Flex CEO Doubles Stock in Two Years with Disciplined Approach

When Revathi Advaithi took over as the CEO of Flex, a Singapore-based contract manufacturer, in 2019, the company's stock was trading at just under $7. The previous CEO had recently been ousted, and the broader contract manufacturing industry lacked financial discipline.

Advaithi, who had only interacted with Flex as a supplier, didn't overthink the challenge. She adopted a pragmatic approach, focusing on defining the portfolio, clarifying the value to customers, and understanding why they were willing to pay for it. In her first year, Advaithi conducted a strategic review and determined that Flex needed to exit hyper-commoditized segments, such as smartphones and laptops, where pricing power was weak and volatility was high. Instead, the company would double down on complex manufacturing for sectors like healthcare, industrials, and automotive, where execution mattered and margins could follow.

Despite facing immediate challenges, such as the U.S. government's decision to place Huawei on the Entity List and the COVID-19 pandemic's impact on global logistics, Advaithi remained steadfast in her approach. She emphasized capital discipline, margins, and long-term resilience, rather than chasing growth for its own sake.

Advaithi's consistent leadership and disciplined strategy have paid off, with Flex's stock price doubling under her tenure. Her pragmatic approach to problem-solving and her focus on creating value for customers have been the driving forces behind Flex's turnaround.