Flex Ltd (FLEX) 2025 Q2 法說會逐字稿

Thank you for standing by. Welcome to Flex's second quarter fiscal 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I will now turn the call over to Mr. David Rubin. Mr. Rubin, please begin.

謝謝你的支持。歡迎參加 Flex 2025 財年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。我現在將把電話轉給大衛·魯賓先生。魯賓先生，請開始。

Thank you. Good morning, and welcome to Flex's second quarter fiscal 2025 earnings conference call. With me today is our Chief Executive Officer, Revathi Advaithi; and Interim Chief Financial Officer, Jaime Martinez. We will give brief remarks followed by Q&A.

謝謝。早上好，歡迎參加 Flex 2025 財年第二季財報電話會議。今天與我在一起的是我們的執行長 Revathi Advaithi；臨時財務長 Jaime Martinez。我們將進行簡短發言，然後進行問答。

Slides for today's call as well as a copy of the earnings press release and summary of financials are available on the Investor Relations section at flex.com. This call is being recorded and will be available for replay on our corporate website.

今天電話會議的幻燈片以及收益新聞稿和財務摘要的副本可在 flex.com 的投資者關係部分取得。本次通話正在錄音中，並將在我們的公司網站上重播。

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。這些陳述涉及風險和不確定性，可能導致實際結果有重大差異。有關這些風險和不確定性的完整討論，請參閱我們的簡報、新聞稿或我們最近向 SEC 提交的文件中的風險因素部分中的警告聲明。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. 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，否則提供的所有結果均採用非公認會計原則衡量標準，所有成長指標均以同比計算。完整的非 GAAP 與 GAAP 調整表可以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。

Lastly, on October 17, we announced we had entered into a definitive agreement to acquire Crown Technical Systems. The guidance we provide on this call excludes any impact from the pending acquisition.

最後，10 月 17 日，我們宣布已達成收購 Crown Technical Systems 的最終協議。我們對此次電話會議提供的指導不包括待決收購的任何影響。

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

現在我想把電話轉給我們的執行長。瑞瓦蒂？

Thank you, David. Good morning, and thank you for joining us today. Starting off with our results on slide 4. We had a solid Q2 with revenue of $6.5 billion. End market trends in the quarter were largely in line with our prior expectations with strength in cloud, power, and medical devices. Our adjusted operating margin came in at a record 5.5% based on the strong mix and effective cost management. And we delivered $0.64 of adjusted EPS, also a quarterly record for Flex.

謝謝你，大衛。早安，感謝您今天加入我們。從幻燈片 4 上的結果開始。本季終端市場趨勢基本上符合我們先前的預期，雲端、電力和醫療設備領域表現強勁。基於強大的產品組合和有效的成本管理，我們的調整後營業利潤率達到創紀錄的 5.5%。我們實現了 0.64 美元的調整後每股收益，這也是 Flex 的季度記錄。

As mentioned last quarter, we have multiple large program ramps across Flex including cloud, power and auto. These ramps are progressing well, which contributed to our margin improvement, and we expect this to continue in the back half of the fiscal year. I'm proud of our strong execution this quarter as our team continues to operate in a dynamic macro.

如上季所提到的，我們在 Flex 上有多個大型項目，包括雲端、電力和汽車。這些成長進展順利，這有助於我們的利潤率提高，我們預計這種情況將在本財年後半段持續下去。我為我們本季的強勁執行力感到自豪，因為我們的團隊繼續在充滿活力的宏觀環境中運作。

Now turning to slide 5, at our Investor Day back in May, we laid out a longer-term strategy to expand our unique portfolio of advanced manufacturing capabilities, innovative power and compute products and life cycle services, with an ongoing focus towards higher-value markets with strong secular trends. We call this our EMS plus product plus services strategy. We continue to make progress on the strategy across our diverse portfolio.

現在轉向幻燈片 5，在 5 月份的投資者日上，我們制定了一項長期策略，以擴展我們獨特的先進製造能力、創新電源和計算產品以及生命週期服務組合，並持續關注更高價值具有強勁長期趨勢的市場。我們將此稱為 EMS 加產品加服務策略。我們持續在多元化投資組合的策略上取得進展。

Within each of our six business units, our teams are focused on improving the mix and driving operational productivity of their core manufacturing businesses. Each business unit is also looking for opportunities to add value to our customers through additional services. Our lifestyle business was where we initially proved the value we can create through vertical integration and circular economy solutions.

在我們的六個業務部門中，我們的團隊專注於改善其核心製造業務的組合併提高營運生產力。每個業務部門也在尋找機會透過附加服務為客戶增加價值。我們的生活方式業務是我們最初證明我們可以透過垂直整合和循環經濟解決方案創造價值的地方。

The result is deeper customer relations and improved margins even through the downcycle in durable goods. From this experience, we extended the strategy to CEC with similar results, including the strong growth in our cloud business.

結果是，即使在耐用品的下行週期中，也能加深客戶關係並提高利潤。根據這項經驗，我們將該策略擴展到 CEC，並取得了類似的結果，包括雲端業務的強勁成長。

In some end markets, such as auto, and of course, cloud, we have built out our own product portfolio. This creates even more value in our relationships. There's been a lot of interest in how our EMS plus products plus services strategy applies specifically to the transformation in the data center.

在一些終端市場，例如汽車，當然還有雲，我們已經建立了自己的產品組合。這為我們的關係創造了更多價值。人們對我們的 EMS 加產品加服務策略如何專門應用於資料中心的轉型非常感興趣。

So let me briefly explain. Flex is the only provider that delivers customized, fully integrated data center racked solutions and power infrastructure solutions. Our data center power portfolio spans from the facility power all the way down to components that power the server boards. So our power portfolio is truly grid to chip. You're already seeing the impact of this strategy in our results.

