Flex Ltd (FLEX) 2025 Q1 法說會逐字稿

Good morning and thank you for standing by, welcome to Flex's first quarter fiscal year 2025 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded.

早安，感謝您的收看，歡迎參加 Flex 2025 財年第一季財報電話會議。（操作員指示）提醒一下，此通話正在被錄音。

I will now turn the call over to Mr. David Rubin. You may begin.

現在我將電話轉給大衛·魯賓先生。你可以開始了。

Thank you, Daryl. Good morning, and welcome to Flex's first quarter fiscal 2025 earnings conference call. With me today is our Chief Executive Officer, Revathi Advaithi; our Chief Financial Officer, Paul Lundstrom; and our soon to be interim CFO, Jaime Martinez, who will give brief remarks followed by Q&A. Slides for today's call as well as a copy of the earnings press release and summary financials are available in the Investor Relations section at flex.com. This call is being recorded and will be available for replay on our corporate website.

謝謝你，達裡爾。早上好，歡迎參加 Flex 2025 財年第一季財報電話會議。今天與我一起的是我們的執行長 Revathi Advaithi；我們的財務長 Paul Lundstrom；我們即將上任的臨時財務長 Jaime Martinez 將發表簡短講話，然後進行問答。今天的電話會議幻燈片以及收益新聞稿和財務摘要的副本可在 flex.com 的投資者關係部分找到。本次通話正在錄音，可在我們公司網站上重播。

As a reminder, today's call contains forward-looking statements, which are based on our current expectations and assumptions. These statements involve risks and uncertainties that could cause actual results to differ materially. For a full discussion of these risks and uncertainties, please see the cautionary statements in our presentation press release or in the Risk Factors section in our most recent filings with the SEC. Note this information is subject to change, and we undertake no obligation to update these forward-looking statements.

提醒一下，今天的電話會議包含前瞻性陳述，這些陳述是基於我們目前的預期和假設。這些聲明涉及風險和不確定性，可能導致實際結果大不相同。有關這些風險和不確定性的全面討論，請參閱我們的簡報新聞稿中的警示聲明或我們最近向美國證券交易委員會提交的文件中的風險因素部分。請注意，此資訊可能會發生變化，我們不承擔更新這些前瞻性聲明的義務。

Please note, unless otherwise stated, all results provided will be in non-GAAP measures and all growth metrics will be on a year-over-year basis. And the full non-GAAP to GAAP reconciliations can be found in the appendix slides of today's presentation, as well as in the summary financials posted on the Investor Relations website.

請注意，除非另有說明，所有結果均採用非 GAAP 指標，且所有成長指標均以年比為基礎。完整的非 GAAP 與 GAAP 對帳表可在今天簡報的附錄投影片以及投資者關係網站上發布的財務摘要中找到。

Now I'd like to turn the call over to our CEO, Revathi.

現在我想將電話轉給我們的執行長 Revathi。

Thank you, David. Good morning and thank you for joining us today. Starting off with our results on slide 4. We had a solid Q1 with revenue coming in at $6.3 billion, slightly above our prior expectations. In addition, our adjusted operating margin also came in better at 4.8%, and we delivered $0.51 of adjusted EPS. I'll talk about what we are seeing in our key end markets in a moment. But overall, I'd say the trends are following our previous expectations.

謝謝你，大衛。早安，感謝您今天加入我們。從投影片 4 上的結果開始。我們第一季的業績表現穩健，營收達到 63 億美元，略高於我們先前的預期。此外，我們的調整後營業利潤率也達到 4.8%，調整後每股收益為 0.51 美元。稍後我將談談我們在主要終端市場看到的情況。但總體而言，我認為趨勢符合我們先前的預期。

Also last quarter, we mentioned that Q1 would mark the start of multiple large program ramps across our cloud, power, and automotive business. As expected, we made strong progress and as these programs begin to generate revenue, we expect continued tailwinds in Q2 and through the back half of the fiscal year.

此外，上個季度，我們提到第一季將標誌著我們雲端、電力和汽車業務中多個大型專案加速的開始。正如預期的那樣，我們取得了長足的進展，隨著這些項目開始產生收入，我們預計第二季以及整個財年下半年將繼續保持順風勢頭。

Overall, the macro environment remains very dynamic and given it was just Q1, we believe it's prudent to maintain our current outlook for the full year. I'm proud of our strong execution this quarter and the positive results bolster our confidence in achieving our full year guidance.

總體而言，宏觀環境仍然非常動態，鑑於這只是第一季度，我們認為維持目前的全年展望是明智之舉。我為本季的強勁執行力感到自豪，正面的結果增強了我們實現全年預期的信心。

Now turning to slide 5, looking at some of our key end markets, the AI transition in the data center continues to drive strong demand for our cloud solutions and our CEC business as well as demand for our power products in our industrial business.

現在轉到第 5 張投影片，看看我們的一些關鍵終端市場，資料中心的人工智慧轉型繼續推動對我們的雲端解決方案和 CEC 業務的強勁需求，以及對我們工業業務中電力產品的需求。

As you recall from our recent Investor Day, we offer an end-to-end cloud IT manufacturing solution combined with vertically integrated services and our comprehensive data center power product portfolio. Simply put, our cloud offering addresses 80% of the data center and is enabling our customers to move faster.

正如您從我們最近的投資者日所記得的那樣，我們提供端到端的雲端 IT 製造解決方案，並結合垂直整合的服務和全面的資料中心電源產品組合。簡而言之，我們的雲端產品涵蓋了 80% 的資料中心，並使我們的客戶能夠更快地採取行動。

Our power products and breadth of services are truly differentiated, which provide value to our customers and is fueling growth for Flex. This combination has clearly positioned us well for the AI driven technology transition happening from grid to chip and from the cloud to the edge. It's also one of the key aspects of our EMS plus product plus services, long-term strategy.

我們的電力產品和廣泛的服務真正具有差異化，為我們的客戶提供了價值並推動了 Flex 的成長。這種結合顯然使我們在從電網到晶片、從雲端到邊緣的人工智慧驅動技術轉型中佔據了有利地位。這也是我們的EMS加產品加服務長期策略的關鍵面向之一。

Now moving to automotive. Some of the latest industry research has indicated global vehicle unit expectations will soften a bit for the calendar year. However, we continue to expect to outperform the market based on both new wins and increasing automotive content. Clearly, there are concerns about the pace of EV adoption.

現在轉向汽車領域。一些最新的行業研究表明，今年全球汽車銷售預期將略有下降。然而，我們仍然期望憑藉新的勝利和不斷增加的汽車內容跑贏大盤。顯然，人們對電動車的普及速度有疑慮。

However, we will typically be less affected by the recent change in EV sentiment. As the majority of our automotive revenue is agnostic to the powertrain. Overall, we believe the longer term transition towards electrification will continue. Additionally, we see increased interest in hybrid technology, which may be an important bridge in this transition. For Flex both EV and hybrid offer content gain opportunities, as they require additional power systems compared to internal combustion engines.

然而，我們通常不會受到近期電動車情緒變化的影響。因為我們大部分的汽車收入與動力系統無關。整體而言，我們相信向電氣化的長期轉型將會持續下去。此外，我們看到人們對混合技術的興趣日益濃厚，這可能是這項轉變的重要橋樑。對於 Flex 而言，電動車和混合動力車都提供了內容增益機會，因為與內燃機相比，它們需要額外的動力系統。

Taking a step back, our combination of advanced compute solutions and power products, many of which are Flex IP, further strengthens our competitive differentiation. Now looking to digital health, we continue to see strong medical device demand balanced against the continuing soft medical equipment market, which has been the case for several quarters.

