Jabil(JBL) - 2025 Q4 - Annual Report

Part I Item 1. Business Jabil provides global engineering, manufacturing, and supply chain solutions, reporting $29.8 billion net revenues and $657 million net income in FY2025 - Jabil is a leading global provider of engineering, manufacturing, and supply chain solutions, offering comprehensive design, production, and product management services across diverse industries[13] Fiscal Year 2025 Key Financials | Metric | Amount | | :--------------------------------- | :------------- | | Net Revenues (FY2025) | $29.8 billion | | Net Income Attributable to Jabil Inc. (FY2025) | $657 million | - The company's business is reported in three segments: Regulated Industries (automotive, healthcare, renewables), Intelligent Infrastructure (AI infrastructure, capital equipment, cloud/data center, networking), and Connected Living and Digital Commerce (digitalization, automation, warehouse automation, robotics)[16] - Key strategies include establishing and maintaining long-term customer relationships, product diversification towards higher-return segments, utilizing customer-centric business units, leveraging global production capabilities, expanding value-added services, delivering design expertise, and pursuing strategic acquisitions[20][21] - R&D efforts focus on advanced manufacturing and testing technologies, including automation, next-generation electronic interconnections, advanced materials science, ceramic/metal/plastic injection molding, advanced coating solutions, thermal management, advanced sensor integration, optical sensors, co-packaged optics, silicon photonics, sterilization, device filling, fluid management, outsourced semiconductor assembly and test (OSAT), sustainable materials, and artificial intelligence/machine learning[25][26][27][35] Net Revenue Concentration by Customer | Customer | Percentage of Net Revenue (FY2025) | | :--------- | :--------------------------------- | | Customer A | 16 % | - As of August 31, 2025, Jabil had a global workforce of 135,000 employees across approximately 100 locations in 30 countries[39] - Michael Dastoor was named Chief Executive Officer in May 2024, and Gregory B. Hebard was named Chief Financial Officer in May 2024[58][59] Item 1A. Risk Factors The company faces substantial risks from customer dependence, supply chain disruptions, international operations, and regulatory compliance - The company's ability to schedule production and maximize efficiency is highly dependent on customer actions, with most customers not committing to firm production schedules for more than one quarter, leading to risks of order cancellations, quantity changes, or delays[69][70][71] - A significant portion of net revenue depends on a limited number of customers; in fiscal year 2025, the five largest customers accounted for approximately 36% of net revenue, making the company vulnerable to reductions in business from these key clients[74][30] - Supply chain risks include component shortages (especially single-source components), increased prices due to inflation, and the potential inability to pass these costs to customers, which can impact gross profit margins[75][76][77] - Extensive international operations (majority of revenues) expose the company to risks such as geopolitical unrest (e.g., Russia/Ukraine conflict, Israel-Hamas war), tariffs and trade barriers (e.g., U.S. tariffs on Chinese goods), currency fluctuations, rising labor costs, and complex foreign laws and regulations[79][93][97][98][138] - Cybersecurity threats, including security breaches, data losses, and outages, pose significant risks, potentially exacerbated by the increased use of AI technologies, leading to operational disruptions, litigation, and reputational harm[113] - Compliance with extensive government regulations and industry standards, including FDA's Quality System Regulation (QSR) for medical devices and environmental laws, is critical; non-compliance could lead to fines, production suspension, or reputational damage[114][116][118] - Financial risks include exposure to financially troubled customers or suppliers, which can lead to difficulties in recovering amounts owed, increased inventory carrying costs, and adverse impacts on operating results and cash flows[129] - The company is subject to the risk of increased taxes due to changes in tax laws, interpretations by taxing authorities, or changes in the mix of earnings between jurisdictions, with the OECD's 15% global minimum corporate tax rate potentially impacting future effective tax rates[131][132][133] Item 1B. Unresolved Staff Comments Jabil Inc. reports no unresolved written comments from the SEC staff regarding its periodic or current reports - No unresolved written comments from the SEC staff regarding periodic or current reports[145] Item 1C. Cybersecurity Jabil's cybersecurity program, integrated into enterprise risk management, identifies and mitigates risks under Board oversight - Jabil's cybersecurity risk management program is integrated into its global enterprise risk management framework, focusing on identifying, monitoring, and mitigating key strategic risks, including data protection and cybersecurity[147] - Key components of the program include cybersecurity policies, risk assessments, industry-standard technical safeguards, regular employee training, engagement of third-party cybersecurity experts, and a Cybersecurity Incident Response Team (CIRT) for prevention, detection, mitigation, and remediation[147][148] - The Board's Cybersecurity Committee oversees the company's cybersecurity programs and risks, receiving quarterly reports from the Chief Information Security Officer (CISO)[149][150][151] - The CISO, with over 39 years of experience and industry certifications, leads the Corporate Information Security organization, while a new CISO with over 20 years of experience transitioned into the role effective September 1, 2025[152][154] Item 2. Properties Jabil owns or leases approximately 35 million square feet of global facilities, primarily in Asia, Americas, and Europe, deemed adequate for operations - Jabil owns or leases facilities globally, primarily in Asia, Americas, and Europe, which are considered in good condition and adequate for business operations[155] Approximate Square Footage of Facilities (as of August 31, 2025) | Region | Approximate Square Footage (in millions) | | :--------- | :--------------------------------------- | | Asia | 17 | | Americas | 13 | | Europe | 5 | | Total | 35 | - Approximately 10% of the total square footage is not currently used in business operations. The total includes 14 million square feet in owned facilities and 21 million square feet in leased facilities[156] Item 3. Legal Proceedings Legal proceedings information is incorporated by reference from Note 19 – 'Commitments and Contingencies' to the Consolidated Financial Statements - Legal proceedings information is incorporated by reference from Note 19 – 'Commitments and Contingencies' to the Consolidated Financial Statements[157] Item 4. Mine Safety Disclosures This item is not applicable to Jabil Inc - This item is not applicable[158] Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Jabil's common stock trades on the NYSE, with 956 holders as of October 10, 2025, and the company repurchased 103,031 shares in Q4 FY2025 - Jabil's common stock trades on the New York Stock Exchange under the symbol "JBL". As of October 10, 2025, there were 956 holders of record[159][161] - The company expects to continue declaring and paying quarterly dividends in amounts similar to past declarations, subject to Board review of financial performance and global economic conditions[160] Cumulative Total Stockholder Return (5-Year Period Ending August 31, 2025) | August 31 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | :---------- | :--- | :--- | :--- | :--- | :--- | :--- | | Jabil Inc. | $100 | $182 | $179 | $340 | $326 | $612 | | S&P 500 Index | $100 | $131 | $116 | $135 | $172 | $199 | | Peer Group | $100 | $157 | $150 | $164 | $280 | $396 | Issuer Purchases of Equity Securities (Three Months Ended August 31, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | | :--------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------- | | June 1, 2025 – June 30, 2025 | — | — | — | | July 1, 2025 – July 31, 2025 | 10,018 | $225.14 | 4,050 | | August 1, 2025 – August 31, 2025 | 93,013 | $219.10 | 93,013 | | Total | 103,031 | $219.69 | 97,063 | - In July 2025, the Board authorized a new $1.0 billion share repurchase program (2026 Share Repurchase Program), with $865 million remaining available as of October 10, 2025[167][271] - A warrant was issued to Amazon.com NV Investment Holdings LLC on December 27, 2024, to acquire up to 1,158,539 ordinary shares at an initial exercise price of $137.7671 per share, vesting over a seven-year term[167][275] Item 6. [Reserved] This item is reserved and contains no content - This item is reserved and contains no content[168] Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations This section analyzes Jabil's financial performance, highlighting a 3.2% increase in net revenue to $29.8 billion in FY2025, with decreased operating income and strong liquidity - Jabil provides comprehensive electronics design, production, and product management services, with revenue primarily derived from manufacturing services[169] Summary of Key Operating Results (in millions, except per share data) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :-------- | :-------- | :-------- | | Net revenue | $29,802 | $28,883 | $34,702 | | Gross profit | $2,646 | $2,676 | $2,867 | | Operating income | $1,182 | $2,013 | $1,537 | | Net income attributable to Jabil Inc. | $657 | $1,388 | $818 | | Earnings per share – diluted | $5.92 | $11.17 | $6.02 | Key Financial Performance Indicators (Three Months Ended) | Indicator | August 31, 2025 | May 31, 2025 | August 31, 2024 | | :------------------------ | :-------------- | :----------- | :-------------- | | Sales cycle | 18 days | 24 days | 34 days | | Inventory turns (annualized) | 5 turns | 5 turns | 5 turns | | Days in accounts receivable | 44 days | 46 days | 46 days | | Days in inventory | 69 days | 74 days | 76 days | | Days in accounts payable | 96 days | 96 days | 88 days | - Net revenue increased by 3.2% in FY2025 compared to FY2024, primarily driven by a 34% increase in the Intelligent Infrastructure segment, offset by a 25% decrease in the Connected Living and Digital Commerce segment due to the divestiture of the Mobility Business[193][194] - Gross profit as a percentage of net revenue decreased to 8.9% in FY2025 from 9.3% in FY2024, mainly due to product mix changes in the Connected Living and Digital Commerce and Intelligent Infrastructure segments[197] Restructuring, Severance, and Related Charges (in millions) | Category | FY2025 | FY2024 | FY2023 | | :------------------------------------- | :----- | :----- | :----- | | Restructuring, severance and related charges | $181 | $296 | $57 | - In FY2025, the company recognized a pre-tax loss of $53 million from divestitures, primarily due to the sale of Italian operations, partially offset by post-closing adjustments from the Mobility Business divestiture. This contrasts with a $942 million pre-tax gain in FY2024 from the Mobility Business divestiture[210][211] Adjusted Free Cash Flow (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $1,640 | $1,716 | $1,734 | | Acquisition of PP&E | $(468) | $(784) | $(1,030) | | Proceeds and advances from sale of PP&E | $146 | $123 | $322 | | Adjusted free cash flow | $1,318| $1,055| $1,026| - In FY2025, Jabil acquired Pharmaceutics International, Inc. for $309 million (enhancing Regulated Industries) and Mikros Technologies LLC for $63 million (for liquid cooling solutions in Intelligent Infrastructure)[239][241] - As of August 31, 2025, Jabil had approximately $1.9 billion in cash and cash equivalents, with a significant portion held by foreign subsidiaries, most of which could be repatriated without potential tax expense[251] Total Notes Payable and Long-Term Debt (in millions) | Fiscal Year Ended August 31, | Amount | | :--------------------------- | :----- | | 2025 | $2,885 | | 2024 | $2,880 | Dividends Paid and Share Repurchases (in millions) | Fiscal Year | Dividends Paid | Share Repurchases | | :------------ | :------------- | :---------------- | | 2025 | $36 | $1,000 | | 2024 | $42 | $2,500 | | 2023 | $45 | $487 | Item 7A. Quantitative and Qualitative Disclosures About Market Risk Jabil manages market risks from foreign currency and interest rate fluctuations using derivative instruments, with hypothetical changes not materially affecting financials - Jabil is subject to foreign currency exchange