那麼讓我簡單解釋一下。 Flex 是唯一一家提供客製化、完全整合的資料中心機架式解決方案和電力基礎設施解決方案的供應商。我們的資料中心電源產品組合涵蓋從設施電源一直到為伺服器主機板供電的組件。因此，我們的電源產品組合是真正的網格到晶片。您已經在我們的結果中看到了該策略的影響。

For example, in Q2, our data center portfolio, which is a combination of cloud and data center power business grew 40% year-over-year versus our expected 20% long-term CAGR, and we were also up against a more difficult comp this quarter. Of course, we're constantly working to improve our capabilities, develop innovative products and expand our services.

例如，在第二季度，我們的資料中心產品組合（雲端和資料中心電力業務的組合）比去年同期成長了40%，而我們預期的長期複合年增長率為20%，而且我們還面臨著更困難的競爭本季。當然，我們不斷努力提高我們的能力，開發創新產品並擴展我們的服務。

It's been a busy quarter so I want to talk about some of our progress. We announced our partnership with Musashi Energy Solutions to enhance our Flex design capacitive energy storage solution or CESS. Our solution now the leading technology to mitigate the massive power spikes that are disrupting data centers as they add new AI clusters.

這是一個忙碌的季度，所以我想談談我們的一些進展。我們宣布與 Musashi Energy Solutions 建立合作夥伴關係，以增強我們的 Flex 設計電容式儲能解決方案或 CESS。我們的解決方案現在是領先的技術，可以緩解資料中心在添加新的人工智慧叢集時造成的巨大功率峰值。

At this year's open compute summit, we had a few critical announcements highlighting how Flex enables cloud service providers to address power, heat, and scale challenges. We allowed our next-generation compute reference design for AI and high-performance compute applications. We announced our partnership with JetCool to expand our direct-to-chip liquid cooling capabilities, which is able to handle the most advanced AI server specs.

在今年的開放運算高峰會上，我們發布了一些重要公告，重點介紹了 Flex 如何幫助雲端服務供應商應對電力、熱量和規模挑戰。我們允許為人工智慧和高效能運算應用程式提供下一代運算參考設計。我們宣布與 JetCool 建立合作夥伴關係，以擴展我們的直接晶片液體冷卻能力，該能力能夠處理最先進的人工智慧伺服器規格。

Lastly, we showed our liquid cool Flex racked solution integrated with our power shelf, power supply and busbars, all designed for the higher demands of emerging workloads. This demonstrates a truly vertically integrated solution for our cloud customers that we can manufacture at speed and scale.

最後，我們展示了與電源架、電源和母線整合的液冷 Flex 機架式解決方案，所有這些都是為了滿足新興工作負載的更高要求而設計的。這向我們的雲端客戶展示了真正的垂直整合解決方案，我們可以快速、大規模地製造。

Now there's a deeper takeaway from these product and capability announcements. Because of our expertise in both power and compute, we are working with our customers earlier in their technology road map. Because of that, Flex has the opportunity to drive leading edge innovation and in this case, help solve some of the most critical power issues in the evolving data center.

現在，這些產品和功能的發布帶來了更深入的收穫。由於我們在電源和計算方面的專業知識，我們正在早期與客戶合作制定技術路線圖。正因為如此，Flex 有機會推動前沿創新，在這種情況下，幫助解決不斷發展的資料中心中一些最關鍵的電源問題。

As I mentioned, our EMS plus product plus services strategy is about finding higher value opportunities in diverse end markets. And every team at Flex has a role to play in this strategy. Along those lines, we recently announced the acquisition of Crown Technical Systems. There is a strong synergistic effect here.

正如我所提到的，我們的 EMS 加產品加服務策略是在不同的終端市場中尋找更高價值的機會。 Flex 的每個團隊都可以在這項策略中發揮作用。為此，我們最近宣布收購 Crown Technical Systems。這裡有很強的協同效應。

First, Crown has a significant position in the North American power distribution market which is being driven by grid modernization and data center power trends. Their expertise in medium voltage switchgear also enhances our data center power portfolio, and we believe it will support growth in our modular power pod business. particularly in the US market.

首先，Crown 在受電網現代化和資料中心電力趨勢推動的北美配電市場中佔有重要地位。他們在中壓開關設備方面的專業知識也增強了我們的資料中心電源產品組合，我們相信這將支持我們模組化電源盒業務的成長。尤其是在美國市場。

This acquisition is another great example of our strategy to grow in higher-value markets tied to our core competencies, and ultimately create long-term shareholder value through margin expansion, EPS growth and cash generation.

此次收購是我們在與核心競爭力相關的高價值市場中發展的策略的另一個很好的例子，並最終透過利潤率擴張、每股盈餘成長和現金產生創造長期股東價值。

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

接下來，我會將電話轉接給海梅馬丁內斯 (Jaime Martinez)，讓您了解我們的財務最新情況。海梅？

Thank you, Revathi. Starting with our second quarter performance on slide 7. It was another solid quarter. Second quarter revenue was $6.5 billion, in line with our expectations. Gross profit totaled a record quarterly level of $554 million and gross margin increased to 8.5%, up 90 basis points. Operating income was $358 million, with operating margins at 5.5%, a substantial year-over-year improvement, up 80 basis points. And as Revathi mentioned, both were record quarterly levels for Flex. And earnings per share increased 12% year-over-year to $0.64 for the quarter, also a record level.

