Jabil(US:JBL)2025-06-30 11:50Financial Performance - Net revenue for the three months ended May 31, 2025, was $7,828 million, a 15.7% increase from $6,765 million for the same period in 2024[117] - Gross profit for the three months ended May 31, 2025, was $681 million, representing 8.7% of net revenue, down from 9.0% in the same period in 2024[128] - Net income attributable to Jabil Inc. for the three months ended May 31, 2025, was $222 million, compared to $129 million for the same period in 2024[117] - Operating income for the three months ended May 31, 2025, was $403 million, up from $261 million in the same period last year, representing a 54% increase[152] - Core operating income (Non-GAAP) for the nine months ended May 31, 2025, was $1,101 million, compared to $1,187 million for the same period in 2024, reflecting a decrease of 7.2%[152] - Adjusted free cash flow (Non-GAAP) for the nine months ended May 31, 2025, was $813 million, an increase from $636 million in the prior year, marking a 27.8% growth[153] Segment Performance - Intelligent Infrastructure segment net revenue increased by 51%, driven by a 40% increase in cloud and data center infrastructure revenues and a 13% increase in capital equipment revenues[125] - The Connected Living and Digital Commerce segment net revenue decreased by 7% due to a 7% decrease in revenues from existing customers[125] - The Regulated Industries segment accounted for 39% of net revenue for the three months ended May 31, 2025, down from 45% in the same period in 2024[127] Expenses and Charges - Selling, general and administrative expenses for the three months ended May 31, 2025, increased to $274 million from $268 million in the same period in 2024[129] - Research and development expenses for the three months ended May 31, 2025, were $7 million, consistent with 0.1% of net revenue, compared to $9 million for the same period in 2024[131] - Amortization of intangibles increased to $17 million for the three months ended May 31, 2025, from $12 million in the same period of 2024, primarily due to acquisitions[132] - Restructuring, severance, and related charges decreased to $16 million for the three months ended May 31, 2025, from $55 million in the same period in 2024[134] - Other expense increased to $30 million for the three months ended May 31, 2025, compared to $22 million in the same period of 2024[144] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended May 31, 2025, was $1,052 million, compared to $1,181 million for the same period in 2024[178] - Net cash used in investing activities during the nine months ended May 31, 2025, was $(578) million, primarily due to acquisitions and capital expenditures[180] - The company anticipates net capital expenditures for Fiscal Year 2025 to be in the range of 1.5% to 2.0% of net revenue[182] Acquisitions and Divestitures - The acquisition of Pharmaceutics International, Inc. was completed for a cash consideration of $309 million, enhancing the company's service offerings in regulated industries[155] - The company signed a binding share purchase agreement for the acquisition of Rebound Technologies Group Holdings Limited, a global supply chain service provider, on June 2, 2025[154] - The divestiture of the Mobility Business resulted in a pre-tax gain of $942 million for the fiscal year ended August 31, 2024[163] - 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[163] Debt and Financing - Total notes payable as of May 31, 2025, amounted to $2,884 million, reflecting a slight increase from $2,880 million as of August 31, 2024[167] - As of May 31, 2025, the company had $4.0 billion in available unused borrowing capacity under existing revolving credit facilities, with $3.2 billion available under the Existing Credit Facility[168] - The company entered into a new senior unsecured credit agreement on June 18, 2025, providing a five-year revolving credit facility of $3.2 billion, potentially increaseable by up to $1.0 billion[169] Share Repurchase and Warrants - The company repurchased 6.5 million shares for $975 million under the 2025 Share Repurchase Program as of May 31, 2025[184] - The company repurchased a total of 2,221,905 shares of common stock during the three months ended May 31, 2025, at an average price of $137.87 per share[196] - The Board of Directors authorized a share repurchase program of up to $1.0 billion in September 2024[196] - The company issued a warrant to Amazon.com NV Investment Holdings LLC for up to 1,158,539 ordinary shares at an initial exercise price of $137.77 per share, with 59,582 shares vested upon issuance[186] - As of May 31, 2025, there are 1,098,957 outstanding warrant shares, with 59,582 exercisable[189] Tax and Other Financial Metrics - Effective income tax rate for the three months ended May 31, 2025, was 23.7%, a decrease of 12.0% from 35.7% in the same period of 2024[148] - Interest expense, net decreased to $112 million for the nine months ended May 31, 2025, from $132 million in the same period of 2024, due to lower interest rates[146] - Loss on securities amounted to $46 million during the three months ended May 31, 2025, related to an impairment of an investment in Preferred Stock[143] Risk Management and Internal Controls - There were no material changes in the company's primary risk exposures or management of market risks since the last annual report[191] - The company did not identify any modifications to its internal control over financial reporting that materially affected its financial reporting for the fiscal quarter ended May 31, 2025[193] - The company’s disclosure controls and procedures were evaluated and deemed effective as of May 31, 2025[192] - The company has no material changes to its contractual obligations and commitments since August 31, 2024[190] - There were no defaults upon senior securities reported during the period[197]