Revenue Performance - Net revenue for the three months ended February 28, 2025, was $6,728 million, a decrease of 0.6% compared to $6,767 million for the same period in 2024[110]. - Net revenue for the six months ended February 28, 2025, was $13,722 million, a decrease of 9.4% compared to $15,154 million for the same period in 2024[120]. - The Connected Living and Digital Commerce segment net revenue decreased 13% in the three months ended February 28, 2025, primarily due to an 18% decrease driven by the divestiture of the Mobility Business[119]. - The Intelligent Infrastructure segment net revenue increased 18% in the three months ended February 28, 2025, primarily due to a 19% increase in revenues from existing customers within the cloud and data center infrastructure business[119]. Profitability Metrics - Gross profit for the three months ended February 28, 2025, was $576 million, representing 8.6% of net revenue, down from 9.3% in the same period in 2024[123]. - Core operating income (Non-GAAP) for the three months ended February 28, 2025, was $334 million, compared to $338 million for the same period in 2024[142]. - Diluted core earnings per share (Non-GAAP) increased to $1.94 for the three months ended February 28, 2025, from $1.68 in the same period in 2024[142]. Expenses and Charges - Selling, general and administrative expenses decreased to $256 million for the three months ended February 28, 2025, from $308 million in the same period in 2024[124]. - Research and development expenses remained consistent at $7 million for the three months ended February 28, 2025, compared to $10 million in the same period in 2024[125]. - Amortization of intangibles increased to $15 million for the three months ended February 28, 2025, compared to $9 million for the same period in 2024, reflecting a change of $6 million[126]. - Restructuring, severance, and related charges decreased to $45 million for the three months ended February 28, 2025, down from $70 million in the same period in 2024, a change of $(25) million[127]. - Acquisition and divestiture related charges decreased to $8 million for the three months ended February 28, 2025, compared to $46 million in the same period in 2024, a change of $(38) million[134]. - Interest expense, net decreased to $37 million for the three months ended February 28, 2025, down from $47 million in the same period in 2024, a change of $(10) million[137]. Cash Flow and Capital Expenditures - Adjusted free cash flow for the six months ended February 28, 2025, was $487 million, a significant increase of 120% compared to $221 million for the same period in 2024[143]. - Net cash provided by operating activities for the six months ended February 28, 2025, was $646 million, a decrease from $666 million for the same period in 2024[167]. - Net cash used in investing activities was $(503) million for the six months ended February 28, 2025, compared to $1,558 million for the same period in 2024[167]. - The company anticipates net capital expenditures to be in the range of 1.5% to 2.0% of net revenue for Fiscal Year 2025[171]. Acquisitions and Divestitures - The acquisition of Pharmaceutics International, Inc. was completed for a cash consideration of $307 million, enhancing the company's service offerings in regulated industries[144]. - The acquisition of Mikros Technologies was completed for $63 million, focusing on liquid cooling solutions for thermal management[146]. - The divestiture of the Mobility Business resulted in a pre-tax gain of $944 million, with transaction costs of approximately $46 million incurred during the sale process[148]. - The company recorded assets acquired of $349 million from the acquisition of Pharmaceutics International, including $149 million in intangible assets[145]. - The company incurred transaction and disposal costs of approximately $67 million related to the sale of the Mobility Business during the fiscal year ended August 31, 2024[154]. Financial Position and Liquidity - As of February 28, 2025, the company had approximately $1.6 billion in cash and cash equivalents, with a significant portion held by foreign subsidiaries[157]. - The company had $4.0 billion in available unused borrowing capacity under its revolving credit facilities as of February 28, 2025[158]. - The global asset-backed securitization program allowed the company to sell $2.0 billion of trade accounts receivable during the six months ended February 28, 2025[164]. - The global asset-backed securitization program's maximum cash proceeds available at any one time is $700 million, with terms amended to extend the termination date to January 2028[163]. - The company sold $2.0 billion and $3.7 billion of trade accounts receivable during the three and six months ended February 28, 2025, respectively[166]. - The outstanding balance of receivables sold but not yet collected was approximately $571 million as of February 28, 2025[166]. Share Repurchase and Stock Information - The company