Critical and Embedded Power of Flex, but will be the Chief Technology and Strategy Officer of the SpinCo. Thank you all for joining.
Good to be here.
Thanks.
Mike, I want to start with you, and congrats on your pending appointment as CEO of RemainCo Flex.
Thank you.
Maybe you can start with some of your key priorities as you take on that role.
Yeah, sure. I think as everybody in the room probably knows, we've announced a spin. We expect that spin to be executed just after the first of the year. When I think about priorities, I think about them in phases. You've got this pre-spin priority list and then post-spin priority list. Pre-spin, we're really focused on two things: getting the execution of the spin correct and timely, and then two, maintaining the momentum that we've created over the past, call it two quarters, in the RemainCo business. If you think back, we have two quarters now of double-digit growth on both the RMS business and the ITS business. We've also expanded margins over that timeframe from 5% to 5.7%, and we're getting the growth in the areas in which we intended. We talked about high-value markets last time.
We'll probably talk about more of those things today. Maintaining that momentum so that when the spin is executed, we're not starting at the finish line, we're running right through the starting line. Now, post-spin, there's some different things, and I like to talk about priorities from the perspective of our playbook. The playbook is what we've been executing for the past seven years. It's what we'll execute going forward in Flex, and it's what brought us to this moment in time of the spin, where in the past three years, we've had an opportunity to create two new companies and set two companies up for success. We hope to repeat that over and over again in Flex going forward. From a playbook standpoint, I think about three different areas. One is financial rigor, another is around productivity improvements, and the third area is around portfolio optimization.
From a financial rigor standpoint, I would expect much of the same that you've seen over the past seven years. We'll continue to deploy capital to the areas of highest return. ROIC will be the governing metric in deciding where we put that capital. We'll focus more on earnings growth and margin expansion. We won't be chasing top-line growth for top-line growth's sake. But the same rigor that you've come to know us for over the past, call it seven years. Productivity. In our industry, when you run a network of over 85 different factories in 35 or so different countries, driving efficiency in the factory is really of paramount importance. We'll expect that to be the baseline going forward of continuing that productivity improvement. But I think what's new and exciting is this ability to unlock more value by combining our automation solutions with AI.
We really see an opportunity to not just unlock more, but to accelerate savings from those efforts. Then thirdly, I would say portfolio optimization. We think about our portfolio from a low-value market and a high-value market perspective. Low-value markets, no surprise, these tend to be markets that are not really growing or where we are not able to differentiate in a way that we can earn a higher margin that supports our plan going forward. On the other end, you have high-value markets, and these are markets that tend to be tied to long-term secular growth trends, enables us to grow in the neighborhood of double digits, and also enable us to earn a higher than average margin because we are solving for different types of complexity. It could be technology complexity, scale, regulatory complexity.
So all those things really drive us to continue to balance that portfolio over time. Priorities, pre-spin, post-spin, but certainly the idea is to create momentum and maintain that post-spin.
You hit on a lot of things there. Anything in particular that you think will differentiate RemainCo Flex compared to other EMS providers?
Yeah. I think about differentiation in a lot of different levels. Every opportunity that comes our way, we have to find a way to differentiate between whomever that competition might be in whatever market. When you run a diversified portfolio, the competition that you have varies by market and by customer. I would say there is a couple things that are universally true. The first is that we operate a unique suite of products and services. So we are one of the few companies that has engineering that is connected to manufacturing, but also a capability to vertically integrate that manufacturing with things like injection-molded plastics, sheet metal fabrication, our own component product line, and core works. Vertical integration is one key differentiator in many ways. Then after we manufacture the product, we do not stop.
We have an aftermarket business that is already operating at scale, where we have one part of our business that is around fulfillment, where we can deliver products at the right time, at the right location, whether that is another business or even a home address. We also have an ability to bring those products back in our circular economy suite of services for repair, refurbishment, recycling, anything that gets those products back from the marketplace itself. The suite of services, I think, is one area. Also, the playbook. When you think about the muscles that we have developed in the company over the past seven years, we have developed a capability to identify valuable assets that are consistent with our strategy, integrate those assets into the company, more importantly, combine those assets with existing capabilities to create something of greater value than we acquired.
Now we have two examples over the past three years where we have been able to do that, and we expect to be able to do that in the future as well.
Okay. You hit on top line in some ways already, but Kevin, maybe I could go to you on this one. Any framing around the revenue growth that investors should expect for RemainCo Flex over the longer term?
