Can Industrial Strength Keep FLEX's RMS Growth on a Steady Track?
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Flex Ltd. FLEX is witnessing solid momentum in its Regulated Manufacturing Solutions ("RMS") segment. Favorable secular trends across energy infrastructure, robotics and warehouse automation are likely to help the segment maintain a steady growth trajectory through fiscal 2027. In the first quarter of fiscal 2027, RMS revenues increased 12% year over year to $2.7 billion, driven by strength in the industrial end market. Adjusted operating income totaled $176 million, while adjusted operating margin expanded 130 basis points year over year to 6.6%. Momentum is expected to continue with management projecting RMS revenues to grow in the mid-single-digits to high-single-digits in fiscal 2027. The company expects a similar growth range for RMS in the fiscal second quarter. Flex Ltd. revenue-quarterly | Flex Ltd. Quote Flex expects its energy infrastructure operations to benefit from sustained demand tied to data center and utility-scale infrastructure investments. Following the planned spin-off of its power product portfolio, Flex will retain contract manufacturing exposure across power generation, transmission, distribution and storage verticals. Robotics and warehouse automation provide another long-term growth opportunity. Management highlighted accelerating regionalization, wage inflation and labor scarcity as factors pushing companies toward productivity-enhancing automation...
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