FLEX LTD. (FLEX) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that FLEX LTD. surfaced in its latest filing.

• Ten largest customers accounted for 45%, 44% and 37% of net sales in fiscal years 2026, 2025 and 2024, respectively.
• In fiscal years 2026, 2025, and 2024, the company initiated targeted restructuring activities to improve operational efficiencies.
• Recent acquisition of Electrical Power Products, Inc.
• A missile strike on our Mukachevo, Ukraine facility occurred in August 2025.August 2025
• Planned spin-off of Cloud and Power Infrastructure businesses into a separate publicly traded company, announced on May 5, 2026.May 5, 2026
• CEO Revathi Advaithi to become CEO of separated company and serve as Chairman of Flex during transition; Michael Hartung to become Flex CEO.
• One Brazilian subsidiary received assessments for certain sales and import taxes which we are opposing.
• As of March 31, 2026, total debt was $3.8 billion.March 31, 2026
• An additional $1.45 billion of borrowings undertaken since March 31, 2026.March 31, 2026
• Completed distribution of remaining Nextracker interests on January 2, 2024.January 2, 2024
• Ongoing dispute with Nextracker regarding certain tax distribution obligations.
• Conflicts in Ukraine and the Middle East, U.S. military operations in Iran, disruptions in the Strait of Hormuz, and attacks on shipping vessels in the Red Sea have impacted and may continue to impact the supply chain.
• On August 21, 2025, a missile strike on our Mukachevo, Ukraine facility caused substantial physical damage and disrupted normal operations; in response, we activated contingency manufacturing plans and transitioned production to alternative facilities.August 21, 2025
• Throughout 2025 and into 2026, the U.S. administration imposed varying levels of tariffs on goods imported from China and other countries.
• The USMCA is subject to a joint review process in 2026.2026
• On February 20, 2026, the U.S. Supreme Court struck down certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA).February 20, 2026
• Following the Supreme Court decision, the U.S. administration announced a new 10% global tariff under Section 122 of the Trade Act of 1974, subject to certain exceptions.
• On May 7, 2026, the U.S. Court of International Trade ruled that the Section 122 tariffs were not authorized by law, a decision the administration has appealed.May 7, 2026