Core Viewpoint - Flex LNG Ltd. is set to present its fourth quarter 2025 results in a live video webcast, indicating a focus on transparency and investor engagement [1]. Group 1: Financial Results Presentation - The presentation will cover unaudited financial results for the three months and year ended December 31, 2025, highlighting the company's performance during this period [1]. - A Q&A session will follow the webcast, allowing stakeholders to engage directly with company representatives [1]. Group 2: Accessibility and Contact Information - The presentation can be accessed via the company's website, ensuring that information is readily available to investors and analysts [1]. - Contact details for the Chief Financial Officer, Mr. Knut Traaholt, are provided for further inquiries, demonstrating the company's commitment to communication [1].

Core Viewpoint - Flex LNG reported its unaudited financial results for Q4 and the full year of 2025, highlighting stable earnings and a commitment to shareholder returns through dividends [1] Financial Performance - The company declared a dividend of $0.75 per share for Q4 2025, payable on March 12, 2026 [1] - Adjusted basic earnings per share for Q4 2025 remained stable at $0.43, consistent with Q3 2025 [1] - Adjusted net income for Q4 2025 was $23.3 million, slightly down from $23.5 million in Q3 2025 [1] - Adjusted EBITDA for Q4 2025 increased to $61.8 million from $61.2 million in Q3 2025 [1] - Net income for Q4 2025 was $21.6 million, up from $16.8 million in Q3 2025, with basic earnings per share rising to $0.40 from $0.31 [1] - Vessel operating revenues for Q4 2025 were $87.5 million, compared to $85.7 million in Q3 2025 [1] Operational Insights - The average Time Charter Equivalent (TCE) rate for Q4 2025 was $70,119 per day, down from $70,921 per day in Q3 2025 [1] - The full-year TCE rate for 2025 was $71,728 per day, aligning with the guidance of $71,000 to $72,000 per day [1] - Full-year adjusted EBITDA for 2025 was $251.1 million, slightly exceeding the guidance of approximately $250 million [1] Market Outlook - Global LNG exports grew by approximately 4% year-on-year in 2025, reaching 429 million tons, with North American projects driving a 25% growth [1] - 70 million tons per annum of new LNG projects reached Final Investment Decision (FID) in 2025, contributing to a total capacity under construction of around 200 million tons per annum [1] - The short- to medium-term outlook for LNG shipping is expected to be affected by newbuilding deliveries ahead of liquefaction projects [1] Financial Strategy - The company completed three refinancing initiatives worth $530 million in 2025, releasing $137 million in net cash proceeds and lowering interest costs [1] - Full-year interest expenses for 2025 declined to $92.6 million, down $13 million from 2024 [1] - The company has no debt maturities before 2029 and ended the year with a cash position of $448 million [1]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics, with Flex (FLEX) currently highlighted as a recommended stock due to its favorable Growth Score and top Zacks Rank [2] - Stocks with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have historically outperformed the market, making them attractive options for growth investors [3] Group 2: Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable as it indicates strong future prospects and potential stock price increases [3] - Flex has a historical EPS growth rate of 12%, but projected EPS growth for the current year is significantly higher at 21.7%, surpassing the industry average of 14.4% [4] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [5] - Flex's year-over-year cash flow growth stands at 9.1%, which is notably higher than the industry average of -1.1% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 15.9%, compared to the industry average of 5.6%, indicating strong historical performance [6] Group 4: Earnings Estimate Revisions - Trends in earnings estimate revisions are indicative of a stock's potential performance, with positive revisions correlating strongly with near-term stock price movements [7] - The current-year earnings estimates for Flex have been revised upward, with the Zacks Consensus Estimate increasing by 2.2% over the past month [8] Group 5: Overall Positioning - Flex has achieved a Growth Score of B and a Zacks Rank of 2, reflecting its strong performance metrics and positive earnings estimate revisions, positioning it well for potential outperformance in the market [9]

