Company Overview - Flex LNG Ltd. is set to present its second quarter 2025 results in a live video webcast on August 20, 2025, at 15:00 CEST (09:00 a.m. EST) [1] - The presentation can be accessed on the company's website [2] Financial Information - A Q&A session will follow the webcast, with details on how to submit questions provided at the beginning of the session [1] Contact Information - For further inquiries, Mr. Knut Traaholt, Chief Financial Officer of Flex LNG Management AS, can be contacted via telephone or email [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 second 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] - Key dates for the distribution include: - Last day including right for NYSE shareholders: September 4, 2025 - Ex-date for NYSE shareholders: September 5, 2025 - Record date for both NYSE and OSE shareholders: September 5, 2025 - Payment date for NYSE shareholders: September 18, 2025 - Payment date for OSE shareholders: September 23, 2025 [3]

Core Insights - Cloudastructure, Inc. has been recognized with the "Project Management Solution of the Year" award for its Alpha™ platform at the 5th Annual PropTech Breakthrough Awards, highlighting its innovative contributions to the real estate technology sector [1][7]. Company Overview - Cloudastructure specializes in AI Surveillance and Remote Guarding, offering a scalable cloud-based security platform that integrates advanced AI/ML analytics with remote guarding solutions [9]. - The company aims to provide proactive, end-to-end security solutions that significantly reduce the total cost of ownership by up to 75% compared to other systems [9]. Product Features - Alpha™ is a solar-powered, fully autonomous AI mobile surveillance trailer designed for rapid deployment and effective crime deterrence across various environments, including construction sites and storage facilities [2][4]. - Key features of Alpha™ include: - 3 HD PTZ cameras on a 27-foot mast - 24/7 live streaming capability - 450-foot infrared detection range, which is twice the industry-leading range - Advanced AI-driven analytics for enhanced threat detection [6]. Industry Context - The PropTech sector is transforming real estate by delivering greater efficiency, transparency, and sustainability through innovative technologies [7]. - The annual PropTech Breakthrough Awards program aims to recognize and inspire innovation within the industry, evaluating thousands of nominations to highlight leading technology companies and solutions [8].

Core Insights - Zacks Premium provides various tools to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with high potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines all three Style Scores, providing a comprehensive view of a stock's value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - There are typically over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [9] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] Stock Highlight: Flex Ltd (FLEX) - Flex Ltd, based in Singapore, offers advanced manufacturing solutions and has a diverse workforce across 30 countries [12] - Currently rated 3 (Hold) with a VGM Score of A, Flex is also a strong candidate for growth investors, with a projected year-over-year earnings growth of 12.5% for the current fiscal year [12][13] - Recent analyst revisions have increased earnings estimates for fiscal 2026, with the Zacks Consensus Estimate rising by $0.08 to $2.98 per share, and an average earnings surprise of +13.7% [13]

Company Overview - Flex LNG is a shipping company focused on the growing market for Liquefied Natural Gas (LNG) [2] - The fleet consists of thirteen state-of-the-art LNG carriers equipped with the latest generation two-stroke propulsion systems (MEGI and X-DF) [2] - These modern ships provide significant improvements in fuel efficiency and a reduced carbon footprint compared to older steam and four-stroke propelled ships [2] Financial Results Announcement - Flex LNG will release its unaudited financial results for the second quarter of 2025 on August 20, 2025, at approximately 07:00 CEST (1:00 a.m. EST) [1] - A live video webcast will be held on the same day at 15:00 CEST (9:00 a.m. EST) [1] - The presentation material will be available on the company's website, and a replay of the webcast will also be accessible [2]

