Core Viewpoint - Flex is set to announce its third quarter fiscal year 2026 financial results on February 4, 2026, before market opening, followed by a conference call to discuss the results [1]. Group 1: Financial Results Announcement - The financial results will be announced before the market opens on February 4, 2026 [1]. - A conference call to discuss the results will take place at 7:30 AM CT / 8:30 AM ET on the same day [1]. Group 2: Webcast Information - A live webcast of the presentation will be available on the Flex investor relations website [2]. - A replay of the webcast and supporting materials will be accessible on the investor relations website after the event [2]. Group 3: Company Overview - Flex is a manufacturing partner that assists leading brands in designing, building, and managing products aimed at improving the world [3]. - The company operates in 30 countries, providing advanced manufacturing and supply chain solutions, innovative products, and lifecycle services [3]. - In the AI era, Flex is focused on accelerating data center deployment by addressing power, heat, and scale challenges with advanced technology [3].

Core Insights - Celestica (CLS) has evolved from a lesser-known contract manufacturer to a significant player in the AI infrastructure sector, indicating a substantial transformation that the market may still be undervaluing [1] Company Overview - The company is positioned as a critical enabler of the AI infrastructure boom, suggesting strong growth potential in this emerging market [1] Investment Philosophy - The investment approach highlighted emphasizes growth prospects and the potential for high profitability within 1-2 years, aligning with the company's current trajectory [1]

Core Insights - Celestica (CLS) has evolved from a lesser-known contract manufacturer to a significant player in the AI infrastructure sector, indicating a substantial transformation that the market may still be undervaluing [1] Company Overview - The company is positioned as a critical enabler of the AI infrastructure boom, suggesting strong growth potential in this emerging market [1] Investment Perspective - The investment philosophy associated with Celestica emphasizes long-term discipline and consistent alpha generation, with a focus on companies that exhibit aggressive growth prospects [1]

Company Overview - Jabil Inc. (NYSE:JBL) is a contract manufacturer that has transformed from a low-multiple manufacturer to a company that assists clients in product design and manufacturing location decisions, which is increasingly important due to tariffs [1][2] - The company provides a range of services including manufacturing, design, and product management, serving various industries such as healthcare, automotive, and electronics [2] Financial Performance - Jabil reported a strong quarterly performance with better-than-expected guidance for the current quarter, indicating robust operational capabilities [2] - The company's share count has decreased by 43.6% since the end of 2015, reflecting a significant share buyback activity [1] Market Sentiment - Jim Cramer expressed bullish sentiment on Jabil, highlighting it as one of his favorite stocks within the contract manufacturing sector, which is currently experiencing a quiet bull market [2] - Despite an initial stock price increase of nearly 10% following the earnings report, Jabil's stock eventually retraced most of those gains due to a broader sector sell-off, although the stock has appreciated by 50% overall [1]

Summary of Conference Call Company Overview - The conference call features Fabrinet, a company involved in IT hardware and communications equipment, with a focus on optical and transceiver manufacturing. Key Industry Insights Telecom and Data Center Interconnect (DCI) - Fabrinet has recently separated DCI from its telecom reporting to provide clearer visibility on growth, driven primarily by the Datacom sector [4][14] - DCI products, particularly 400ZR and 800ZR, are experiencing strong growth, with five main customers contributing to this segment [4][5] - The demand for DCI is robust, with expectations for sustainable growth over the coming years [15][14] - Traditional telecom business is growing but at a more stable rate compared to the exponential growth seen in DCI [20][24] High-Performance Computing (HPC) - Fabrinet has initiated a new HPC category, primarily serving AWS, with a revenue of $15 million from qualification volumes [28][30] - The company aims to establish a cost-competitive solution in the HPC market, with potential for significant growth [31][30] - The HPC business is expected to ramp up, with plans for additional product offerings beyond PCBAs [100][105] Capacity Expansion - Fabrinet is constructing Building 10, which will add $2.5 billion in revenue capacity, with a current run rate of $4.5 billion [39][40] - The new facility will be flexible, allowing for quick repurposing based on customer needs [41][44] - The capital expenditure for Building 10 is approximately $130 million, funded from existing cash reserves [45][46] Datacom Demand - Demand for transceivers in the Datacom sector is described as insatiable, particularly with the rise of AI data centers [69][70] - Fabrinet is producing advanced transceivers (200G, 800G, and 1.6T) but faces component shortages that limit production capacity [71][73] - The company is exploring opportunities with various customers, including traditional companies and hyperscalers [78][79] Automotive Sector - Fabrinet's automotive business is stable, with growth in EV charging infrastructure and LiDAR technology [94][95] - The company has captured a significant share of the LiDAR market, positioning itself for future growth as the technology gains traction [95] Financial Performance and Strategy - Fabrinet aims for a gross margin range of 12.5%-13%, with low operating expenses around 1.6%-1.7% of revenue [93][94] - The company has a strong financial position with no debt and approximately $1 billion in cash, allowing for self-funded growth [45][46] - Fabrinet's growth strategy focuses on maintaining a compound annual growth rate of 16% over the past decade, with plans to continue this trend [130][130] Additional Considerations - The company emphasizes the importance of performance and customer satisfaction in securing additional business opportunities [106][107] - Fabrinet is committed to long-term planning, utilizing an eight-quarter rolling revenue forecast to guide its growth strategy [129][130] - The company is open to diversifying its product offerings beyond optical solutions, depending on customer demand [85][86]

