Flex Completes Acquisition of EP² to Enhance Power Control Capabilities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy FLEX?
Source: PRnewswire
- Acquisition Completed: Flex has announced the completion of its acquisition of Electrical Power Products, Inc., which enhances its Critical Power platform and supports customized power control solutions for utility and data center customers.
- Market Expansion: With over 35 years of industry experience, EP² provides engineered-to-order power control and protection systems, further strengthening Flex's competitive position in grid modernization and electrification.
- Manufacturing Capability Boost: The acquisition integrates EP²'s manufacturing facilities into Flex's Embedded and Critical Power business, enhancing its manufacturing presence in the Midwest and supporting U.S. reshoring initiatives.
- Strategic Importance: Flex CEO Revathi Advaithi stated that this acquisition not only strengthens the company's power portfolio but also addresses the growing demand for resilient electrical infrastructure, reflecting the company's long-term strategic vision in the power industry.
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Analyst Views on FLEX
Wall Street analysts forecast FLEX stock price to fall
7 Analyst Rating
7 Buy
0 Hold
0 Sell
Strong Buy
Current: 96.450
Low
74.00
Averages
76.71
High
85.00
Current: 96.450
Low
74.00
Averages
76.71
High
85.00
About FLEX
Flex Ltd. is end-to-end manufacturing partner that helps brands design, build, deliver and manage products. Its capabilities include design and engineering, supply chain, manufacturing, post-production and post-sale services, and proprietary products. Its segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The FAS segment consists of various end markets, such as Communications, Enterprise and Cloud, including data infrastructure, edge infrastructure and communications infrastructure; Lifestyle, including appliances, floorcare, smart living and power tools, and Consumer Devices, including mobile and high velocity consumer devices. The FRS segment consists of end markets, such as Automotive, including compute platforms, power electronics, motion, and interface; Health Solutions, including medical devices, medical equipment and drug delivery, and Industrial, including capital equipment, industrial devices, renewables, embedded and critical power.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Historical Performance: Over the past two years, Flex has consistently beaten both EPS and revenue estimates 100% of the time, showcasing its robust performance against analyst expectations and bolstering investor confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen four upward revisions with no downward adjustments, while revenue estimates have experienced three upward revisions and one downward, reflecting analysts' optimistic outlook on the company's future performance, which could drive stock price increases.
- Strategic Acquisition Plans: Flex plans to acquire Electrical Power Products for $1.1 billion, a move that not only enhances its product portfolio but also potentially provides new revenue growth avenues, further solidifying its market position.
See More
Flex Plans Spin-Off of AI Business for Monetization
- Strategic Spin-Off Plan: Flex announced plans to spin off its cloud and power infrastructure business into a separate publicly traded company by early 2027, aiming to monetize its AI exposure by focusing on power, cooling, and integrated systems for data centers, thereby enhancing market competitiveness.
- Leadership Changes: After the spin-off, CEO Revathi Advaithi will lead the newly formed SpinCo, while current President Michael Hartung will take over as CEO of the remaining Flex, ensuring leadership stability during the transition.
- Market Expectations: Flex anticipates low-to-mid-single-digit growth excluding SpinCo, and while specific financial details for the spun-off unit remain undisclosed, this growth outlook reflects the company's confidence in future market conditions.
- Tax Benefits: The spin-off is expected to be tax-free for shareholders and is targeted for completion in the first quarter of 2027, subject to market conditions, indicating Flex's strategic considerations in optimizing its capital structure.
See More
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- Earnings Beat: Flexpress reported a Q4 2026 Non-GAAP EPS of $0.93, exceeding expectations by $0.05, which underscores the company's strengthening profitability and boosts market confidence.
- Significant Revenue Growth: The company achieved revenue of $7.48 billion in Q4, marking a 16.9% year-over-year increase and surpassing market expectations by $500 million, reflecting robust sales performance amid strong market demand.
- Strong Cash Flow: Cash provided by operating activities was $413 million, with free cash flow at $212 million, indicating solid financial management and providing ample resources for future investments and expansion.
- Optimistic Outlook: For Q1 FY 2027, net sales are projected between $7.35 billion and $7.65 billion, exceeding consensus by 26%, demonstrating confidence in future growth, while adjusted EPS is expected to grow by 24%, further enhancing investor sentiment.
