Revenue Performance - Net revenue for the three months ended February 28, 2025, was 6,728million,adecreaseof0.66,767 million for the same period in 2024[110]. - Net revenue for the six months ended February 28, 2025, was 13,722million,adecreaseof9.415,154 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 576million,representing8.6334 million, compared to 338millionforthesameperiodin2024[142].−Dilutedcoreearningspershare(Non−GAAP)increasedto1.94 for the three months ended February 28, 2025, from 1.68inthesameperiodin2024[142].ExpensesandCharges−Selling,generalandadministrativeexpensesdecreasedto256 million for the three months ended February 28, 2025, from 308millioninthesameperiodin2024[124].−Researchanddevelopmentexpensesremainedconsistentat7 million for the three months ended February 28, 2025, compared to 10millioninthesameperiodin2024[125].−Amortizationofintangiblesincreasedto15 million for the three months ended February 28, 2025, compared to 9millionforthesameperiodin2024,reflectingachangeof6 million[126]. - Restructuring, severance, and related charges decreased to 45millionforthethreemonthsendedFebruary28,2025,downfrom70 million in the same period in 2024, a change of (25)million[127].−Acquisitionanddivestiturerelatedchargesdecreasedto8 million for the three months ended February 28, 2025, compared to 46millioninthesameperiodin2024,achangeof(38) million[134]. - Interest expense, net decreased to 37millionforthethreemonthsendedFebruary28,2025,downfrom47 million in the same period in 2024, a change of (10)million[137].CashFlowandCapitalExpenditures−AdjustedfreecashflowforthesixmonthsendedFebruary28,2025,was487 million, a significant increase of 120% compared to 221millionforthesameperiodin2024[143].−NetcashprovidedbyoperatingactivitiesforthesixmonthsendedFebruary28,2025,was646 million, a decrease from 666millionforthesameperiodin2024[167].−Netcashusedininvestingactivitieswas(503) million for the six months ended February 28, 2025, compared to 1,558millionforthesameperiodin2024[167].−Thecompanyanticipatesnetcapitalexpenditurestobeintherangeof1.5307 million, enhancing the company's service offerings in regulated industries[144]. - The acquisition of Mikros Technologies was completed for 63million,focusingonliquidcoolingsolutionsforthermalmanagement[146].−ThedivestitureoftheMobilityBusinessresultedinapre−taxgainof944 million, with transaction costs of approximately 46millionincurredduringthesaleprocess[148].−Thecompanyrecordedassetsacquiredof349 million from the acquisition of Pharmaceutics International, including 149millioninintangibleassets[145].−Thecompanyincurredtransactionanddisposalcostsofapproximately67 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 1.6billionincashandcashequivalents,withasignificantportionheldbyforeignsubsidiaries[157].−Thecompanyhad4.0 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 2.0billionoftradeaccountsreceivableduringthesixmonthsendedFebruary28,2025[164].−Theglobalasset−backedsecuritizationprogram′smaximumcashproceedsavailableatanyonetimeis700 million, with terms amended to extend the termination date to January 2028[163]. - The company sold 2.0billionand3.7 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 571millionasofFebruary28,2025[166].ShareRepurchaseandStockInformation−Thecompanyrepurchasedsharesofcommonstocktotaling972 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 142.55pershare[185].−AsofFebruary28,2025,theapproximatedollarvalueofsharesthatmayyetbepurchasedundertheannouncedprogramis364 million[185]. - The Board of Directors authorized a share repurchase program of up to 1.0billioninSeptember2024[185].−TheaveragepricepaidpersharefortherepurchasedsharesinJanuary2025was169.14, 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].
Jabil(JBL)2025-04-08 11:32