Flex (FLEX) risk factors: FY2026 10-K

1. Customer order cancellations, production changes, and demand variability could adversely affect our business.new
2. 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 business.reworded
3. Investments in our Cloud and Power Infrastructure businesses may adversely affect our margins, and demand for these offerings is subject to factors outside our control.new
4. We may incur significant losses if customer-specific capital equipment becomes impaired or obsolete.new
5. 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 excess or obsolete inventory.reworded
6. Our margins and profitability have in the past been, and could in the future be, adversely affected due to substantial investments, start-up and production ramp costs in our design and engineering services.reworded
7. If we do not effectively manage changes in our operations, our business may be harmed; we have taken substantial restructuring charges in the past and we may need to take material restructuring charges in the future.
8. A breach of our IT or physical security systems, or a cybersecurity incident affecting our operations, products, or third parties upon which we rely, could materially disrupt our business, damage our reputation, and expose us to significant costs and liability.newCybersecurity
9. Risks and uncertainties related to the development and use of AI could harm our business, damage our reputation, or give rise to legal or regulatory action.newAI
10. We may encounter difficulties with acquisitions and divestitures, which could harm our business.
11. We must attract, develop and retain key employees, and failure to do so could harm our business.new
12. Our operating results may fluctuate significantly due to seasonal demand.
13. Union disputes or other labor disruptions could adversely affect our operations and financial results.
14. Unforeseen or catastrophic events could have a material adverse effect on our operations and financial results.

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1. The planned spin-off of our Cloud and Power Infrastructure businesses may not be completed on the terms or timeline currently contemplated, if at all, and there is no guarantee that the spin-off, if completed, will achieve the intended financial, strategic, and operational benefits.new

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1. 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 customers' products are not successful or if our customers lose market share.new
2. Our strategic relationships with major customers create risks.

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1. Changes in our effective tax rate, the adoption of new tax legislation, or exposure to additional tax liabilities has in the past adversely affected, and could in the future adversely affect, our results of operations and financial condition.new
2. Our debt level may create limitations.
3. Changes in our credit rating or capital market conditions may limit our access to financing or increase our borrowing costs.new
4. Fluctuations in foreign currency exchange rates could increase our operating costs and adversely affect our results of operations.reworded
5. 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.reworded
6. Failure to effectively manage working capital could adversely affect our cash flow, liquidity, and results of operations.new
7. The market price of our ordinary shares is volatile.
8. Our business could be impacted as a result of actions by activist shareholders, negative publicity, or other reputational harm.new
9. Our goodwill and identifiable intangible assets could become impaired, which could adversely affect our financial condition and results of operations.new
10. Risks related to the Nextracker separation could adversely affect our business, financial condition, and results of operations.reworded
11. We are subject to risks associated with investments.
12. Changes in accounting standards or management estimates could materially affect our financial results.new

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1. 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 markets.new
2. Tariffs, trade restrictions, export controls, and changes in trade policy, including heightened trade volatility and uncertainty regarding trade agreements, have in the past adversely affected, and could in the future adversely affect, our business, results of operations, and financial condition.newTariffs
3. We conduct operations in a number of countries and are subject to risks inherent in global operations.reworded

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1. Litigation, investigations, or enforcement actions could result in significant liabilities, operational restrictions, and reputational harm.new
2. We are subject to complex and evolving trade policies, export controls, and sanctions, and failure to comply or adapt to changes in these regimes could restrict our business or result in significant penalties.new
3. Failure to comply with data privacy and cybersecurity laws and regulations could expose us to government enforcement, significant penalties, civil litigation, and reputational harm.newCybersecurity
4. Inadequate protection of our intellectual property and exposure to third-party intellectual property claims could adversely affect our business and results of operations.new
5. Evolving regulations relating to data center development, energy consumption, and utility infrastructure could adversely affect demand for our products and services.new
6. Our compliance program may not prevent violations of anti-corruption and related laws, which could result in severe penalties, business restrictions, and reputational harm.new
7. Defects or failures in our products, manufacturing processes, or design and engineering services could expose us to product liability, warranty claims, contractual penalties, and reputational harm.new
8. We may not meet regulatory quality standards applicable to our manufacturing and quality processes for medical devices, which could have an adverse effect on our business, financial condition, and results of operations.reworded
9. Failure to comply with domestic or international employment and related laws and regulations could adversely affect our business and financial performance.new
10. Evolving sustainability expectations and related disclosure regimes may increase costs, create legal exposure, and adversely impact our operations, talent attraction, and access to capital.new
11. Climate change regulation could disrupt our operations and supply chain and increase our costs.new
12. Our failure to comply with environmental, health and safety, product stewardship and producer responsibility laws or regulations could adversely affect our business.

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Headings in the FY2025 10-K with no match this year.

1. Our customers have in the past and may in the future cancel their orders, change production quantities or locations, or delay production, any of which could harm our business; the short-term nature of our customers’ commitments and rapid changes in demand have in the past caused, and may in the future cause, supply chain and other issues which could adversely affect our operating results.
2. Our business has in the past been, and may in the future be, adversely affected by delays and increased costs resulting from issues that our common carriers deal with in transporting our materials, our products, or both.
3. Our components business is dependent on our ability to quickly launch world-class component products, and our investment in the development of our component capabilities, together with start-up and integration costs, has in the past adversely affected, and may in the future adversely affect, our margins and profitability.
4. A breach of our IT or physical security systems, or violation of data privacy laws, may cause us to incur significant legal and financial exposure and adversely affect our operations.
5. We depend on our executive officers and other key employees and skilled personnel.
6. There are risks associated with the separation of Nextracker, which could negatively impact our business, financial condition and results of operations.
7. If the Nextracker spin-off fails to qualify for tax-free treatment, we, our subsidiaries and our former shareholders could incur significant tax liabilities.
8. We depend on industries that continually produce technologically advanced products with short product lifecycles and our business would be adversely affected if our customers' products are not successful or if our customers lose market share.
9. Our industry is extremely competitive; if we are not able to continue to provide competitive products and services, we may lose business. In addition, our customers may decide to manufacture their products internally, which could harm our business.
10. We are subject to the risk of increased income taxes.
11. Changes in our credit rating may make it more expensive for us to raise additional capital or to borrow additional funds. We are also exposed to interest rate fluctuations on our borrowings and investments.
12. Challenges in managing working capital could significantly impact our cash flow, profit margins, and overall business performance.
13. Our goodwill and identifiable intangible assets could become impaired, which could reduce the value of our assets and reduce our net income in the year in which the write-off occurs.
14. Changes in financial accounting standards or policies have affected, and in the future may affect, our reported financial condition or results of operations.
15. Global economic conditions, including inflationary pressures, currency volatility, stagflation, slower economic growth or recession, high or rising interest rates, trade conflicts, tariffs, geopolitical uncertainty and instability in financial markets have in the past adversely affected, and may in the future adversely affect, our business, results of operations, financial condition, and access to capital markets.
16. We are subject to risks relating to litigation and regulatory investigations and proceedings, which may have a material adverse effect on our business.
17. 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. or other countries.
18. 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 against our customers or us could harm our business.
19. If our compliance policies are breached, we may incur significant legal and financial exposure.
20. 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.
21. 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.
22. 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 us, and expose us to additional risks.
23. Our business could be impacted as a result of actions by activist shareholders or others.