謝謝你，瑞瓦蒂。從幻燈片 7 上我們第二季的表現開始。第二季營收為 65 億美元，符合我們的預期。季度毛利總額達到創紀錄的 5.54 億美元，毛利率增至 8.5%，成長 90 個基點。營業收入為 3.58 億美元，營業利潤率為 5.5%，年比大幅改善，提高了 80 個基點。正如 Revathi 所提到的，這兩個季度的水平對於偉創力來說都是創紀錄的。該季度每股收益年增 12% 至 0.64 美元，同樣創歷史新高。

Turning to quarterly segment results on the next slide. Reliability revenue was $2.9 billion in the expected range with continued strength in power and medical devices. Operating income was $159 million, and operating margin for the segment improved, both sequentially and year-over-year, to 5.4% on mix and solid execution.

轉向下一張投影片的季度分部結果。可靠性收入為 29 億美元，處於預期範圍內，電力和醫療設備業務持續強勁。營業收入為 1.59 億美元，由於組合和穩健的執行，該部門的營業利潤率環比和同比均有所改善，達到 5.4%。

In Agility, revenue was flat at $3.6 billion with strong cloud offsetting softer non-cloud-related networking and enterprise IT. Operating income came in at $218 million, with a record 6.1% operating margin based on continued mix improvement in each of the three business units, along with strong execution and effective cost management.

在敏捷性方面，營收持平於 36 億美元，強勁的雲端抵消了疲軟的非雲端相關網路和企業 IT。營業收入達到 2.18 億美元，營業利潤率達到創紀錄的 6.1%，這得益於三個業務部門持續的組合改進以及強大的執行力和有效的成本管理。

Moving to cash flow on slide 9. Q2 net CapEx totaled $100 million, and we expect to maintain our target of 2% of revenue for the full year. Net inventory was down again this quarter, similar to Q1, down 6% sequentially and 21% year-over-year. Inventory days, net of working capital advances has finally reached a more normalized level in the high 50s. So we feel much better about where we are.

轉到投影片 9 的現金流。本季淨庫存再次下降，與第一季類似，季減 6%，年減 21%。扣除營運資金預付款後的庫存天數最終達到了 50 多歲的更正常水準。所以我們對自己所處的位置感覺好多了。

Free cash flow in the quarter was strong again at $219 million. That puts us at $451 million year-to-date, on track to reach our full year target of $800 million plus. In the second quarter, we repurchased $300 million worth of stock, totaling approximately 10 million shares. Fiscal year-to-date, we have repurchased over $750 million. We exit Q2 with cash balances of $2.6 billion. Some of that will fund the Crown acquisition expected to close by December.

本季自由現金流再次強勁，達到 2.19 億美元。這使得我們今年迄今的營收達到 4.51 億美元，預計將實現 8 億美元以上的全年目標。第二季度，我們回購了價值3億美元的股票，總計約1,000萬股。財年迄今，我們已回購超過 7.5 億美元。第二季結束時，我們的現金餘額為 26 億美元。其中部分資金將為預計 12 月完成的皇冠收購提供資金。

Please turn to slide 10 and for our segment outlook for the fiscal third quarter. For Q3, Reliability Solutions, we expect revenue will be flat to down mid-single digits. As we recently mentioned at the Goldman Sachs conference, we have seen some macro related slowing in auto that is muting growth in the second half. Although we still expect to outperform auto industry unit expectations in fiscal 2025 based on new wins and content gains.

請參閱投影片 10，以了解我們對第三財季的部門展望。對於第三季的可靠性解決方案，我們預計收入將持平或下降到中個位數。正如我們最近在高盛會議上提到的那樣，我們看到汽車行業出現了一些與宏觀相關的放緩，這導致下半年的成長放緩。儘管基於新的勝利和內容收益，我們仍預期 2025 財年汽車產業單位的表現將優於預期。

Core industrial demand is a little softer than previously expected. However, the strength in power and medical devices is expected to continue. Agility Solutions revenue is expected to be down low to high single digits with continued strong growth in cloud, other end markets remaining as expected.

核心工業需求略低於先前預期。然而，電力和醫療設備的強勁勢頭預計將持續。隨著雲端運算的持續強勁成長，敏捷解決方案的收入預計將從低到高個位數，其他終端市場仍符合預期。

On to slide 11 for our quarterly guidance. For total Flex, we expect Q3 in the range of $6 billion to $6.4 billion, with operating income between $335 million and $365 million. Interest and other expense is estimated to be around $50 million. We expect the tax rate to be around 17% for the quarter. All that translates to adjusted EPS between $0.60 and $0.66, based on approximately 400 million weighted average shares outstanding.

請參閱投影片 11，以了解我們的季度指引。對於 Flex 總營收，我們預計第三季的營收將在 60 億美元至 64 億美元之間，營業收入將在 3.35 億美元至 3.65 億美元之間。利息和其他費用估計約為 5000 萬美元。我們預計本季稅率約為 17%。根據約 4 億股加權平均流通股計算，所有這些調整後每股收益在 0.60 美元至 0.66 美元之間。

Looking at our full year guidance on the following slide. Given some macro pressures, we now expect full year revenue between $24.9 billion and $25.5 billion. However, adjusted operating margin is expected to be between 5.4% and 5.5%, which at the midpoint will be up about 70 basis points year-on-year, and adjusted EPS is now expected to be between $2.39 and $2.51.

