Flex doubles European footprint for data center power needs

Published 13/05/2025, 14:24
Flex doubles European footprint for data center power needs

AUSTIN, Texas - Flex (NASDAQ: FLEX), a global leader in design, manufacturing, and supply chain solutions with a market capitalization of $15.66 billion, has significantly expanded its European operations through its Critical Power Business, Anord Mardix. According to InvestingPro data, Flex maintains a strong financial health score and has delivered an impressive 43% return over the past year. To meet the increasing demand for AI-driven data center power solutions, Flex has acquired a new manufacturing site in Bielsko-Biała, Poland, effectively doubling its power product capacity in Europe to approximately 1.2 million square feet. This expansion is part of Flex’s broader strategy to invest in critical power and data center technologies, responding to a surge in customer demand.

The new Polish site, now fully operational, employs over 700 skilled workers and is set to produce a wide array of power products, including Low Voltage/Medium Voltage (LV/MV) Switchgear, Power Pods, and Busway systems. These efforts are intended to support faster deployment of data centers at scale. The expansion aligns with Flex’s robust operational performance, generating $25.81 billion in revenue over the last twelve months. For deeper insights into Flex’s growth strategy and financial metrics, investors can access the comprehensive Pro Research Report available on InvestingPro. Flex has also recently enhanced its Irish operations by opening a second facility in Dundalk, which doubles Anord Mardix’s capacity in Ireland.

In addition to the European expansion, Flex has opened a new manufacturing and assembly facility in Dallas, Texas, and has broadened its product portfolio through the acquisitions of Crown Technical Systems and JetCool Technologies, specializing in power distribution and liquid cooling solutions, respectively.

Chris Butler, president of Embedded and Critical Power at Flex, emphasized the importance of this expansion in Europe, stating that it marks a significant step in accelerating the company’s global manufacturing capabilities. According to Butler, Flex is dedicated to delivering advanced power infrastructure solutions that optimize computing performance and reduce deployment times.

Flex’s commitment to growth is further underscored by its global presence, with over 30 manufacturing sites in the EMEA region alone. The company’s strategy is to align closely with the needs of rapid data center expansion, which is increasingly driven by advancements in artificial intelligence technology.

The information in this article is based on a press release statement from Flex. With an EBITDA of $1.79 billion and a solid financial health rating from InvestingPro, the company continues to demonstrate strong operational execution. InvestingPro subscribers have access to over 10 additional exclusive tips and detailed financial metrics for Flex, helping investors make more informed decisions.

In other recent news, Flex Ltd reported its fourth-quarter earnings for 2025, surpassing Wall Street expectations with an earnings per share (EPS) of $0.73 against a forecast of $0.70. The company’s revenue also exceeded predictions, reaching $6.4 billion compared to the anticipated $6.24 billion. Despite these positive results, Flex’s stock experienced a decline in pre-market trading, which may reflect broader market concerns. The company achieved record annual gross and operating margins, with data center revenue growing by approximately 50% year-over-year. Flex has set a revenue target of $25 to $26.8 billion for fiscal year 2026, with an adjusted EPS guidance of $2.81 to $3.01. The company anticipates a 30% growth in data center revenue and aims to maintain an 80%+ free cash flow conversion rate. Additionally, Flex is targeting a 6% adjusted operating margin, ahead of schedule. Analysts from firms like JPMorgan have shown interest in the company’s strategic initiatives and market positioning.

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