compliance could lead to fines, product recalls, and operational shutdowns[177] - The company faces legal and regulatory risks from litigation and regulatory investigations, which may result in substantial damages and disrupt business operations[164] Cybersecurity and Risk Management - Cybersecurity risks are increasing, with sophisticated attempts to breach information systems that could materially disrupt operations[104] - The company maintains a cybersecurity risk management program, integrated into its broader enterprise risk management, to protect critical IT systems[189] - The Chief Information Security Officer (CISO) leads the cybersecurity program, which includes risk assessments and incident response plans[190] - The Audit Committee oversees cybersecurity risks and receives quarterly reports from the CISO on the current threat landscape and ongoing initiatives[195] Market and Competitive Landscape - The company operates in a highly competitive industry, with risks of losing market share if unable to provide competitive products and services[126] - The company faces risks from labor disputes, which could lead to increased labor costs and potential work stoppages affecting operations and financial results[122] - The company is exposed to risks from unforeseen events such as natural disasters and cybersecurity incidents, which could disrupt operations and adversely affect revenue[123]

Core Insights - Flex LNG reported solid financial results for Q1 2025, with revenues of $88.4 million and net income of $18.7 million, translating to earnings per share (EPS) of $0.35 [1][4] - Revenue decreased by $3 million compared to Q4 2024, primarily due to lower earnings from Flex Artemis and the redelivery of Flex Constellation [1][4] - The company has secured a total minimum firm backlog of 59 years, with potential expansion to 88 years through charterers' extension options, providing strong earnings visibility [3] Financial Performance - Vessel operating revenues for Q1 2025 were $88.4 million, down from $90.9 million in Q4 2024 [4] - Net income for Q1 2025 was $18.7 million, compared to $45.2 million in Q4 2024 [4] - Adjusted EBITDA for Q1 2025 was $65.6 million, down from $68.7 million in Q4 2024 [4] Vessel Operations - Flex Constellation was redelivered in March 2025 and is expected to remain in the spot market until a 15-year time charter begins in H1 2026 [1][4] - Flex Artemis will be redelivered in Q3 2025 after a 5-year time charter and will undergo drydocking [2][4] Financing and Refinancing - The company received a credit-approved term sheet for a $175 million sale and leaseback for Flex Courageous [5] - Refinancing processes for Flex Resolute and Flex Constellation have been initiated to improve liquidity and reduce debt costs [5] ESG and Shareholder Actions - The company published its 2024 ESG report, highlighting a Lost Time Injury Frequency (LTIF) of zero [7] - A quarterly dividend of $0.75 per share was declared, amounting to approximately $41 million, with trailing twelve months dividends totaling $3.0 per share [8]

Core Points - Flex LNG Ltd. is set to present its first quarter 2025 results in a live video webcast on May 21, 2025, at 15:00 CEST (09:00 a.m. EST) [1] - A Q&A session will follow the webcast, with instructions for submitting questions provided at the beginning of the session [1] Access Information - The first quarter 2025 presentation can be accessed on Flex LNG's official website [2] - Contact information for further inquiries includes Mr. Knut Traaholt, Chief Financial Officer, with a provided telephone number and email address [2] - The presentation file is available for download through a specified link [2]

Company Information - Flex LNG Ltd. is a shipping company focused on the growing market for Liquefied Natural Gas (LNG) [4] - The company operates a fleet of thirteen state-of-the-art LNG carriers equipped with the latest generation two-stroke propulsion systems, which enhance fuel efficiency and reduce carbon footprint compared to older vessels [4] Cash Distribution Details - For the first quarter of 2025, Flex LNG will distribute $0.75 per share to shareholders [3] - The distribution will be made from the Company's Contributed Surplus Account [1] - The payment dates differ for NYSE and OSE shareholders: - NYSE: Payment date is June 20, 2025 [3] - OSE: Payment date is June 25, 2025 [3] - The last day including right for NYSE shareholders is June 5, 2025, and for OSE shareholders, it is June 4, 2025 [3] Settlement Cycle Changes - Starting May 28, 2024, the standard settlement cycle for transactions on the NYSE will change from T+2 to T+1, while the Oslo Stock Exchange will continue with T+2 [2] - This change may affect the timing of share movements between the two exchanges during the interim period [2]