在下面的幻燈片中查看我們的全年指導。考慮到一些宏觀壓力，我們現在預計全年收入將在 249 億美元至 255 億美元之間。然而，調整後的營業利潤率預計在5.4%至5.5%之間，中間值將年增約70個基點，調整後的每股盈餘目前預計在2.39美元至2.51美元之間。

You can see in our results and guidance, how much Flex has changed over the last several years, shifting to higher value business and improving operations through the cycles. And this is resulting in continued margin improvement and double-digit EPS growth. We believe our EMS plus products plus services long-term strategy represents the best opportunities in the history of Flex. So we're very excited about our future.

您可以在我們的結果和指導中看到 Flex 在過去幾年中發生了多大變化，轉向更高價值的業務並在各個週期中改善營運。這導致利潤率持續改善和每股收益兩位數成長。我們相信，我們的 EMS 加產品加服務長期策略代表了偉創力史上的最佳機會。所以我們對我們的未來感到非常興奮。

With that, I will now turn the call back over to the operator to begin our Q&A.

現在，我將把電話轉回接線員以開始我們的問答。

(Operator Instructions) Ruplu Bhattacharya from Bank of America.

（操作員指令）來自美國銀行的 Ruplu Bhattacharya。

Revathi, I wanted to ask you about the power business, strong growth this quarter of 40% year-on-year. Is that sustainable? And how do you plan to grow this business? Is it going to be through more M&A? Or is there organic growth possible and who is the target customer?

Revathi，我想問電力業務，本季年增 40%。這是可持續的嗎？您打算如何發展這項業務？是否會透過更多併購來實現？或者是否有可能實現有機成長以及誰是目標客戶？

And just on that, I think you said you wanted to create long-term shareholder value. So should investors think that this power business is integral to Flex? Or can this be thought of as a stand-alone business that over time could be a candidate for a spin-off like Nextracker?

就這一點，我想您說過您想創造長期股東價值。那麼投資人是否應該認為電力業務是偉創力不可或缺的一部分呢？或者，這可以被視為一項獨立的業務，隨著時間的推移，它可能會成為像 Nextracker 這樣的分拆公司的候選者？

Ruplu, thanks for the call. First is I just -- I want to make sure I clarify that the 40% growth is for our overall data center business, which includes both our CEC business, which is IT Solutions, EMS integration and our power business that includes kind of end-to-end power -- embedded power and infrastructure power. So that makes up the 40% growth.

魯普魯，謝謝您的來電。首先，我想澄清一下，40% 的成長是針對我們整個資料中心業務的，其中包括我們的 CEC 業務（即 IT 解決方案、EMS 整合）和我們的電力業務（包括終端業務）端到端電源— —嵌入式電源和基礎設施電源。這就是 40% 的成長。

And in terms of the question of, is that growth sustainable? I would say the first thing, Ruplu, to step back and say, you just have to listen to everybody talking about data center growth and how significant that's going to be from all the capital investments announced over the next decade. So we feel pretty good about that macro.

就問題而言，這種成長是否可持續？我想說的第一件事是，Ruplu，退一步說，你只需要聽每個人談論資料中心的成長，以及未來十年宣布的所有資本投資將產生多大的影響。所以我們對這個宏感覺很好。

I'd say the second thing is that it's not just about data center growth, it's about how critical power is going to be as part of that data center growth overall. And that, I think, is really, really important because we're the only company that can truly go from embedded power that directly impacts power to the chip to the infrastructure power that goes around the grid. So that's important. So that's a unique capability. And as power needs get more complex, this will be more and more important for the overall capability that customers are looking for.

我想說的第二件事是，這不僅僅是關於資料中心的成長，而是關於電力作為資料中心整體成長的一部分的關鍵程度。我認為，這真的非常重要，因為我們是唯一一家能夠真正從直接影響晶片電源的嵌入式電源轉變為圍繞電網的基礎設施電源的公司。所以這很重要。所以這是一種獨特的能力。隨著電力需求變得越來越複雜，這對客戶所尋求的整體能力將變得越來越重要。

So if you step back, I would say, Ruplu, being the only company that delivers both power infrastructure and IT solutions integration, that makes -- puts us in a very unique position to get good long-term growth. We have said long-term growth of 20% CAGR. We, obviously, are beating that hands down quarter after quarter. Because not only do we think that our unique position gives us a share advantage, but we also think that we have technology advantage that puts us in a unique position. So I feel quite good about the kind of long-term growth characteristics of the data center segment.

因此，如果你退後一步，我想說，Ruplu 作為唯一一家提供電力基礎設施和 IT 解決方案整合的公司，這使我們處於非常獨特的地位，可以實現良好的長期成長。我們說過長期複合年增長率為20%。顯然，我們正在一個又一個季度地輕鬆實現這一目標。因為我們不僅認為我們獨特的地位為我們帶來了份額優勢，而且我們還認為我們擁有使我們處於獨特地位的技術優勢。所以我對資料中心領域的長期成長特徵感到非常滿意。

In terms of organic or M&A, we just announced an M&A deal of crown technical which adds a new power capability for us in North America, both in the medium voltage segment and overall power pods integration. This is really, really important. Because, remember, the ease of use of creating these gigantic power pods, putting them full of equipment and then sticking them next to a data center, so you can start them up quickly is really important so we'll continue to do smart M&A like we have done before to help our overall data center portfolio.