Core Insights - The rise of rent now, pay later services indicates the increasing unmanageability of housing costs for many Americans [4][9] - Affirm has launched a pilot program allowing renters to split their payments into two installments, partnering with Esusu for credit score reporting [2][5] - Monthly service fees and potential finance charges can make these services more expensive than traditional payment methods [6][9] Company-Specific Insights - Affirm's new service does not charge interest but involves monthly fees, accessible only through Esusu's Plus and Premium services [3][5] - Other companies like Zip and Livble offer similar services, with Zip advertising an annual interest rate of 31.11% and Livble charging monthly finance charges of $30 to $40 [6][7] - Flex provides a rent-splitting option that may require landlord participation, with a monthly fee of $14.99 and additional charges [7] Industry Trends - The growth of rent now, pay later services reflects broader economic challenges, as turning rent into installment debt can increase household debt and reduce overall consumer spending [4] - Many of these services are reported to be more costly than using credit cards for rent payments, highlighting the financial strain on renters [6][9]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: Flex (FLEX) Stock Analysis - Flex (FLEX) has shown a four-week price change of 4%, indicating growing investor interest [4] - The stock has gained 6.7% over the past 12 weeks and has a beta of 1.24, suggesting it moves 24% higher than the market [5] - FLEX has a Momentum Score of B, indicating a favorable time to invest [6] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [7] - FLEX is trading at a Price-to-Sales ratio of 0.88, suggesting it is undervalued [7] Group 3: Investment Opportunities - FLEX appears to have significant potential for growth at a fast pace, alongside other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria [8] - There are over 45 Zacks Premium Screens available for investors to identify winning stock picks based on their investing style [9]

Financial Performance - Flex reported revenues of $20.4 billion for the nine-month period ended December 31, 2025, compared to $25.8 billion for the fiscal year ended March 31, 2025[133]. - Net sales for the three-month period ended December 31, 2025, totaled $7.1 billion, an increase of $0.5 billion, or 8%, from $6.6 billion in the same period of 2024[142]. - Net sales for the nine-month period ended December 31, 2025, reached $20.4 billion, representing an increase of $1.0 billion, or 5%, from $19.4 billion in the same period of 2024[143]. - Gross profit for the three-month period ended December 31, 2025, increased to $0.7 billion, or 9.6% of net sales, compared to $0.6 billion, or 9.1% of net sales, in the same period of 2024[150]. - Gross profit for the nine-month period ended December 31, 2025, rose to $1.9 billion, or 9.1% of net sales, up from $1.6 billion, or 8.2% of net sales, in the same period of 2024[151]. - Net income for the three-month period ended December 31, 2025, was $239 million, a decrease from $263 million in the same period of 2024, while net income for the nine-month period increased to $630 million from $616 million year-over-year[171]. Regional Sales - Net sales by region for the three-month period ended December 31, 2025, were $3.37 billion (48%) in the Americas, $2.23 billion (32%) in Asia, and $1.45 billion (20%) in Europe[134]. Costs and Expenses - Cost of sales for the three-month period ended December 31, 2025, totaled $6.4 billion, an increase of $0.4 billion, or 7%, from $6.0 billion in the same period of 2024[147]. - Selling, general and administrative expenses for the three-month period ended December 31, 2025, were $0.3 billion, or 3.8% of net sales, an increase of $29 million from the same period in 2024[158]. - Restructuring charges during the three-month period ended December 31, 2025, amounted to $6 million, primarily related to employee severance[157]. - Interest expense for the three-month period ended December 31, 2025, increased to $58 million from $57 million in the same period of 2024[160]. - Other charges, net for the three-month period ended December 31, 2025, were $25 million, compared to $5 million in the same period of 2024, primarily due to an impairment recorded on an investment[163]. Cash Flow and Capital - Cash provided by operating activities was $1.3 billion for the nine-month period ended December 31, 2025, driven by $0.6 billion of net income and $0.4 billion of non-cash charges[173]. - Free cash flow for the nine-month periods ended December 31, 2025, and December 31, 2024, was $848 million and $757 million, respectively[176]. - As of December 31, 2025, cash and cash equivalents totaled approximately $3.1 billion, with bank borrowings of approximately $4.4 billion and a $2.75 billion revolving credit facility with no outstanding borrowings[172]. - Cash used in investing activities was $0.5 billion during the nine-month period ended December 31, 2025, primarily for capital expenditures and a business acquisition[175]. Assets and Liabilities - Flex's property and equipment, net, totaled $2.39 billion as of December 31, 2025, an increase from $2.33 billion as of March 31, 2025[134]. - Net working capital increased by $1.3 billion to $4.3 billion as of December 31, 2025, from $3.0 billion as of March 31, 2025[174]. Strategic Initiatives - Flex's strategy focuses on providing vertically-integrated global supply chain solutions to meet diverse customer needs[124]. - The company operates approximately 100 facilities across 30 countries, serving both multinational and regional customers[133]. - Flex's business model allows for flexibility in reallocating resources to optimize operating results based on customer requirements[126]. - The company activated contingency manufacturing plans and transitioned production to alternative facilities following the missile strike in Ukraine[131]. Risks and Challenges - The ongoing geopolitical conflicts, including the Russia-Ukraine conflict, continue to pose risks and uncertainties affecting business operations and financial performance[130]. - Tariff costs impacted revenues and costs of goods by approximately 1% during the three and nine-month periods ended December 31, 2025[132]. Financing Activities - The company issued $600 million of 5.375% Notes due November 2035 and $150 million of 5.250% Notes due January 2032 during the third quarter of fiscal year 2026[172]. - The company has a share repurchase program authorized for up to $1.7 billion, with $0.7 billion spent on repurchases at an average price of $46.22 per share during the nine-month period[182]. Equity and Affiliates - Equity in losses of unconsolidated affiliates was $1 million during the three-month period ended December 31, 2025, compared to zero in the same period of 2024[165]. - Equity in losses of unconsolidated affiliates was $26 million for the nine-month period ended December 31, 2025, compared to $3 million in the same period of 2024[166]. Taxation - The consolidated effective tax rate was 25% for the three-month period ended December 31, 2025, compared to 9% for the same period in 2024, influenced by various factors including an audit settlement[168].