退一步來說，我們將先進的運算解決方案和電源產品結合在一起，其中許多都是 Flex IP，這進一步增強了我們的競爭差異化。現在放眼數位健康，我們繼續看到強勁的醫療設備需求與持續的軟醫療設備市場保持平衡，這種情況已經持續了幾個季度。

There are some signs, we're approaching a near term supply demand equilibrium. However, the timing of a full recovery remains uncertain. The important part here is that there are significant technology changes in the healthcare industry, including increasingly complex devices combined with shrinking form factors. These changes translate to strong long-term opportunities, and we remain well positioned to serve these markets.

有一些跡象表明，我們正在接近近期的供需平衡。然而，全面復甦的時間仍不確定。這裡重要的是醫療保健產業正在發生重大的技術變化，包括日益複雜的設備和日益縮小的外形尺寸。這些變化意味著強大的長期機遇，我們仍然處於有利地位來服務這些市場。

As you can see by our results. We're executing very well through a highly dynamic cycle. We're also taking this time to build our own strong foundation and prepare for the future and key markets with longer term opportunities. This strategy has and will continue to deliver record margin expansion, double-digit EPS growth and strong cash generation. We are very excited about our future.

正如您從我們的結果中所看到的。我們在高度動態的周期中執行得非常好。我們也利用這段時間來建立我們自己的堅實基礎，並為未來和長期機會的關鍵市場做好準備。這項策略已經並將繼續帶來創紀錄的利潤率擴張、兩位數的每股盈餘成長和強勁的現金創造能力。我們對我們的未來感到非常興奮。

Finally, as you probably saw in our earnings release, Paul Lundstrom will be leaving to pursue a new opportunity with a PE backed private company. Paul has been a great partner to me and a strong leader for the organization. On behalf of the entire team, we wish him well in the next stage of his journey.

最後，正如您可能在我們的收益報告中看到的那樣，Paul Lundstrom 將離職，加入一家 PE 支持的私人公司，尋求新的機會。保羅一直是我出色的合作夥伴，也是組織的強大領導者。我代表整個團隊祝福他在接下來旅程中一切順利。

Jaime Martinez, SVP and CFO of our Reliability Group will step in the interim role as we conduct a thoughtful search for a permanent CFO.

我們正在深思熟慮地尋找一位常任財務官，在此期間，我們的可靠性集團高級副總裁兼財務長 Jaime Martinez 將擔任臨時職務。

With that, I'll pass the call over to Paul and Jaime to take you through our financial update, Paul?

說完這些，我將把電話轉給保羅和傑米，讓他們向你們介紹我們的財務更新情況，保羅？

Okay. Hey, maybe I'll just break script from just a quick minute to say the last four years have been absolutely fantastic. I have really enjoyed being part of this business transformation and of course, being part of the team, I think the culture here at Flex is truly something special.

好的。嘿，也許我可以很快打破常規，說一句過去四年真是太棒了。我非常高興能夠參與這次業務轉型，當然，作為團隊的一員，我認為 Flex 的文化真的很特別。

So with that, I'll begin on the first quarter performance on slide 7. First quarter revenue was $6.3 billion that was up 2% sequentially and down year on year as expected. Gross profit totaled $495 million and gross margin came in at 7.8%, improving 50 basis points year over year. Operating profit was $306 million with operating margins at 4.8%, also improving 50 basis points year over year.

因此，我將從第 7 張投影片開始介紹第一季的表現。第一季營收為 63 億美元，季增 2%，年減 符合預期。毛利總計4.95億美元，毛利率為7.8%，較去年同期增加50個基點。營業利益為 3.06 億美元，營業利益率為 4.8%，年增 50 個基點。

And adjusted earnings per share came in at $0.51 for the quarter, increasing about 9%. If you look at our first quarter segment results on the next slide, reliability revenue was $2.9 billion, more favorable than anticipated, led by stronger demand in power and medical devices. Operating income was $147 million and operating margin was flat at 5% year over year.

本季調整後每股收益為 0.51 美元，成長約 9%。如果您看下一張投影片中的第一季分部業績，可靠性收入為 29 億美元，比預期的要好，這得益於電力和醫療設備需求的強勁。營業收入為 1.47 億美元，營業利潤率與去年同期持平，為 5%。

Margins were in line with typical seasonality. In agility revenue also came in better than expected at $3.4 billion, led by strength in cloud. Agility operating income was $179 million, an increase of 23% year over year. Through strong execution mix and effective cost management the team achieved a robust 5.3% operating margin.

利潤率與典型的季節性相符。在敏捷性方面，得益於雲端運算的強勁成長，營收也優於預期，達到 34 億美元。Agility 營業收入為 1.79 億美元，較去年同期成長 23%。透過強大的執行組合和有效的成本管理，該團隊實現了 5.3% 的強勁營業利潤率。

Moving to cash flow on slide 9. Q1 net CapEx totaled $108 million for the full fiscal year. We expect to maintain our target of 2% of revenue as we continue to invest in future growth and productivity. I'm also happy to report net inventory improved again this quarter. We reduced net inventory by 6% sequentially and 21% year over year. We expect continued and gradual reductions in inventory in the coming quarters.

轉到幻燈片 9 上的現金流量。整個財年第一季的淨資本支出總計 1.08 億美元。我們預計將維持 2% 的收入目標，因為我們將繼續投資於未來的成長和生產力。我還很高興地報告本季淨庫存再次改善。我們的淨庫存比上一季減少了 6%，比去年同期減少了 21%。我們預計未來幾季庫存將持續逐步減少。

Free cash flow in the quarter was a very strong $232 million. There was a little benefit from the timing of cash received late in the quarter, so Q2 may be just a little lighter. However, we remain on track to reach our full year target of $800 million plus.

本季自由現金流非常強勁，達到 2.32 億美元。由於季度末收到現金的時間有點長，所以第二季的現金可能會稍微少一些。然而，我們仍有望實現 8 億以上的全年目標。

During Q1 we repurchased approximately [15 million] shares totaling about [$460 million] of buybacks. We exited the quarter with cash balances of $2.2 billion and as we have consistently demonstrated over the last several years, we have and will continue to allocate capital in the best interest of our shareholders.

在第一季度，我們回購了約 [1,500 萬] 股，回購總額約為 [4.6 億美元]。本季末我們的現金餘額為 22 億美元，正如我們過去幾年一貫所證明的那樣，我們已經並將繼續以股東的最佳利益來分配資本。

I'm going to now hand it over to Jaime Martinez, who will walk you through our guidance. Jaime?

現在我將把它交給 Jaime Martinez，他將向你們介紹我們的指導。詹姆？

Thank you, Paul. Please turn to slide 10 for our segment outlook for the fiscal second quarter. For Reliability Solutions, we expect revenue to be down high single-digit to mid-teens with trend in cloud data center power and medical devices, tempered largely by macro-driven weakness in core industrial. For Q2, Agility Solutions revenue is expected to be flat to slightly down. This is largely driven by strength in cloud, offsetting continued softness in enterprise IT and non-cloud related network.

