Flex Names Its Post-Spin CEO And CFO, Touts 54% Growth At Axiom Unit
Flex put its CEO's earnings-call pitch for the Axiom spin-off before shareholders who are being asked to approve the separation.
Flex, the contract manufacturer that also sells power and cooling products, filed its CEO's earnings-call pitch for the planned Axiom spin-off as additional proxy material on Thursday. In it, Revathi Advaithi said the Cloud and Power Infrastructure unit grew 54% year over year in the second quarter and named who will run each company after the split.
Leaders named, growth claimed
Advaithi said Amy Schwetz will become Flex's chief financial officer after the spin-off, and Michael Hartung will lead Flex as CEO. Axiom is the new name for the Cloud and Power Infrastructure segment.
That segment grew 54% in the second quarter and expanded its margin by more than 200 basis points (two percentage points), she said on the October 28 call. Adjusted earnings reached a record $1.18 per share, which she called a new high.
For the businesses that stay with Flex, she said the Reliability, Mobility and Systems and Integrated Technology Solutions segments together grew 16% in the quarter, the fourth straight quarter of year-over-year growth.
Two companies, two pitches
Flex designs, builds and manages products for other companies across data center, healthcare, industrial, automotive, communications and lifestyle markets. Axiom, per Advaithi, will be built around power, thermal management and compute for AI infrastructure. Axiom has filed a Form 10 registration statement, the document that registers a new public company's shares.
Flex said it closed its acquisition of EPC Power earlier this month. Advaithi said the company introduced prefabricated AI modules at the OCP conference that can speed AI factory deployment by up to 50%.
The remaining Flex, she said, will concentrate on healthcare, energy infrastructure and communications as "a more focused industrial technology, manufacturing, and supply chain leader."
Vote, tax risk and a lawsuit
Flex filed its proxy statement on October 5, 2026, seeking shareholder approval of the spin-off proposals. The risk language lists the possibility that the spin-off will not qualify for tax-free treatment for U.S. federal income tax purposes.
Separately, Flex has asked the Delaware Supreme Court to reinstate its bid for a $48.5 million tax distribution from Nextracker, another spinoff, according to Law360. Nextracker disputes the claim.
Flex will hold an Innovation Day on November 10, where investors will hear from the expected leadership teams of both Flex and Axiom.
Sources
- Flex Ltd. — DEFA14A (2026-10-29) — SEC EDGAR
- Flex forecasts FY2027 EPS $4.84-$5.16 as Axiom spin-off advances toward early 2027 (NASDAQ:FLEX) — seekingalpha.com
- Electronics-Maker Says $48.5M Tax Suit Wrongly Tossed - Law360 — law360.com
- Flex Ltd. Q2 2027 Earnings Call Summary — Yahoo Finance
- Flex: Fiscal Q2 Earnings Snapshot – WTOP News — wtop.com
- Flex soars 12% on quarterly results (FLEX:NASDAQ) | Seeking Alpha — seekingalpha.com