Core Insights - Flex Ltd. reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of 87 cents, exceeding the Zacks Consensus Estimate by 10.1%, and up from 77 cents in the prior-year quarter [1] - Revenues increased by 7.7% year over year to $7.1 billion, surpassing the consensus mark by 3.6%, driven by strong demand in AI [1] Financial Performance - The company expects full-year revenues of $27.2-$27.5 billion, a $350 million increase at the midpoint compared to the previous outlook of $26.7–$27.3 billion [3] - Adjusted operating margin is forecasted at approximately 6.3%, with adjusted EPS projected in the range of $3.21-$3.27, reflecting a $0.11 increase at the midpoint [3] - Non-GAAP gross profit rose to $679 million from $594 million year-over-year, with non-GAAP gross margin expanding by 500 basis points to 9.8% [11] - Non-GAAP operating income increased to $460 million from $399 million year-over-year, with non-GAAP operating margin expanding by 70 basis points to 6.2% [11] Segment Performance - The Flex Reliability Solutions Group, which includes Health Solutions, Automotive, and Industrial businesses, saw revenues grow by 10% to $3.2 billion, accounting for 45% of net sales [8] - The Flex Agility Solutions Group, comprising Communications & Enterprise Compute and Lifestyle and Consumer Devices, reported a 6% revenue increase to $3.8 billion, representing 55% of net sales [10] Future Guidance - For the fourth quarter of fiscal 2026, Flex anticipates revenues between $6.75 billion and $7.05 billion, with adjusted earnings expected to be between 83-89 cents per share [14] - Reliability Solutions revenues are projected to increase in the low double-digit to mid-teens range, while Agility Solutions revenues are expected to rise in the low to mid-single-digit range [14][15] Market Reaction - Despite strong third-quarter results and an optimistic full-year outlook, Flex's shares fell approximately 11% to close at $58.83, likely due to macroeconomic uncertainties and concerns over reliance on AI-driven demand [5][9]

Core Insights - Flex reported revenue of $7.06 billion for the quarter ended December 2025, reflecting a year-over-year increase of 7.7% and surpassing the Zacks Consensus Estimate of $6.81 billion by 3.62% [1] - The company's EPS for the quarter was $0.87, an increase from $0.77 in the same quarter last year, and exceeded the consensus EPS estimate of $0.79 by 10.69% [1] Financial Performance - Flex Reliability Solutions generated net sales of $3.24 billion, exceeding the average estimate of $3.16 billion by analysts, representing a year-over-year increase of 9.6% [4] - Flex Agility Solutions reported net sales of $3.82 billion, surpassing the estimated $3.66 billion, with a year-over-year change of 6.1% [4] - Segment income for Flex Reliability Solutions was $233 million, above the average estimate of $200.73 million [4] - Segment income for Flex Agility Solutions reached $239 million, exceeding the average estimate of $228.9 million [4] Stock Performance - Over the past month, shares of Flex have returned -4.1%, contrasting with the Zacks S&P 500 composite's increase of 0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Flex Ltd. reported Q3 results showing underwhelming top-line growth but improved profitability and an increase in guidance [1] Financial Performance - The company experienced a double beat in its earnings report, indicating better-than-expected performance in both revenue and earnings [1] Future Outlook - Flex Ltd. raised its guidance for future performance, suggesting confidence in continued growth despite current challenges [1]

Core Viewpoint - Flex Ltd. reported Q3 results showing underwhelming top-line growth but improved profitability and an increase in guidance [1] Financial Performance - The company experienced a double beat in its earnings report, indicating better-than-expected performance in both revenue and earnings [1] - Despite the lack of significant revenue growth, profitability metrics showed improvement, suggesting better cost management or operational efficiency [1] Future Outlook - Flex Ltd. raised its guidance for future performance, indicating management's confidence in the company's trajectory moving forward [1]