Jabil(JBL) - 2025 Q3 - Quarterly Results

Financial Performance - Net revenue for the third quarter of fiscal year 2025 was $7.8 billion, an increase from $6.765 billion in the same period last year, representing a growth of approximately 15.0%[5] - U.S. GAAP operating income for the third quarter was $403 million, compared to $261 million in the prior year, reflecting a year-over-year increase of approximately 54.3%[16] - Core diluted earnings per share (Non-GAAP) for the third quarter were $2.55, up from $1.06 in the same quarter last year, indicating a significant increase of approximately 140.5%[5] - Jabil reported a gross profit of $681 million for the third quarter, compared to $608 million in the same quarter last year, marking an increase of approximately 12.0%[16] - Net income for the nine months ended May 31, 2025, was $439 million, a decrease from $1,250 million in the same period of 2024[19] - Operating income for the nine months ended May 31, 2025, was $845 million, down from $1,695 million in the prior year[21] - Diluted earnings per share (U.S. GAAP) for the nine months ended May 31, 2025, was $3.94, compared to $9.86 in the prior year[21] - Core earnings (Non-GAAP) for the nine months ended May 31, 2025, were $722 million, compared to $786 million in the same period of 2024[21] Future Projections - The company expects fourth quarter net revenue to be between $7.1 billion and $7.8 billion, with core diluted earnings per share projected to be between $2.64 and $3.04[3] - For fiscal year 2025, Jabil anticipates net revenue of $29 billion and a core operating margin (Non-GAAP) of 5.4%[4] Cash Flow and Assets - Adjusted free cash flow for fiscal year 2025 is expected to exceed $1.2 billion, indicating strong cash generation capabilities[4] - Adjusted free cash flow for the nine months ended May 31, 2025, was $813 million, compared to $636 million for the same period in 2024[23] - Cash flows provided by operating activities for the nine months ended May 31, 2025, totaled $1,052 million, a decrease from $1,181 million in 2024[19] - Total cash and cash equivalents at the end of the period were $1,523 million, down from $2,457 million at the end of the same period in 2024[19] - The company incurred $393 million in cash paid for business and intangible asset acquisitions during the nine months ended May 31, 2025[19] - The company’s net cash used in financing activities for the nine months ended May 31, 2025, was $1,165 million, down from $1,989 million in 2024[19] Growth Segments and Strategy - The Intelligent Infrastructure segment is identified as a critical growth engine, driven by increasing demand for AI technologies[2] - The company is focused on enhancing core margins and optimizing cash flow, with plans for share repurchases and targeted investments in higher-margin opportunities[2] Total Assets - Total assets increased to $18.587 billion as of May 31, 2025, up from $17.351 billion at the end of the previous fiscal year, reflecting a growth of approximately 7.1%[15] Divestitures - The company recorded a pre-tax gain of $54 million from the divestiture of businesses during the three months ended May 31, 2025[21]