Flex Ltd. (FLEX): Business Model Canvas [Dec-2025 Updated]

You're digging into the financials of a massive global manufacturer, and honestly, trying to map the business model of Flex Ltd. can feel overwhelming, but their recent strategy is crystal clear. For fiscal 2025, the real story isn't just the $25.8 billion in Net Sales; it's the profitable migration toward solving the hardest problems-specifically the power and cooling demands for AI-driven data centers. This shift, supported by strategic buys and deep hyperscaler partnerships, helped them land $1.459 billion in Adjusted Operating Income, proving their move up the value chain is working. To see exactly how they manage that global scale-spanning 30 countries and 140,000 people-while capturing higher margins, check out the nine building blocks detailed below.

Flex Ltd. (FLEX) - Canvas Business Model: Key Partnerships

You're looking at the structure that underpins Flex Ltd.'s ability to deliver complex electronics manufacturing services, so let's detail the key external relationships driving their FY2025 performance.

Strategic Collaboration with LG for Complementary Thermal Management Solutions

Flex Ltd. signed a memorandum of understanding (MOU) with LG Electronics in November 2025 to jointly develop integrated, modular cooling solutions. This partnership combines Flex Ltd.'s liquid cooling portfolio, proprietary power products, and IT infrastructure solutions with LG's high-performance air and liquid cooling modules. These modules include CRAC, CRAH, chillers, and coolant distribution units (CDUs). The co-developed solutions will be available as part of the Flex AI infrastructure platform.

Deep, Long-Term Relationships with Hyperscalers, Colocation Providers, and Silicon Providers

The relationship with the data center ecosystem is a primary growth driver. Flex Ltd. serves multiple hyperscalers and colocation providers, covering most of them in terms of revenue and growth in the space. The data center business is projected to generate approximately $6.5 billion in revenue for the current fiscal year, representing 25% of overall Flex Ltd. revenue. This segment saw growth around 35-plus percent year-over-year in FY2025, with management guiding for an expected 30% growth in FY2026.

Here's a snapshot of the scale and financial context:

Metric	Value (FY2025)
Fiscal Year 2025 Net Sales	$25.8 billion
Data Center Revenue Estimate	$6.5 billion
Data Center Revenue as % of Total Revenue	25%
Data Center Revenue YoY Growth (FY2025 est.)	35-plus percent
Adjusted Operating Income (FY2025)	$1,459 million

Key Acquisitions like JetCool (liquid cooling) and Crown Technical Systems (critical power) in FY2025

Flex Ltd. bolstered its data center portfolio through strategic buys. The acquisition of Crown Technical Systems was an all-cash transaction valued at $325 million. Crown Technical Systems was expected to generate revenue of approximately $120 million and achieve a high-teens EBITDA margin in fiscal 2025 (ending March 31, 2025). JetCool Technologies was acquired in November 2024, expanding direct-to-chip liquid cooling capabilities.

The acquisitions add key technologies to the data center portfolio, specifically in critical power and liquid cooling.

Global Network of Component Suppliers for a Resilient, Diversified Supply Chain

Flex Ltd. maintains one of the world's largest and most diversified supply chains, powered by a large base of external partners. This network is managed by over 7,000+ supply chain professionals across approximately 30 countries.

• Number of diverse suppliers utilized: 16,000 suppliers.
• Number of parts sourced: Over 1 million parts.
• Global manufacturing sites: Approximately 100 sites across 30 countries.
• Total global workforce: Over 140K+ people.

Value Chain Partners Committed to Achieving Flex Ltd.'s 2025 Sustainability Goals

Progress toward the 2025 sustainability targets relies heavily on supplier and customer alignment. The company tracks partner commitments against its goals, which are incorporated into executive compensation for fiscal 2025.

• Zero Waste Goal: 47% of targeted sites achieved zero waste to landfill in 2024, putting Flex Ltd. 95% toward the 2025 goal of zero waste in 50% of manufacturing and logistics sites.
• Supplier GHG Targets: In 2024, 58 percent of preferred suppliers set greenhouse gas emission reduction targets, progressing toward the 2025 commitment that 50% of 'Preferred Suppliers' will set their own targets.
• Customer Science-Based Targets (SBTs): In 2024, 100% of specified customers by emissions had science-based targets, progressing toward the 2025 commitment that 70% of customers by emissions will have SBTs.