在有機或併購方面，我們剛剛宣布了一項對 Crown Technical 的併購交易，這為我們在北美增加了新的電力能力，無論是在中壓領域還是在整體電源盒整合方面。這真的非常非常重要。因為，請記住，創建這些巨大的電源艙的易用性，將它們裝滿設備，然後將它們貼在資料中心旁邊，以便您可以快速啟動它們，這一點非常重要，因此我們將繼續進行明智的併購，例如我們之前已經做過幫助我們整體資料中心投資組合的工作。

So I'll say it will be a combination of both, but we feel very good about the 40% that we've had this quarter, 60% last quarter and then our long term of 20%.

所以我想說這將是兩者的結合，但我們對本季的 40%、上季的 60% 以及長期的 20% 感覺非常好。

And just on the issue of whether this is an integral part of Flex and -- or can we think of this as a business that is a stand-alone unit and that could potentially be spun off?

就在這是否是偉創力不可或缺的一部分的問題上——或者我們可以將其視為一個獨立的部門並且有可能被剝離？

I would think Ruplu -- I'll step back and think about Flex as a portfolio of products, right? So in our $25 billion, $26 billion of revenue we have, we have many different segments that are growing in different rates, right? Automotive is growing at a different rate with different characteristics. Health solutions is the same way. Data center is the same way. We have created a unique position for ourselves in data center. And what we are planning to do in almost every segment is create these moats of products, services, EMS capability that makes us unique in that portfolio.

我會想到 Ruplu——我會退後一步，將 Flex 視為一個產品組合，對嗎？因此，在我們 250 億美元、260 億美元的收入中，我們有許多不同的細分市場，它們以不同的速度成長，對嗎？汽車業以不同的速度成長，具有不同的特徵。健康解決方案也是如此。資料中心也是同樣的道理。我們在數據中心為自己創造了獨特的地位。我們計劃在幾乎每個細分市場中創建這些產品、服務和 EMS 能力的護城河，使我們在該產品組合中獨一無二。

So I would think of it as overall synergistic to Flex across the board. This is what we're doing in every segment within Flex. This just so happens to be at a growth rate that is pretty significant and then in an end market that makes it in the news a lot. But I would say, overall, it's very synergistic to the Flex portfolio.

因此，我認為它與 Flex 具有全面的協同作用。這就是我們在 Flex 的每個部門所做的事情。這恰好是一個非常顯著的成長率，然後在終端市場上，它經常出現在新聞中。但我想說，總體而言，它與 Flex 產品組合具有很強的協同作用。

Got it. And just for my follow-up if I can ask a question on margins. So even though revenues are challenged in the near term, you seem to be pretty confident on full year operating margin, which is -- the range is kept at 5.4% to 5.5%.

知道了。如果我可以問一個關於利潤的問題，只是為了我的後續行動。因此，儘管近期收入面臨挑戰，但您似乎對全年營業利潤率相當有信心，即範圍保持在 5.4% 至 5.5%。

So Jaime, can I ask what is giving you that confidence, for example, you said you have ramps happening in automotive, but if the volumes are lower, I mean, how -- are you concerned about under-absorption of cost or -- and what is basically -- what is giving you confidence on margins?

Jaime，我可以問一下是什麼給了你這樣的信心嗎？什麼讓您對利潤充滿信心？

Yeah, Ruplu, thank you for the question. And I would say that for the second half, as you mentioned, right, ramps continue to progress well. And that supports our margin despite even there may be some revenue erosion in some of the projects. The fact that the ramps are going well, that helps to raise the margins given that it's in our automotive portfolio of data center. And that's the beauty of portfolio, right?

是的，魯普魯，謝謝你的提問。我想說的是，正如您所提到的，下半年，坡道繼續進展順利。儘管某些項目的收入可能會受到一些侵蝕，但這仍然支撐了我們的利潤率。事實上，坡道進展順利，這有助於提高利潤，因為它屬於我們的汽車資料中心產品組合。這就是投資組合的美妙之處，對嗎？

The mix of our portfolio continues to be better and continues to be strong, whether it's in data center or cloud, power. And also health solutions, medical devices is mixing up better for us. So that's a key strength in our performance. And we continue to manage our cost very well right through operational execution and efficiencies, and that supports our margin expansions and makes you feel very comfortable with that double-digit EPS growth that we're putting out there.

無論是資料中心還是雲端、電力領域，我們的產品組合都在不斷完善且強勁。健康解決方案、醫療設備也正在為我們更好地混合。所以這是我們表現的一個關鍵優勢。我們繼續透過營運執行和效率來很好地管理我們的成本，這支持了我們的利潤擴張，並使您對我們實現的兩位數每股收益成長感到非常滿意。

Samik Chatterjee from JPMorgan.

摩根大通的薩米克‧查特吉 (Samik Chatterjee)。

This is MP on for Samik Chatterjee. So my question firstly is around the order trends that you're seeing related to your data center exposure like in compute and power business. So are you seeing any acceleration in terms of order trends? Or you're seeing the same order trends relative to 90 days ago?

這是 Samik Chatterjee 的國會議員。因此，我的問題首先是圍繞您所看到的與資料中心暴露相關的訂單趨勢，例如在計算和電力業務中。那麼您是否看到訂單趨勢有任何加速？或者您看到的訂單趨勢與 90 天前相同？

Yeah. I would say in terms of -- we don't talk much about forward-looking orders. But I would say that we are very comfortable with kind of what we have shared as revenue growth, right? Last quarter was 60%. This quarter is 40%, obviously, in very difficult comps, right? And kind of much higher than what the market overall sees.

