Financial Data and Key Metrics Changes - Adjusted diluted earnings per share (EPS) was $0.95, up approximately 42% year-on-year, primarily driven by higher adjusted operating profit [12][29] - Organic sales grew 34% year-on-year, with strong performance in the Americas (up mid-40s) and APAC (up mid-30s), while EMEA delivered high single-digit growth [13][30] - Adjusted operating profit was $489 million, up 28% year-on-year, with an adjusted operating margin of 18.5%, approximately 110 basis points lower than the prior year due to tariffs [15][30] - Free cash flow for Q2 was $277 million, down year-on-year, but adjusted free cash flow for the first half was $542 million, a robust growth of 24% year-on-year [16][32] - Full-year adjusted free cash flow guidance raised to $1.4 billion, with net sales guidance increased by $550 million to $10 billion [17][37] Business Line Data and Key Metrics Changes - Americas organic sales increased by 43%, driven by strength in colocation and hyperscale markets, with an adjusted operating margin of 24% [32] - APAC saw a 37% organic sales increase, with margin expansion to 10.6% [32] - EMEA's organic sales grew 7%, but the region is expected to be flat for the full year due to operational execution challenges and investments in fixed costs [34][35] Market Data and Key Metrics Changes - The backlog stands strong at $8.5 billion, up 21% year-on-year and 7% sequentially from Q1, supporting increased guidance for the year [18] - The regulatory environment is becoming more conducive to AI infrastructure investment, positively impacting customer discussions and pipeline [19][110] Company Strategy and Development Direction - The company maintains a strategy of driving growth through organic expansion and strategic acquisitions, with a robust M&A pipeline [10] - Recent acquisition of Great Lakes is expected to enhance the company's capabilities in high-end rack solutions and AI infrastructure [26] - Ongoing investments in R&D and capacity expansion are aimed at staying ahead of market demand and delivering innovative solutions [11][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and future trajectory, highlighting the digital revolution and the fundamental role of data centers [10] - The company anticipates that operational inefficiencies and execution challenges will be resolved by year-end, leading to improved margins in 2026 [31][102] - The management is optimistic about the growth trajectory and market share gains, particularly in the context of AI infrastructure [40][130] Other Important Information - The company plans to change how it communicates orders, providing projected full-year orders rather than quarterly orders to better align with business operations [19] - The tariff situation remains dynamic, with ongoing countermeasures being executed to mitigate impacts [20][21] Q&A Session Summary Question: Margin expectations for 2026 - Management believes that 2026 could be a more normal year for margins, with a positive long-term trajectory expected [48] Question: Strength in backlog and order duration - Backlog duration remains similar to historical trends, with some customers seeking earlier deliveries, indicating a healthy demand [52][53] Question: Impact of tariffs and inflation on pricing - Management indicated that they have the commercial leverage to recover tariffs, despite delays in converting orders to sales [57] Question: Win rates and procurement changes among hyperscalers - Win rates remain stable, with no significant changes in procurement methods among hyperscalers [66][68] Question: Operational inefficiencies - Inefficiencies are attributed to tariff transitions and the need for new sources, compounded by significant growth [75][78] Question: Growth rates for thermal service contracts - Management expects strong growth in thermal service contracts, particularly related to liquid cooling systems [88] Question: Evolution of product offerings for data centers - The company is evolving its product footprint to accommodate higher voltage power distribution and increasing rack density [92][94] Question: Gross margin expectations - Management expects gross margins to improve in Q4 due to operational leverage and resolution of inefficiencies [102][121] Question: Capital allocation priorities post-acquisition - M&A will remain a key part of the capital allocation strategy, with a strong process and active pipeline in place [136]

Financial Data and Key Metrics Changes - The company achieved revenues of $2.89 billion in Q2 2025, up 21% year-over-year, exceeding the high end of guidance [6][8] - Adjusted EPS for the quarter was $1.39, an increase of $0.49 or 54% compared to the previous year [8] - Adjusted operating margin reached 7.4%, marking the highest performance in company history, up 110 basis points [6][8] - Adjusted gross margin was 11.7%, also up 110 basis points, driven by higher volumes and improving mix [8][9] - Adjusted ROIC was 35.5%, compared to 26.6% a year ago, reflecting higher operating profit and strong working capital management [9] Business Line Data and Key Metrics Changes - The ATS segment reported revenue of $819 million, up 7% year-over-year, driven by strong demand in capital equipment and industrial businesses [9][10] - The CCS segment revenue was CAD 2.07 billion, up 28%, primarily due to strong growth in the communications end market [10][11] - Communications end market revenues increased by 75%, significantly exceeding guidance, while enterprise end market revenues decreased by 37% [10][11] - CCS segment margin improved to 8.3%, up 130 basis points, driven by a higher mix of HPS revenues [12] Market Data