Finance: finalize the Q3 2026 supplier engagement metric update by next Tuesday.

Flex Ltd. (FLEX) - Canvas Business Model: Key Activities

You're looking at the core engine of Flex Ltd. as of late 2025, focusing on what they actually do to generate that $25.8 billion in Net Sales for Fiscal Year 2025. It's about turning complex customer needs into physical reality across a massive global footprint.

Advanced manufacturing and vertical integration of complex systems like data center racks

Flex Ltd. is driving deep integration, especially in the high-demand data center space. They aren't just assembling; they are fabricating core components. This vertical play is key to capturing higher margins, which hit a record 5.7% adjusted operating margin in fiscal 2025. The data center business itself is projected to hit about $6.5 billion in revenue for FY25, representing 25% of total revenue, growing at least 35% year-over-year.

Here's a look at the scale of their physical operations supporting this:

Manufacturing Metric	Data Point (Late 2025)
Total Global Locations	Approximately 100 in 30 countries
North American Manufacturing Footprint	Over 13 million square feet across 17 facilities
Mexico Manufacturing Footprint	9 million square feet
FY2025 Capital Expenditures (Property & Equipment)	$0.4 billion

They fabricate their own sheet metal for these complex systems and handle final integration and test for accelerator hardware. This integrated approach is what they believe sets them apart from more fragmented competitors.

Design, engineering, and full product lifecycle services (EMS + Products + Services)

The company formalized its strategy around this as the EMS + Products + Services approach in fiscal year 2025. This means they handle everything from the initial concept to post-production support. This shift is showing up in the financials; gross profit in FY2025 was $2,159 million, a 16% increase from the prior year, driven by this improved product mix and operational efficiencies. They are actively managing the portfolio away from lower-value work; they took down about $2 billion in less profitable business over the past few years, replacing it with higher-margin, longer product life cycle services.

Key financial outcomes from FY2025 reflect this focus:

• Adjusted Operating Income: $1,459 million
• Adjusted Earnings Per Share: $2.65
• FY2026 Adjusted Operating Margin Target: 6.2% to 6.3%

Global supply chain management, including regionalization strategies for customers

Managing a supply chain across 100 locations in 30 countries requires serious logistical muscle. A major activity is the regionalization strategy, particularly the expansion in North America to mitigate geopolitical risks and tariffs for domestic data center clients. This involves leveraging their significant U.S. and Mexican manufacturing bases to create a regionalized production hub. They are passing tariff costs to customers, which helps protect margins while offering clients supply security.

Geographically, their net sales distribution in FY2025 was balanced:

• North America: 43% of net sales
• Europe, Middle East and Africa (EMEA): 21% of net sales
• Asia: 17% of net sales (China specifically)
• Other areas: 19% of net sales

Continuous investment in factory automation, robotics, and AI technologies

Flex Ltd. is actively deploying capital into technologies that boost factory productivity. They are a founding member of MIT's Initiative for New Manufacturing (INM) Consortium, working with researchers on projects applying AI and machine automation. This isn't just theoretical; they are using collaborative robots (cobots) and AI-inspection solutions across their sites. While specific CapEx for only automation isn't broken out, the total capital expenditure for property and equipment in FY2025 was $0.4 billion, which supports this modernization drive. They expect these efficiency drivers to continue growing.

Development of proprietary products in critical power and liquid cooling solutions

This is where Flex moves beyond pure contract manufacturing into higher-value, proprietary offerings. In fiscal 2025, they expanded these capabilities through strategic acquisitions, specifically JetCool for direct-to-chip liquid cooling and Crown for critical power. The Power business revenue in FY25 was around $1.3 billion. This focus is evident in recent product launches; in September 2025, they unveiled their Modular Rack-Level Cooling Distribution Unit (CDU) via JetCool, and they plan to release a dedicated in-row CDU by April 2026. These proprietary solutions are central to serving the AI-driven data center market.

Finance: draft 13-week cash view by Friday.

Flex Ltd. (FLEX) - Canvas Business Model: Key Resources

The Key Resources for Flex Ltd. are centered around its massive physical scale, its human capital, its financial backing, and its specialized, protected technology assets. These are the core things Flex Ltd. owns or controls that are essential to delivering its value propositions.