Core Insights - Flex has introduced a new power shelf system designed to support 800 VDC power architectures, addressing the increasing demands of AI infrastructure and AI factories [2][5] - The power shelf system is optimized for NVIDIA GB300 NVL72 systems, achieving peak efficiency of 97.5% at half-load and reducing power conversion losses by over 60% compared to conventional systems [4][5] - Flex aims to facilitate the deployment of 1 megawatt IT racks and prepare the industry for the transition to 800 VDC data center power infrastructure [3][5] Product Features - The Flex power shelf system delivers up to 33 kW per shelf in a compact, industry-standard footprint, featuring six power supply units in a 3+3 redundant configuration [4] - It is fully compatible with the NVIDIA GB300 NVL72 platform, which includes 72 NVIDIA Blackwell Ultra GPUs, supporting high-performance workloads for AI applications [4][6] - The system is designed to lower heat output, cooling demands, and energy costs, making it suitable for the evolving needs of data centers [4][6] Industry Impact - Flex's collaboration with NVIDIA enables hyperscale and colocation customers to deploy next-generation AI infrastructure more efficiently as they scale towards 1 MW racks [3][5] - The introduction of the power shelf system is part of Flex's broader strategy to enhance data center manufacturing capabilities and address power, heat, and scale challenges in the AI era [6][8] - Flex plans to initiate full-scale production of 800 VDC power components in alignment with the release of NVIDIA Kyber rack-scale systems, ensuring scalability for demanding AI models [5][6]

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q1 FY2026 show increased net sales to $6.6 billion, net income to $192 million, and total assets to $19.1 billion [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $19.13 billion and total liabilities to $14.04 billion as of June 27, 2025, with shareholders' equity at $5.09 billion Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 27, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total current assets** | $13,467 | $12,841 | | **Total assets** | **$19,132** | **$18,381** | | **Total current liabilities** | $9,921 | $9,850 | | **Total liabilities** | **$14,043** | **$13,379** | | **Total shareholders' equity** | $5,089 | $5,002 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 net sales increased to $6.58 billion, operating income to $311 million, and net income to $192 million, with diluted EPS at $0.50 Statement of Operations Summary (in millions, except per share data) | Metric | Q1 FY2026 (ended June 27, 2025) | Q1 FY2025 (ended June 28, 2024) | | :--- | :--- | :--- | | Net sales | $6,575 | $6,314 | | Gross profit | $572 | $471 | | Operating income | $311 | $233 | | Net income | $192 | $139 | | Diluted EPS | $0.50 | $0.34 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 FY2026 significantly increased to $300 million, driven by higher net income and positive other comprehensive income Comprehensive Income Summary (in millions) | Component | Q1 FY2026 (ended June 27, 2025) | Q1 FY2025 (ended June 28, 2024) | | :--- | :--- | :--- | | Net income | $192 | $139 | | Foreign currency translation adjustments | $69 | $(16) | | Unrealized gain (loss) on derivatives | $39 | $(27) | | **Comprehensive income** | **$300** | **$96** | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to $5.09 billion, influenced by net income and other comprehensive income, partially offset by share repurchases - Key changes in shareholders' equity for the quarter included a **$192 million** increase from net income and a **$247 million** decrease due to share repurchases[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was $399 million, with $179 million used in investing and $283 million in financing, resulting in a $50 million net cash decrease Cash Flow Summary (in millions) | Cash Flow Activity | Q1 FY2026 (ended June 27, 2025) | Q1 FY2025 (ended June 28, 2024) | | :--- | :--- | :--- | | Net cash provided by operating activities | $399 | $340 | | Net cash used in investing activities | $(179) | $(82) | | Net cash used in financing activities | $(283) | $(468) | | **Net change in cash and cash equivalents** | **$(50)** | **$(231)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment information, debt instruments, a $35 million acquisition, contingencies, and a new $2.75 billion credit facility - The company operates through two segments: **Flex Agility Solutions (FAS)** and **Flex Reliability Solutions (FRS)**[32](index=32&type=chunk)[37](index=37&type=chunk) - On April 30, 2025, the company acquired a manufacturing business in Poland for an estimated **$35 million**, included in the FRS segment[85](index=85&type=chunk) - Subsequent to the quarter end, on July 15, 2025, the company established a new **$2.75 billion** credit facility maturing in July 2030, replacing its previous facility[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 4% revenue increase to $6.6 billion, improved gross margin to 8.7%, strong operating cash flow, and robust liquidity with $2.2 billion cash [Overview](index=24&type=section&id=Overview) Flex operates as a global end-to-end manufacturing partner through two segments, offering vertically-integrated supply chain solutions from design to service - Flex operates through two reportable segments: **Flex Agility Solutions (FAS)** and **Flex Reliability Solutions (FRS)**[108](index=108&type=chunk)[113](index=113&type=chunk) - The company's strategy is to offer a full range of vertically-integrated global supply chain solutions, from design to post-sale services[109](index=109&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 FY2026 net sales increased 4% to $6.6 billion, gross margin improved to 8.7%, and net income rose to $192 million with a 22% effective tax rate Net Sales by Segment (in millions) | Segment | Q1 FY2026 | Q1 FY2025 | % Change | | :--- | :--- | :--- | :--- | | Flex Agility Solutions | $3,691 | $3,365 | 10% | | Flex Reliability Solutions | $2,884 | $2,949 | -2% | | **Total** | **$6,575** | **$6,314** | **4%** | - Gross margin improved by **120 basis points** year-over-year to **8.7%**, attributed to favorable product mix and continued operational execution[132](index=132&type=chunk) Segment Income and Margin | Segment | Q1 FY2026 Income | Q1 FY2026 Margin | Q1 FY2025 Income | Q1 FY2025 Margin | | :--- | :--- | :--- | :--- | :--- | | Flex Agility Solutions | $240M | 6.5% | $179M | 5.3% | | Flex Reliability Solutions | $172M | 6.0% | $147M | 5.0% | - The consolidated effective tax rate for the quarter was **22%**, down from **28%** in the prior-year period, primarily due to favorable foreign exchange impacts and tax benefits[146](index=146&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Flex maintains strong liquidity with $2.2 billion cash, generated $399 million operating cash flow, and established a new $2.75 billion credit facility - The company had cash and cash equivalents of approximately **$2.2 billion** and total debt of approximately **$3.7 billion** as of June 27, 2025[151](index=151&type=chunk) Adjusted Free Cash Flow (in millions) | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Net cash provided by operating activities | $399 | $340 | | Net purchases of property and equipment | $(131) | $(108) | | **Adjusted free cash flow** | **$268** | **$232** | - In July 2025, the company established a new **$2.75 billion** revolving credit facility, maturing in July 2030[151](index=151&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure, including interest rate and foreign currency risks, were reported for the quarter - There were no material changes in the company's exposure to market risks for changes in interest and foreign currency exchange rates during the quarter[164](index=164&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[165](index=165&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter[167](index=167&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Material legal proceedings, including a commercial dispute settlement and tax assessments, are detailed in Note 13 of the financial statements - For details on material legal proceedings, the report refers to Note 13, "Commitments and Contingencies"[169](index=169&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported compared to the Annual Report on Form 10-K - The company states there are no material changes from the risk factors discussed in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Flex repurchased 7.2 million ordinary shares for $247 million, with $0.8 billion remaining for future repurchases under current authorization Issuer Purchases of Equity Securities (Q1 FY2026) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - May 3, 2025 | 5,001,483 | $30.66 | | May 4 - May 31, 2025 | 1,191,921 | $40.72 | | June 1 - June 27, 2025 | 1,009,205 | $44.68 | | **Total** | **7,202,609** | **-** | - As of June 27, 2025, approximately **$0.8 billion** was available for future share repurchases under the existing plan[171](index=171&type=chunk) [Other Information](index=37&type=section&id=Item%205.%20Other%20Information) Two officers adopted Rule 10b5-1 trading plans for potential sales of company shares during the quarter - Two officers, Daniel J. Wendler and Michael P. Hartung, adopted Rule 10b5-1 trading plans during the quarter for selling company shares[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) Exhibits include incentive plans, award agreements, officer certifications, and XBRL data files filed with the Form 10-Q - The exhibits include various compensation plan documents, officer certifications (Sections 302 and 906), and XBRL interactive data files[178](index=178&type=chunk)