是的。我想說的是——我們不太談論前瞻性訂單。但我想說，我們對我們分享的收入成長感到非常滿意，對吧？上季為 60%。顯然，本季的 40% 是在非常困難的比較中，對吧？而且比市場整體看到的還要高很多。

So I feel very good about kind of our pipeline of projects that we have and what we are executing to, and have no concerns about that. I think it fits very well with our longer-term thesis that this is a very robust business. So we don't specifically give order trends, but I think our 40% growth rate should give you a pretty good indication that we have very strong backlog and orders to execute to.

因此，我對我們擁有的專案管道以及我們正在執行的目標感到非常滿意，並且對此沒有任何擔憂。我認為這非常符合我們的長期論點，即這是一項非常強勁的業務。因此，我們不會具體給出訂單趨勢，但我認為我們 40% 的成長率應該給您一個很好的指示，表明我們有非常強大的積壓訂單和需要執行的訂單。

Okay. I have another follow-up on your margin performance. So we were able to offset the decline in the outlook for full year in terms of revenue by better margins. So I was just wondering if the outlook were to deteriorate further in terms of automotive or industrial, how much leverage do we have in terms of increasing operating margins to still maintain the -- in the EPS guidance? Or when we will start to see a hit on EPS if the revenues for full year outlook start to deteriorate more?

好的。我對你們的保證金表現還有另一次跟進。因此，我們能夠透過更高的利潤率來抵銷全年收入前景的下降。因此，我只是想知道汽車或工業領域的前景是否會進一步惡化，我們在增加營業利潤率方面有多大的槓桿作用以仍然維持每股收益指引？或者，如果全年收入前景開始進一步惡化，我們何時會開始看到每股盈餘受到打擊？

I will tell you that we are very comfortable with our EPS outlook. And the real thing that you see happening here is the evolution of our transformation that is playing through where we can perform through our cycles, and it happens due to two reasons. One is our mix, we're really growing in high-value segments at a really fast rate. So that's fantastic, and you see that flow-through our P&L.

我會告訴你，我們對每股盈餘前景非常滿意。你在這裡看到的真正發生的事情是我們轉型的演變，它正在我們可以在我們的週期中執行的地方發揮作用，它的發生有兩個原因。一是我們的組合，我們確實在高價值領域以非常快的速度成長。這太棒了，您可以在我們的損益表中看到這一流程。

And the second is we are great at managing volumes ups and downs in terms of cost efficiency and productivity. So you put those two together, I would say we are very comfortable with our forward-looking EPS guidance. And we feel like we are always very conservative in terms of our revenue and EPS guidance. And we feel like we have pegged it right, in terms of where the end markets are so I would say I have no issue with what we are guiding so far, and we expect no erosion from where we are.

其次，我們擅長在成本效率和生產力方面管理銷售量的波動。因此，將兩者放在一起，我想說我們對前瞻性每股收益指引感到非常滿意。我們覺得我們在收入和每股盈餘指引方面總是非常保守。我們覺得就終端市場而言，我們已經確定了正確的方向，所以我想說，我對我們迄今為止的指導沒有任何問題，我們預計我們的現狀不會受到侵蝕。

(Operator Instructions) George Wang from Barclays.

（操作員說明）巴克萊銀行的 George Wang。

Revathi, just double-click on this cloud ramp, obviously very impressive 40% strong double-digit versus the long-term 20% growth. And just high level, obviously, you guys don't guide quarter-to-quarter kind of full run rate. Just how to think about the cadence for the double-digit growth for the next couple of quarters, especially kind of as you think about opportunity, whether it's a new logos within the hyperscale rack integration or whether that's colocation.

Revathi，只需雙擊此雲坡道，顯然與 20% 的長期增長相比，40% 的強勁兩位數增長令人印象深刻。顯然，只是高水平，你們不會指導季度到季度的全面運行率。如何考慮未來幾季兩位數成長的節奏，尤其是當您考慮機會時，無論是超大規模機架整合中的新標誌還是主機託管。

And maybe you can address some of the potential new logos you guys could be working on or still kind of a bigger-sized opportunity and wallet share within existing kind of top two hyperscales?

也許你們可以解決一些你們可能正在研究的潛在新標誌，或者在現有的前兩個超大規模中仍然有更大的機會和錢包份額？

Yeah. Thanks, George, for the question. I'll start by saying -- I'll step back and remind everyone of the portfolio that we have in data centers, right? So in the IT solution EMS space, we do IT integration of racks, server, storage products, networking products, all of that for hyperscalers. And we participate across the spectrum there.

是的。謝謝喬治提出這個問題。我首先要說的是——我會退一步提醒大家我們在資料中心擁有的產品組合，對吧？因此，在 IT 解決方案 EMS 領域，我們為超大規模企業進行機架、伺服器、儲存產品、網路產品的 IT 整合。我們在那裡廣泛參與。

And I think what's really important to remember is we are very well vertically integrated in that portfolio, not just in terms of building the racks, making them ourselves and having all the services associated with that. So it's a very well vertically integrated IT solution portfolio that the hyperscale just has to hand it over to us, and we hand it back to them.

我認為真正需要記住的是，我們在該產品組合中進行了很好的垂直整合，而不僅僅是在建造機架、自己製造機架以及擁有與之相關的所有服務方面。因此，這是一個非常好的垂直整合 IT 解決方案組合，超大規模只需將其交給我們，然後我們將其交還給他們。

And then on the power products side, we touch everything from what's on the chip itself, the power that actually drives the chip to the infrastructure around it. So we build all of that. So again, a very unique portfolio that really nobody in the industry has, puts us in a very unique position.