The sheer physical scale of operations is a major resource, enabling global reach and localized production capabilities. As of the end of Fiscal Year 2025, Flex Ltd.'s operations were supported by a total manufacturing capacity of approximately 27 million square feet. This physical footprint spans operations across 30 countries. This global presence is a critical enabler for supporting customer regionalization strategies.

The human element is equally significant. Flex Ltd. maintained a global workforce of 147,979 people as of March 31, 2025. This large, distributed team provides the necessary engineering, supply chain, and execution expertise. It's a massive pool of talent. The company was also recognized on the TIME World's Best Companies 2025 List for its commitment to sustainability, inclusion, and customer excellence.

Financial strength underpins the ability to invest in capacity and technology. For the fiscal year ended March 31, 2025, Flex Ltd. reported $1.459 billion in Adjusted Operating Income. This financial performance supports ongoing strategic investments.

Proprietary technology and intellectual property represent a key non-physical resource, particularly in high-growth areas. Flex Ltd. has been actively building this through organic development and strategic acquisitions in FY2025, such as acquiring Crown Technical Systems for critical power capabilities and JetCool Technologies for liquid cooling solutions. These assets are crucial for the EMS + Products + Services strategy.

A specific digital asset that supports supply chain execution is the Flex Pulse® Network Design tool. This tool earned Flex a 2025 Manufacturing Leadership Award for innovation in Digital Supply Chains, highlighting its role in providing digital visibility across the complex network.

Here's a quick look at the scale of these key tangible and financial resources as of late FY2025:

Resource Metric	Value/Amount	Date/Context
Adjusted Operating Income	$1,459 million	Fiscal Year 2025
Global Manufacturing Square Footage	Approximately 27 million square feet	FY2025
Global Workforce Headcount	147,979 people	As of March 31, 2025
Countries with Operations	30	FY2025
Net Sales	$25.8 billion	Fiscal Year 2025

The technological resources are increasingly focused on enabling next-generation infrastructure. You can see this focus in the specific areas where Flex Ltd. has bolstered its IP:

• Proprietary technology and intellectual property in embedded and critical power.
• Enhanced capabilities in direct-to-chip liquid cooling via acquisition.
• The Flex Pulse® Network Design tool for digital supply chain visibility.
• The company's overall EMS + Products + Services approach leveraging its IP.

The company's operational footprint is geographically diverse, which is a resource in itself for risk mitigation and serving global customers. For instance, as of March 31, 2025, the Americas accounted for 43% of net sales, China for 17%, and EMEA for 21%.

Flex Ltd. (FLEX) - Canvas Business Model: Value Propositions

End-to-end manufacturing partner, simplifying product lifecycle from concept to scale. Flex Ltd. offers solutions that cover the full lifecycle, from initial design and engineering to full-scale manufacturing, supply chain management, and logistics. This includes value-added services in design, metal, components, supply chain management integration, and aftermarket services like the circular economy.

Solving power, heat, and scale challenges for AI-driven data center infrastructure. The company's data center business is a core growth engine, supported by deep systems expertise and global scale. Flex Ltd. announced a collaboration with NVIDIA to build modular, energy-efficient AI data centers at scale, leveraging next-generation 800-volt DC architectures.

The scale of this focus is evident in the financial commitment and growth metrics:

Metric	Value / Percentage	Fiscal Period / Context
Data Center Revenue (Projected)	$6.5 billion	Fiscal 2026 (at least 35% YoY growth)
Data Center Revenue (Actual/Reported)	$4.8 billion	Fiscal 2025 (nearly 20% of total revenue)
AI Infrastructure Platform Deployment Speed Improvement	Up to 30% faster	Compared to traditional methods
Modular Rack-Level Cooling Distribution Unit (CDU) Capacity	600 kilowatts to 1.8 megawatts	Scalable cooling for AI/HPC
Power Rack Architecture	1MW racks supporting +/-400V	Part of integrated data center platform

Global scale and regionalized manufacturing to mitigate supply chain risk. Flex Ltd. maintains a significant global footprint to support its operations. You need to know the physical scale of this network:

• Production capacity owned and operated: 48 million square feet as of March 31, 2025.
• Capacity located in Asia: 19 million square feet.
• Expansion since fiscal 2024: Over 8 million square feet added.