and Key Metrics Changes - The company noted minimal impact from tariffs due to exemptions on electronics goods and data center hardware [7] - The cash balance at the end of Q2 was CAD 314 million, with total liquidity of approximately CAD 1 billion [15] - Free cash flow for Q2 was $120 million, up $54 million from the prior year [14] Company Strategy and Development Direction - The company raised its 2025 revenue outlook from $10.85 billion to $11.55 billion, reflecting a year-over-year growth of 20% [19] - Non-GAAP adjusted EPS outlook for 2025 was increased from $5 to $5.5 per share, representing a 42% growth [19] - The CCS segment is expected to grow nearly 30% for the full year, driven by strong demand for networking products [20] - The ATS segment is anticipated to remain flat compared to 2024, with continued strength in the industrial business [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macro environment, supported by a globally diversified manufacturing network [24] - The company expects to continue strong momentum into 2026, backed by long-term secular tailwinds [24] - Management highlighted the importance of managing complexity and maintaining operational execution to sustain positive momentum [25] Other Important Information - The company repurchased approximately 600,000 shares for cancellation at a cost of $40 million during the quarter [16] - Capital expenditures for Q2 were CAD 33 million, approximately 1.1% of revenue, with expectations for an increase in the second half of the year [13][15] Q&A Session Summary Question: Can you speak to the breadth of customers and platforms for 800 gig switch ports? - Management indicated that every 400G customer has transitioned to an 800G customer, showing strong market share growth in 800G [28][30] Question: What is the manufacturing capacity at your Monterey and Richardson campuses? - Management confirmed sufficient capacity to support growth, with the ability to handle an additional $3 billion to $4 billion in revenue [34][35] Question: Can you walk through the implications for Q4 based on Q3 guidance? - Management noted that while Q4 may see an 18% growth, the demand outlook remains strong despite uncertainties [41][42] Question: What are the trends in server market share? - Management reported gaining share in the AI server market due to strong execution and technology transitions [88] Question: What is the status of the 1.6 terabyte program? - Management confirmed ongoing wins in the 1.6 terabyte space, with continued discussions opening new opportunities [92][94] Question: How is the company positioned for service offerings? - Management stated that services are a focus area, with plans to expand the services footprint to meet customer demand [96][97]

Financial Data and Key Metrics Changes - The company achieved revenues of $2,890,000,000 in Q2 2025, representing a 21% increase year-over-year and exceeding the high end of guidance [6][8] - Adjusted EPS for the quarter was $1.39, an increase of $0.49 or 54% compared to the previous year [8] - Adjusted operating margin reached 7.4%, marking the highest performance in company history, up 110 basis points year-over-year [6][8] - Adjusted gross margin was 11.7%, up 110 basis points driven by higher volumes and improving mix [8][9] - Adjusted ROIC was 35.5%, compared to 26.6% a year ago, reflecting higher operating profit and strong working capital management [9] Business Line Data and Key Metrics Changes - The ATS segment reported revenues of $819,000,000, up 7% year-over-year, driven by strong demand in capital equipment and industrial businesses [9][10] - The CCS segment generated CAD2.07 billion in revenue, up 28%, primarily due to strong growth in the communications end market [10] - Communications end market revenues increased by 75%, significantly above guidance, driven by demand for HPS networking products [10][11] - The enterprise end market saw a 37% decline in revenue, which was better than the anticipated low 40s percentage decline [10][11] - HPS revenues reached CAD1.2 billion, up 82%, accounting for 43% of total company revenue [11] Market Data and Key Metrics Changes - The company noted minimal impact from tariffs due to exemptions on electronics goods and data center hardware [7] - The cash cycle days during Q2 were CAD66, with a cash balance of CAD314 million at the end of the quarter [12][14] - Free cash flow for Q2 was $120,000,000, an increase of $54,000,000 compared to the prior year [13][14] Company Strategy and Development Direction - The company raised its 2025 annual revenue outlook from $10,850,000,000 to $11,550,000, reflecting a year-over-year growth of 20% [19] - The adjusted EPS outlook for 2025 was increased from $5 to $5.5 per share, representing a year-over-year growth of 42% [19] - The CCS segment is expected to grow nearly 30% for the full year, driven by strong demand for networking products [20] - The ATS segment is anticipated to remain flat compared to 2024, with growth in industrial business offset by lower volumes in A and D business [21] - The company is focused on expanding its service offerings and enhancing its capabilities in response to customer demand [100][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macro environment, supported by a globally diversified manufacturing network [23][24] - The demand outlook remains strong, with expectations for continued growth in both communications and enterprise segments [57] - The company is prepared to support growth north of 20% per year, with sufficient capacity to meet demand [70] Other Important Information - The company repurchased approximately 600,000 shares