Flex (FLEX) Risk Factor Changes

Our medical devices business is also subject to applicable state laws and the regulatory requirements of other countries.

Our products and the manufacturing processes and design and engineering services we use to produce them are often highly complex, and some, particularly in the automotive and healthcare industries, must satisfy strict…

Due to the global nature of our business, we are subject to a complex system of import- and export-related laws and regulations in the U.S.

We conduct operations in a number of countries and are subject to risks inherent in global operations.

We have manufacturing and other facilities across the globe, including in regions affected by geopolitical conflicts and instability, such as Ukraine and Israel.

These conditions may result in reduced consumer and business confidence and spending in many countries, tightening in credit markets, reduced liquidity in financial markets, heightened volatility in credit, fixed inco…

Our operations and the execution of our business plans and strategies are subject to the effects of global economic trends, geopolitical risks and demand or supply shocks arising from events that may include political…

Global economic conditions and geopolitical uncertainty have in the past adversely affected, and could in the future adversely affect, our business, results of operations, financial condition, and access to capital ma…

We make investments in private funds and companies to further our strategic objectives and develop business relationships.

Risks related to the Nextracker separation could adversely affect our business, financial condition, and results of operations.

We may be subject, from time to time, to legal and business challenges due to actions instituted by activist shareholders or others.

Our exposure to financially troubled customers or suppliers has in the past adversely affected, and could in the future adversely affect, our results of operations.

We have operations in various countries around the world, including Asia, Eastern Europe, Mexico and Brazil.

Fluctuations in foreign currency exchange rates could increase our operating costs and adversely affect our results of operations.

As of March 31, 2026, our total debt was $3.8 billion.

We and our subsidiaries are regularly subject to tax audits and examinations by various taxing jurisdictions around the world.

•if demand for a customer’s products declines, the customer may reduce its purchase volumes, and we may not be able to sufficiently reduce the expenses of operating the facility or use the facility to provide services…

•our supply agreements generally do not require customers to purchase minimum volumes, and actual purchase volumes may be lower than anticipated; and

•we may be unable to meet customer expectations with respect to volume, product quality, timeliness and cost reductions;

•we may not achieve anticipated cost reductions or operational efficiencies;

•the integration of the acquired assets and facilities into our business may be time-consuming and costly, including as a result of restructuring activities;

•we may need to pay a purchase price to the divesting customer that exceeds the value we ultimately realize from the customer’s future business;

In the past, we have completed strategic transactions with customers under which we acquired inventory, equipment and other assets from those customers and leased or acquired their manufacturing facilities, while simu…

We compete with a number of different companies, depending on the type of service we provide or the location of our operations.

We depend on industries that produce products that are subject to rapid technological change and short product lifecycles, and our business has in the past been, and could in the future be, adversely affected if our c…

Our operations or systems have been, and could in the future be, disrupted by natural disasters, terrorist activity, public health issues, cybersecurity incidents, interruptions of service from utilities, or transport…

Certain of our employees are represented by labor unions or works councils, and we have experienced heightened union organizing activity in certain regions.

We have completed numerous acquisitions of businesses, including our recent acquisition of Electrical Power Products, Inc., and we may acquire additional businesses in the future.

Our ability to monitor third parties' information security practices is limited, supply chain attacks have increased in frequency and severity, and we cannot guarantee that third parties, including cloud or hosted sol…

We regularly face attempts by sophisticated and malicious actors to gain unauthorized access to our information systems, including attempts using techniques that change frequently, may be difficult to detect, or may r…

We rely on our information systems, some of which are managed by third parties, to process, transmit, and store electronic information (including sensitive data such as confidential business information and personally…

Providing design and engineering services exposes us to different and, in some cases, greater risks than those we face with our manufacturing services.

Given the complexity of our supply chain and our geographically dispersed operations, we depend on a variety of common carriers to transport our materials from our suppliers to us, and to transport our products from u…

In addition, if a component shortage is threatened or anticipated, we may purchase such components early to avoid a delay or interruption in our operations.