I would say what we have talked about in those businesses, obviously, there is a lot of momentum today. We will go through more details at our upcoming Investor Day. As we look at those businesses, Michael talked about the high-value businesses or the businesses that are positioned against the high-value end markets. We would expect those to perform well in that sort of mid-single digit plus as we go forward. There is going to be trade-offs that we are going to continue to make as we continue to de-emphasize areas of the portfolio that we wouldn't expect that type of growth. More to come at our upcoming Investor Day, but we are looking for those businesses to continue to perform as they largely have over the last few years.
We'll stay tuned for November. I'm looking forward to it. Let's dig into some of those key end markets. We can maybe start on the regulated segment. I think last year, RMS revenue grew 5%. This year, I think the company guided revenue in RMS to grow mid to high single digits. What's driving that kind of growth?
Yeah. The most exciting part of that is we're getting the growth from the areas that we planned. We've done an extensive job of defining those markets that we've called high-value markets, and many of those markets fall in the RMS side of the business. What are those? I'd say first start with healthcare. Today, there's two markets inside of healthcare that we consider a high-value growth market. One is around connected medical devices, another is around drug delivery systems. If you think about our medical devices business, we're already one of the largest manufacturers of continuous glucose monitors, and we expect that to continue into the future. From a drug delivery standpoint, a few months ago, we announced a win with Novo Nordisk, so that will be our ramping business inside of drug delivery.
Both of those segments are tied to these longer-term secular trends, in this case, things like an increase in our aging population, an increase in the prevalence of chronic disease. All of these things are not episodic. They're things that we see driving growth for a long time into the future. Also in RMS, you have our industrial business. One part of that business is our energy infrastructure business. This is a business that we spun the power product portfolio into SpinCo, but we're maintaining all the contract manufacturing business inside of Flex. Whether it's power generation, transmission, distribution, storage, all of that contract manufacturing work stays inside of Flex. Those areas will be positively influenced by the trends in the data center.
Another area in industrial is around robotics. When we think about robotics, it's a broad spectrum ranging from warehouse automation on the one end, all the way to fully autonomous humanoids on the other. We expect that given the increase in complexity in the supply chain, that regionalization will continue to be a trend, and many of those regions aren't ready to ramp production, so they're on the lookout for productivity improvements, wage inflation, labor scarcity. These types of applications will have a long-term role in regionalization. When you think about the automotive business, we don't think about that as a high-value market, but we think about that as a stable end market where we have an opportunity to grow in areas like compute that is tied to the software-defined vehicle, and areas like power, where we do DC-to-DC converters and onboard charging.
You mentioned robotics. It has been one of the key themes at the conference so far this week around physical AI. I would be interested if you can share more around how big that might be for Flex at this point in terms of what percentage of RMS revenue or total company revenue that may make up now.
Yeah. It is an interesting concept for us because I think we play three different roles in the area of robotics: customer, supplier, and an innovator. From a customer standpoint, we actually buy robotic from some of our customers. We announced recently a partnership with Teradyne, where not only do we use their cobots in a manufacturing environment, we also manufacture those cobots for broader distribution, in addition to doing all of our capital equipment business. So customer perspective. I would say from a supplier standpoint, we also have developed and manufacture internally our own standardized automation platform. We have developed a module-based platform where we have automated what were previously manual processes. 13 different manual processes now can be automated across the network with our own automation platform. Then we talk about being an innovator.
The great news is when you are a customer supplier, you get access to a lot of different things in the marketplace. I was in our Asia factories two weeks ago and got to see a lot of these things firsthand, and what you see are a combination of things. On the one hand, you have these stationary automation solutions that are plugged into a production line, and they are fairly fixed in that configuration. You also, though, see these fleets of autonomous vehicles going out through the factory to deliver products into different parts, pull parts from warehouses, et cetera. Then you see a lot of the work being done on humanoids, where we are actively working to come up with the latest solutions to support that growth.
Interestingly enough, what we are finding is in our automotive business, our capability around compute and motion actuation play very well into the humanoid business. Now, I am not getting over our skis here on humanoids. I do not think we will deploy humanoids in our factory at scale in the next few years. But I do see this hybrid approach emerging, and it is one that leverages some things that we already have with some things that we are developing. So envision an autonomous vehicle on the bottom instead of the legs of a humanoid, then it gets married in what is called the upper body of a humanoid. Now you have a situation where you have a reliable autonomous vehicle guiding something with more dexterity to increase the application of that humanoid application.