rate fluctuations and uses forward foreign exchange contracts to economically hedge transactional exposure from commitments in non-U.S. dollar currencies, primarily Chinese yuan renminbi, Euro, Indian Rupee, Malaysian Ringgit, and Mexican peso[280][281] - The company is exposed to interest rate risk primarily on intra-quarter variable rate borrowings under its Credit Facility and commercial paper program[284] - Jabil periodically enters into interest rate swaps to manage interest rate risk, with $100 million in aggregate notional amount of forward interest rate swaps scheduled to expire on July 31, 2026, as of August 31, 2025[286] - A hypothetical 10% change in foreign currency exchange rates or a 100-basis-point change in interest rates would not have a material effect on the consolidated financial statements[282][285] Item 8. Financial Statements and Supplementary Data This item incorporates financial statements and supplementary data by reference from Item 7 and Item 15 of this report - Information required by this item is included in Item 7 under "Quarterly Results" and incorporated by reference from Item 15 of Part IV[287] Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Jabil Inc. reports no changes in or disagreements with its accountants on accounting and financial disclosure - There have been no changes in or disagreements with Jabil's accountants on accounting and financial disclosure[288] Item 9A. Controls and Procedures Jabil's CEO and CFO concluded disclosure controls and internal control over financial reporting were effective as of August 31, 2025, affirmed by auditors - The CEO and CFO concluded that Jabil's disclosure controls and procedures were effective as of August 31, 2025[289] - Management assessed and concluded that the company maintained effective internal control over financial reporting as of August 31, 2025, a conclusion supported by an audit report from Ernst & Young LLP[290][319] - No modifications to internal control over financial reporting that materially affected or are reasonably likely to materially affect internal control over financial reporting were identified for the fiscal quarter ended August 31, 2025[294] Item 9B. Other Information This section details Rule 10b5-1 trading plans adopted, modified, or terminated by executive officers during the three months ended August 31, 2025 - Michael Dastoor, CEO, entered into a Rule 10b5-1 plan on June 27, 2025, for the sale of up to 54,381 shares, terminated it on July 7, 2025, and entered a new plan on July 8, 2025, for the same number of shares[295] - Gregory Hebard, CFO, entered into a Rule 10b5-1 trading plan on June 26, 2025, for the sale of up to 8,944 shares[296] Part III Item 10. Directors, Executive Officers and Corporate Governance Information on executive officers is in Item 1 of Part I; other details on directors, corporate governance, and audit committee matters are incorporated by reference from the Proxy Statement - Information on executive officers is in Item 1 of Part I; other details on directors, corporate governance, and audit committee matters are incorporated by reference from the Proxy Statement[298] Item 11. Executive Compensation Information on executive compensation, director compensation, and Compensation Committee details is incorporated by reference from Jabil's Proxy Statement - Information on executive compensation, director compensation, and Compensation Committee interlocks and insider participation is incorporated by reference from the Proxy Statement[299] Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information on security ownership by principal stockholders and management, and equity compensation plan details, is incorporated by reference from the Proxy Statement - Information on security ownership by principal stockholders and management, and equity compensation plan information, is incorporated by reference from the Proxy Statement[300] Item 13. Certain Relationships and Related Transactions, and Director Independence Information on certain relationships and related transactions, and director independence, is incorporated by reference from Jabil's Proxy Statement - Information on certain relationships and related transactions, and director independence determinations, is incorporated by reference from the Proxy Statement[301] Item 14. Principal Accounting Fees and Services Information on principal accounting fees and services, including the Audit Committee's pre-approval policy, is incorporated by reference from Jabil's Proxy Statement - Information on principal accounting fees and services, and the Audit Committee's policy on pre-approval, is incorporated by reference from the Proxy Statement[302] Part IV Item 15. Exhibits and Financial Statement Schedules This item lists consolidated financial statements, schedules, and various exhibits, including auditor reports and corporate documents - The report includes consolidated financial statements and related notes, along with a financial statement schedule[303][307] - A comprehensive exhibit list is provided, detailing corporate documents, debt instruments, equity incentive plans, and other agreements incorporated by reference or filed herewith[306][308][310] Index to Consolidated Financial Statements and Schedule This section indexes consolidated financial statements and schedules, including Management's Report on Internal Control, auditor reports, and various financial statements - The index lists Management's Report on Internal Control over Financial Reporting, Reports of Independent Registered Public Accounting Firm, and the Consolidated Financial Statements (Balance Sheets, Statements of Operations, Comprehensive Income, Stockholders' Equity, Cash Flows, and Notes)[313] - Schedule II – Valuation and Qualifying Accounts is also included in the index[313] Management's Report on Internal Control over Financial Reporting Jabil's management, under CEO and CFO supervision, assessed and concluded internal control over financial reporting was effective as of August 31, 2025, affirmed by Ernst & Young LLP - Management is responsible for establishing and maintaining adequate internal control over financial reporting[316] - Based on an assessment using the COSO framework, management concluded that Jabil maintained effective internal control over financial reporting as of August 31, 2025[318][319] - Ernst & Young LLP, the independent registered public accounting firm, issued an unqualified audit report on the effectiveness of the company's internal control over financial reporting[319] Report of Independent Registered Public Accounting Firm (Internal Control) Ernst & Young LLP issued an unqualified opinion on Jabil Inc.'s effective internal control over financial reporting as of August 31, 2025, based on COSO criteria - Ernst & Young LLP expressed an unqualified opinion that Jabil Inc. maintained effective internal control over financial reporting as of August 31, 2025, based on the COSO criteria[323] - The audit was conducted in accordance with PCAOB standards, aiming to obtain reasonable assurance about the maintenance of effective internal control over financial reporting[326][327] Report of Independent Registered Public Accounting Firm (Financial Statements) Ernst & Young LLP issued an unqualified opinion on Jabil Inc.'s consolidated financial statements for the three years ended August 31, 2025, identifying uncertain tax positions as a critical audit matter - Ernst & Young LLP issued an unqualified opinion on Jabil Inc.'s consolidated financial statements for the three years ended August 31, 2025, stating they are presented fairly in all material respects in conformity with U.S. GAAP[333] - The critical audit matter identified was 'Uncertain Tax Positions,' specifically regarding the application of transfer pricing rules to intercompany transactions, due to the judgmental nature of recognition and measurement based on interpretations of tax laws[337][339] - The audit addressed this matter by testing internal controls, assessing technical merits with tax professionals, evaluating assumptions, and testing calculation accuracy[339] Consolidated Financial Statements Consolidated Balance Sheets Presents Jabil Inc.'s financial position, including assets, liabilities, and equity, as of August 31, 2025, and 2024 Consolidated Balance Sheets (in millions) | ASSETS | August 31, 2025 | August 31, 2024 | | :----------------------------------------- | :-------------- | :-------------- | | Cash and cash equivalents | $1,933 | $2,201 | | Accounts receivable, net | $4,039 | $3,533 | | Inventories, net | $4,681 | $4,276 | | Total current assets | $13,720 | $12,791 | | Property, plant and equipment, net | $2,847 | $3,024 | | Goodwill | $841 | $661 | | Total assets | $18,543 | $17,351 | | LIABILITIES AND EQUITY | | | | Accounts payable | $7,937 | $6,190 | | Accrued expenses | $5,185 | $5,499 | | Total current liabilities | $13,714 | $11,782 | | Notes payable and long-term debt, less current installments | $2,386 | $2,880 | | Total liabilities | $17,026 | $15,614 | | Total Jabil Inc. stockholders' equity | $1,513 | $1,737 | | Total equity | $1,517 | $1,737 | Consolidated Statements of Operations Presents Jabil Inc.'s financial performance, including revenues, expenses, and net income, for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Operations (in millions, except per share data) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :-------- | :-------- | :-------- | | Net revenue | $29,802 | $28,883 | $34,702 | | Cost of revenue | $27,156 | $26,207 | $31,835 | | Gross profit | $2,646 | $2,676 | $2,867 | | Operating income | $1,182 | $2,013 | $1,537 | | Income before income tax | $892 | $1,751 | $1,262 | | Income tax expense | $235 | $363 | $444 | | Net income attributable to Jabil Inc. | $657 | $1,388 | $818 | | Earnings per share – diluted | $5.92 | $11.17 | $6.02 | Consolidated Statements of Comprehensive Income Presents Jabil Inc.'s comprehensive income, including net income and other comprehensive income components, for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Comprehensive Income (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------------------- | :----- | :----- | :----- | | Net income | $657 | $1,388 | $818 | | Change in foreign currency translation | $16 | $(5) | $25 | | Change in derivative instruments | $19 | $(2) | $17 | | Actuarial loss | $(11) | $(17) | $(19) | | Prior service credit (cost) | $5 | $(5) | $2 | | Total other comprehensive income (loss) | $29 | $(29) | $25 | | Comprehensive income | $686 | $1,359 | $843 | Consolidated Statements of Stockholders' Equity Presents changes in Jabil Inc.'s stockholders' equity, including retained earnings and treasury stock, for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Stockholders' Equity (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :-------- | :-------- | :-------- | | Total stockholders' equity, beginning balances | $1,737 | $2,867 | $2,452 | | Additional paid-in capital, ending balances | $3,047 | $2,841 | $2,795 | | Retained earnings, ending balances | $6,382 | $5,760 | $4,412 | | Accumulated other comprehensive loss, ending balances | $(17) | $(46) | $(17) | | Treasury stock, ending balances | $(7,899) | $(6,818) | $(4,324) | | Total stockholders' equity, ending balances | $1,517 | $1,737 | $2,867 | Consolidated Statements of Cash Flows Presents Jabil Inc.'s cash flows from operating, investing, and financing activities for the fiscal years ended August 31, 2025, 2024, and 2023 Consolidated Statements of Cash Flows (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | $1,640 | $1,716 | $1,734 | | Net cash (used in) provided by investing activities | $(714) | $1,351 | $(723) | | Net cash used in financing activities | $(1,204) | $(2,668) | $(680) | | Net (decrease) increase in cash and cash equivalents | $(268) | $397 | $326 | | Cash and cash equivalents at end of period | $1,933 | $2,201 | $1,804 | Notes to Consolidated Financial Statements Note 1. Description of Business and Summary of Significant Accounting Policies Describes Jabil Inc.'s business, including its services and revenue sources, and outlines significant accounting policies, estimates, and asset classification criteria - Jabil Inc. provides comprehensive electronics design, production, and product management services, primarily deriving revenue from manufacturing services[357][384] - The consolidated financial statements include Jabil and its wholly-owned and majority-owned subsidiaries, with all significant intercompany balances eliminated[358] - Management makes estimates and assumptions in preparing financial statements, which affect reported amounts of assets, liabilities, revenues, and expenses[359] - Assets and liabilities