Recent Updates — FLEX
Flex Ltd. reported second-quarter fiscal 2027 net sales of $8.5 billion, a 25% increase from the prior year period. The company delivered GAAP earnings per share of $0.70 and a record adjusted EPS of $1.18. Operating income was $414 million on a GAAP basis and $607 million on an adjusted basis. Flex also provided updated full-year fiscal 2027 guidance, projecting net sales between $34.9 billion and $35.9 billion and adjusted EPS of $4.84 to $5.16. The company operates in the electronics manufacturing services industry, designing, building, and managing products for global brands.
Flex Ltd. completed its acquisition of EPC Power Corp. for $4.4 billion in cash on October 14, 2026. The company funded the transaction by drawing down a $3.3 billion senior term loan and a $1.1 billion bridge credit facility, both maturing in October 2027. EPC Power is now part of Flex’s Cloud and Power Infrastructure segment, which plans to spin off into an independent public company named Axiom Solutions International, Inc., in the first quarter of 2027. The acquisition expands Flex's capabilities in power conversion technology for AI data centers and grid applications. Flex Ltd. provides advanced manufacturing and supply chain solutions globally.
Flex Ltd. and Amazon.com entered into an amendment to a warrant covering up to 3,859,851 ordinary shares at $51.29 per share. The amendment adjusts terms related to the planned separation of Flex's cloud and power infrastructure business into Axiom Solutions International, Inc., ensuring Amazon receives warrants for Spinco stock instead of direct distribution shares. This corporate restructuring is part of a broader strategy to create an independent publicly traded entity for its cloud division. Flex Ltd. operates in the electronics manufacturing services industry.
Investors led by General Catalyst agreed to purchase $2.0 billion of Series A Convertible Preferred Stock in Axiom Solutions International, Inc., a wholly owned subsidiary of Flex Ltd. The capital supports the pending acquisition of EPC Power Corp and positions Axiom for its planned separation into an independent public company expected in Q1 2027. The preferred shares carry a 10% annual cash dividend prior to separation and include redemption protections guaranteed by Flex if the spin-off does not close by December 31, 2027. Flex Ltd. is a global manufacturing partner providing advanced electronics design, build, and supply chain solutions.
On September 29, 2026, Flex Ltd. entered into a $3.3 billion senior term loan credit facility with Citibank, N.A., as administrative agent. The facility bears interest at floating rates based on Term SOFR or Base Rate plus applicable margins and matures 364 days after funding. Although undrawn at closing, proceeds are intended to finance the acquisition of EPC Power Corp. and related fees. The agreement imposes leverage covenants limiting Debt/EBITDA to 4.50x and requiring an Interest Coverage Ratio of at least 3.00x. This new facility permanently reduced commitments under the existing $4.4 billion bridge facility dollar-for-dollar as drawn. Flex Ltd. is a global manufacturing services company that provides supply chain management, engineering, and manufacturing solutions.
Flex Ltd. announced updates regarding its planned separation of the Cloud and Power Infrastructure business into an independent company named Axiom Solutions International, Inc., expected to close in Q1 2027. The filing details the post-separation board compositions for both entities, including four new director appointments: George R. Oliver and Brian Yoor to Flex, and Mark Eubanks and David Johnson to Axiom. Additionally, Amy B. Schwetz will join Flex as CFO of its Regulated Manufacturing Services and Integrated Technology Services segments on October 5, 2026, with expectations to serve as Flex's CFO post-separation. The company operates in the electronics manufacturing services industry.