The regional sales distribution for fiscal year 2025 shows this global balance:

Region	Percentage of Net Sales
North America	43%
Europe, the Middle East, and Africa (EMEA)	21%
China	17%
Other Areas	19%

Improved profitability for customers through a shift to higher-value programs and services. Flex Ltd. has structurally enhanced profitability by exiting lower-margin businesses and focusing on high-growth areas. This shift is reflected in the financial performance for fiscal year 2025:

• Net Sales (FY2025): $25.8 billion.
• Adjusted Operating Income (FY2025): $1,459 million.
• GAAP Operating Income (FY2025): $1,169 million.
• Adjusted Diluted EPS (FY2025): $2.65, achieving five consecutive years of double-digit growth.
• Annual Adjusted Operating Margin (FY2025): 5.7%, up 90 basis points year-over-year.
• Fiscal 2026 Adjusted Operating Margin Guidance: 6.2% to 6.3%.

Commitment to sustainability, with 95% progress toward 2025 zero waste goal. The company's 2025 sustainability report details performance against its 2030 goals based on 2024 results. The specific progress toward the zero waste target is clear:

• Progress toward the 2025 goal of achieving zero waste in 50% of manufacturing and logistics sites: 95% as of 2024.
• Sites verified as zero waste in 2024: 47% of those targeted.
• Decrease in absolute scope 1 and 2 GHG emissions in 2024 from 2019 baseline: 43%.

Finance: review the Q4 2025 segment operating margins against the FY2025 overall operating margin of 5.7% by Monday.

Flex Ltd. (FLEX) - Canvas Business Model: Customer Relationships

You're looking at how Flex Ltd. manages its relationships with its diverse, global customer base as of late 2025. It's a mix of deep partnership for the biggest accounts and scalable service delivery across the board.

For the largest, most complex, and long-term strategic engagements, Flex deploys dedicated resources. This is most evident in the strategic focus areas driving margin expansion. For instance, the Data Center business, a key strategic customer area, was projected to reach about $6.5 billion in revenue by the end of fiscal year 2025, reflecting growth rates around 35%. This level of focus requires dedicated account teams to manage that complexity.

Co-development and engineering partnerships are central to creating next-generation products, especially where Flex is gaining share. The Products business, which is part of the customer offering, continues to grow at above-average rates and operates at margins in the mid-teen percentages. This indicates deep, collaborative engineering work with customers to bring new designs to market.

The consultative sales approach is designed to solve customer complexity, which is reflected in the margin performance across segments. Flex achieved a record annual adjusted operating margin of 5.7% for the full fiscal year 2025 on net sales of $25.8 billion. In the fourth quarter of fiscal year 2025, the Agility Solutions segment achieved an operating margin of 6.6%. This margin improvement across the board shows success in shifting the portfolio towards higher-value programs and services, which requires a consultative, problem-solving relationship.

Post-sale and lifecycle services are a growing part of the relationship, providing ongoing support and product management. Services, as a category, continue to grow at above Flex averages and produce margins at above Flex averages. This focus on the full product lifecycle is key to sticky customer relationships.

Building resiliency and delivering an improved customer experience on a global scale is supported by the company's geographic footprint. Flex's net sales for fiscal year 2025 were distributed globally as follows:

Geography	Percentage of Net Sales (FY2025)
North America	43%
Europe, the Middle East and Africa (EMEA)	21%
China	17%
Other Areas	19%

The Reliability Solutions segment, covering Industrial, Automotive, and Health Solutions, posted an operating margin of 5.8% in Q4 FY2025. The company also recognized customer-related asset impairments of $2 million for the full fiscal year 2025.

You should review the Q1 FY2026 guidance to see the expected continuation of these trends, with revenue guided between $6.0 billion and $6.5 billion for that quarter.

Flex Ltd. (FLEX) - Canvas Business Model: Channels

You're looking at how Flex Ltd. gets its products and services into the hands of its global customers, which is a massive undertaking given their scale. The channel strategy is deeply integrated with their manufacturing footprint, which is key to supporting regionalized supply chains.

The physical reach of Flex Ltd. is substantial. As of fiscal year 2025, which ended March 31, 2025, the company maintained a global network of approximately 100 manufacturing and logistics sites across 30 countries. This physical presence is what allows them to serve global market-leading brands and OEMs directly through their sales force.