謝謝你，保羅。請翻到第 10 頁查看我們對第二財季的分部展望。對於可靠性解決方案，我們預計收入將下降高個位數至中位數，主要受到核心工業宏觀驅動的疲軟的影響，雲端資料中心電源和醫療設備趨勢也是如此。對於第二季度，Agility Solutions 的營收預計持平或略有下降。這主要是受雲端運算實力的推動，抵銷了企業 IT 和非雲端相關網路的持續疲軟。

Moving to slide 11 for our quarterly guidance. We expect revenue in the range of $6.2 billion to $6.8 billion with adjusted operating income between $310 million and $315 million. Interest and other expense is estimated to be around $48 million. We expect the tax rate to be around 19% this quarter. All that translates to adjusted EPS between $0.52 and $0.60, based on approximately 411 million weighted average shares outstanding.

前往投影片 11 查看我們的季度指導。我們預計營收在 62 億美元至 68 億美元之間，調整後的營業收入在 3.1 億美元至 3.15 億美元之間。利息和其他費用估計約為4800萬美元。我們預計本季稅率在19%左右。根據約 4.11 億股加權平均流通股計算，調整後每股收益在 0.52 美元至 0.60 美元之間。

Looking at our full year guidance on the following slide, as Revathi mentioned, given it's early in the year, we're maintaining our full year guidance. We expect revenue between $25.4 billion and $26.4 billion, with adjusted operating margin between 5.2% to 5.4% and adjusted EPS between $2.30 and $2.50.

請參閱下面幻燈片中的全年指引，正如 Revathi 所提到的，鑑於現在還處於年初，我們將維持全年指引。我們預計營收在 254 億美元至 264 億美元之間，調整後的營業利潤率在 5.2% 至 5.4% 之間，調整後的每股收益在 2.30 美元至 2.50 美元之間。

With that, I'll turn the call back to Revathi for final comments, Revathi?

說完這些，我將把電話轉回給 Revathi 進行最後的評論，Revathi？

Thank you, Jaime. Before we start Q&A, I'd like to reiterate our commitment to creating shareholder value through profitable revenue and EPS growth, margin expansion and cash generation. We are aligning our EMS plus product plus services strategy with strong macro and secular drivers, focusing on high-value end markets with significant growth potential. Our ongoing focus on expanding our technical and advanced manufacturing capabilities creates differentiation and positions us for sustained growth and profitability, which will lead to continued value creation for our shareholders.

謝謝你，傑米。在我們開始問答之前，我想重申我們致力於透過獲利收入和每股盈餘成長、利潤率擴大和現金創造來創造股東價值。我們正在將我們的 EMS 加產品加服務策略與強大的宏觀和長期驅動力相結合，專注於具有巨大成長潛力的高價值終端市場。我們持續致力於擴大我們的技術和先進製造能力，創造差異化並實現持續成長和獲利，從而為我們的股東持續創造價值。

Thank you again for joining us, and I'll turn the call back over to the operator to begin Q&A.

再次感謝您的參與，我將把電話轉回給接線生開始問答。

(Operator Instructions)

（操作員指令）

Samik Chatterjee, JPMorgan.

摩根大通的 Samik Chatterjee。

Thank you for taking my questions and congrats on the strong results. Maybe if you can start with my first question with just a brief rundown on the segments of your business that are still facing headwinds sounds like on the industrial side as well as consumer, you're seeing headwinds still maybe if you could share your thoughts on where do you think you are in terms of cycling past some of the trough in terms of revenues there, where is current visibility in terms of seeing improvement in those end markets that you are seeing a bit more greater headwinds than the others? And I have a follow-up. Thank you.

感謝您回答我的問題，並祝賀您取得的優異成績。也許您可以從我的第一個問題開始，簡要介紹一下貴公司業務中仍然面臨阻力的領域，聽起來像是在工業方面以及消費者方面，您仍然看到阻力，也許您可以分享一下您認為在收入方面您處於什麼位置，就那些終端市場而言，目前的改善前景如何，您認為這些終端市場比其他市場阻力更大一些？我還有一個後續問題。謝謝。

I'll start with that and see that the places where we're seeing continued headwind, as you described, it would be definitely, I would say in the industrial, particularly in the renewable space, I would say that's probably the most I'd say important one that I can think of that is still a feeling some downside risks, though, I would say the industry is indicating that it's bottomed out and the inventory is consumed. So we should start seeing an uptick there.

我先從這個開始，看看我們看到持續逆風的地方，正如你所描述的，我想說的肯定是在工業領域，特別是在可再生能源領域，我想說這可能是我能想到的最重要的一個領域，仍然感覺到一些下行風險，不過，我想說的是，該行業表明它已經觸底並且庫存已經被消耗掉。因此我們應該開始看到那裡出現上漲。

On the consumer side, I would say we have seen softness, but we are quite stabilized, I would say, in our consumer business overall in terms of revenue. So I feel good about that.

在消費者方面，我想說我們已經看到了疲軟，但我想說，就收入而言，我們的消費者業務總體上是相當穩定的。所以我對此感覺很好。

And then lastly, I would say the place we see some headwind could be in the telecom space. But so those I'd say if you look at our six end markets, those are places that I would say there is some headwind. But then I'd say overall, there's really strong tailwinds in our cloud, our data center solution, both on the IT space and the power space, automotive for us still continues to grow pretty strong because we're agnostic to the powertrain and then help on the devices side, I said, is really strong. So it's a good offset to each other. So hopefully that gives you some color.

最後，我想說，我們看到的阻力可能來自電信領域。但我想說，如果你看看我們的六個終端市場，你會發現這些地方有些阻力。但我想說，總的來說，我們的雲端運算、資料中心解決方案（無論是在 IT 領域還是在電力領域）都擁有非常強勁的順風，而汽車對我們來說仍然繼續保持強勁增長，因為我們對動力系統不感興趣，然後在設備方面的幫助，我說，真的很強大。因此，這是一個很好的相互抵消。希望這能給你一些啟發。

Thank you for that. And Revathi one of the questions I've got -- I've seen from investors come through more recently and likely triggered by some of the actions you're pure companies taking is, are you contemplating any portfolio rationalization in terms of using the opportunity here to look at some of the lower margin businesses within the portfolio and taking more actions to roll them off. Any thoughts on that front, particularly now that you have a stronger sort of first half to bank on any areas of the portfolio that you would be more focused on to look at improving the margins there?

謝謝你。Revathi，我最近看到一些投資者問了我一個問題，這個問題很可能是由你們這些純公司採取的一些行動引發的，那就是，你們是否考慮進行投資組合合理化，是否利用這個機會審視投資組合中一些利潤率較低的業務，並採取更多行動將其剝離出來。您對此有什麼想法嗎，特別是現在您在上半年的業績表現更為強勁，可以依賴投資組合中的任何領域，您會更加專注於提高這些領域的利潤率嗎？

Yeah. I'd say one thing I've said consistently, and I'll stick to that storyline is that within the six business units, our business leaders are paid to keep improving the mix, right. So the focus on you have to go to better end markets and really focus on winning customers who are ready to pay value and change in your mix within those fixed business units is something that they do every single day. So that's one thing I would say.

是的。我想說的是，我一直在說的一件事，而且我會堅持這個故事情節，那就是在六個業務部門內，我們的業務領導者得到報酬來不斷改善組合，對吧。因此，你必須把重點放在更好的終端市場，真正專注於贏得那些願意為價值付費的客戶，並在這些固定業務部門內改變你的產品組合，這是他們每天都在做的事情。這是我想說的一件事。

And then the second is you have seen us double down in areas of higher growth and better profitability by making clean investments like on the data center side, you saw our portfolio around compute and power and the significance of that. So we have been doubling down investments there, both product-wise and commercially, the same on services, we talked about $1 billion service business and we're making investments because that helps change the mix.