Core Insights - Flex Ltd. reported first-quarter fiscal 2026 adjusted earnings per share (EPS) of 72 cents, exceeding the Zacks Consensus Estimate by 14.3% and up from 51 cents in the prior-year quarter [1][9] - Revenues increased by 4.1% year over year to $6.6 billion, beating the consensus mark by 5.6%, driven by strong data center growth in cloud and power markets [1][9] Management Commentary - Management highlighted that the strong first-quarter results indicate a solid start to fiscal 2026, emphasizing the effectiveness of the strategic focus on high-growth markets like data centers and power [2] Stock Performance - Following the results announcement, shares declined by 7.7%, closing at $49.67 on July 24, 2025, despite a 55.2% increase in stock value over the past year compared to a 6.6% decline in the Zacks Electronics - Miscellaneous Products industry [2] Segment Performance - The Flex Reliability Solutions Group, which includes Health Solutions, Automotive, and Industrial businesses, saw revenues fall by 2% to $2.9 billion due to macroeconomic pressures, although strong performance in the power segment partially offset this decline [3] - The Flex Agility Solutions Group, comprising Communications & Enterprise Compute and Lifestyle and Consumer Devices, experienced a 10% revenue increase to $3.7 billion, driven by strong demand in cloud and AI [4] Operating Metrics - Non-GAAP gross profit was $596 million, up 20.4% year over year, with a gross margin expansion of 130 basis points to 9.1% [5] - Non-GAAP operating income rose to $395 million, a 29.1% increase year over year, with operating margin expanding by 120 basis points to 6% [5] Financial Overview - As of June 30, 2025, cash and cash equivalents were $2.24 billion, while long-term debt was $3 billion, compared to $2.29 billion and $2.48 billion a year ago [10] - The company generated $399 million in cash flow from operating activities and $268 million in adjusted free cash flow during the first quarter [10] Future Guidance - For Q2 fiscal 2026, Flex expects revenues between $6.5 billion and $6.8 billion, with adjusted earnings projected at 70-78 cents per share [11] - For fiscal 2026, the revenue forecast has been raised to between $25.9 billion and $27.1 billion, with adjusted earnings anticipated in the range of $2.86-$3.06 per share [14]