然後在電源產品方面，我們涉及從晶片本身、實際驅動晶片的電源到其周圍基礎設施的所有內容。所以我們建構了這一切。再說一遍，行業中沒有人擁有的非常獨特的產品組合，使我們處於非常獨特的地位。

So that takes us to growth, right? What is helping us grow at this cliff? I would say, is the fact that we have this portfolio that is unique, right? The IT solutions is growing across the board, and so is the power products. And we participate across colos and hyperscalers.

這會讓我們成長，對嗎？是什麼幫助我們在懸崖邊成長？我想說的是，我們的產品組合是獨一無二的，對吧？ IT 解決方案全面成長，電源產品也是如此。我們參與跨託管服務和超大規模服務。

So George, I wouldn't think about it in terms of new logos because the universe of colos and data centers is a pretty holistic universe and we know most of them and all of them by now. So it's all about expansion of wallet share, not just through new technologies and new products, better schedule, better services. So just increasing wallet share across the board is the way to really grow this business.

所以喬治，我不會從新徽標的角度考慮它，因為託管和資料中心的宇宙是一個非常整體的宇宙，我們現在知道其中的大多數和全部。因此，這一切都是為了擴大錢包份額，而不僅僅是透過新技術和新產品、更好的時間表、更好的服務。因此，全面增加錢包份額才是真正發展這項業務的方法。

So I feel really good about the organic growth rate here that we are delivering. And then, of course, George, we just announced a new acquisition in this space, adding to our power products. We're also adding through acquisitions. And that's how I would think about the overall kind of growth rate there.

因此，我對我們所實現的有機成長率感到非常滿意。當然，喬治，我們剛剛宣布了在這個領域的一項新收購，增加了我們的電源產品。我們也透過收購來增加業務。這就是我對那裡總體成長率的看法。

Great. Yeah. Just a quick follow-up if I can. I just want to kind of double-click on the owned IT product kind of much higher margin, could be double-digit margin. And especially kind of the liquid cooling side. At OCP, you guys build this reference design with the liquid cooling kind of partnership with JetCool, maybe putting some of your design as well in the data center side, aside from obviously, the power that you guys talked about.

偉大的。是的。如果可以的話，請快速跟進。我只想雙擊擁有的 IT 產品，獲得更高的利潤，可能是兩位數的利潤。尤其是液體冷卻側。在 OCP，你們透過與 JetCool 的液體冷卻合作夥伴關係來建構了這個參考設計，也許除了你們所談論的功能之外，還可以將你們的一些設計放在資料中心方面。

So maybe you can talk high-level a little bit more just on the outlook in terms of embedding some of your own design into the data center -- traditional data center rack integration and kind of how to think about the margin profile in terms of the accretion versus corporate average?

因此，也許您可以就將自己的一些設計嵌入到資料中心方面的前景進行更多的討論——傳統的資料中心機架整合以及如何考慮利潤概況增長與企業平均水平相比？

Yeah. So I'd start with the kind of the partnership with JetCool itself and how I think about the kind of the reference design we talked about. See for us, this is a natural progression, right? Because we make the power that actually works with the chip itself. So now it's all about cooling the chip and the power products that go together in it.

是的。因此，我將從與 JetCool 本身的合作關係以及我對我們討論的參考設計類型的看法開始。對我們來說，這是一個自然的進展，對吧？因為我們製造的電源實際上與晶片本身一起工作。因此，現在的重點是冷卻晶片和其中的電源產品。

So that makes it very appropriate that we think about cold plates and CDUs associated with the product, right, which really leads us to the JetCool partnership. JetCool has a very unique cold plate design that we feel really fits well with what we are trying to do to solve the toughest problems around cooling, and that really drove our partnership with them.

因此，我們考慮與該產品相關的冷板和 CDU 是非常合適的，這確實使我們與 JetCool 建立了合作夥伴關係。 JetCool 擁有非常獨特的冷板設計，我們認為它非常適合我們正在努力解決冷卻方面最棘手問題的事情，這確實推動了我們與他們的合作。

And that really gives us our own IP in terms of the reference design that we're using and really solving for both the power needs in the chip itself and the integrated rack solution, which we can make all of it end to end. So that's what really drove that partnership, and it really makes it very appropriate for Flex considering we are the only ones who have the power needs. So we make the rack integration fully end-to-end, and then now we have the cooling reference design.

這確實為我們提供了我們自己的IP，即我們正在使用的參考設計，並真正解決了晶片本身的功耗需求和整合機架解決方案，我們可以將所有這些都端到端地實現。這就是真正推動這種合作關係的原因，考慮到我們是唯一有電力需求的公司，這確實非常適合 Flex。因此，我們使機架整合完全端到端，現在我們有了冷卻參考設計。

In terms of margin, I would say, these are all accretive to Flex overall. Obviously, you see that in our mix, right? And what we are delivering, margin growth through these cycles. The 40% growth in data center really mixes us up in a big way. So they're margin accretive to Flex, which is really good because that's what you want to your transformation to be about is that you're mixing up in the right portfolio where you have strong growth and higher margins, which is what we are doing in data centers.

就利潤率而言，我想說，這些都對偉創力整體而言有所增加。顯然，你在我們的組合中看到了這一點，對吧？我們正在交付的，是這些週期中的利潤成長。資料中心 40% 的成長確實讓我們感到非常困惑。因此，它們可以增加Flex 的利潤，這非常好，因為這就是您希望轉型的目的，即您將混合到正確的投資組合中，從而獲得強勁的增長和更高的利潤，這就是我們正在做的事情在數據中心。

Great. Congrats again on the strong growth in the AI side.

偉大的。再次恭喜人工智慧方面的強勁成長。

Steve Barger from KeyBanc Capital Markets.