So I think you will probably see something more in the middle and a hybrid before you will see full-blown humanoids.
What sort of timeframe for that kind of an application should investors expect?
We already do automation solutions. We already do autonomous vehicles. We already have in our labs the combination of the hybrid approach.
Okay.
I would say within the next year or two, you will see that on our production floor. Full-blown humanoids, I would put it two-plus years out, though.
Got it. Okay. But with wheels, that is more—
I think you have a more stationary base that is wheel.
Yeah. Okay.
Yeah.
You have a few announced robotics partnerships that are. Teradyne's public. You guys talk about the warrants with Amazon, how those are a little bit more broad-based. As you think about humanoids or just general purpose robots more generally, are there key partnerships that are underpinning some of that work you're speaking to?
Yeah, I think it depends on which role we're playing in the conversation, customer, supplier, innovator. We have announced a partnership with Teradyne as a customer and a supplier. We've announced a supplier relationship with Amazon. We have standardized platforms inside the factory that we've also partnered with to develop more and new technologies. But I would say that right now, largely that market is based around warehouse automation—
Okay.
—and fixed stationary automation—
Okay.
—with a plan to get to more mobile applications in the near future.
Okay. Recognize you play a lot of roles here. But any sizing from a revenue perspective, how much robotics makes up?
Yeah, we haven't disclosed what that is. We're looking at ways to do that come Investor Day in November, as we try to give more granularity in the order of magnitude of our high-value markets and the role they'll play in the portfolio going forward.
Yeah, I guess, you mentioned kind of various ways you are using it around these automation modules and maybe different types of robotics going forward. Any way to frame how much of your processes are automated today and where they may go over time?
We do track penetration rates. I think there is a distinction to be made here, is that some processes you have just aren't available for automation today. You look at a subset of what those are, and we have a really high penetration rate when it comes to the automation piece itself. We are on the early stages of integrating AI with those standardized platforms, and that is the really exciting part, because as I mentioned earlier, we are known for grinding out productivity each and every year in our factories, and that baseline will continue. This idea of integrating AI with the automation solutions that we have standardized and deployed is really the opportunity to unlock more value.
Okay. Any kind of specific partnerships where you can share some of your data with different technology makers? Or this is more for your own?
Not much to share yet. What we plan on doing at Investor Day is giving insights into what the internally developed manufacturing automation platforms look like and the applications that we have.
Okay. Maybe touch on healthcare. You mentioned it as one of the key areas of the RMS segment. Talk a bit more around your outlook for healthcare, maybe relative to the segment overall and to us that maybe GLP-1s can perhaps be a driver for Flex.
Yeah. When you think about the portfolio that we offer, and you marry that with this concept that we will deploy capital to the areas of highest return, healthcare for certain, post-spend, will be a leading destination for capital. So you will see us continue to invest in the markets that we have and explore markets that we would like to penetrate. Right now, I would think about healthcare as being that steady driver of growth and margin appreciation. It is kind of the calm in the storm, so to speak, and it plays a really important role in this portfolio for a couple of reasons. One, it is highly regulated, and so our customers rely on us in this environment of uncertainty to help them create flexibility in their supply chain through a regulated footprint.
I would also say that they are relying on us more and more to help them innovate because they are used to an environment where they can look over a long-term horizon, call it 7- 10 years, and with high confidence, make predictable investments that they know they will get a return on. This is a market that is being disrupted more than ever before, especially on the equipment side. So again, I like to think that the more complex the supply chain gets, the better positioned we are to help our customers because of those flexibility requirements.
Okay. I wanted to talk also on the auto part of the business within RMS. I think you just described it as a relatively stable business.
Yeah.
If I'm not mistaken, last Investor Day, that was one of the key growth areas that the company had detailed. What's changed on the auto front?
Yeah. I think if you roll the tape back a little bit, we had certainly some optimism around the automotive business. I think like many companies, were surprised by the level of disruption and volatility. Disruption from Chinese markets, disruption from the macro situation that negatively influenced the automotive industry. For the past, I'd say almost two years, we've been talking about the volatility of that business. Last quarter, we started talking about the stability of that business. We've reset at a lower, more stable level, and this is the level from which we'll start to grow in the areas that we intend. There's really two areas that we're focused on. The one area is around our compute platform. We talk a lot about buying habits of the consumer today. Automotive customers used to buy based on horsepower.