When we look specifically at North America, the regionalized manufacturing hubs are a major channel component, especially for high-demand areas like data centers. As of March 31, 2025, the U.S. footprint was over 13 million square feet across 17 facilities, which, when combined with approximately 9 million square feet in Mexico, gives them a combined North American advanced manufacturing footprint of about 22 million square feet. This expansion, which included adding four new strategic locations since fiscal year 2024, is designed to support faster production and delivery for U.S. customers.

The distribution channel for Flex Ltd.'s own critical power products is direct, focusing on getting specialized hardware to customers building out AI infrastructure. This direct distribution covers Flex-owned products like Databar, Power Distribution Units (PDUs), and Remote Power Panels (RPPs).

Here's a quick look at the scale of the operation supporting these channels as of the end of fiscal year 2025:

Metric	Value (As of FYE March 31, 2025)	Source Context
Total Global Square Footage	48.5 million square feet	Total owned and leased facilities
Total Global Locations	100	Manufacturing and logistics sites
Total Workforce	147,979 employees	Global workforce size
FY2025 Net Sales	$25.8 billion	Overall financial scale

For supply chain visibility and collaboration, Flex Ltd. deploys digital platforms. One such tool, Flex Pulse® Network Design, is a key part of their channel support, helping customers de-risk decisions by using predictive analytics and machine learning. This platform can transform network simulations from weeks down to hours, and customers leveraging it have seen total supply chain cost reductions up to five to thirty percent. This digital layer helps streamline the physical movement of goods through their extensive network.

The sales approach relies on direct engagement, which is supported by these physical and digital assets. You see this focus on direct service in their power business, where they are expanding capacity to meet the rising demand from data center operators for reliable power infrastructure.

The channels are structured to support specific, high-growth areas:

• Direct sales targeting global brands and OEMs.
• Regionalized hubs for North American data center power products.
• Direct distribution for proprietary critical power hardware.
• Digital tools for supply chain optimization and insight.

Flex Ltd. (FLEX) - Canvas Business Model: Customer Segments

Flex Ltd. generated total Net Sales of $25.8 billion in fiscal year 2025.

The customer base is structured to mitigate reliance on any single entity, with no single customer accounting for more than 10% of annual revenue.

The key customer groups align with the company's two primary reporting segments, Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS).

Here's a look at the scale and focus areas for these segments based on the most recent full-year data available:

Customer Focus Area	Relevant Flex Segment	FY2024 Segment Revenue (Proxy)	FY2025 Data Center Activity Value
Hyperscalers and cloud service providers	Flex Agility Solutions (FAS) - Enterprise and Cloud	$13.9 billion (Total Agility FY2024)	$1,500,000,000 (Customer Sourced Inventory)
Automotive OEMs	Flex Reliability Solutions (FRS) - Automotive	Part of $12.5 billion (Total Reliability FY2024)	Not specified
Health Solutions companies	Flex Reliability Solutions (FRS) - Health Solutions	Part of $12.5 billion (Total Reliability FY2024)	Not specified
Industrial customers	Flex Reliability Solutions (FRS) - Industrial	Part of $12.5 billion (Total Reliability FY2024)	Not specified

The company's global manufacturing footprint supporting these customers is geographically distributed as follows for fiscal year 2025 net sales:

• North America: 43%
• Europe, the Middle East and Africa (EMEA): 21%
• China: 17%
• Other areas: 19%

The growth in the data center business, driven by cloud demand, is significant; the value of customer sourced inventory under these contracts, which is excluded from reported revenue, grew by $1,500,000,000 in fiscal year 2025 and represented approximately 17% of revenue.

For context on the Reliability segment, which houses Automotive, Health, and Industrial, the revenue in fiscal year 2024 totaled $12.5 billion.

• Automotive revenue was up 6% in fiscal year 2024.
• Health solutions revenue was up 3% in fiscal year 2024.

Finance: draft 13-week cash view by Friday.

Flex Ltd. (FLEX) - Canvas Business Model: Cost Structure

You're looking at the major drains on Flex Ltd.'s bottom line as of late 2025. The cost structure is heavily influenced by its massive global footprint and the nature of electronics manufacturing itself.

The high cost of materials and components is unavoidable in this business. For the fiscal year ended March 31, 2025, Net Sales were reported at $25.8 billion. The corresponding Cost of Goods Sold (COGS), which captures these material costs, was substantial at $23.65B. This reflects the reliance on global supply chains for the necessary parts.