repurchased shares of common stock totaling $972 million under the 2025 Share Repurchase Program as of April 3, 2025[173]. - The company repurchased a total of 2,515,525 shares of common stock during the three months ended February 28, 2025, at an average price of $142.55 per share[185]. - As of February 28, 2025, the approximate dollar value of shares that may yet be purchased under the announced program is $364 million[185]. - The Board of Directors authorized a share repurchase program of up to $1.0 billion in September 2024[185]. - The average price paid per share for the repurchased shares in January 2025 was $169.14, with only 991 shares purchased[185]. Tax and Regulatory Information - The effective income tax rate for the three months ended February 28, 2025, was 36.2%, compared to 12.7% for the same period in 2024, a change of 23.5%[138]. - The company did not identify any modifications to its internal control over financial reporting that materially affected its effectiveness for the fiscal quarter ended February 28, 2025[182]. - There were no material changes in primary risk exposures or management of market risks from those disclosed in the Annual Report for the fiscal year ended August 31, 2024[180]. - No defaults upon senior securities were reported during the period[186]. Other Information - The sales cycle increased to 33 days for the three months ended February 28, 2025, compared to 27 days in the previous quarter[112]. - Days in accounts receivable increased to 50 days for the three months ended February 28, 2025, compared to 35 days in the same period in 2024[112]. - Four executive officers adopted trading arrangements under Rule 10b5-1 during the three months ended February 28, 2025, with total shares to be sold amounting to 664,246[189]. - The trading arrangements include up to 630,000 shares by the Executive Chairman of the Board of Directors, set to expire on March 31, 2027[189]. - The company issued a warrant to Amazon.com NV Investment Holdings LLC to acquire up to 1,158,539 ordinary shares at an initial exercise price of $137.77 per share[175]. - The fair value of the warrant was determined using the Black-Scholes option pricing model, with an expected volatility of 34.4%[178]. - The company has not disclosed any new product or technology developments in the provided content[188]. - There are no new strategies or market expansions mentioned in the content provided[188].

Core Viewpoint - Jabil has shown a strong stock price performance with a 27% gain over the past nine months, despite a recent pullback, making it an attractive investment option due to improving growth prospects [1] Company Overview - Jabil provides design, production, and manufacturing services across various sectors, including cloud, data centers, semiconductor equipment, networking, communications, automotive, and transportation [2] - The company has benefited from significant investments in artificial intelligence (AI) infrastructure, prompting an increase in its growth forecast for fiscal year 2025 [2] Financial Performance - Jabil's fiscal 2025 second-quarter results exceeded Wall Street expectations, leading to an increase in full-year guidance [3] - The company now anticipates $27.9 billion in revenue for fiscal 2025, up from a previous forecast of $27.3 billion, and raised its earnings per share forecast to $8.95, an increase of $0.20 [4] AI Impact - AI is a major driver for Jabil's growth, with an expected $7.5 billion in revenue from AI-related businesses, representing a 40% increase from the previous year [5] - The demand for AI-related products, such as servers and networking equipment, is fueling this growth, with the AI server market projected to grow almost sixfold from 2024 to 2030 [6] Margin Improvement - Jabil's adjusted operating margin in the intelligent infrastructure segment increased by 110 basis points year-over-year, contributing to the raised bottom-line forecast [7] - The favorable growth rates in AI-related markets are expected to further enhance Jabil's margin profile and bottom-line growth [8] Valuation and Investment Potential - Jabil's stock is currently trading at 15 times forward earnings, significantly lower than the Nasdaq-100 index's forward earnings multiple of 25, indicating a solid buying opportunity [9] - If Jabil achieves a premium valuation in the future, its stock price could potentially reach $294, representing a 116% increase from its current price [10]

Jabil Inc. (JBL) recently expanded its photonics product portfolio with the launch of new transceivers. With their capability to transfer data at speeds of up to 1.6 Terabits per second, these cutting-edge solutions are tailored to support the rising demands of artificial intelligence/machine learning workloads, high-performance computing, cloud infrastructure and data center interconnects.More on JBL’s New LaunchThe 1.6T transceivers are built on Intel Corporation’s (INTC) industry-leading Silicon Photonic ...