Now they buy based on user experience, and so the software-defined vehicle is the future of automotive. As a result, software has become the secret sauce of automotive makers. We're uniquely positioned because a lot of the tier ones bet that they wanted a combined hardware and software solution, and they really just want the hardware. We're able to standardize the hardware platform that they can marry with their software solution, and they could go to market without the same friction as maybe some other suppliers might have. Also, when you think about the power business, we're still optimistic that hybrid EVs are going to continue to grow as a percentage of the total, and our power business is well positioned for that, whether it be onboard charging or DC-to-DC power conversion. Those are areas that we think will grow over time as well.
Okay. In the interest of time, maybe we can move on to the integrated technology segment. That's also growing pretty quickly. Kevin, maybe can you remind us the outlook for revenue growth in the ITS segment for the year? We've guided to a revenue number. I might need Michael's help here.
Yeah. The good news is that we raised our guidance.
Yeah. Okay. Thank you.
We started off the year, and I think people are wondering why we did not guide higher. We are sitting there at the beginning of the year to want to see how some things played out in the marketplace, and glad that we did. In this last earnings, we raised our guidance to high single digits to low double digits.
Yeah.
That is really coming on the backs of our communications business.
Yep.
Because the lifestyle business is soft as expected. It has been soft for, I want to say, a couple of years now. We do not see a catalyst for that to change anytime soon.
Yeah.
That growth that you are seeing is coming from the communications business, and it is coming from that spectrum that is that advanced networking application, high-speed switches, optical gear, network interface technologies, and now SatCom.
Yeah, I imagine. If the whole segment is growing high single to low double digits, networking is growing well above that, to bring the corporate to that segment to that level. How sustainable do you think that networking outlook is?
Well, I think it is as sustainable as the data center demand is sustainable. We believe in that demand. Believed in it so much that we spun the data center business because we see long-term growth fundamentals that exist in that business. The same fundamentals that exist for SpinCo will exist for Flex post-spin as well.
Yeah. Love to talk on data center demand, Michael, welcome your views, or Kevin, if you want to chime in. Chris, would be very interested in your perspective here, because there has been so much discussion around the data center market. Maybe some new policy restrictions from certain state governments trying to restrict where data centers have been built, getting the capital to finance some of these projects, but also tight compute and supply-demand more generally. Maybe just help us understand what Flex has been seeing around data center demands.
Yeah. It is interesting. We have had NIMBY come up a couple of times today, but honestly, we do not really see that impacting the business, certainly not in the short-term. I think there is a lot of misunderstanding going on in the general public right now. Look, the reality is that everybody continues to use AI. My 81-year-old mother uses AI today. You start seeing more and more adoption of these tools, you are going to have to be able to process that compute. I do not think we are going to see demand curtail in the data center space, even with some of these back pressures. It may just shift around a little bit, because the fundamental reason why you are seeing this increase, you are taking chips that used to operate at 150 W are now going to 3,000 W. It is a 20-fold increase in power.
There is not a growth estimate out there that is not below two to three times the amount of power consumption in the data center fleet here in the U.S.. I think there is going to be long-term growth behind it. You see customers making those investments. We are making those investments in capacity to make sure that we can meet those demands.
I get. Excuse me.
Go ahead.
Yeah, I guess specific to some of these NIMBY concerns, there is just enough other places for the data centers to be built, or they are far enough along that it is not going to constrain the growth rate as you see it.
Yeah. I think they will just move around. There is just so much demand out there.
Just in terms of getting the supply you need, I guess this kind of spans both CPI as well as the ITS segment, what is the ability for Flex to procure enough material, be it semiconductor or other parts, or having the capacity to manufacture in order to support this growth outlook that you are seeing across the networking as well as the CPI segments?
I'll help with that. First, the environment is challenged, but it has been challenged for a while. It has been challenged, we would argue, for the better part of seven years, and Flex has continued to perform well in that type of environment because we have a capability to do just that and do it at a global scale. As we have looked at our guidance, we, of course, as we started the guidance for CPI as well as broader Flex, as a reminder, CPI, we gave 65%- 75% this year. That contemplated supply challenges in there.
Okay. The company had some interesting news on the CPI business last week, announced a proposed acquisition of EPC Power for $4.4 billion. Chris, I was hoping you could share a bit more on EPC in terms of the background, what led Flex to that acquisition, and anything else you can share on that company.