來自 KeyBanc 資本市場的 Steve Barger。

This is Christian Zyla on for Steve Barger. First question, you guys haven't differentiated yourself from your EMS peers with M&A. Thanks for the earlier comments on the data center portfolio. But as you think about other subsegments outside of data center, are there capabilities that you would be interested in adding specifically thinking about maybe the next-gen mobility portfolio but others as well.

我是史蒂夫·巴格 (Steve Barger) 的克里斯蒂安·齊拉 (Christian Zyla)。第一個問題，你們在併購方面還沒有與EMS同行區分開來。感謝您先前對資料中心產品組合的評論。但是，當您考慮資料中心以外的其他細分市場時，您是否有興趣添加一些功能，特別是考慮下一代行動產品組合以及其他功能。

Yeah, Christian, I would say that we've been very clear in terms of our acquisition targets will always be things that help from a technology perspective, and that will help in terms of completing a portfolio that we're really interested in. So the other area we have talked about a lot is automotive in general, right, that it has to be fit with what we are looking to achieve in our automotive portfolio.

是的，克里斯蒂安，我想說，我們的收購目標一直非常明確，從技術角度來看，這將始終是有幫助的，這將有助於完成我們真正感興趣的投資組合。的另一個領域是汽車產業，對吧，它必須符合我們希望在汽車產品組合中實現的目標。

But so far, we have not needed any acquisitions in that space. We have a fairly comprehensive portfolio that provides a complete EV platform, EV hybrid platform to our automotive customers. So we feel very comfortable to that.

但到目前為止，我們還不需要在該領域進行任何收購。我們擁有相當全面的產品組合，為我們的汽車客戶提供完整的電動車平台、電動車混合動力平台。所以我們對此感到非常舒服。

And then we continue to look for acquisitions around services capability that will help any particular portfolio of ours deliver more vertically integrated services. But we're very thoughtful about acquisitions because financially, as you have seen us, whenever we have announced a deal, it has been financially a good deal for us, and that is also an important part of the overall capital allocation strategy. So that's how I think about M&A.

然後，我們繼續尋找圍繞服務能力的收購，這將有助於我們的任何特定產品組合提供更多垂直整合的服務。但我們對收購非常深思熟慮，因為從財務角度來看，正如你所看到的，每當我們宣布一項交易時，這對我們來說都是一筆不錯的交易，這也是整體資本配置策略的重要組成部分。這就是我對併購的看法。

Great. And then, I guess, going on the margin side. So operating margin expansion has been pretty steady on its upward trend for you guys. And some peers in the industry have hinted at goals of 6% plus. If your reliability subsegments begin to recover, do you think that target is reasonable? And what are the puts and takes that you think about that could get you there?

偉大的。然後，我想，是在邊緣方面。因此，對你們來說，營業利益率的擴張一直保持著穩定的上升趨勢。一些業內同行也暗示了6%以上的目標。如果您的可靠性子部分開始恢復，您認為該目標合理嗎？您認為哪些看跌期權和看跌期權可以幫助您實現這一目標？

Yeah, Christian, I'll quickly comment and give it to Jaime. I mean we've already given our long-term target at 6%-plus. So we're obviously well in that range, as you can see from where we are today, and we had given that in our last Investor Day. And we said that comes to improved mix, improved portfolio services expansion, all of that. But Jaime, anything you'd add to it?

是的，克里斯蒂安，我會很快發表評論並將其交給詹姆。我的意思是，我們已經將長期目標定為 6% 以上。因此，我們顯然處於這個範圍內，正如您從我們今天的情況所看到的那樣，我們在上一個投資者日已經給出了這一點。我們說過，這涉及到改進的組合、改進的投資組合服務擴展，所有這些。但 Jaime，還有什麼要補充的嗎？

No, I think Revathi, you said most of it, I think it's important for us that we're seeing our performance certainly in Reliability coming much better. Mix in power and medical devices, I mentioned earlier, is helping us. And -- we -- as an example, right, this quarter, we saw a revenue reduction of 11%, but we still grew 20 basis points on a year-over-year basis.

不，我認為 Revathi，您說了大部分，我認為這對我們來說很重要，我們看到我們在可靠性方面的表現肯定會變得更好。我之前提到過，電力和醫療設備的混合正在幫助我們。舉個例子，本季我們的營收減少了 11%，但年比仍成長了 20 個基點。

So that gives us confidence that we are managing much better through the cycle there. And Agility continues to perform well through our portfolio of opportunities that we're driving there with higher value, and the additional value-add services. So all in all, we feel very comfortable with a long-term range of achieving that 6% plus.

因此，這讓我們相信我們在整個週期中的管理要好得多。透過我們以更高價值和附加增值服務推動的機會組合，Agility 繼續表現良好。總而言之，我們對長期實現 6% 以上的目標感到非常滿意。

Thank you. We reach the end of our question-and-answer session. I'd like to turn the floor back over to the CEO for closing remarks.

謝謝。我們的問答環節即將結束。我想請執行長致閉幕詞。

Thank you. So we look forward to speaking to you again next quarter. Before I close, I just want to thank all our customers and then also all our shareholders for your support, and of course, to the Flex team across the world for all their hard work, their dedication and their contribution Thank you all.

謝謝。因此，我們期待下個季度再次與您交談。在結束之前，我只想感謝我們所有的客戶，然後感謝所有股東的支持，當然，也要感謝世界各地的偉創力團隊的辛勤工作、奉獻精神和貢獻，謝謝大家。

Thank you. That does conclude today's conference call. 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。