for cancellation at a cost of $40,000,000 during the quarter [15] - The gross debt to non-GAAP trailing 12-month adjusted EBITDA leverage ratio improved to 0.9 turns [14] Q&A Session Summary Question: Can you speak to the breadth of customers and platforms for 800 gig switch ports? - Management indicated that every 400G customer has transitioned to 800G, with significant market share gains in the 800G segment [28][30] Question: What is the manufacturing capacity at your campuses to handle growing demand? - The company confirmed sufficient capacity to support an additional $3 billion to $4 billion in revenue, with ongoing investments in key locations [34] Question: Can you discuss the implications of Q3 guidance and full-year guidance for Q4? - Management noted that while Q4 may see growth at 18%, the overall demand outlook remains strong, with higher confidence in customer forecasts [40] Question: What is the status of the 1.6T timing and its impact on future growth? - The company is ramping new programs and expects significant revenue contributions from these initiatives in 2026 and beyond [42][92] Question: How is pricing factoring into discussions with customers? - Pricing is a consideration, but the primary focus is on supply certainty and technology leadership [76] Question: What is the outlook for cash cycle improvements as CCS grows? - Management expressed confidence in cash generation and inventory management, anticipating ongoing improvements in cash cycle days [53] Question: Can you elaborate on the new program pipeline and opportunities with existing and new hyperscalers? - The company is focused on increasing share with existing hyperscalers and exploring new opportunities with digital natives [75]

Group 1 - Google's investment in artificial intelligence is primarily focused on technological infrastructure, as stated by Eunice Huang, the head of AI and emerging technology policy for the Asia-Pacific region [1] - Alphabet's CEO Sundar Pichai reiterated the company's commitment to invest approximately $75 billion in building data center infrastructure [1] - Major tech companies, including Amazon, Alphabet, Microsoft, and Meta, continue to invest heavily in AI, alleviating concerns about funding for AI infrastructure companies [1] Group 2 - Investor concerns regarding the impact of U.S. tariffs may affect confidence in AI investments, especially if a trade war escalates and leads to fears of reduced corporate spending on AI due to global economic slowdown [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $6.7 billion, a 3% year-on-year increase when excluding $250 million from the divested mobility business [6][7] - Core operating income was $334 million with core operating margins at 5% [7] - GAAP diluted earnings per share was $1.06, while core diluted earnings per share was $1.94, an increase of $0.26 from Q2 of the previous year [7][19] - Adjusted free cash flow for the quarter was $261 million, bringing year-to-date adjusted free cash flow to $487 million, with expectations to exceed $1.2 billion for the full year [10][25] Performance by Business Segment - Regulated Industry segment reported revenue of approximately $2.7 billion, down 8% year-on-year due to weakness in renewable energy and EV markets, but core operating margin increased by 20 basis points to 4.8% [7][8] - Intelligent Infrastructure segment saw revenue of $2.6 billion, up 18% year-on-year, driven by strong demand in AI-related cloud and data center infrastructure [8][19] - Connected Living and Digital Commerce segment revenue was $1.3 billion, down 13% year-on-year, but grew approximately 4% when excluding the divested mobility business [8][9] Market Data and Key Metrics Changes - Inventory days increased by four days sequentially to 80 days, but decreased by seven days year-on-year [9] - The company anticipates revenue for Q3 2025 to be between $6.7 billion and $7.3 billion, with core operating income estimated between $348 million and $408 million [12] Company Strategy and Industry Competition - The company is well-positioned to navigate potential tariffs and geopolitical complexities, emphasizing its U.S. domicile manufacturing footprint [15][18] - Jabil expects to play a significant role in the Indian market, particularly in photonics capabilities [21][22] - The company is focusing on growth in AI-related business, projecting approximately $7.5 billion in revenue for FY 2025, representing a 40% year-on-year increase [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the diversified portfolio, with certain markets like capital equipment and data center infrastructure outperforming [19][27] - Caution was advised regarding the EV and renewable energy markets, with expectations for continued growth in Intelligent Infrastructure [24][25] - The company is actively monitoring supply chain dynamics and customer procurement strategies in light of potential tariffs [99][100] Other Important Information - The company completed the acquisition of U.S.