第二，您看到我們透過在資料中心方面進行清潔投資，在成長更快、盈利能力更強的領域加倍投入，您看到了我們在計算和電力方面的投資組合及其重要性。因此，我們一直加倍投資，包括產品和商業方面的投資，在服務方面也是如此，我們談到了 10 億美元的服務業務，我們正在進行投資，因為這有助於改變組合。

So for me portfolio rationalization and Flex at this point is running the six business units better and changing the mix within that portfolio itself and really driving the high growth areas like data center and automotive. And that's kind of how I'm thinking about portfolio rationalization. So nothing big in the planning here.

因此對我來說，投資組合合理化和 Flex 目前正在更好地運營六個業務部門，並改變投資組合本身的組合，並真正推動資料中心和汽車等高成長領域。這就是我對投資組合合理化的看法。所以這裡沒有什麼大計劃。

Great, thank you for taking my questions. Thank you.

太好了，謝謝你回答我的問題。謝謝。

Matt Sheerin, Stifel.

馬特·謝林（Matt Sheerin），Stifel。

Yes, thank you. Good morning. A question regarding the strength that you're seeing in cloud. I know it's coming from both your power business and your traditional business, could you talk about I think you had targeted $3 billion or so in revenue, $1 billion from power and $2 billion from the core business. Is that run rate still so right, in terms of the ramp, how many quarters are we talking about in terms of ramping the customers that you've been talking about?

是的，謝謝。早安.關於您在雲中看到的強度的一個問題。我知道這筆收入來自你們的電力業務和傳統業務，能否談談你們的目標收入為 30 億美元左右，其中 10 億美元來自電力，20 億美元來自核心業務。就成長而言，這個運行率仍然正確嗎？

Matt, thank you for the question, I'd say that let's step back and talk about what we said in Investor Day, right. We said for the data center business, our portfolio today between our IT CEC business. And our industrial power business is around $3 billion, $1 billion in power and around $2 billion in the CEC space. And we feel very good about kind of the growth trajectory we gave longer-term in the Investor Day, I think we said around a 20% ramp building up to kind of the growth rates we discussed and then power eventually becoming a $3 billion business.

馬特，謝謝你的提問，我想讓我們回顧一下，談談我們在投資者日所說的內容，對吧。我們說過，對於資料中心業務，我們今天的投資組合包括我們的 IT CEC 業務。我們的工業電力業務價值約為 30 億美元，其中電力業務價值 10 億美元，CEC 業務價值約為 20 億美元。我們對投資者日上給出的長期成長軌跡感到非常滿意，我們說過成長率會達到 20% 左右，最終達到我們討論的成長率，電力最終成為價值 30 億美元的業務。

I'd say as an aggregate this quarter, we grew more than 60% in that space. As we continue to ramp, I would say through the year we have many new programs coming on. I feel good about the 20% growth rate trajectory I gave you guys, which was a kind of a more of a longer-term forecast. So I don't know, Matt, if I have a quarter-by-quarter playbook, but hopefully our execution, I would say it shows that we will hit those run rates that we gave you at Investor Day, and we feel very good about that.

我想說，本季總體而言，我們在該領域的成長超過了 60%。隨著我們不斷加大力度，我想說，今年我們將推出許多新項目。我對我給你們的 20% 的成長率軌跡感到很滿意，這是一個更長期的預測。所以馬特，我不知道我是否有一個逐季度的劇本，但希望我們的執行情況能夠表明我們將達到我們在投資者日給你的運行率，我們對此感到非常滿意。

Okay. Thank you for that. And clearly a differentiator for you is that power business. And could you talk about on cross-selling opportunities and how many of these deals are being won? Because you're leveraging both of those key skill sets versus that opportunity. And then the other question regarding cloud is just on inventory. Is some of this businesses are consigned inventory because I would have expected your inventories actually start to build as you're continuing to ramp here. So could you talk about the dynamics of that, please?

好的。謝謝你。顯然，您的差異化因素就是電力業務。您能談談交叉銷售機會以及贏得了多少筆此類交易嗎？因為您正在利用這兩套關鍵技能來抓住這個機會。關於雲的另一個問題只是關於庫存。其中一些業務是寄售庫存，因為我預計隨著您繼續增加庫存，您的庫存實際上會開始增加。那麼您能談談其中的動態嗎？

Okay. Great, Matt. All good questions here. So let me start on the cross-selling, one thing I have said that in this overall kind of EMS plus product plus services strategy, where we have done most of our heavy lifting to create the portfolio and create the organization to deliver that. We feel really good about kind of the structure that we have created. Within the organization we have a Anord Mardix that delivers critical power we have an embedded power group. And then we have the services group that delivering that $1 billion of revenue today.

好的。太好了，馬特。所有好的問題都在這裡。因此，讓我開始談談交叉銷售，我曾經說過，在這種整體的 EMS 加產品加服務策略中，我們已完成了大部分繁重的工作來創建產品組合併創建實現這一目標的組織。我們對所創建的結構感到非常滿意。在組織內部，我們有一個提供關鍵電力的 Anord Mardix，我們有一個嵌入式電力組。然後我們有服務集團，今天實現了 10 億美元的收入。

So what we will do is we are seeing cross-selling opportunities across data centers, not just hyperscalers, but also kind of colo customers. So we are aligning our organization or to make sure that we take full advantage of that cross-selling opportunities. So we will continue to drive that alignment, making sure that organization has the right structure to be able to execute on this cross-selling opportunities and is incentivized to focus on this cross-selling opportunities, and you'll continue to see us drive organizational change.

因此，我們要做的是，我們發現跨資料中心的交叉銷售機會，不僅是超大規模資料中心，還有託管客戶。因此，我們正在調整我們的組織，以確保我們充分利用交叉銷售機會。因此，我們將繼續推動這種協調，確保組織具有正確的結構，能夠執行這種交叉銷售機會，並有動力專注於這種交叉銷售機會，並且您將繼續看到我們推動組織變革。

The last time I did that was four years ago, and it's really worked out well for us in terms of organizational change. So we will focus on cross-selling across the business, and it is an important opportunity. On inventory, I'd say we have said this in the past about consigned inventory that those are decisions our customers make, and when we support them in that decision making, I don't see any significant pluses and minuses that are worth.

我上次這樣做是在四年前，從組織變革的角度來看，這確實對我們的工作產生了很好的效果。因此，我們將專注於整個業務的交叉銷售，這是一個重要的機會。關於庫存，我想說，我們過去曾說過，關於寄售庫存，這些都是我們的客戶做出的決定，當我們支持他們的決策時，我看不出有任何值得重視的優點和缺點。

And I discussing in terms of overall revenue or inventory impact to this business. But that's kind of part of our normal run rate as customers want to go in the direction of consigned, we build a model that way. So really no change.

我正在討論總體收入或庫存對這項業務的影響。但這是我們正常運作率的一部分，因為客戶希望朝著寄售的方向發展，我們以這種方式建立模型。所以確實沒有改變。

Okay. Thanks so much for that. And Paul, best of luck to you.

好的。非常感謝。保羅，祝你好運。

Thanks, Matt. Appreciate it.

謝謝，馬特。非常感謝。

George Wang, Barclays.

巴克萊銀行的喬治王 (George Wang)。

Thanks for taking my questions. Firstly, just, and maybe you can unpack some of the kind of bolt-on acquisition opportunities on the horizon you previously talked about how you guys are looking at potentially from the power assets in all kinds of related to Anord Mardix assets that you own IP, but also kind of through value-added services. So as you so the high-grade the portfolio kind of shifting towards higher margin business that's creating a little more color in all of those areas you are targeting maybe in the near term or medium term to further enhance the portfolio?