Yeah. We are super excited about the announcement last week and good fit between the management teams. You start looking at EPC Power, it really is covering a gap that we had that was kind of upstream in the data center. If you look at their base product today, they have a highly advanced energy storage product. This is not your typical energy storage product. This is a grid-forming inverter that provides a lot of unique capabilities to data center operators and utilities in the space. Number one, it will make sure that the grid is insulated from some of the anomalies that happen in a GPU-based data center, some of those power fluctuations.
It also makes sure that we can provide a very clean source of power to the IT loads in the data center, and that is their base product today, which is being required by a lot of utilities here across the U.S. There was a pretty significant power disturbance in Northern Virginia back in the month of July, and that is driving more utilities to demand this type of technology in the data center. We see a lot of tailwinds, even as we are going through the latter stages of negotiation that are helping us here in the business case looking forward. From that piece, we have got a lot in their base business today that continues to grow because of these secular trends.
You also look at things like the future technology play for us. They have a centralized rectifier today, an active digital rectifier that we can use for centralized 800 V DC deployments. This is already in the NVIDIA DSX architecture. They have a very far along SST development program that will allow us to even bolster efficiency better and improve the footprint. I think we are going to be taking the data center architecture to a blank sheet of paper soon and being able to work with customers on really helping them connect that 34.5 kV at the utility space directly to the IT load.
You mentioned being complementary to what Flex can do, but I think Flex has also been working on 800 V. Maybe just double-click around what Flex in the CPI segment has been doing on 800 V and how that is different than what EPC would bring.
Yeah, great point. If you look at where Flex's primary power conversion business has been, it has all been really at the rack or near the rack. So I think everybody knows we have a pretty broad portfolio of product that allow us to take, whether it be AC power or even 800 V DC power, all the way down to one volt, which is the voltage level that these chips operate. So we have probably one of the most expansive portfolios there. We are deploying both plus/minus 400 and 800 V DC sidecars as well. And those are being implemented in data centers that are already built today or in the process of being built. So we see a next two to three years really strong outlook for that type of product.
Where we see the EPC product playing more of a role is in that greenfield data center that is probably in the planning stages today, and two to three years from now, we will start seeing a lot of demand for their 800 V DC solutions.
You said in the press release you expect EPC to generate about $800 million of revenue in calendar 2026 and to grow 40% organically in 2027. Help us understand what is driving that kind of top-line growth at EPC.
It is all pinned to the data centers. It is all pinned to some of those regulatory requirements that are coming. There is also some tailwinds from bans on foreign-produced product in the critical infrastructure here in the U.S.. EPC is all U.S.-based production, so that plays in very well. That does not include any of the other things that I talked about future architecture, which I think will give us some tailwinds in the outer years. Most of that business is booked today.
Good backlog even for that 2027 outlook.
Really good backlog for 2027.
You also talked about margins expanding in double-digit percentages, I think 30% EBITDA margins in calendar 2027. What drives that margin uplift?
Big drivers are, number one, they just implemented and expanded their production capability pretty broadly, and that just came online in the month of June. So a lot of that margin uplift is stabilizing of those manufacturing locations. Also, a lot of supply chain initiatives that they have been doing to reshore materials and things like that. I forgot to mention, data center margins are a little bit higher than what their traditional business has been. So all those factors give us confidence that we can deliver that.
Yeah. It sounds like to someone's point you are making on supply chain, that they have got the materials as well as the manufacturing footprint to support that outlook.
Yeah. It is already in place today. We just got to keep the momentum going.
Okay. I wanted to shift gears a little bit, talk about services. Something that you guys have mentioned throughout the conversation so far. I think at one point the company had said services was about a billion-dollar business. Maybe talk about how big it is today and how that might split out in terms of RemainCo versus CPI.
Yeah, I'll start, and maybe you guys can jump in on the future of that for SpinCo. I'd say that services, first of all, will continue to be a key part of the portfolio. Like I mentioned earlier, connecting engineering with vertically integrated manufacturing and this aftermarket capability is a differentiator for us in multiple markets. We'll expect that to continue. In terms of scale of that business, it hasn't gotten smaller. We haven't talked about how big it's gotten, and it's fair to say that we're going to split certain parts of it. I'd say the vast majority of it will stay inside of Flex, but there is a portion that's going to spin as well.