Core Insights - Jabil, Inc. reported strong second-quarter fiscal 2025 results, with both revenue and earnings exceeding Zacks Consensus Estimates, driven by growth in data center infrastructure, cloud, and digital commerce markets, despite a year-over-year revenue decline due to weakness in some verticals [1] Financial Performance - Jabil's shares have increased by 18.4% over the past six months, attributed to robust revenues supported by a flexible business model and quick time-to-market capabilities [2] - For fiscal 2025, Jabil has raised its revenue guidance to $27.9 billion from $27.3 billion, with non-GAAP earnings expected at $8.95 per share, up from $8.75 [9] Growth Drivers - The company's focus on end-market and product diversification is a key growth catalyst, aiming for no single product or product family to exceed 5% of operating income or cash flows in any fiscal year [3] - Jabil anticipates growth from healthcare, cloud, retail, and industrial sectors, benefiting from the rapid adoption of 5G and cloud computing [4] - The company has reorganized its internal structure to align operations with specific end markets, enhancing agility and domain-specific expertise [8] Operational Strengths - Jabil operates in 100 locations across 30 countries, leveraging strong margin and cash flow dynamics, along with unmatched end-market experience and technical capabilities [5] - The centralized procurement process and a unified Enterprise Resource Planning system provide customers with end-to-end supply chain visibility [5] Earnings Performance - The stock has delivered an average earnings surprise of 4.9% over the trailing four quarters, with a long-term earnings growth expectation of 12.5% [10]

Core Insights - Jabil, Inc. reported strong second-quarter fiscal 2025 results, with both net income and revenues exceeding Zacks Consensus Estimates, despite a year-over-year decline in top-line performance due to weakness in certain verticals [1][2][3] Financial Performance - Net income on a GAAP basis was $117 million or $1.06 per share, down from $927 million or $7.31 in the prior-year quarter, influenced by a gain from the mobility business divestiture in the previous year [2] - Non-GAAP net income for the quarter was $215 million or $1.94 per share, slightly up from $213 million or $1.68 in the prior-year quarter, surpassing the Zacks Consensus Estimate of $1.81 [2] Revenue Breakdown - Total net sales decreased to $6.72 billion from $6.76 billion year-over-year, but exceeded the consensus estimate of $6.4 billion, impacted by demand softness in several end markets [3] - The Regulated Industries segment generated $2.7 billion in revenues, down 8% year-over-year, contributing 41% to total revenues, primarily due to weakness in renewable energy and electric vehicle verticals [3] - The Intelligent Infrastructure segment reported $2.6 billion in revenues, up 18% year-over-year, contributing 39% to total revenues, driven by strong demand in capital equipment, AI-related cloud, and data center infrastructure [4] - The Connected Living & Digital Commerce segment accounted for about 20% of total revenues, with net sales declining to $1.3 billion, down 13% year-over-year, due to mobility divestiture and soft demand for consumer-driven products, although growth in digital commerce and warehouse automation partially offset this decline [5] Profitability Metrics - Gross profit was $576 million compared to $630 million in the year-ago quarter, while non-GAAP operating income was $334 million, down from $338 million in the previous year, maintaining a non-GAAP operating margin of 5% [6] Cash Flow and Liquidity - Jabil generated $334 million of net cash from operating activities, an increase from $218 million in the previous year's quarter, with $1.59 billion in cash and cash equivalents as of February 28, 2025, alongside $2.88 billion in notes payable and long-term debt [7] Future Guidance - For the third quarter of fiscal 2025, revenues are expected to range between $6.7 billion and $7.3 billion, with non-GAAP operating income projected between $348 million and $408 million, and non-GAAP earnings per share estimated between $2.08 and $2.48 [8] - For the full fiscal year 2025, revenues are now projected at $27.9 billion, up from a previous estimate of $27.3 billion, with non-GAAP earnings per share expected at $8.95, an increase from $8.75 [9]