感謝您回答我的問題。首先，也許您可以解開您之前談到的即將出現的一些附加收購機會，即您如何從與擁有 IP 的 Anord Mardix 資產相關的各種電力資產中尋找潛在機會，同時也透過某種增值服務尋找機會。因此，當您將高檔投資組合轉向利潤率較高的業務時，這會在您所瞄準的所有這些領域中創造更多色彩，也許在短期或中期內進一步增強投資組合？

Okay. George, let me -- good to hear from you again, I'll start off on terms of M&A and what I said in Investor Day and even the follow up since I've talked to you the last time is that we do see an opportunity to continue to look for bolt-on opportunities as you have described in the power space, we feel really good about our position in both embedded power and critical power.

好的。喬治，很高興再次收到您的來信，我將從併購的角度開始，我在投資者日說過，甚至自從上次與您交談以來的後續情況是，我們確實看到了繼續尋找附加機會的機會，正如您在電源領域所描述的那樣，我們對我們在嵌入式電源和關鍵電源方面的地位感到非常滿意。

And we also feel good about the capacity expansion that we're driving there that is required to keep up with the growth that our end markets are seeing. That being said, there is bolt-on things that we can do to accelerate this expansion that we're looking for.

我們也對我們在那裡推動的產能擴張感到滿意，這是跟上我們終端市場成長所必需的。話雖如此，我們可以採取一些附加措施來加速我們所尋求的擴張。

But as you guys know, we have executed in a very prudent way to M&A in the past, and we'll continue to focus on that in terms of making sure we have the right assets at the right valuation and it has to drive the thesis which we are looking for, which is the right margin expansion, and it has to have great returns for our business, so that's how we think about M&A.

但正如你們所知，我們過去對併購非常審慎，我們將繼續專注於此，確保我們以正確的估值擁有正確的資產，並且它必須推動我們所尋求的論點，即正確的利潤率擴張，並且必須為我們的業務帶來豐厚的回報，這就是我們對併購的看法。

So we'll be super selective, but we'll continue to look for the right assets to really finish out our power portfolio wherever we need to that, we can -- that we think we may not be able to do organically, but really not a huge focus in terms of what we're looking at right now.

因此，我們會非常謹慎，但我們會繼續尋找合適的資產，以真正完成我們的電力組合，無論我們需要什麼，我們都可以——我們認為我們可能無法有機地做到這一點，但就我們目前所關注的而言，這實際上並不是一個很大的重點。

But if good assets come along we'll look for it. Really feel good overall, George, in terms of the second part of your question, in terms of what we are driving accelerated growth in terms of the high growth end markets, we feel that's going well, and you can see that in our results.

但如果有好的資產出現，我們就會去尋找。喬治，整體感覺很好，就你問題的第二部分而言，就我們在高成長終端市場推動加速成長而言，我們感覺進展順利，你可以在我們的結果中看到這一點。

Great. I have a quick follow up if I can squeeze in quickly. Just as kind of holding on the power assets, you talked about kind of $1 billion revenue now eventually growing to $3 billion. So that's kind of 3x the run rate, especially, you know, that's a much higher margin in the mid-teens margin you guys talked about. I think that's still underappreciated by the investor community.

偉大的。如果我能快速擠進去的話，我會快速跟進。正如持有電力資產一樣，您談到了 10 億美元的收入，現在最終增長到 30 億美元。所以這相當於 3 倍的運行率，特別是，你知道，這是你們談到的十幾歲的中間水平的更高利潤率。我認為投資者界仍未充分認識到這一點。

Just curious, kind of as the world is so the fever pitch or rather liquid cooling as we used some transition to Blackwell, maybe the power becomes even more. So the critical so with Brazil, probably using the critical power embedded power. Can you sort of impact the driver behind. So they -- such a strong growth, kind of eventually growing to $3 billion. And how does the Blackwell? So the architecture change and the underlying sort of a revenue driver and margin profile for you guys?

只是好奇，有點像世界如此狂熱，或者更確切地說是液體冷卻，當我們使用一些過渡到布萊克威爾時，也許功率會變得更大。因此，對於巴西來說，關鍵的是可能使用關鍵的嵌入式電力。你能對後面的司機造成影響嗎？所以他們 — — 成長如此強勁，最終成長到 30 億美元。那麼布萊克威爾的情況如何？那麼，對你們來說，架構變化和潛在的收入驅動因素和利潤率狀況如何？

George, I'd say whether it's Blackwell or any other proprietary architecture that our customers are driving, we think that the accelerated use of power in this architecture will be really important, right. We have hearing customers go to 80 kilowatt racks and that is happening. So that does that will drive considerable technology and execution expertise required from both our embedded power and our critical power businesses.

喬治，我想說，無論是 Blackwell 還是我們的客戶所推動的任何其他專有架構，我們都認為在此架構中加速使用電力非常重要，對吧。我們聽說客戶正在使用80千瓦的機架，而這正在發生。這將推動我們的嵌入式電源和關鍵電源業務所需的大量技術和執行專業知識。

And that's why we feel confident about kind of the growth rate we have given you, which is expanding from $1 billion to $3 billion. And I'll always agree with you when you say that we are under appreciated and we need more values. I have nothing to disagree with that on that. On the liquid cooling side, I would say we do participate today in a very clear way with hyperscale customers in terms of liquid cooling solutions, both from a manufacturing and a technology perspective.

這就是我們對給出的成長率充滿信心的原因，成長率將從 10 億美元擴大到 30 億美元。當您說我們沒有得到應有的重視並且我們需要更多的價值觀時，我始終同意您的觀點。對此我沒有什麼好反對的。在液體冷卻方面，我想說，我們今天確實以非常明確的方式與超大規模客戶合作，提供液體冷卻解決方案，無論是從製造角度還是技術角度。

And the integration of that technology with them, that power technology will continue to be a key differentiator for us in terms of not just cross-selling, but cross-technology pollination between those businesses. So we really feel good about kind of our investments in power and IT overall in terms of data centers itself. Those are good investments and they're paying off for us.

而且，這項技術與它們的整合，即電力技術將繼續成為我們之間的關鍵差異化因素，不僅是在交叉銷售方面，而且是在這些企業之間的跨技術融合方面。因此，就資料中心本身而言，我們對電力和 IT 整體的投資感到非常滿意。這些都是很好的投資，並且正在為我們帶來回報。

Great, thanks for your answer. I will go back to the queue.

太好了，謝謝你的回答。我將回到隊列。

Steven Fox, Fox Advisors.

史蒂文·福克斯（Steven Fox），福克斯顧問公司。

Hi, good morning, first question, Paul, just show my appreciation for all you've done for the company. I thought I'd ask about the buyback. You've done a lot through this quarter. What's your thinking on buying back shares going forward, especially since you're already sticking to your $800 million of free cash flow for the year?

嗨，早安，第一個問題，保羅，我對你為公司所做的一切表示感謝。我想問一下回購的情況。本季你已經做了很多事。您對未來回購股票有何想法，尤其是考慮到您今年的自由現金流已經達到 8 億美元？

Yeah. So we continue to think Flex is a great investment. We will continue to kind of lean in on that more to come over the next couple of weeks, we have our annual general meeting coming up as per our usual process that's when the Board reauthorized. So you'll probably get a little bit more color in another couple of weeks.

