Core Viewpoint - Flex LNG Ltd. reported its unaudited financial results for the second quarter of 2025, highlighting stable revenues and a solid financial position despite a soft spot market for LNG shipping [1][3]. Financial Performance - Second quarter revenues were $86 million, or $84 million excluding EUAs, with a Time Charter Equivalent (TCE) of approximately $72,000 per day, nearly unchanged from $84.7 million in the same quarter last year [3][4]. - Net income for the second quarter was $17.7 million, resulting in an earnings per share (EPS) of $0.33, compared to $18.7 million and $0.35 EPS in the first quarter [4]. - Adjusted EBITDA for the second quarter was $62.6 million, down from $65.6 million in the first quarter [4]. Operational Highlights - The company completed drydocking for Flex Aurora and Flex Resolute ahead of schedule, demonstrating effective management of off-hire periods [4][5]. - Flex Courageous was sold for $175 million under a sale and leaseback agreement, with a 10-year bareboat charter back [4][6]. Financing Activities - A new $180 million term loan facility was signed for Flex Constellation, with a 15.5-year tenor and an interest rate of SOFR plus 165 basis points [4][6]. - The company has a minimum charter backlog of 56 years, potentially extending to 85 years, which provides access to attractive financing opportunities [6]. Shareholder Returns - The Board authorized a share repurchase program of up to $15 million, valid through November 27, 2025 [4][7]. - A quarterly dividend of $0.75 per share was declared, payable on or about September 18, 2025, bringing the trailing twelve-month dividend to $3.00 per share [4][8].

Core Viewpoint - Flex LNG Ltd. has authorized a share buyback program allowing the repurchase of up to $15 million of its outstanding shares, which will be executed on the Oslo Stock Exchange and the New York Stock Exchange [1][2][3]. Group 1: Share Buyback Program Details - The share buyback program will commence on August 20, 2025, and continue through November 27, 2025, with a maximum limit of 900,000 shares to be repurchased [3]. - The shares purchased will be held as treasury shares, and the actual timing, number, and value of shares repurchased will depend on various factors including market conditions and compliance with regulations [3]. - The amount utilized for the share buyback will be treated independently from future dividend considerations, which remain at the discretion of the Board of Directors [4]. Group 2: Compliance and Regulations - The repurchase of shares on the Oslo Stock Exchange will comply with the Market Abuse Regulation (EU) No 596/2014, while repurchases on the NYSE will adhere to U.S. securities laws, including Rule 10b-18 [2][3].

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]