SECOND QUARTER FISCAL YEAR 2025 Financial Results PUBLIC | ©Jabil Inc. 2024. All Rights Reserved. 1 Forward Looking Statement Forward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for our second quarter of fiscal year 2025; our guidance for future financial performance in our third quarter of fiscal year 2025 (including, net revenue, segment revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings per share, core ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $6.7 billion, a 3% year-on-year increase when excluding $250 million from the divested mobility business in the prior year quarter [8] - Core operating income was $334 million with core operating margins at 5% [8] - GAAP diluted earnings per share was $1.06, while core diluted earnings per share was $1.94, up $0.26 from Q2 of last year [9][30] - Adjusted free cash flow for Q2 was $261 million, bringing year-to-date adjusted free cash flow to $487 million, with expectations to exceed $1.2 billion for the year [16][37] Performance by Business Segment - Regulated Industry segment reported revenue of approximately $2.7 billion, down 8% year-on-year due to weakness in renewable energy and EV markets, but core operating margin increased to 4.8% [10] - Intelligent Infrastructure segment saw revenue of $2.6 billion, up 18% year-on-year, driven by strong demand in AI-related cloud and data center infrastructure [11] - Connected Living & Digital Commerce segment revenue was $1.3 billion, down 13% year-on-year, but grew approximately 4% when excluding the divested mobility business [12] Market Data and Key Metrics Changes - Anticipated revenue for the Intelligent Infrastructure segment in Q3 is expected to be $2.8 billion, up approximately 22% year-over-year [19] - Revenue for the Connected Living & Digital Commerce segment in Q3 is expected to be $1.2 billion, down 16% year-over-year [20] - Overall company revenue for Q3 is expected to be in the range of $6.7 billion to $7.3 billion [21] Company Strategy and Industry Competition - The company is focusing on maintaining a large-scale global manufacturing footprint to navigate geopolitical complexities and potential tariffs [25] - Jabil is well-positioned to support customers in shifting manufacturing to the U.S., with 30 sites across the country [45] - The company anticipates strong growth in AI-related business, expecting approximately $7.5 billion in revenue for FY 2025, representing a 40% year-on-year increase [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the diversified portfolio, with certain markets like capital equipment and data center infrastructure outperforming [30] - Caution was advised regarding electric vehicles, renewables, and 5G markets due to current uncertainties [39] - The company is actively monitoring tariff situations and believes it is well-positioned to adapt to changes [38] Other Important Information - The company completed the acquisition of Pharmaceuticals International Inc., enhancing its capabilities in the pharmaceutical sector and opening a $20 billion addressable market [35] - Inventory days increased to 80 days sequentially but decreased by 7 days year-on-year, reflecting typical seasonality [13] Q&A Session Summary Question: Can you talk about your existing footprint in the US and the ability to support customers who want to move manufacturing? - Management highlighted the extensive U.S. footprint with 30 sites and the capability to quickly establish operations to support customer needs [45][46] Question: Can you elaborate on the opportunity with silicon photonics and how you see that market growing? - Management indicated strong growth in AI revenue and highlighted the acquisition from Intel that enhanced capabilities in silicon photonics [51][52] Question: What should we read into the slight reductions in networking and healthcare forecasts for fiscal 2025? - Management clarified that the reductions were primarily due to uncertainties in the 5G infrastructure market [56] Question: Can you expand on the comment about GPU racks and liquid cooling continuing to accelerate? - Management explained that improved yields at launch are driven by design architecture and engineering capabilities, with significant potential in liquid cooling solutions [101][102] Question: How confident are you about EV production for the second half of the year? - Management expressed prudence in forecasts but noted that there are positive developments in the Chinese EV market that could offset some concerns [105][106]

Jabil (JBL) came out with quarterly earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.81 per share. This compares to earnings of $1.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.18%. A quarter ago, it was expected that this electronics manufacturer would post earnings of $1.87 per share when it actually produced earnings of $2, delivering a surprise of 6.95%.Over the last four quarters, the company ...