are classified as held for sale when specific criteria are met, including management commitment to a sale plan and probable transfer within one year[360] - Revenue is generally recognized over time for manufactured products with no alternative use and an enforceable right to payment for work completed, based on costs incurred to date[386][389] - Stock-based compensation expense is recognized on a straight-line basis over the vesting period, with fair value measured at grant date for time-based and performance-based awards, and using a Monte Carlo model for market-based awards[394][395][396] - Deferred tax assets and liabilities are recognized for future tax consequences of temporary differences, with a valuation allowance established for assets not deemed more likely than not to be realized[400] Note 2. Trade Accounts Receivable Sale Programs Details Jabil's programs for selling trade accounts receivable to financial institutions without recourse, including outstanding balances and pre-tax losses on sales - Jabil regularly sells designated pools of high credit quality trade accounts receivable to unaffiliated financial institutions without recourse under uncommitted sale programs[405] - The outstanding balance of receivables sold and not yet collected was approximately $927 million as of August 31, 2025, compared to $367 million as of August 31, 2024[406] Trade Accounts Receivable Sale Programs Financials (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------- | :-------- | :-------- | :-------- | | Trade accounts receivable sold | $11,358 | $8,214 | $10,784 | | Cash proceeds received | $11,300 | $8,170 | $10,748 | | Pre-tax losses on sale of receivables | $58 | $44 | $36 | Note 3. Inventories Provides a detailed breakdown of Jabil's inventory composition, including raw materials, work in process, finished goods, and reserves for excess and obsolete inventory Inventories Composition (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------------- | :-------------- | :-------------- | | Raw materials | $3,905 | $3,903 | | Work in process | $335 | $190 | | Finished goods | $508 | $246 | | Reserve for excess and obsolete inventory | $(67) | $(63) | | Inventories, net | $4,681 | $4,276 | Note 4. Property, Plant and Equipment Details Jabil's property, plant, and equipment, including land, buildings, machinery, and construction in progress, along with accumulated depreciation and related expenses Property, Plant and Equipment (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------------- | :-------------- | :-------------- | | Land and improvements | $95 | $108 | | Buildings | $1,486 | $1,451 | | Machinery and equipment | $4,122 | $4,125 | | Construction in progress | $356 | $346 | | Property, plant and equipment | $7,817 | $7,760 | | Less accumulated depreciation and amortization | $4,970 | $4,736 | | Property, plant and equipment, net | $2,847 | $3,024 | Depreciation and Maintenance Expenses (in millions) | Expense | FY2025 | FY2024 | FY2023 | | :----------------------- | :----- | :----- | :----- | | Depreciation expense | $612 | $656 | $891 | | Maintenance and repair expense | $271 | $335 | $431 | Note 5. Leases Provides details on Jabil's operating and finance lease assets and liabilities, net lease costs, weighted-average lease terms, discount rates, and maturity analysis of lease liabilities Lease Assets and Liabilities (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------ | :-------------- | :-------------- | | Operating lease right-of-use assets | $462 | $360 | | Finance lease assets | $391 | $378 | | Current operating lease liabilities | $93 | $93 | | Current finance lease liabilities | $199 | $119 | | Non-current operating lease liabilities | $388 | $284 | | Non-current finance lease liabilities | $166 | $235 | Net Lease Cost (in millions) | Metric | FY2025 | FY2024 | | :--------------- | :----- | :----- | | Operating lease cost | $119 | $118 | | Finance lease cost | | | | Amortization of leased assets | $42 | $50 | | Interest on lease liabilities | $11 | $10 | | Net lease cost | $172 | $178 | Weighted-Average Lease Terms and Discount Rates | Lease Type | August 31, 2025 (Remaining Lease Term) | August 31, 2025 (Discount Rate) | August 31, 2024 (Remaining Lease Term) | August 31, 2024 (Discount Rate) | | :-------------- | :------------------------------------- | :------------------------------ | :------------------------------------- | :------------------------------ | | Operating leases | 7.7 years | 4.39 % | 5.7 years | 3.80 % | | Finance leases | 6.5 years | 3.57 % | 5.2 years | 4.23 % | Maturity Analysis of Lease Liabilities (as of August 31, 2025, in millions) | Fiscal Year Ended August 31, | Operating Leases | Finance Leases | Total | | :--------------------------- | :--------------- | :------------- | :---- | | 2026 | $112 | $208 | $320 | | 2027 | $91 | $43 | $134 | | 2028 | $74 | $22 | $96 | | 2029 | $67 | $16 | $83 | | 2030 | $51 | $14 | $65 | | Thereafter | $199 | $119 | $318 | | Total lease payments | $594 | $422 | $1,016 | Note 6. Goodwill and Other Intangible Assets Discusses Jabil's goodwill and intangible assets, including segment reorganization, impairment testing, and estimated future amortization expense - Jabil reorganized its internal structure on September 1, 2024, resulting in three new operating segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce. Goodwill was tested for impairment before and after the reorganization, with no impairment found[413][414] - The annual goodwill impairment analysis for FY2025 determined that the fair values of the reporting units exceeded their carrying values, indicating no impairment[415] Goodwill by Reportable Segment (in millions) | Segment | August 31, 2025 | August 31, 2024 | | :----------------------------- | :-------------- | :-------------- | | Regulated Industries | $673 | $490 | | Intelligent Infrastructure | $76 | $69 | | Connected Living and Digital Commerce | $92 | $102 | | Total | $841 | $661 | Intangible Assets (in millions) | Category | August 31, 2025 (Net Carrying Amount) | August 31, 2024 (Net Carrying Amount) | | :------------------------------------- | :------------------------------------ | :------------------------------------ | | Contractual agreements and customer relationships | $202 | $91 | | Intellectual property | $58 | $17 | | Finite-lived trade names | $13 | $35 | | Total intangible assets | $273 | $143 | Estimated Future Amortization Expense (in millions) | Fiscal Year Ended August 31, | Amount | | :--------------------------- | :----- | | 2026 | $50 | | 2027 | $41 | | 2028 | $37 | | 2029 | $30 | | 2030 | $28 | | Thereafter | $87 | | Total | $273 | Note 7. Notes Payable and Long-Term Debt Outlines Jabil's notes payable and long-term debt, including senior notes, credit facilities, debt maturities, and compliance with debt covenants Notes Payable and Long-Term Debt Outstanding (in millions) | Note Type | Maturity Date | August 31, 2025 | August 31, 2024 | | :------------------ | :------------ | :-------------- | :-------------- | | 3.950% Senior Notes | Jan 12, 2028 | $499 | $498 | | 3.600% Senior Notes | Jan 15, 2030 | $498 | $497 | | 3.000% Senior Notes | Jan 15, 2031 | $595 | $594 | | 1.700% Senior Notes | Apr 15, 2026 | $499 | $499 | | 4.250% Senior Notes | May 15, 2027 | $497 | $496 | | 5.450% Senior Notes | Feb 1, 2029 | $297 | $296 | | Total | | $2,885 | $2,880 | - On June 18, 2025, Jabil entered into a new five-year revolving credit facility of $3.2 billion, which may be increased by up to $1.0 billion, expiring on June 18, 2030[419] - As of August 31, 2025, Jabil had $4.0 billion in available unused borrowing capacity under its existing revolving credit facilities, including $3.2 billion under the new Revolving Credit Facility[421] Debt Maturities (as of August 31, 2025, in millions) | Fiscal Year Ended August 31, | Amount | | :--------------------------- | :----- | | 2026 | $499 | | 2027 | $497 | | 2028 | $499 | | 2029 | $297 | | 2030 | $498 | | Thereafter | $595 | | Total | $2,885 | - Jabil was in compliance with all debt covenants as of August 31, 2025, and 2024[423] Note 8. Asset-Backed Securitization Program Describes Jabil's asset-backed securitization program for selling trade accounts receivable, including program amendments, financial metrics, and covenant compliance - Jabil continuously sells designated pools of trade accounts receivable to a special purpose entity, which then sells them at a discount to unaffiliated financial institutions without recourse[425] - The terms of the global asset-backed securitization program were amended on January 23, 2025, extending the termination date from January 2025 to January 2028, with a maximum available net cash proceeds of $700 million[429] Asset-Backed Securitization Program Financials (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :-------------------------- | :-------- | :-------- | :-------- | | Trade accounts receivable sold | $4,152 | $4,000 | $4,101 | | Cash proceeds received | $4,111 | $3,953 | $4,061 | | Pre-tax losses on sale of receivables | $41 | $47 | $40 | - Jabil was in compliance with all covenants under the global asset-backed securitization program as of August 31, 2025, 2024, and 2023[431] Note 9. Accrued Expenses Provides a breakdown of Jabil's accrued expenses, including inventory deposits, contract liabilities, and accrued compensation and employee benefits Accrued Expenses Composition (in millions) | Category | August 31, 2025 | August 31, 2024 | | :-------------------------------- | :-------------- | :-------------- | | Inventory deposits | $1,205 | $1,582 | | Contract liabilities | $1,016 | $1,017 | | Accrued compensation and employee benefits | $756 | $699 | | Other accrued expenses | $2,208 | $2,201 | | Accrued expenses | $5,185 | $5,499 | Note 10. Postretirement and Other Employee Benefits Details Jabil's defined benefit pension plans and other employee benefits, including benefit obligations, plan assets, net periodic benefit costs, investment policies, and expected contributions - Jabil maintains qualified defined benefit pension plans for employees in the UK and Switzerland, and other plans from acquired operations in Europe, Asia, and Mexico[433][434][435] Benefit Obligation and Plan Assets (in millions) | Metric | August 31, 2025 | August 31, 2024 | | :----------------------------------- | :-------------- | :-------------- | | Ending Projected Benefit Obligation (PBO) | $537 | $513 | | Ending Fair Value of Plan Assets | $548 | $524 | | Funded status | $11 | $11 | Net Periodic Benefit Cost (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------- | :----- | :----- | :----- | | Service cost | $23 | $21 | $18 | | Interest cost | $11 | $12 | $12 | | Expected long-term return on plan assets | $(18) | $(17) | $(17) | | Net periodic benefit cost | $13 | $11 | $3 | - The investment policy for plan assets aims to generate income and capital growth to meet future benefits, limit risk, and minimize long-term costs through diversification across equity and debt securities[441][442][443] Fair Value of Plan Assets by Category (as of August 31, 2025, in millions) | Asset Category | Fair Value (in millions) | Asset Allocation (%) | | :---------------------- | :----------------------- | :------------------- | | Cash and cash equivalents | $16 | 3 % | | Global equity securities | $249 | 46 % | | Corporate bonds | $232 | 42 % | | Government bonds | $40 | 7 % | | Insurance contracts | $11 | 2 % | | Total | $548 | 100 % | - Jabil expects to contribute between $26 million and $32 million to its funded pension plans in fiscal year 2026[445] - The company contributed approximately $80 million, $78 million, and $74 million to defined contribution plans for domestic and international employees in fiscal years 2025, 2024, and 2023, respectively[447] Note 11. Derivative Financial Instruments and Hedging Activities Explains Jabil's use of derivative instruments, primarily forward foreign exchange contracts and interest rate swaps, to manage foreign currency and interest rate risks, including notional amounts and hedging strategies - Jabil uses derivative instruments, primarily forward foreign exchange contracts, to manage foreign currency risk associated with anticipated revenues and expenses, designating them as cash flow hedges or net investment hedges[448][450][451][452] - The aggregate notional amount of outstanding cash flow hedges was $433 million as of August 31, 2025, and $353 million as of August 31, 2024[451] Net Investment Hedges Notional Amounts (in millions) | Maturity date | August 31, 2025 | August 31, 2024 | | :------------ | :-------------- | :-------------- | | October 2024 | $— | $140 | | January 2025 | $— | $106 | | July 2025 | $— | $55 | | October 2025 | $103 | $— | | January 2026 | $200 | $106 | | April 2026 | $42 | $— | | July 2026 | $45 | $— | | Total | $390 | $407 | - Non-designated forward foreign exchange contracts, used to economically hedge transactional exposure, had an aggregate notional amount of $3.2 billion as of August 31, 2025, compared to $2.6 billion as of August 31, 2024[454] - Jabil periodically enters into interest rate swaps to manage interest rate risk, with $100 million in aggregate notional amount of forward interest rate swaps outstanding as of August 31, 2025, scheduled to expire on July 31, 2026[458][459] Note 12. Accumulated Other Comprehensive Income Details changes in Jabil's accumulated other comprehensive income (AOCI) by component, including foreign currency translation, derivative instruments, and actuarial gains/losses Changes in Accumulated Other Comprehensive Income (AOCI) by Component (in millions) | Component | Balance as of August 31, 2024 | Other comprehensive income (loss) | Amounts reclassified from AOCI | Balance as of August 31, 2025 | | :------------------------- | :---------------------------- | :-------------------------------- | :----------------------------- | :---------------------------- | | Foreign Currency Translation Adjustment | $(44) | $34 | $— | $(10) | | Net Investment Hedges | $(24) | $(18) | $— | $(42) | | Derivative Instruments | $12 | $19 | $5 | $31 | | Actuarial Gain (Loss) | $29 | $(11) | $(7) | $18 | | Prior Service (Cost) Credit | $(19) | $5 | $5 | $(14) | | Total | $(46) | $29 | $3 | $(17) | - Total other comprehensive income (loss) for FY2025 was $29 million, a positive change from $(29) million in FY2024[348][462] Note 13. Stockholders' Equity Provides information on Jabil's stockholders' equity, including stock-based compensation, equity incentive plans, dividends, common stock outstanding, share repurchases, and warrants Stock-Based Compensation Expense (in millions) | Category | FY2025 | FY2024 | FY2023 | | :---------------------------- | :----- | :----- | :----- | | Restricted stock units | $89 | $70 | $81 | | Employee stock purchase plan | $18 | $19 | $14 | | Total | $107 | $89 | $95 | - The 2021 Equity Incentive Plan has 7,135,170 shares available for grant as of August 31, 2025[465][466] - Jabil declared quarterly cash dividends of $0.08 per share throughout fiscal year 2025, totaling $35 million[472] Common Stock Outstanding (Shares) | Fiscal Year Ended August 31, | Outstanding Shares | | :--------------------------- | :----------------- | | 2025 | 107,480,895 | | 2024 | 113,744,167 | | 2023 | 131,294,422 | - The $1.0 billion 2025 Share Repurchase Program, authorizing $1.0 billion, was fully utilized in FY2025, repurchasing 6.6 million shares[474] - A warrant was issued to Amazon.com NV Investment Holdings LLC on December 27, 2024, to acquire up to 1,158,539 ordinary shares, with 59,582 shares vested upon issuance[478][480] Note 14. Concentration of Risk and Segment Data Analyzes Jabil's concentration of risk from major customers and provides detailed net revenue and income margin data by segment and geography - In fiscal year 2025, Jabil's five largest customers accounted for approximately 36% of its net revenue, and 87 customers accounted for approximately 90% of net revenue[483] Net Revenue by Segment (in millions) | Segment | FY2025 | FY2024 | FY2023 | | :----------------------------- | :-------- | :-------- | :-------- | | Regulated Industries | $11,879 | $12,261 | $13,039 | | Intelligent Infrastructure | $12,317 | $9,197 | $11,072 | | Connected Living and Digital Commerce | $5,606 | $7,425 | $10,591 | | Total Net Revenue | $29,802 | $28,883 | $34,702 | Segment Income Margin | Segment | FY2025 (%) | FY2024 (%) | FY2023 (%) | | :----------------------------- | :--------- | :--------- | :--------- | | Regulated Industries | 5.4 % | 5.3 % | 5.0 % | | Intelligent Infrastructure | 5.4 % | 5.1 % | 5.0 % | | Connected Living and Digital Commerce | 5.6 % | 6.2 % | 5.0 % | | Total Segment Income Margin | 5.4 % | 5.5 % | 5.0 % | Net Revenue by Geography (in millions) | Country | FY2025 Net Revenue | FY2024 Net Revenue | FY2023 Net Revenue | | :-------- | :----------------- | :----------------- | :----------------- | | Mexico | $5,689 | $5,872 | $6,083 | | China | $4,196 | $4,810 | $5,868 | | Malaysia | $3,644 | * | * | | Singapore | * | $4,486 | $7,385 | | U.S. | $7,444 | $5,047 | $4,935 | Note 15. Restructuring, Severance and Related Charges Summarizes Jabil's restructuring, severance, and related charges, detailing costs for employee severance, lease costs, asset write-offs, and other expenses for various plans Summary of Restructuring, Severance and Related Charges (in millions) | Category | FY2025 | FY2024 | FY2023 | | :------------------------------------- | :----- | :----- | :----- | | Employee severance and benefit costs | $58 | $177 | $48 | | Lease costs | $6 | $2 | $— | | Asset write-off costs | $53 | $79 | $5 | | Other costs | $64 | $38 | $4 | | Total restructuring, severance and related charges | $181 | $296 | $57 | - The 2025 Restructuring Plan, approved on September 24, 2024, is expected to incur approximately $200 million in pre-tax costs, including $60-70 million for employee severance, $65-70 million for asset write-offs, and $55-65 million for contract termination costs[495][496] - The 2024 Restructuring Plan, approved on September 26, 2023, totaled approximately $300 million in pre-tax costs and was substantially complete as of August 31, 2024[498][499] Note 16. Income Taxes Presents Jabil's income tax information, including income before tax by geography, effective tax rates, tax incentives, indefinitely reinvested earnings, and unrecognized tax benefits Income (Loss) Before Income Tax Expense by Geography (in millions) | Geography | FY2025 | FY2024 | FY2023 | | :-------- | :----- | :----- | :----- | | Domestic | $(255) | $(366) | $(315) | | Foreign | $1,147 | $2,117 | $1,577 | | Total | $892 | $1,751 | $1,262 | Effective Income Tax Rate | Fiscal Year Ended August 31, | Rate (%) | | :--------------------------- | :------- | | 2025 | 26.4 % | | 2024 | 20.7 % | | 2023 | 35.2 % | - Tax incentives in Malaysia, Singapore, Vietnam, Brazil, and Israel resulted in tax benefits of approximately $75 million in FY2025, $54 million in FY2024, and $74 million in FY2023[503] - As of August 31, 2025, Jabil had $1.2 billion in indefinitely