Group 1 - Flex reported quarterly earnings of $0.72 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and up from $0.51 per share a year ago, representing an earnings surprise of +14.29% [1] - The company achieved revenues of $6.58 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.22%, and an increase from $6.31 billion year-over-year [2] - Flex has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - Flex shares have increased approximately 40.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4][6] - The current consensus EPS estimate for the next quarter is $0.73 on revenues of $6.5 billion, and for the current fiscal year, it is $2.91 on revenues of $26 billion [7] Group 3 - The Zacks Industry Rank places Electronics - Miscellaneous Products in the top 29% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $6.6 billion, an increase of 4% year over year [6][15] - Adjusted operating margin was 6%, with adjusted EPS reaching a record $0.72, reflecting a more than 40% increase [6][15] - Gross profit totaled $596 million, with gross margin improving to 9.1%, up 130 basis points [15] Business Line Data and Key Metrics Changes - Reliability Solutions revenue was $2.9 billion, down 2% year over year, impacted by macro-related pressures in Automotive and Renewables [16] - Agility Solutions revenue totaled $3.7 billion, up 10% year over year, driven by strong cloud and AI demand [17] - Operating income for Reliability Solutions improved to $172 million, while Agility Solutions saw operating income of $240 million [16][17] Market Data and Key Metrics Changes - Americas revenue rose to 49% in fiscal year 2025, up from 38% in fiscal year 2020, while Asia declined to 30%, down from 41% [12] - The company operates over 49 million square feet globally, with significant manufacturing footprints in the U.S. and Mexico [11] Company Strategy and Development Direction - The company is focusing on high-growth end markets such as data centers and power, positioning itself as a strategic end-to-end partner rather than just a contract manufacturer [14] - Investments are being made in advanced manufacturing capabilities, including AI and automation, to enhance productivity [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite market uncertainties, highlighting a strong start to fiscal year 2026 [14] - The updated fiscal year 2026 guidance anticipates revenue between $25.9 billion and $27.1 billion, with adjusted EPS between $2.86 and $3.06 [21] Other Important Information - Free cash flow for the quarter was $268 million, representing a conversion rate of 98% [17] - The company acquired a new manufacturing site in Poland to double its power capacity in Europe [19] Q&A Session Summary Question: Margin outlook for the year - Management maintained a margin guidance range of 6% to 6.1%, citing tariff impacts and investments as factors affecting margins [28][30] Question: Data center revenue trends - Management confirmed a strong outlook for data center growth, with expectations of 35% year-over-year growth, driven by both cloud and power segments [31][33] Question: Market evolution and internal investments by hyperscalers - Management views the trend of hyperscalers investing in their own capabilities as positive, emphasizing the importance of integrated solutions [38][39] Question: Capacity constraints and investments - Management acknowledged capacity constraints but expressed confidence in new investments to meet demand, particularly in AI infrastructure [50][51] Question: End market growth expectations - Management indicated that automotive and consumer markets are expected to remain weak, while healthcare and industrial sectors are projected to grow [67][68]