See More
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- Acquisition Completed: Flex has announced the completion of its acquisition of Electrical Power Products, Inc., which enhances its Critical Power platform and supports customized power control solutions for utility and data center customers.
- Market Expansion: With over 35 years of industry experience, EP² provides engineered-to-order power control and protection systems, further strengthening Flex's competitive position in grid modernization and electrification.
- Manufacturing Capability Boost: The acquisition integrates EP²'s manufacturing facilities into Flex's Embedded and Critical Power business, enhancing its manufacturing presence in the Midwest and supporting U.S. reshoring initiatives.
- Strategic Importance: Flex CEO Revathi Advaithi stated that this acquisition not only strengthens the company's power portfolio but also addresses the growing demand for resilient electrical infrastructure, reflecting the company's long-term strategic vision in the power industry.
See More
Flex Acquires Electrical Power Products, Enhancing Critical Power Portfolio
- Acquisition Completed: Flex announced on May 4, 2026, the completion of its acquisition of Electrical Power Products, Inc. (EP²), which enhances Flex's Critical Power portfolio by providing customized power control and protection solutions for utility and data center customers.
- Market Impact: The addition of EP² enables Flex to deliver scalable power control solutions amidst growing demands for grid modernization, electrification, and data center expansion, thereby solidifying its position in the utility and power generation markets.
- Manufacturing Capability Boost: EP²'s headquarters and manufacturing facilities in Iowa will be integrated into Flex's Embedded and Critical Power business, enhancing Flex's manufacturing scale in the U.S. and supporting its reshoring initiatives.
- Long-term Growth Potential: CEO Revathi Advaithi stated that this acquisition not only strengthens the company's electrical infrastructure capabilities but also addresses the increasing demand for resilient power infrastructure, driving long-term growth for Flex.
See More
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- Flex Ltd. Breakout Performance: Since April 9, Flex Ltd. has seen a 21% increase in stock price, currently trading at $91, driven by the AI hardware boom, with its data center segment growing 50% year-over-year, indicating strong market demand and improved profitability.
- Technical Analysis and Support Levels: Josh highlighted that the 50-day moving average at $70.47 serves as a critical support level; as long as the stock remains above this, investors can hold, suggesting ongoing growth potential in the data center sector.
- Starbucks Earnings Turnaround: Starbucks' new CEO announced this quarter as a turning point, with revenue up 9% year-over-year, global comparable sales up 6%, and EPS up 22%, signaling positive momentum in the company's recovery efforts.
- Strategic Importance of Transaction Growth: Starbucks U.S. transaction volume increased by 4% year-over-year, the highest since 2021, indicating that the company is not solely relying on price increases but is also achieving growth through increased transaction volume, enhancing its competitive position in the market.
See More
Flex to Announce Q4 Earnings on May 6th
- Earnings Announcement: Flex is set to release its Q4 earnings on May 6th before market open, with a consensus EPS estimate of $0.88, reflecting a 20.5% year-over-year increase, and a revenue estimate of $6.97 billion, up 8.9% year-over-year, indicating strong profitability and growth potential.
- Historical Performance: Over the past two years, Flex has consistently beaten both EPS and revenue estimates 100% of the time, showcasing its robust performance against analyst expectations and bolstering investor confidence.
- Estimate Revision Trends: In the last three months, EPS estimates have seen four upward revisions with no downward adjustments, while revenue estimates have experienced three upward revisions and one downward, reflecting analysts' optimistic outlook on the company's future performance, which could drive stock price increases.
- Strategic Acquisition Plans: Flex plans to acquire Electrical Power Products for $1.1 billion, a move that not only enhances its product portfolio but also potentially provides new revenue growth avenues, further solidifying its market position.
See More
Flex Plans Spin-Off of AI Business for Monetization
- Strategic Spin-Off Plan: Flex announced plans to spin off its cloud and power infrastructure business into a separate publicly traded company by early 2027, aiming to monetize its AI exposure by focusing on power, cooling, and integrated systems for data centers, thereby enhancing market competitiveness.
- Leadership Changes: After the spin-off, CEO Revathi Advaithi will lead the newly formed SpinCo, while current President Michael Hartung will take over as CEO of the remaining Flex, ensuring leadership stability during the transition.