是的。因此我們仍然認為 Flex 是一項偉大的投資。在接下來的幾週內，我們將繼續更專注於這一點，我們的年度股東大會將按照我們的常規程序召開，屆時董事會將重新授權。因此，再過幾週，您可能會看到顏色稍微深一些。

But in the quarter, we bought back about $460 million with the stock. I think we took 15 million shares out of the count. I was just doing a little bit of a look back last night, Steven, and I think over the last couple of years, we've taken share count down by about 15%. And so we definitely are a company that puts our money where our mouth is. And I think we've created a lot of value with our buyback program over the last couple of years.

但在本季度，我們用股票回購了約 4.6 億美元。我認為我們已經統計出 1500 萬股了。史蒂文，我昨晚只是做了一點回顧，我認為在過去幾年中，我們的股票數量減少了約 15%。因此，我們絕對是一家言出必行的公司。我認為過去幾年我們的回購計畫創造了很多價值。

Great. Thanks, and best of luck going forward. And then Revathi, there's been a lot of politics in the news the last few weeks to say the least, lot of different opinions from governments on how they're going to work through tariffs, maybe different other trade issues. How do you look at globally at your customers footprint an ability to handle these changes? Is there still an opportunity for Flex to see more wins, et cetera, with customers as some of these tariffs maybe get enacted or don't get enacted? Thanks.

偉大的。謝謝，祝你未來好運。然後，Revathi，最近幾週新聞中有很多關於政治的報道，各國政府對如何解決關稅以及其他貿易問題發表了很多不同的意見。您如何看待您的客戶在全球範圍內的足跡以及應對這些變化的能力？由於部分關稅可能實施或不實施，Flex 是否還有機會從客戶那裡獲得更多利益等等？謝謝。

Yeah, Steven, I would say that is a big part of our conversation with customers is to proactively look forward and really focus on creating plans for them, because with every new number that gets thrown around tariffs, it creates a tremendous chaos in our supply chain. And what we are really good at in the last four, five years, prove it is that's real focus on executing to these changes and making sure that our customers are prepared.

是的，史蒂文，我想說，我們與客戶對話的很大一部分就是積極展望未來，真正專注於為他們制定計劃，因為每出現一個有關關稅的新數字，都會給我們的供應鏈帶來巨大的混亂。我們在過去四、五年中真正擅長的是證明我們真正專注於執行這些變更並確保我們的客戶做好準備。

So they become almost part of our DNA and fortunately, right. And so even two days ago, I was with a customer having the same conversation about what should be our new strategy, if some of these tariffs get implemented and how we can help them execute on that strategy.

所以它們幾乎成為了我們 DNA 的一部分，幸運的是，沒錯。甚至兩天前，我還在和一位客戶進行同樣的對話，討論如果部分關稅實施，我們的新策略應該是什麼，以及我們如何幫助他們執行該策略。

So it's become a really common conversation, I would say in every C-suite that I participate in and every time with new news, we are planning a new set of strategies for our customers to make sure their supply chain is well executed and as resilient to create lots of opportunities for us, not the kind of opportunities we really want. But I would say this disruption does provide a focus for companies like ours to help our customers really deliver on what they want.

所以這已經成為一個非常常見的話題，我想說，在我參加的每一個高階主管會議上，每當有新消息出現時，我們都在為客戶規劃一套新的策略，以確保他們的供應鏈執行良好，並具有彈性，為我們創造很多機會，但不是我們真正想要的那種機會。但我想說，這種顛覆確實為我們這樣的公司提供了一個焦點，幫助我們的客戶真正實現他們想要的東西。

That's helpful. Thank you.

這很有幫助。謝謝。

(Operator Instructions)

（操作員指令）

Ruplu Bhattacharya, Bank of America.

美國銀行的 Ruplu Bhattacharya。

Hi, thanks for taking my questions. Paul, it was great working with you and wishing you the best for your next assignment.

你好，謝謝你回答我的問題。保羅，很高興與您合作，並祝您下一個任務一切順利。

Maybe I'll start my first question with you. Last quarter, you talked about needing to invest in new program ramps and that was going to impact the fiscal 1Q margins. Was that impact less than you had expected? And I'm wondering if you can give us more details on these new program ramps specifically for fiscal '25, how much of the revenue growth is coming from these program ramps and when do they get to steady-state?

也許我應該從你開始問我的第一個問題。上個季度，您談到需要投資新的專案坡道，這將影響第一季的財報利潤率。影響是否比您預期的要小？我想知道您是否可以為我們提供更多有關這些新計劃的細節，特別是針對 25 財年，有多少收入增長來自這些計劃，以及它們何時達到穩定狀態？

Well, first of all, I appreciate the comments, Ruplu, as for the first quarter, I recall the conversations that we had about a quarter ago where we were talking about the sort of the sequential change between Q4 and Q1. And yes, we were anticipating a number of ramps as we sort of stepped into the first quarter. You saw it with CapEx, which was UPS sequentially.

嗯，首先，我很感謝 Ruplu 的評論，至於第一季度，我記得我們大約一個季度前的對話，當時我們談論的是第四季度和第一季之間的連續變化。是的，當我們進入第一季時，我們預計會出現一些上升趨勢。您可以從 CapEx 中看到這一點，它是 UPS 的連續成長。

I had mentioned about a quarter ago that with CapEx comes period costs associated with doing all the non-capitalizable stuff associated with facilitizing and ramp readiness. I would say overall spending was a little bit less than what we anticipated in our Q1 was frankly better than what better than even what I had thought. And really strong margin performance certainly year on year, great to see.

我大約一個季度前提到過，資本支出伴隨著與設施建設和坡道準備相關的所有不可資本化工作相關的期間成本。我想說的是，第一季的整體支出比我們預期的要少一點，坦白說，甚至比我想像的還要好。很高興看到利潤率同比確實表現強勁。

As we look ahead, we're going to continue to work the ramps. As Revathi had pointed out earlier, we're going to be I'm sort of moving up with a number of cloud ramps as we go all the way through the year. And so we will be ramping through the year. But I think that's what's leading to the mix up and the pretty steady sequential margin expansion that we're expecting as we progress through the year. So I would say, all systems go at the moment. And Q1 was definitely an aero up quarter. Very happy with the performance.

展望未來，我們將繼續努力工作。正如 Revathi 之前指出的那樣，隨著我們全年的前進，我們將看到一系列雲坡道的上升。因此，我們今年將會繼續努力。但我認為這就是造成混亂的原因，而且我們預計隨著今年的進展，利潤率將穩步連續擴大。所以我想說，目前一切正常。第一季無疑將是航空業成長的一個季度。對演出非常滿意。

Maybe I'll ask you my follow-up as well and Revathi can chime in you reported $414 million and $0.12 above the midpoint of your fiscal 1Q guide. And looks like you're guiding for maybe like $220 million a penny above the street for fiscal 2Q and yet you're keeping the full year revenue and EPS ranges unchanged. So I mean the first question is, is there any incremental weakness in the fiscal second half? And Revathi, what if there's incremental upside, where would -- where should we expect that in the fiscal second half?

也許我也會問你我的後續問題，Revathi 可以告訴你，你的報​​告金額為 4.14 億美元，比你的第一季財報指南中點高出 0.12 美元。看起來您預計第二財季的營收可能會比預期高出 2.2 億美元，但您仍保持全年營收和每股盈餘範圍不變。所以我的意思是第一個問題是，財政下半年是否會出現任何增量疲軟？那麼 Revathi，如果有增量上行空間，那麼我們應該預期下半年的財報會如何？

Yeah, I'd say Ruplu, this is fiscal Q1 for us. We executed really well, both in terms of top line and margin performance. And feel really good about the full year. I think our Q2 guidance is in line with what we said in the beginning, that we're going to see the year gradually ramp in, and that's how we are performing. So I wouldn't read too much into the guidance. It's early in the year, right? And we feel very good about kind of full year and how it's playing out right now.

