Flex Ltd at Goldman Sachs Industrials and Materials Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Well, data center has been a real big topic for the broader markets as well as for Flex, and so I wanted to start off with some questions on the data center and power business. maybe starting with you, Revithi, as we think about that business, I think the company's at $4.8 billion of revenue in fiscal '25 and nearly 20% of your total revenue. Maybe speak to the products and services that Flex has for the data center market and what is enabling the company to be successful.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : You mentioned 35% or a bit more growth is the expectation for fiscal '26. And you think about what's driving that growth this year. Is that just the end market is growing or is some of that product cycles and traction Flex specifically a theme?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Yes, I think for 2026, the bottom-up CapEx estimates from our analysts who cover the big hyperscalers are for 36% growth next year, so they're continuing to expect nice top-line trends in that sector. Chris, I wanted to go to you and dig a bit more into the power and cooling part of the business, given your role at Flex. And I think the company had said, in fiscal '25 anyway, that power was $1.3 billion of revenue. And you already talked a little bit about both Embedded and Critical Power. Maybe give us a better sense of how that business splits out between the two areas.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. And you think about the growth rates this year, I mean, is there meaningful differences between Embedded and Critical Power? Are they both contributing? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 3:10PM, FLEX.OQ - Flex Ltd at Goldman Sachs Industrials and Materials Conference

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. Very helpful. I wanted to touch on one of the tech themes that we saw pretty present at the Super Compute Conference that we went to a few weeks back, and it was 800-volt. And I think Flex had a press release out in conjunction with NVIDIA on 800-volt technologies. Maybe just to start, why is 800-volt needed?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Is there a specific GPU or ASIC that's going to require 800 volt and you can say, in '27 or '28, we definitely need to go to 800 volt, or is it too hard to say? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 3:10PM, FLEX.OQ - Flex Ltd at Goldman Sachs Industrials and Materials Conference

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay, and if you think about something like 400-volt coming, that's sooner than that. But if it's still on the comm, I mean, what does that mean for your business? Is it more revenue for rack, or how should we think about the implications from a financial perspective?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : What do you think about these big, integrated -- or these big systems? Actually installing it is a challenge. Flex has been one of the companies trying to help your customers overcome that with some of the prefabrication work. And I think power pods is one of the solutions that you bring to bear to help with that. Maybe just talk a little bit more on what you're seeing around customers wanting some prefabrication done and what it might mean for installation times and what you can deliver to these customers.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : You both have been in this industry for many years, so hopefully allows me to ask you some tough questions that are on the minds of the broader investment community, which is on the power to meet all this AI demand. And as you guys look at your business and just the broader ecosystem and from your industry backgrounds, do you think there's going to be enough power on the grid to meet all this AI demand?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : On the utility market, the company acquired Crown Technical in 2024 and gave you more of a presence to specifically sell to utilities as well as just augment the broader power portfolio. Maybe talk about what Crown Technical did in terms of building out a utility business and if you can help give us a sense of how big that might be for Flex currently.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : And as you think about planning capacity to meet all of this demand across the whole spectrum of power products that you have, you mentioned adding a little bit with Crown. But more broadly, do you feel like you're able to keep up with the demand, and how much capacity might you need to put into place? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 3:10PM, FLEX.OQ - Flex Ltd at Goldman Sachs Industrials and Materials Conference

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : I do want to talk on the cooling side. And Revathi, earlier on in our conversation, you did mention CDUs. I think the company acquired JetCool a year or two ago, and it brought some cold plate and CDU capability. Maybe just give us an update on how that product set on the cooling side is developing.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : One thing I also want to ask about was the recent collaboration that you've announced with LG on thermal management solutions. Can you speak more to what this partnership would entail and what each partner would bring to that, and when you expect products to be available driven by this collaboration?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : I apologize, I forget the exact number, but I think a year or so ago, you were at 80% or so of the kind of capabilities that Flex could bring. With some of these new partnerships, where would you sit now?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. I want to talk about the warrant agreement with Amazon. I know that's not specific to the data center, but obviously they're, with AWS, one of the big hyperscalers that's out there. Maybe help us better understand to the extent you can when we should think about the AWS warrant transaction or Amazon warrant transaction, I should say, leading to faster growth for Flex.

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : And would you imagine doing similar deals with other hyperscalers? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 04, 2025 / 3:10PM, FLEX.OQ - Flex Ltd at Goldman Sachs Industrials and Materials Conference

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : As long as we're webcasting, we're always happy to break news at the conference, but understand that there's only so much you can say. Maybe just kind of a little bit more broadly, as you think about the data center market and just the competitive landscape, be it Asian-based competitors as well as North American-based competitors, can you just talk a bit about the competitive landscape, and is it becoming more challenging?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : One other trend we've seen in the data center space has been consignment. And I know you've given some metrics around how much of your business is consignment. Maybe just talk about where you think Flex is on that journey. Do you expect consignment to become a much bigger percentage of the business than it currently is? Or is it kind of more steady state? And what does that mean for margins as you do more consignment?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. I want to talk a bit about your manufacturing strategy, and Flex has talked about having a very significant presence in North America, part of that's in the US, part of that's Mexico. Maybe just double-click a bit on that if you could. And have you seen Any increased interest specific for US manufacturing given the tariff and supply chain challenges that some of your customers are contending with?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Specific for the US?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. Maybe we could touch on some of those other end markets. I mean automotive, you've talked about being sluggish, and it sounds like that might still be the case from the comments you were just making. But maybe talk on autos. What do you think it would take for that business to return to growth?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Okay. One technology that's had a lot of focus in the financial community and in the media has been around robotics, humanoid robotics in particular or something. So maybe just talk about to what extent that kind of technology is something that Flex could use in its own sites. And would Flex look to help manufacture humanoid robots?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : Is it the kind of thing where you've got cameras, and it says, we can see a defect that maybe a human couldn't? Or is there something even beyond that that you're not seeing?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : That's very interesting. Well, maybe sticking with the productivity theme, we can close with a question on margins. The implied 4Q operating margin guide is very strong, in my opinion, at about 6.8%. As you think about that outlook that the company provided, is there anything unusual in terms of timing or mix that you think is helping the margin in the fourth quarter, or would you consider that illustrative of the longer-term profit potential of the business?

Question: Mark Delaney - Goldman Sachs Group Inc - Analyst : That's great. Well, look forward to seeing how that all develops. I want to thank both Revathi and Chris for joining us for this conversation.