reinvested earnings from foreign subsidiaries for which taxes had not been provided, with an estimated unrecognized deferred tax liability of approximately $0.1 billion[505] Unrecognized Tax Benefits (in millions) | Metric | FY2025 | FY2024 | FY2023 | | :----------------------------------- | :----- | :----- | :----- | | Beginning balance | $168 | $257 | $253 | | Ending balance | $142 | $168 | $257 | | Unrecognized tax benefits that would affect the effective tax rate (if recognized) | $89 | $94 | $150 | - It is reasonably possible that the August 31, 2025, unrecognized tax benefits could decrease by $16 million during the next 12 months, primarily due to lapses in statutes of limitations[510] Note 17. Business Acquisitions and Divestitures Details Jabil's business acquisitions, including Pharmaceutics International, Inc. and Mikros Technologies LLC, and divestitures, such as Italian operations and the Mobility Business - On February 3, 2025, Jabil acquired Pharmaceutics International, Inc. (Pii) for $309 million, enhancing its Regulated Industries segment with contract development and manufacturing services[514][515] - On October 1, 2024, Jabil acquired Mikros Technologies LLC for $63 million, a leader in liquid cooling solutions, allocated to the Intelligent Infrastructure segment[516][517] - On August 1, 2025, Jabil divested its operations in Italy, resulting in a pre-tax loss of $97 million[520] - On December 29, 2023, Jabil completed the sale of its Mobility Business for approximately $2.2 billion in cash, resulting in a $942 million pre-tax gain in FY2024, with an additional $54 million pre-tax gain recognized in March 2025 from post-closing adjustments[521][523] Note 18. Fair Value Measurements Presents the fair value of Jabil's financial assets and liabilities, including cash equivalents, investments, and derivatives, and notes payable and long-term debt Fair Value of Financial Assets and Liabilities (in millions) | Category | August 31, 2025 | August 31, 2024 | | :------------------------------------- | :-------------- | :-------------- | | Cash equivalents | $392 | $303 | | Short-term investments | $27 | $27 | | Derivatives designated as hedging instruments (assets) | $20 | $11 | | Derivatives not designated as hedging instruments (assets) | $26 | $25 | | Derivatives designated as hedging instruments (liabilities) | $14 | $34 | | Derivatives not designated as hedging instruments (liabilities) | $9 | $22 | - The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses, other current assets, accounts payable, and accrued expenses approximate fair value due to their short-term nature[526] Fair Value of Notes Payable and Long-Term Debt (in millions) | Note Type | August 31, 2025 (Carrying Amount) | August 31, 2025 (Fair Value) | August 31, 2024 (Carrying Amount) | August 31, 2024 (Fair Value) | | :------------------ | :-------------------------------- | :--------------------------- | :-------------------------------- | :--------------------------- | | 3.950% Senior Notes | $499 | $496 | $498 | $487 | | 3.600% Senior Notes | $498 | $480 | $497 | $468 | | 3.000% Senior Notes | $595 | $551 | $594 | $529 | | 1.700% Senior Notes | $499 | $492 | $499 | $476 | | 4.250% Senior Notes | $497 | $500 | $496 | $495 | | 5.450% Senior Notes | $297 | $308 | $296 | $306 | Note 19. Commitments and Contingencies States that Jabil is involved in various legal actions incidental to its business but does not expect a material adverse effect on its financial position or results - Jabil is involved in various legal actions incidental to its business but does not believe these proceedings will have a material adverse effect on its financial position, results of operations, or cash flows[529] Note 20. New Accounting Guidance Reports that new accounting guidance adopted during the period and recently issued guidance are not expected to have a material impact on the company - New accounting guidance adopted during the period did not have a material impact on the company[530] - Recently issued accounting guidance is not applicable or is not expected to have a material impact on the company[531] Note 21. Related Party Transactions Details related party transactions with Amazon's home security business, which became a related party after a Jabil director returned to Amazon as a Vice President - During fiscal year 2025, Jabil provided manufacturing services to Amazon's home security business, which became a related party transaction after James Siminoff, a Jabil director, returned to Amazon as a Vice President[532] - These related party transactions were not material to Jabil individually or in the aggregate for the fiscal year ended August 31, 2025[532] Signatures The Form 10-K report is officially signed by Jabil Inc.'s Chief Executive Officer, Michael Dastoor, and other directors and officers, affirming compliance with the Securities Exchange Act of 1934 - The report is signed by Michael Dastoor, Chief Executive Officer, and other directors and officers, as required by the Securities Exchange Act of 1934[535][538] Financial Statement Schedule Schedule II – Valuation and Qualifying Accounts Presents detailed schedules for Jabil's reserve for excess and obsolete inventory and the valuation allowance for deferred taxes for the fiscal years ended August 31, 2025, 2024, and 2023 Reserve for Excess and Obsolete Inventory (in millions) | Fiscal Year Ended August 31, | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Write-offs | Balance at End of Period | | :--------------------------- | :----------------------------- | :-------------------------------------- | :--------- | :----------------------- | | 2025 | $63 | $26 | $(22) | $67 | | 2024 | $58 | $40 | $(35) | $63 | | 2023 | $82 | $34 | $(31) | $58 | Valuation Allowance for Deferred Taxes (in millions) | Fiscal Year Ended August 31, | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Additions/ (Reductions) Charged to Other Accounts | Reductions Charged to Costs and Expenses | Balance at End of Period | | :--------------------------- | :----------------------------- | :-------------------------------------- | :------------------------------------------------ | :--------------------------------------- | :----------------------- | | 2025 | $368 | $30 | $23 | $(21) | $400 | | 2024 | $303 | $96 | $3 | $(34) | $368 | | 2023 | $281 | $28 | $9 | $(15) | $303 |