是的，我想說，Ruplu，這是我們的財政第一季。無論從營業收入或利潤表現來看，我們的表現都非常出色。對全年都感到非常滿意。我認為，我們的第二季指引與我們一開始所說的一致，那就是我們將看到今年的業績逐漸好轉，而這正是我們的表現。所以我不會對該指導進行過多的解讀。現在還只是年初吧？我們對全年的情況以及目前的進展感到非常滿意。

And I would say Q2 again shows continued acceleration from Q1. And that's the main thing I would think about it. I would say it makes a lot of sense and early in the year in Q1, even with a $0.10 beat this to really keep full year the way it is, I would say that's the prudent thing to do, and that's what we're planning on.

我想說的是，第二季再次顯示出第一季的持續加速。這是我對此主要思考的問題。我想說這非常有意義，在今年第一季初，即使比預期高出 0.10 美元，也能保持全年的現狀，我認為這是明智之舉，這也是我們計劃的。

Okay. Thank you for all the details. Appreciate it.

好的。感謝您提供的所有詳細資訊。非常感謝。

Thanks, Ruplu.

謝謝，Ruplu。

Steve Barger, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Steve Barger。

Hi, good morning. You've got Jacob Moore on for Steve. Thanks for taking the questions. First one for me, one of the core opportunities for Flex for fiscal '25, I think was and probably still is driving factory improvements and productivity. Can you talk to how progress against that goal has come along over the past six or 12 months? The [pliable] efficiencies and how much about opportunities left to squeeze out this fiscal year?

嗨，早安。雅各·摩爾 (Jacob Moore) 代替史蒂夫。感謝您回答這些問題。對我來說，首先，Flex 25 財年的核心機會之一是，我認為它過去是、現在可能仍然是推動工廠改進和生產力的動力。您能談談過去六個月到十二個月以來該目標的進展嗎？[靈活的] 效率以及本財年還剩下多少機會可以擠出？

Yeah, I'd say this is my -- one of my favorite topics for Flex, I would say the I'll step back and say long term, lots of factory opportunities, not just because that there is room to improve for Flex. But if you think about the new technology transformations that's happening from a hardware and a software perspective, those will have meaningful impact in terms of driving continuous factory productivity, whether it's in terms of automation or whether it's in terms of AI manufacturing, we'll see a big impact from that in terms of automation itself.

是的，我想說這是我最喜歡的 Flex 話題之一，我想說我會退一步說，從長遠來看，有很多工廠機會，而不僅僅是因為 Flex 還有改進的空間。但是，如果從硬體和軟體的角度來考慮正在發生的新技術轉型，它們將對推動工廠持續生產力產生有意義的影響，無論是在自動化方面還是在人工智慧製造方面，我們都會看到它在自動化方面產生的巨大影響。

I would say in terms of how much productivity we've baked in for the year. I think in Investor Day, we showed a little chart that shows that we expect some amount of our margin improvement to come from just our mix shift and then some from productivity gains. We don't break that out and give you the specific details of how much.

我想說的是，就我們今年的生產力而言。我認為在投資者日，我們展示了一個小圖表，表明我們預期利潤率的一定程度提高將來自於產品組合的轉變，而部分利潤率提高將來自於生產力的提高。我們不會詳細透露這筆金額。

But as a general guidance, I expect our teams to continue to have pretty significant factory productivity focus, and we are executing to that. So if you look at our margin improvement, some of it comes from mix change and some of it comes from factory, and I'll expect that to flow through every quarter. And that's a very big focus for us. I don't know. Would you add anything to it? Paul.

但作為一般指導，我希望我們的團隊繼續高度重視工廠生產力，並且我們正在執行這一點。因此，如果你看看我們的利潤率改善，其中一些來自組合變化，一些來自工廠，我預計這會貫穿每個季度。這是我們非常關注的重點。我不知道。您想添加一些東西嗎？保羅。

Well, first of all, Steve, nice to hear you on the call. It's been a long time come and I'm glad you picked up some coverage. But just to add derivatives point, think about the year on year, just from '24 to '25. It's year to year. We'll probably have at the midpoint of our guide anyway, maybe $0.5 billion less revenue, but operating profit is again at the midpoint of our guide going to be up about $120 million.

嗯，首先，史蒂夫，很高興在電話裡聽到你的聲音。已經有很長一段時間了，我很高興你得到了一些報道。但只是為了增加衍生點，想想同比，從'24 年到'25 年。年復一年。無論如何，我們的營收可能處於指導值的中間點，可能減少 5 億美元，但營業利潤將再次處於指導值的中間點，增加約 1.2 億美元。

So that's a fairly significant volume contraction with very nice operating profit growth like Revathi, as you said, part of that comes from mix as we continue to mix into higher-value areas. But of course, a lot of that is just continuing to drive the factory engine and optimizes as best we can. And I with Revathi, I continue to believe there's tremendous opportunity down the road. Look, we've got a huge factory network. And our job has never done. There's always things that we can do to optimize and get better and learn.

因此，這是一個相當明顯的銷售收縮，但伴隨著非常好的營業利潤成長，就像你所說的那樣，部分原因在於我們繼續向更高價值的領域進行混合。但當然，其中很多只是繼續推動工廠引擎並盡我們所能進行優化。我和 Revathi 一樣，始終堅信未來還有巨大的機會。看，我們有一個龐大的工廠網路。我們的工作還未完成。我們總是可以做一些事情來優化、進步和學習。

So appreciate the question and nice to nice to hear you on the call.

非常感謝您的提問，很高興在電話中聽到您的回答。

Understood. Thank you. And then second one for me. This was a little bit of a follow-up to a prior question related to your core business model. Are there any specific areas that you see additional opportunities to add services and value added products business on top of the traditional EMS relationship? I'm thinking about something like the ecosystem you set up for server X, could you identify any other areas where you're looking to apply a similar model, why you like those areas and the margin effect you think that could represent?

明白了。謝謝。對我來說這是第二個。這是對您的核心業務模式的先前問題的一點後續回答。您是否認為在傳統 EMS 關係的基礎上，在特定領域存在增加服務和增值產品業務的額外機會？我正在考慮類似您為伺服器 X 設定的生態系統的東西，您能否指出您希望應用類似模型的其他領域，為什麼您喜歡這些領域以及您認為這些領域可能代表的邊際效應？

Yeah, I would say that the value added services as we bucketize it has big opportunity, not just in terms of the kind of data center ecosystem, but it has big opportunity across all our businesses. So whether it is it'll be a positioning product for our customers as they bring product into their factories, whether it is the aftermarket of refurbishing or remanufacturing or taking it to waste. And also end to end, really being able to deliver the whole value proposition for our customers is really important for us, whether it is in the health solutions business or whether it's an industrial business or consumer businesses.

是的，我想說，我們所分類的增值服務具有很大的機遇，不僅在資料中心生態系統方面，而且在我們所有的業務中都具有很大的機會。因此，當客戶將產品帶入工廠時，它是否會成為客戶的定位產品，無論是翻新或再製造的售後市場還是將其浪費掉。而且從端到端，真正能夠為我們的客戶提供完整的價值主張對我們來說非常重要，無論是在健康解決方案業務還是工業業務或消費者業務。

It's everything from kind of the logistics of both the forward and reverse logistics effort, staging of products. It could be everything from Canada, the remanufacturing, the refurbishment of it or taking it today. We recently announced a small acquisition, a technology acquisition that really helps us do more in that space. So it applies to all the end markets, I would say.