Summary of Flex Limited Conference Call Company Overview - **Company**: Flex Limited - **Industry**: Contract Manufacturing - **Revenue**: Approximately $26 billion - **Business Units**: Six, with participation in five major end markets: - Consumer (Lifestyle and Consumer Devices) - Cloud Enterprise Communication (CEC) - Healthcare (particularly devices) - Automotive - Industrial - **Global Presence**: Operates in 30 countries with around 100 manufacturing sites and approximately 140,000 employees [8][9] Core Business Insights - **Data Center and AI Infrastructure**: - 25% of revenue comes from AI data center utility space, growing at 35% - Revenue from this segment projected to reach $6.5 billion in the current fiscal year [9][17] - Focus on compute integration, cooling, and power solutions [17][18] - **Competitive Landscape**: - Flex competes with companies like Delta in embedded power and Eaton, Schneider in electrical distribution - The cooling market is fragmented with many small players [21][22] - **Power Pods**: - Integrated solutions that include power modules, infrastructure, and cooling systems, designed to improve installation speed and reduce labor costs [23][24] Recent Acquisitions - **Crown Technical Systems**: - Acquired to enhance presence in the fragmented U.S. utility market and expand power pod capabilities [25][27] - **JetCool**: - Acquired to strengthen liquid cooling portfolio, focusing on high-density cooling solutions for data centers [30][32] Financial Performance and Growth - **Operating Margin**: - Increased from 3% to 6% over the past seven years, with expectations for continued expansion driven by mix shift and productivity enhancements [15][39] - **Growth Areas**: - Data centers and utilities are identified as key growth sectors, with ongoing investments expected to yield significant returns [40][41] Market Trends and Challenges - **Regionalization Strategy**: - Flex is adapting its footprint to align with growth areas, particularly in North America and Europe, while reducing presence in less profitable regions [36][37] - **Supply Chain and Capacity**: - Capacity constraints are a constant consideration, with ongoing evaluations to meet growing demand [28][29] - **AI Investments**: - Anticipated growth in data center capacity driven by AI investments, with projections for significant infrastructure development in the coming years [41][42] Other Business Lines - **Healthcare**: - Strong performance in medical devices, particularly continuous glucose monitors [33] - **Industrial**: - Mixed performance with growth in infrastructure and energy sectors, while residential renewables have declined [34] - **Automotive**: - Clarity in platform investments is expected to drive growth, with Flex being platform agnostic [34] - **Consumer**: - Flat growth anticipated, with limited focus on this segment [35] Conclusion - Flex Limited is positioned as a leading contract manufacturer with a strong focus on data center and utility solutions, leveraging its global footprint and recent acquisitions to drive growth and enhance operational efficiency. The company is well-prepared to capitalize on emerging trends in AI and infrastructure development while maintaining a disciplined approach to portfolio management and margin expansion [45]