Our failure or inability to accurately forecast demand and volatility in the availability and prices of materials, equipment, components, and services, including rising prices due to inflation or scarcity of availabil…

Our supply chain has in the past been, and could in the future be, impacted by events outside our control, including macro-economic events, tariffs and trade restrictions, political crises, social unrest, terrorism, a…

From time to time, we have experienced shortages of some of the components, including electronic components, that we use.

Supply chain disruptions and demand forecasting failures have in the past adversely affected, and could in the future adversely affect, our ability to meet customer demand, and lead to higher costs, or result in exces…

The addition of new customers in our Cloud and Power Infrastructure businesses has also introduced different demand cycles.

Sales to our ten largest customers represent a significant percentage of our net sales.

A significant percentage of our sales come from a small number of customers and a decline in sales to any of our largest customers has in the past adversely affected, and could in the future adversely affect, our busi…

Many factors outside of our control impact our customers and their ordering behavior, including recession in end markets, changing technology and industry standards, commercial acceptance for products, product obsoles…

As a provider of design and manufacturing services and components for electronics, including power and infrastructure solutions used in data center and other applications, we must provide increasingly rapid product tu…

•Failure to comply with domestic or international employment and related laws and regulations could adversely affect our business and financial performance.

•Our business could be impacted as a result of actions by activist shareholders or other reputational harm.

•Our exposure to financially troubled customers or suppliers has in the past adversely affected, and could in the future adversely affect, our results of operations.

•Fluctuations in foreign currency exchange rates could increase our operating costs and adversely affect our results of operations.

•We conduct operations in a number of countries and are subject to risks inherent in global operations.

•Supply chain disruptions and demand forecasting failures have in the past adversely affected, and could in the future adversely affect, our ability to meet customer demand, and lead to higher costs, or result in exce…

•A significant percentage of our sales come from a small number of customers and a decline in sales to any of our largest customers has in the past adversely affected, and could in the future adversely affect, our bus…

•Global economic conditions and geopolitical uncertainty have in the past adversely affected, and could in the future adversely affect, our business, results of operations, financial condition, and access to capital m…

Our business, financial condition, results of operations and prospects are subject to various risks and uncertainties, including those described below.

In addition, we are responsible for the cleanup of contamination at some of our current and former manufacturing facilities and at some third party sites.

these laws or regulations could result in our customers refusing to purchase our products and subject us to significant costs, fines or other penalties, the suspension of production, or prohibitions on sales of produc…

We are subject to extensive and changing federal, state, local and international environmental, health and safety laws and regulations, concerning, among other things, the health and safety of our employees, and the g…

There continues to be concern that a gradual increase in global average temperatures due to increased concentration of carbon dioxide and other GHGs in the atmosphere will cause significant changes in weather patterns…

Climate change, and the legal and regulatory initiatives related to climate change, could adversely affect our business, results of operations and financial condition.

guarantees that we will be able to achieve them.

We have established and publicly announced our sustainability strategy and certain goals, commitments, and targets, which we may change or refine in the future.

Many governments, regulators, investors, customers, employees, and other stakeholders remain focused on sustainability practices and matters, including climate change and greenhouse gas ("GHG") emissions, environmenta…

Failure to meet sustainability, including environmental, social and governance expectations or standards, or to achieve our sustainability goals, may have an adverse impact on our business, impose additional costs on…

We are subject to a variety of domestic and foreign employment laws, including those related to safety, wages and overtime, discrimination, whistleblowing, classification of employees and independent contractors, and…

Failure to comply with domestic or international employment and related laws could result in the payment of significant damages, which would reduce our net income.

As a service provider engaged in the business of designing and manufacturing medical devices, we have compliance requirements in addition to those relating to other industries we serve within our business.

In addition, product liability and product recall insurance coverages are expensive and may not be available for some or all of our services offerings on acceptable terms, in sufficient amounts, or at all.