- Market Expectations: Flex anticipates low-to-mid-single-digit growth excluding SpinCo, and while specific financial details for the spun-off unit remain undisclosed, this growth outlook reflects the company's confidence in future market conditions.
- Tax Benefits: The spin-off is expected to be tax-free for shareholders and is targeted for completion in the first quarter of 2027, subject to market conditions, indicating Flex's strategic considerations in optimizing its capital structure.
See More
Flexpress Reports Q4 2026 Earnings with Strong Growth Metrics
- Earnings Beat: Flexpress reported a Q4 2026 Non-GAAP EPS of $0.93, exceeding expectations by $0.05, which underscores the company's strengthening profitability and boosts market confidence.
- Significant Revenue Growth: The company achieved revenue of $7.48 billion in Q4, marking a 16.9% year-over-year increase and surpassing market expectations by $500 million, reflecting robust sales performance amid strong market demand.
- Strong Cash Flow: Cash provided by operating activities was $413 million, with free cash flow at $212 million, indicating solid financial management and providing ample resources for future investments and expansion.
- Optimistic Outlook: For Q1 FY 2027, net sales are projected between $7.35 billion and $7.65 billion, exceeding consensus by 26%, demonstrating confidence in future growth, while adjusted EPS is expected to grow by 24%, further enhancing investor sentiment.
See More
Flex Completes Acquisition of EP² to Enhance Power Control Capabilities
- Acquisition Completed: Flex has announced the completion of its acquisition of Electrical Power Products, Inc., which enhances its Critical Power platform and supports customized power control solutions for utility and data center customers.
- Market Expansion: With over 35 years of industry experience, EP² provides engineered-to-order power control and protection systems, further strengthening Flex's competitive position in grid modernization and electrification.
- Manufacturing Capability Boost: The acquisition integrates EP²'s manufacturing facilities into Flex's Embedded and Critical Power business, enhancing its manufacturing presence in the Midwest and supporting U.S. reshoring initiatives.
- Strategic Importance: Flex CEO Revathi Advaithi stated that this acquisition not only strengthens the company's power portfolio but also addresses the growing demand for resilient electrical infrastructure, reflecting the company's long-term strategic vision in the power industry.
See More
Flex Acquires Electrical Power Products, Enhancing Critical Power Portfolio
- Acquisition Completed: Flex announced on May 4, 2026, the completion of its acquisition of Electrical Power Products, Inc. (EP²), which enhances Flex's Critical Power portfolio by providing customized power control and protection solutions for utility and data center customers.
- Market Impact: The addition of EP² enables Flex to deliver scalable power control solutions amidst growing demands for grid modernization, electrification, and data center expansion, thereby solidifying its position in the utility and power generation markets.
- Manufacturing Capability Boost: EP²'s headquarters and manufacturing facilities in Iowa will be integrated into Flex's Embedded and Critical Power business, enhancing Flex's manufacturing scale in the U.S. and supporting its reshoring initiatives.
- Long-term Growth Potential: CEO Revathi Advaithi stated that this acquisition not only strengthens the company's electrical infrastructure capabilities but also addresses the increasing demand for resilient power infrastructure, driving long-term growth for Flex.
See More
Analysis of Flex and Starbucks Stock Performance
- Flex Ltd. Breakout Performance: Since April 9, Flex Ltd. has seen a 21% increase in stock price, currently trading at $91, driven by the AI hardware boom, with its data center segment growing 50% year-over-year, indicating strong market demand and improved profitability.
- Technical Analysis and Support Levels: Josh highlighted that the 50-day moving average at $70.47 serves as a critical support level; as long as the stock remains above this, investors can hold, suggesting ongoing growth potential in the data center sector.
- Starbucks Earnings Turnaround: Starbucks' new CEO announced this quarter as a turning point, with revenue up 9% year-over-year, global comparable sales up 6%, and EPS up 22%, signaling positive momentum in the company's recovery efforts.
- Strategic Importance of Transaction Growth: Starbucks U.S. transaction volume increased by 4% year-over-year, the highest since 2021, indicating that the company is not solely relying on price increases but is also achieving growth through increased transaction volume, enhancing its competitive position in the market.
See More