它涵蓋了從正向物流到逆向物流的一切工作，以及產品分階段。它可能來自加拿大的所有東西，經過再製造、翻新或今天拿走。我們最近宣布了一項小型收購，這項技術收購確實幫助我們在該領域取得更多成就。所以我想說它適用於所有終端市場。

And the big opportunities for us moving forward outside of and both consumer and our CEC businesses in industrial and health, both large opportunities for expanding services, very profitable. We talked about being around $1 billion today, and we are putting a lot of organizational horsepower behind growing that and accelerating that.

我們在消費和 CEC 業務之外，在工業和健康領域也面臨著巨大的發展機遇，這兩者都是擴展服務的巨大機會，利潤豐厚。我們今天談到的規模是 10 億美元左右，而且我們正在投入大量的組織力量來推動和加速這一目標的實現。

Great. Thank you for taking the questions. And Paul, congrats and good luck to you, sir.

偉大的。感謝您回答這些問題。保羅，祝賀您並祝您好運，先生。

Thanks, Steve. Appreciate it.

謝謝，史蒂夫。非常感謝。

Mark Delaney, Goldman Sachs.

高盛的馬克·德萊尼。

Good morning. Thanks for taking my questions. And Paul, thanks so much for all of your help and wishing you the best going forward.

早安.感謝您回答我的問題。保羅，非常感謝你的幫助，祝你一切順利。

First question is on the competitive landscape within the industry more broadly and open to double-click a little bit more on to what extent if at all some of the weaker end market conditions that have been seen in areas like telecom, consumer electronics, parts of industrial have resulted in more difficult great pricing that flexes need to deal with and if so, does that affect your longer-term margin aspirations at all?

第一個問題是關於行業內更廣泛的競爭格局，請您進一步詳細探討一下，在電信、消費電子、工業部分領域出現的一些較弱的終端市場條件在多大程度上導致了彈性定價變得更加困難，如果是這樣，這是否會影響你們的長期利潤期望？

I'd say, Mark, one thing that this kind of, I would say recessionary environment or weaker end market has really shown for the industry itself is the pricing capability and the margin improvement capability that exists in the industry, right. So you've seen over the last kind of four to five years, you know, everyone's moved margins up. You've seen more discipline in terms of overall execution. You have seen the focus on not adding capacity, when you did need it, and all that has played out through this downturn because I was always the question, how does this industry behave either and weaker end markets?

馬克，我想說，這種經濟衰退環境或較弱的終端市場確實對產業本身產生了影響，即產業的定價能力和利潤率提高能力，對吧。所以你會發現，在過去的四到五年裡，每個人的利潤率都在上升。您已經看到了總體執行方面更加規範的情況。你已經看到了當需要增加產能時卻沒有增加產能的現象，而這一切都是在這次經濟低迷時期造成的，因為我一直在問，這個行業以及較弱的終端市場會如何表現？

I would say that the same for us, pricing has held through because we do see an inflationary environment in across the world. So pricing still has to hold true for us. And the focus on really selling value and where we can sell value is very consistent in terms of our operational model. So I would say, if anything, it only consolidates and strengthens our position in terms of our longer-term margin guidance.

我想說的是，對我們來說也是一樣，定價之所以能夠維持，是因為我們確實看到全球都存在通膨環境。因此，定價對我們來說仍然必須保持不變。就我們的營運模式而言，我們始終專注於真正銷售價值以及我們可以在哪裡銷售價值，這一點是非常一致的。因此我想說，如果有的話，它只會鞏固和加強我們在長期利潤率指導方面的地位。

Thanks Revathi. And another question on the geopolitical environment. There's been a proposed increase in tariffs from one of the political candidates in the US running for president. Flex has already shown an ability to support customers with tariffs and supply chain issues and being responsive in terms of what regions they want to manufacture.

謝謝 Revathi。還有一個關於地緣政治環境的問題。美國一位總統候選人提議提高關稅。Flex 已經展現出支援客戶解決關稅和供應鏈問題的能力，並且能夠根據客戶希望在哪些地區進行生產做出回應。

And but to the extent there's higher tariffs to import products specifically into the US. Maybe talk about to what extent flex could support that and what kind of capacity you have currently in place in the US and if that's something you could use it for customers with relatively quickly? Or would more investments be needed in order to perhaps enable increased domestic manufacturing? Thanks.

但在一定程度上，對進口到美國的產品徵收更高的關稅。也許可以談談 flex 可以在多大程度上支持這一點，以及您目前在美國擁有什麼樣的容量，以及您是否可以相對快速地將其用於客戶？或是需要更多投資才能促進國內製造業的成長？謝謝。

Yeah, I'd say, Mark, this is a big topic for us with our customers. And unfortunately, this chaos around tariffs creates opportunities for companies like us and what the last, you know, four or five years has shown is what Flex is really focused on is building supply chain resiliency for our customers. And in I had mentioned earlier, just a couple of days ago, I was with another customer really talking about accelerating product movement for them as a result of the new tariffs that we have heard about.

是的，我想說，馬克，這對我們與客戶來說是一個大話題。不幸的是，關稅混亂為我們這樣的公司創造了機會，過去四到五年的情況表明，Flex 真正關注的是為我們的客戶建立供應鏈彈性。我之前提到過，就在幾天前，我和另一位客戶正在討論如何因為我們聽說的新關稅而加快他們的產品運輸。

So Flex really takes this opportunity. We've become really good at this. And again, that's not great, I would say for the whole market, but it provides us opportunity because we plan ahead. And then some of these you can execute faster based on the complexity of products and some of it could take years to execute, right? So we have been going through this for the last five years.

所以 Flex 確實抓住了這個機會。我們在這方面已經變得非常擅長了。再說一次，對於整個市場來說，這不是什麼好事，但它為我們提供了機會，因為我們提前做好了計劃。然後，根據產品的複雜性，您可以更快地執行其中一些，而有些可能需要數年才能執行，對嗎？所以我們過去五年來一直在經歷這個問題。

And if anything, this adds more to the mix then anything else to help our customers really plan for these types of issues. So I would say in our where we are really focused on this. And then hopefully, it just adds to more growth for us. But it is really important to help our customers build resiliency.

而且，如果有的話，這會比其他任何東西都更能幫助我們的客戶真正規劃好這些類型的問題。所以我想說我們確實專注於這一點。然後希望它能為我們帶來更多的成長。但幫助我們的客戶建立彈性確實很重要。

Thank you.

謝謝。

Thank you. I will now hand the call back over to CEO for closing remarks.

謝謝。現在我將把電話轉回給首席執行官，請他作最後發言。

Thank you. Thank you for joining us. We'll really look forward to speaking with you again next quarter. On behalf of my entire leadership team, I want to give you a sincere thank you to our customers for their trust and partnership and all our shareholders for your continued support. And lastly, I want to thank our Flex team across the globe for their continued dedication and contributions. Thanks, everyone.

謝謝。感謝您加入我們。我們非常期待下個季度再次與您交談。我謹代表我的整個領導團隊，向客戶的信任與合作以及所有股東的持續支持表示誠摯的感謝。最後，我要感謝全球 Flex 團隊的持續奉獻和貢獻。謝謝大家。

Thank you. This does conclude today's conference call, and thank you for joining. You may now disconnect.

謝謝。今天的電話會議到此結束，感謝您的加入。您現在可以斷開連線。