-based Pharmaceuticals International Inc., enhancing its capabilities in the pharmaceutical sector [23][106] - Jabil repurchased 2.5 million shares during the quarter, with $364 million remaining on its share repurchase authorization [10] Q&A Session Summary Question: Can you talk about your existing footprint in the U.S.? - Management highlighted the extensive U.S. footprint with 30 sites and the capability to support customers wanting to move manufacturing [30][34] Question: Can you elaborate on the opportunity with silicon photonics? - The company is well-positioned in silicon photonics, with significant growth expected in this area due to recent acquisitions and capabilities [36][38] Question: What should we read into the slight reduction in networking and healthcare forecasts? - The reduction is primarily due to uncertainty in the 5G infrastructure side, not affecting AI-related revenue [40] Question: What is driving the positive change in Intelligent Infrastructure? - Growth in semi-cap and cloud data center infrastructure is driving confidence, with strong demand for automated testing and custom chips [46][48] Question: Can you expand on GPU racks and liquid cooling? - The company is improving yields at launch due to better design architecture and engineering capabilities, with liquid cooling opening new opportunities [81][82] Question: How confident are you about EV production in the second half of the year? - Management is being prudent with forecasts, but sees potential growth in the Chinese EV market offsetting some concerns [84] Question: How are customers responding to potential tariffs? - Customers are considering localized supply chains, but no major changes have been completed yet [100][101] Question: Are there any other capabilities you are looking to acquire? - The company is actively exploring further acquisitions to fill capability gaps, particularly in pharmaceuticals [106][107]

Financial Data and Key Metrics Changes - The company reported a net revenue increase of 18.3% year-over-year to RMB2.25 billion for Q4 2024, and a full-year net revenue of RMB8.26 billion, up 11.4% year-over-year [11][12][38] - Adjusted EBITDA for Q4 2024 rose by 63.8% year-over-year to RMB721.3 million, with a full-year adjusted EBITDA of RMB2.43 billion, reflecting a 19.1% increase from the prior year [12][38] - The company achieved a net profit of RMB248 million for the full year, marking a turnaround from a net loss of RMB2.6 billion in 2023 [12][38] Business Line Data and Key Metrics Changes - The wholesale business revenue reached a record high of RMB665 million for Q4 2024, representing a year-over-year growth rate of 125.4% [12][39] - Retail business revenue remained stable at RMB964.8 million for Q4 2024, with a utilization rate of 63.5% for retail capacity [40][30] - The wholesale capacity in service increased by 127 megawatts quarter-over-quarter to 486 megawatts, with utilized capacity rising to 353 megawatts [9][26] Market Data and Key Metrics Changes - The company noted a significant uptick in wholesale customer demand, with the pace of orders accelerating from around 24 months to 6-12 months [10] - The Greater Beijing area is projected to experience a supply shortage in wholesale IDC services by 2025, followed by the Yangtze River Delta region in 2026 [22][70] - The overall utilization rate of wholesale data centers in the Greater Beijing area is expected to reach 85% by 2025, indicating a potential supply shortage [23] Company Strategy and Development Direction - The company plans to utilize joint venture structures to enhance efficiency and facilitate high-quality business development [15] - A strong focus on AI-related opportunities is evident, with expectations of continued high demand for high-performance data centers driven by advancements in AI technology [17][35] - The company aims to expand its high-performance data center network to meet the growing demands of the AI era [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of China's IDC market, driven by surging demand due to the AI boom [47] - The company anticipates total net revenues for 2025 to be between RMB9.1 billion to RMB9.3 billion, representing year-over-year growth of 10% to 13% [16] - Management highlighted the importance of maintaining a strong cash flow and prudent debt management to support future growth [41][42] Other Important Information - The company achieved recognition in the S&P Global Sustainability Yearbook 2025, reflecting its commitment to ESG practices [45][46] - Capital expenditures for 2025 are expected to be between RMB10 billion to RMB12 billion, representing a significant increase to support the delivery plan [16][44] Q&A Session Summary Question: Details on CapEx arrangement for 2025 and impact of AI-related orders on retail segment - Management indicated that over 90% of the 2025 CapEx will be allocated to the wholesale IDC business, with a focus on high-power density retrofits for retail IDC [53][54] - AI-related orders are expected to boost demand in the retail segment, with higher pricing trends for AI-specific deployments [58][61] Question: Insights on the partnership with Changzhou Gaoxin Group and supply-demand dynamics - The 64 megawatts JV project with Changzhou Gaoxin Group will not impact CapEx as it will not be on the balance sheet, generating revenue through management fees [67] - Supply shortages are anticipated in the Greater Beijing area by 2025 and in the Yangtze River Delta by 2026, with limited competition as peers focus on overseas markets [69][71] Question: Expectations for rental prices and unit CapEx - Management expects rental prices to stabilize, with a slight decrease in unit CapEx due to increased use of domestic equipment [76][82] Question: Retail revenue growth potential and financing for CapEx - Retail revenue is expected to recover to mid-single-digit growth, driven by demand from SMEs adopting AI technologies [86][88] - Financing for the RMB10 billion CapEx will be supported by operating cash flow, REITs, and favorable loan conditions [87][95] Question: Customer preferences between in-house and third-party data centers - Most customers prefer rental options from third-party providers, with a growing trend towards hybrid models combining both in-house and rental solutions [105][106]