I'd also say that that's just the starting point of what the strategy is for SpinCo when it comes to services, and maybe you guys can speak a little bit more to that.
Yeah. What I would say about services, first, the other thing we've said about services in addition to the growth we've seen over the last few years is that it's a higher margin business. It's been a part of our margin story. As we look at the business that we're going to spin, we see services as a continued opportunity there to deploy, both on the cloud and cooling side, as well on the power side. We have services today. Largely, I would say the largest piece of that is on cloud and cooling right now, and it drives margin improvement on that side of the business. As we go forward here, we see it as an opportunity to continue to write service revenue into that cloud and cooling business to continue to drive margins there. On the power side, I'd say it's a bigger opportunity.
We're in the early stages there, but it's certainly going to be a focus area for us over the next three years.
Okay. Let me talk on margins, if I could, and maybe for Kevin and Michael. As you think about RemainCo, Flex, how should investors think about that long-term margin profile of that part of the business?
Yeah. We haven't gone out yet, and we're going to talk more about that in Investor Day, but I'd say a couple of things will be true. First, look in history and look at what the margin appreciation has been over the past seven years. I'd say even look to the recent history, where we've improved margins in the RMS and ITS business independent of CPI from 5% to 5.7%. We'll be north of those numbers as a combined entity, and we'll expect to continue to focus on earnings growth and margin expansion going forward. We'll give you a better idea of what the destination is come November.
Okay. Hoping to talk on capital allocation and given the announced spin. I don't know, maybe that changes what you can or can't do, but can you do more M&A between now and potentially that happening? Can you do buybacks? I don't know if you can share more on how you may use the balance sheet.
First, as we talked about the spin, our focus from a capital allocation standpoint there is to ensure that we maintain investment-grade status on the Flex side, and then investment-grade metrics on the SpinCo side. That was a principle that we talked about. As we've gone through this year, our capital allocation priorities for Flex have not changed. We've talked about those through the years, but it's protecting the balance sheet, investment-grade balance sheet. It's putting money back into the business organically in CapEx. You see that's a big focus of ours this year. Then it's selective M&A, which you've seen us do some of that this year, too. We have not bought back any shares through the first quarter. Share buyback remains a part of that capital allocation priority. We'll continue to look at it and be opportunistic.
As we've looked at deploying capital this year, clearly the investment we're making in CapEx, we see significant positive returns there supported by great business cases. So that's been a focus. Then focusing on the SpinCo too, which we believe to be a great return to shareholders, has been another area we've focused so far this year. But really no change for Flex, no change for what we stated about the two businesses separately, and we'll continue to stay opportunistic around that framework.
Okay. I know you're still formulating exact balance sheet of the two entities, but any kind of high-level thoughts around what the right level of leverage might be for the different parts of the business?
Well, we've talked about, on the RemainCo side, maintaining that investment-grade status. We've also talked about as we move forward to spin, RemainCo or Flex is going to retain a stake in SpinCo. We've said that will not exceed 19.9%, but there will be a retained stake back. As SpinCo spins, we do expect Flex to be able to use that retained stake to de-lever. So what you're going to end up with from a Flex standpoint is a business with less leverage, stronger balance sheet, and therefore an opportunity to go deploy that balance sheet against the growth opportunities that present themselves.
Maybe just the last minute we have left, Michael, I wanted to close with a question for you, which is your thoughts around a permanent CFO for RemainCo. I know Kevin, you're pulling double duty right now, but Michael, any thoughts around—
He's probably looking forward to it after I forgot the guide number earlier in the discussion.
Any thoughts on what you're looking for in a partner there and any time frames?
Yeah. So there's two things to think about, maybe three things when you think about the spin. The first is creating the executive team, second is creating the board, and third is filling that CEO spot within the executive team. We are on track to do all of those things in advance of the spin. Feel real good about where we are in that process. We're late stages and hope to announce something in the near future. But certainly it's someone that will come in and first be familiar with the manufacturing environment. Secondly, being a partner in the ongoing transformation that we expect to undertake in Flex. And then certainly the last being someone that fits in with the culture of the business. And I think we found numbers of candidates that all three of those criteria, and we're real close to finishing up the last selection.
All right, great. Well, a lot of stuff to keep an eye out for, Investor Day and hopefully completion of the spin in the first quarter next year. Well, thank you all for joining. It has been a real informative session.
Thanks, Mark. Appreciate it.
Thanks, Mark.