Core Insights - Industry rumors indicate that Mana Products, a long-established beauty contract manufacturer, is exploring "strategic options" amid workforce furloughs and an uncertain future [1][2] Company Overview - Mana Products was founded by Nikos Mouyiaris approximately 50 years ago and was acquired by Traub Capital Partners in 2020 following Mouyiaris's death in 2019 [2] - The company had previously pursued a sale that did not materialize, leading to its current operational challenges [2] Financial Performance - When exploring deal options, Mana Products reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of around $20 million [3] Product Lines and Initiatives - Historically focused on makeup, Mana Products has expanded into skincare in recent years [4] - The company launched the "Artists at the Bench" initiative in 2022, featuring three makeup lines developed by Meredith Baraf, Marco Castro, and Rudy Miles [4] - Mana Products previously owned the Black Opal brand, which was sold in 2019 [4]

Core Insights - The Carillon Scout Mid Cap Fund's third-quarter 2025 investor letter highlights strong corporate earnings and AI infrastructure momentum as key drivers for the Russell Midcap Index's positive returns [1] - Celestica Inc. (NYSE:CLS) is emphasized as a significant holding, showcasing a remarkable 239.87% increase in share value over the past 52 weeks despite a recent one-month decline of 13.70% [2][3] Company Performance - Celestica Inc. reported Q3 2025 revenue of $3.19 billion, reflecting a 28% increase from Q3 2024 [4] - The company is recognized for its contract manufacturing capabilities, particularly in data center hardware and aerospace components, with strong demand for networking switches driving positive quarterly results [3] Market Position - Celestica Inc. is gaining market share in the networking industry through private label solutions, which offer lower total costs and flexible designs compared to branded vendors [3] - The company is expected to see rising earnings estimates as it secures new deals and benefits from existing hyperscaler programs ramping up faster than anticipated [3]

Core Insights - Celestica Inc. (NYSE:CLS) is recognized as a strong investment opportunity within the consumer cyclical sector, particularly due to its role in the AI ecosystem by providing essential infrastructure for data centers [1] Group 1: Analyst Ratings and Price Targets - Barclays maintained an Overweight rating on Celestica's shares and raised the price target to $359 from $357 [2] - Citi upgraded Celestica's stock to Buy from Hold, keeping its price target at $375, citing expectations of over 40% growth in hyperscaler capital expenditure in 2026 after a 75% increase in 2025 [2] Group 2: Financial Performance - Celestica reported third-quarter earnings on October 27th, achieving $3.19 billion in revenue and $1.58 in adjusted EPS, surpassing analyst expectations of $3.04 billion and $1.49 respectively [3] - Following the earnings announcement, Celestica's shares rose by as much as 10%, and management increased the full-year revenue guidance to $12.2 billion from $11.55 billion due to strong demand [3] Group 3: Demand Insights - During the third-quarter earnings call, management indicated strong visibility into customer demand, with forecasts extending 12 to 15 months ahead, particularly related to 2026 budgeting and spending commitments [4] - Management noted that certain customers have made commitments that provide assurance regarding the longevity and scale of their programs, enhancing visibility into future demand [4]

Core Insights - AI stocks have shown strong performance in 2025, with the Global X Artificial Intelligence & Technology ETF (AIQ) gaining 28.9% and the Roundhill Generative AI & Technology ETF (CHAT) up by 47.2% year-to-date, outperforming the NASDAQ 100 and S&P 500 [2] Industry Overview - The AI market is primarily dominated by major technology companies, with NVIDIA leading in hardware and Amazon, Google, and Microsoft in software [4] - Concerns have emerged regarding the costs of AI development, particularly related to the depreciation of older chips as newer versions are released, drawing parallels to the dotcom bubble of the late 1990s [5] Company Insights - **Celestica Inc. (NYSE:CLS)**: - The company reported $3.19 billion in revenue and $1.58 in adjusted EPS for Q3, exceeding analyst expectations [12] - Barclays and Citi have upgraded the stock, with price targets of $359 and $375 respectively, citing expected growth in hyperscaler capital expenditure [11] - Management indicated strong demand visibility for 12 to 15 months, with some customers providing insights into long-term commitments [13] - **HubSpot, Inc. (NYSE:HUBS)**: - The company reported $809.5 million in revenue, driven by a 21% growth in subscription revenue and 10,900 new customer additions [16] - Despite a reduction in price target by Evercore ISI to $500, the firm noted that net new annual recurring revenue is growing faster than overall revenue [15] - HubSpot's CEO emphasized the strategy of embedding AI across all platforms, which has led to improved customer outcomes, including a 10% increase in sales win rates [17]