Flex Ltd.

Good morning and thank you for standing by. Welcome to Flex's first quarter fiscal year 2025 earnings conference call. Presently, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press star 1 on your phone. If you would like to withdraw your question, please press star 2. As a reminder, this call is being recorded. I will now turn the call over to Mr. David Rubin. You may begin.

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, Reva DiAdvaki, our Chief Financial Officer, Paul Lundstrom, and our soon-to-be interim CFO, Jaime Martinez. We 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, 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. 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. Now I'd like to turn the call over to our CEO, Rezdy.

Thank you, David. Good morning, and thank you for joining us today. Starting off with our results on slide four, 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 51 cents of adjusted EPS. I'll talk about what we're seeing in our key end markets in a moment, but overall, I'd say the trends are following our previous expectations. 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. 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. Now turning to slide five, looking at some of our key end markets, the AI transition in the data center continues to drive strong demand for our cloud solutions in our CEC business, as well as demand for our power products in our industrial business. 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. Our power products and breadth of services are truly differentiated, which provides 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. 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. 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. So 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. 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. Now 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 in 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. 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. 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. With that, I'll pass the call over to Paul and Jaime to take you through our financial update. Paul?