Jabil(JBL)2025-04-08 11:32Revenue 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].