Supporting this global operation means Flex Ltd. carries significant fixed costs. The manufacturing footprint is vast; as of March 31, 2025, the company operated over 48M+ square feet across more than 100+ locations globally. This scale requires consistent overhead, even when volumes fluctuate.

A major driver of future fixed costs is capacity expansion. Flex Ltd. strategically grew its global manufacturing footprint by over 8 million square feet since fiscal year 2024 to meet demand, particularly in the data center space. This required substantial Capital Expenditure (CapEx) to build out or acquire these new spaces, like the new facilities in Dallas and Columbia, South Carolina.

To support these global operations, the company incurs substantial overhead. Annual Selling, General, and Administrative (SG&A) expenses for fiscal year 2025 were reported at $0.904B.

Finally, the company incurred one-time costs related to efficiency drives. Restructuring charges for the twelve months ended March 31, 2025, totaled approximately $84 million. These charges were primarily for employee severance as part of targeted activities to restructure the business.

Here are the key financial components that define the Cost Structure for Flex Ltd. as of the end of FY2025:

Cost Component Category	Specific Metric/Item	Amount (FY2025 or Latest)
Revenue Base	Net Sales	$25.8 billion
Cost of Materials/Components Proxy	Cost of Goods Sold (COGS)	$23.65B
Operational Overhead	Annual SG&A Expenses	$904 million
Restructuring/One-Time Costs	Restructuring Charges Recognized	$84 million
Fixed Asset Base	Global Manufacturing Footprint (as of March 31, 2025)	48M+ square feet

The scale of the operation means that even small percentage changes in input costs or utilization rates have a large dollar impact. You can see the fixed cost base is directly tied to the physical footprint:

• Global manufacturing footprint growth since FY2024: over 8 million square feet.
• U.S. manufacturing footprint as of March 31, 2025: ~7M sq ft across 17 facilities.
• Total global locations: 100+.

Finance: draft 13-week cash view by Friday.

Flex Ltd. (FLEX) - Canvas Business Model: Revenue Streams

The total revenue generation for Flex Ltd. in the fiscal year 2025 landed at $25.8 billion. This top-line figure is derived from a strategic split across its two primary operating segments, which reflects the company's ongoing portfolio shift toward more profitable areas. The revenue composition for the full fiscal year 2025 is detailed below:

Revenue Segment	Fiscal Year 2025 Net Sales (Millions USD)	Percentage of Total Net Sales
Flex Agility Solutions (FAS)	$14,074	55%
Flex Reliability Solutions (FRS)	$11,739	45%
Total Net Sales	$25,813	100%

Revenue from Flex Reliability Solutions (FRS), which encompasses Industrial, Automotive, and Health Solutions, is a key area of focus due to its inherently higher margin profile compared to other parts of the business. The company saw strong demand in Automotive, with revenue up 6% in fiscal year 2024, driven by new ramps and content growth, which contributes to the overall margin improvement story, even as the segment faced softness in fiscal first quarter 2026. The overall gross profit for fiscal year 2025 increased to $2.2 billion, or 8.4% of net sales, up from 7.1% in the prior year, partly due to favorable mix shifts.

Flex Agility Solutions (FAS) revenue, which includes markets like Communications, Enterprise and Cloud (CEC), Lifestyle, and Consumer Devices, saw modest growth of 1% in fiscal year 2025, totaling $14.074 billion. Within this segment, the AI-driven cloud spending provided a significant tailwind, with the CEC business seeing strength that outweighed softer demand elsewhere. The company noted strong demand from data center customers as it continues to shift the portfolio towards more profitable business.

A growing portion of revenue comes from the sales of proprietary products, especially those enhancing data center capabilities. For instance, the power products, which combine embedded and critical power solutions, generated approximately $1,300,000,000 in revenue in fiscal year 2025. This was bolstered by strategic acquisitions in fiscal year 2025, such as JetCool Technologies for direct-to-chip liquid cooling and Crown Technical Systems for critical power capabilities, positioning Flex to serve high-density AI data center infrastructure demand.

Value-added services revenue is an integral part of the EMS + Products + Services strategy, helping to improve margins over time as manufacturing volumes increase and utilization rates rise. These services are designed to capture more content across the entire solution stack. The types of value-added services contributing to revenue include:

• Design and engineering services.
• Supply chain management integration.
• Aftermarket services, including circular economy offerings.
• Post-sale support.