Financial Performance - Net revenue for Q2 fiscal year 2025 was $6.7 billion, slightly down from $6.8 billion in Q2 fiscal year 2024[5]. - U.S. GAAP operating income for Q2 was $245 million, compared to $1.1 billion in the same quarter last year[17]. - Core diluted earnings per share (Non-GAAP) for Q2 was $1.94, down from $7.31 in Q2 fiscal year 2024[17]. - The company reported a net income of $117 million for Q2, significantly lower than $927 million in Q2 fiscal year 2024[17]. - Net income for the six months ended February 28, 2025, was $217 million, a decrease from $1,121 million for the same period in 2024, representing a decline of approximately 80.7%[19]. - Operating income (U.S. GAAP) for the six months ended February 28, 2025, was $442 million, down from $1,434 million in the prior year, reflecting a decrease of about 69.1%[20]. - Diluted earnings per share (U.S. GAAP) for the six months ended February 28, 2025, was $1.93, down from $8.66 in the same period of 2024, a decline of approximately 77.7%[20]. Revenue Outlook - The company expects third quarter net revenue to be between $6.7 billion and $7.3 billion[3]. - Fiscal year 2025 net revenue outlook is set at $27.9 billion, with a core operating margin of 5.4%[4]. Cash Flow and Assets - Adjusted free cash flow for fiscal year 2025 is projected to exceed $1.2 billion[4]. - Total current assets as of February 28, 2025, were $12.6 billion, a decrease from $12.8 billion as of August 31, 2024[15]. - Cash and cash equivalents at the end of the period were $1,592 million, down from $2,566 million at the end of the same period in 2024, a decrease of about 37.9%[19]. - The company reported a net cash provided by operating activities of $646 million for the six months ended February 28, 2025, compared to $666 million for the same period in 2024, a slight decrease of 3%[22]. - Adjusted free cash flow (Non-GAAP) for the six months ended February 28, 2025, was $487 million, significantly higher than $221 million for the same period in 2024, indicating an increase of approximately 120%[22]. - Total cash flows used in financing activities for the six months ended February 28, 2025, were $746 million, compared to $1,455 million in the same period of 2024, a decrease of about 48.8%[19]. - The company reported a decrease in cash flows from investing activities, with a net cash used of $503 million for the six months ended February 28, 2025, compared to a net cash provided of $1,558 million in the prior year[19]. Business Operations - Jabil's diversified portfolio continues to show resilience, particularly in capital equipment and cloud infrastructure markets[2]. - The company incurred $361 million in cash paid for business and intangible asset acquisitions, net of cash, during the six months ended February 28, 2025, compared to $93 million in the prior year[19]. - The company recorded a gain from the divestiture of businesses of $942 million in the prior year, which significantly impacted the year-over-year comparison[20].

Financial Performance - Jabil Inc. is set to release its second-quarter financial results on March 20, with expected earnings of $1.83 per share, an increase from $1.68 per share in the same period last year [1] - The company projects quarterly revenue of $6.4 billion, down from $6.77 billion a year earlier [1] Strategic Collaborations - On February 25, Jabil announced a pilot and strategic collaboration with Apptronik to develop Apollo humanoid robots for integration into specific manufacturing operations [2] Analyst Ratings - Goldman Sachs analyst Mark Delaney maintained a Buy rating and raised the price target from $160 to $179 [4] - Barclays analyst George Wang maintained an Overweight rating and increased the price target from $157 to $179 [4] - Stifel analyst Matthew Sheerin reiterated a Buy rating and boosted the price target from $150 to $160 [4] - UBS analyst David Vogt maintained a Neutral rating and increased the price target from $128 to $152 [4] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating but cut the price target from $137 to $133 [4]