In addition, we are from time to time exposed to product liability or product warranty claims, which may include liability for personal injury or property damage, and liability to pay for the recall, repair or replace…

The failure of the products that we manufacture or of our manufacturing processes or facilities may subject us to regulatory enforcement, fines or penalties and, in some cases, require us to shut down, temporarily hal…

If our products or components contain defects, demand for our services may decline, our reputation may be damaged, and we may be exposed to product liability and product warranty liability.

We have implemented local and global compliance policies to ensure compliance with our legal obligations across our operations.

If our compliance policies are breached, we may incur significant legal and financial exposure.

We also face certain heightened risks to our intellectual property rights due to our extensive operations in foreign jurisdictions, including the risk of theft or misuse of our intellectual property rights in certain…

If any claims of infringement or misuse of intellectual property from third parties and/or breach of our agreements with third parties, as well as claims arising from the allocation of intellectual property risk among…

Given the diverse and varied nature of our business and the location of our business around the world, certain activities we perform, such as providing assembly services in China and India, may fall outside the scope…

which obligate us to report covered behavior to the licensor and pay license fees to the licensor for certain activities or products, or that enable our use of third party technologies.

Our engineering, design and manufacturing services and our products involve the creation and use of intellectual property rights, which subject us to the risk of claims of infringement or misuse of intellectual proper…

We create and retain certain intellectual property rights to some of the technologies that we develop related to our engineering, design, and manufacturing services and our products.

The success of certain of our activities depends on our ability to protect our intellectual property rights; claims of infringement or misuse of intellectual property and/or breach of license agreement provisions agai…

Exports and imports of certain of our products are subject to various export control, sanctions, and import regulations and may require authorization from regulatory agencies of the U.S.

From time to time, we are involved in various claims, suits, investigations and legal or governmental proceedings.

We are subject to risks relating to litigation and regulatory investigations and proceedings, which may have a material adverse effect on our business.

We are also exposed to risks related to the valuation of the Mexican and Chinese currencies relative to the U.S.

We have manufacturing operations and industrial parks that are located in various part of the world, including Asia, Eastern Europe, Mexico and Brazil.

Operations in foreign countries also present risks associated with currency exchange and convertibility, inflation and repatriation of earnings.

We could be seriously harmed by inadequate infrastructure, including lack of adequate power and water supplies, transportation, raw materials and parts in countries in which we operate.

In addition, some countries in which we operate, such as Brazil, Hungary, India, Malaysia, Mexico and Poland, have experienced periods of slow or negative growth, high inflation, significant currency devaluations or l…

The attractiveness of our services to customers and our ability to conduct business with certain customers can be affected by changes in U.S.

•a potential reversal of current favorable policies encouraging foreign investment or foreign trade by our host countries.

•global supply chain disruptions, including disruptions in international commerce as a result of attacks on shipping vessels in the Red Sea, which has in the past slowed, and may in the future slow the ability of our…

•inability of international customers and suppliers to obtain financing resulting from tightening of credit in international financial markets;

•exposure to infectious disease, epidemics and pandemics on our business operations in geographic locations impacted by the outbreak and on the business operations of our customers and suppliers;

•ineffective legal protection of our intellectual property rights in certain countries;

•expropriation of private enterprises;

•environmental protection laws and regulations, including those related to climate change;

•imposition of restrictions on currency conversion or the transfer of funds;

•inflationary pressures, such as those the market has recently been experiencing, which may increase costs for materials, supplies, and services;

•scrutiny by the media and other third parties of labor practices within our industry which may result in allegations of violations, more stringent and burdensome labor laws and regulations and inconsistency in the en…

•trade sanctions and related regulatory enforcement actions and other proceedings;

•trade restrictions including limitations on imports or exports of components or assembled products, unilaterally or bilaterally, as well as;

•increases in duties, tariffs, and taxation levied on our products including anti-dumping and countervailing duties;

•labor unrest, including labor strikes, difficulties in staffing and geographic labor shortages;