Core Insights - JetCool, a Flex company, has introduced its next-generation SmartPlate™ System, a self-contained liquid cooling solution for select Dell PowerEdge systems [1][3] - The SmartPlate System offers significant performance and efficiency improvements, achieving an average total IT power savings of 15% in third-party thermal testing [2][3] Company Overview - JetCool specializes in direct-to-chip liquid cooling solutions aimed at AI and high-density computing applications, enhancing performance and energy efficiency [6] - As part of Flex, JetCool benefits from advanced manufacturing capabilities and a global footprint, enabling the deployment of liquid cooling solutions at any scale [3][5] Product Features - The SmartPlate System is fully sealed and eliminates the need for facility water, simplifying the adoption of liquid cooling in data centers [2][3] - The system is designed to improve thermal performance and power consumption, allowing for more compute per rack in environments without water hookups [3] Market Presence - JetCool's technology can be experienced at Dell Customer Solution Centers in Round Rock, Texas, and during Dell Technologies World 2025 in Las Vegas [4] - The company is positioned as a leader in advanced thermal management, trusted by top chipmakers, OEMs, and data centers [6]

Core Insights - The article compares Flex (FLEX) and Garmin (GRMN) to determine which stock is a better undervalued investment option for investors in the Electronics - Miscellaneous Products sector [1] Valuation Metrics - FLEX has a forward P/E ratio of 14.46, while GRMN has a forward P/E of 25.20, indicating that FLEX is more attractively priced [5] - The PEG ratio for FLEX is 1.60, compared to GRMN's PEG ratio of 2.22, suggesting that FLEX offers better value relative to its expected earnings growth [5] - FLEX's P/B ratio is 3.23, while GRMN's P/B ratio is 4.72, further supporting the notion that FLEX is undervalued [6] Analyst Outlook - FLEX holds a Zacks Rank of 2 (Buy), indicating a positive analyst outlook, while GRMN has a Zacks Rank of 4 (Sell), reflecting a less favorable view [3] - The stronger estimate revision activity for FLEX suggests a more favorable earnings outlook compared to GRMN [7] Value Grades - FLEX has a Value grade of A, while GRMN has a Value grade of D, highlighting the relative undervaluation of FLEX [6]

Core Viewpoint - Flex (FLEX) has shown strong year-to-date performance compared to the broader Computer and Technology sector, which has experienced negative returns [1][4]. Company Performance - Flex has returned 9.6% year-to-date, significantly outperforming the Computer and Technology sector's average return of -1.3% [4]. - The Zacks Consensus Estimate for Flex's full-year earnings has increased by 2.5% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3]. Industry Context - Flex is part of the Electronics - Miscellaneous Products industry, which consists of 34 companies and currently ranks 155 in the Zacks Industry Rank. This industry has seen an average gain of 6.8% year-to-date, further highlighting Flex's superior performance [5]. - In contrast, Bentley Systems, Incorporated, another stock in the Computer and Technology sector, has a year-to-date return of 2.7% and belongs to the Internet - Software industry, which has performed better with a 10.1% increase year-to-date [4][6].

Flex (FLEX) FY Conference May 14, 2025 08:00 AM ET Speaker0 morning, everyone. I'm Samik Chatterjee, and I cover the hardware and networking companies at JPMorgan. For the first session on day two, have the pleasure of hosting Flex. And with me are Michael Hutong, who is the Chief Commercial Officer and David Rubin from Investor Relations from the company. Thank you both for coming to the conference and thank you to the audience as well. For both of you, we've been sort of generally asking our companies mor ...