Jabil : Third Quarter 2025 Earnings Presentation

Published: 2025-06-17 07:54:08 ET JBL

Published on 06/17/2025 at 07:54

THIRD QUARTER FISCAL YEAR 2025

Financial Results

Third Quarter FY 2025

Income Highlights

(In millions, except for per share data)

Three Months Ended

May 31, May 31,

2025 2024

Net revenue $7,828 $6,765

U.S. GAAP operating income

$403

$261

U.S. GAAP net income

$222

$129

U.S. GAAP diluted earnings per share

$2.03

$1.06

Core operating income (non-GAAP)1

$420

$350

Core earnings (non-GAAP)1

$279

$230

Core diluted earnings per share (non-GAAP)1

$2.55

$1.89

1 See U.S. GAAP to non-GAAP reconciliation in appendix.

Third Quarter FY 2025

Segment Results

Regulated Industries

Net Revenue flat y/y

Core margin* (non-GAAP) of 5.5%

Connected Living & Digital Commerce 17%

Intelligent Infrastructure

Net Revenue increase 51% y/y

Core margin* (non-GAAP) of 5.3%

Connected Living & Digital Commerce

Net Revenue decrease of 7% y/y

Core margin* (non-GAAP) of 5.3%

TOTAL COMPANY

Net Revenue increase of 16% y/y

Core margin* (non-GAAP) of 5.4%

Intelligent Infrastructure 44%

REVENUE

Regulated Industries 39%

* Core margin defined as core operating income divided by net revenue │ See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/

Third Quarter FY 2025

Cashflow Highlights

THREE MONTHS ENDED MAY 31,

($ millions)

2025

($80)

Net capital expenditures1

$406

Net cash provided by operating activities

Adjusted free cash flow (non-GAAP)2$326

Core EBITDA (non-GAAP)1$571

Share repurchases $339

1 See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/

2 See U.S. GAAP to non-GAAP reconciliation on Form 8-K filed on June 17, 2025.

Fourth Quarter FY25

Guidance

Segment Revenue Guidance

Q4 FY25E*

Regulated Industries

$2.9B

Intelligent Infrastructure

$3.3B

Connected Living & Digital Commerce

$1.3B

Consolidated Guidance

Q4 FY25E

Net revenue

$7.1B - $7.8B

U.S. GAAP operating income

$331M - $411M

U.S. GAAP diluted earnings per share

$1.79 - $2.37

Core operating income (non-GAAP)1

$428M - $488M

Net interest expense2

$65M

Core tax rate (non-GAAP)3

21%

Core diluted earnings per share (non-GAAP)1

$2.64 - $3.04

1 See U.S. GAAP to non-GAAP reconciliation on Form-8K filed on June 17, 2025.

2 Net interest expense = interest expense, net + loss on sale of AR

3 The core tax rate (non-GAAP) is a normalized annual income tax rate with regard to core earnings. See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/

Note: Certain customers have been realigned within our end-markets as a result of the transition to our new reporting segments in FY25. Prior year financial information has been recast to include these customer realignments.

* Numbers may not foot due to rounding

Thank you for your commitment and dedication to

our customers, communities, and each other.

Our Global Footprint Enables Manufacturing at Scale

GLOBAL HEADQUARTERS

ST. PETERSBURG, FL

ASIA

Bandung Batu Kawan Beijing Changhua Chuping

Gotemba Hachioji

Ho Chi Minh Hsinchu Huangpu

Kulim Penang Pune Shanghai Shenzhen

Singapore Sungai Petani Suzhou Taichung Taipei

Weihai Wuxi

EUROPE & MIDDLE EAST

Balsthal

Dublin

Kharkiv

Mezzovico

Tiszaújváros

Waterford

Bar-Lev Bettlach Bray Coatbridge

Grenchen Hägendorf Hasselt Jena

Kwidzyn Le Locle Livingston Marcianise

Nagyigmand Osijek

Paris Raron

Tortosa Tuttlingen Uzhgorod Vienna

Wroclaw

AMERICAS

Albuquerque

Austin

Cayey

Devens

Guadalajara

Juarez

Memphis

Richmond

St. Petersburg

Anaheim

Belo Horizonte

Chihuahua

Elmira

Gurnee

Lexington

Monterrey

Salt Lake City

Tijuana

Asheville

Benicia

Claremont

Florence

Hanover Park

Manaus

Monument

San Cristobal

Valinhos

Atlanta

Brandywine

Clearwater

Fremont

Hendersonville

Maple Grove

Ottawa

San Jose

Auburn Hills

Burlington

Clinton

Grand Junction

Hunt Valley

Mebane

Richardson

Santo Domingo

Bolded sites indicate U.S. site.

Third Quarter Highlights

NET REVENUE

$7.8

BILLION

Renewables & Energy Infrastructure

Digital Commerce

Networking & Comms

CORE OP MARGIN 1

5.4%

Healthcare &

Packaging

Connected

Living

CORE DILUTED EPS 1

$2.55

Auto & Transportation

1 See U.S. GAAP to non-GAAP reconciliation in appendix.

Capital

Equipment

Cloud

& Data Center Infrastructure

Our Diversified Portfolio

$ in billions

FY23

FY24

FY25E

Y/Y Var

Auto & Transportation

$4.4

$3.9

-11%

Healthcare & Packaging

$5.5

$5.4

Renewable & Energy Infrastructure

$3.1

$2.4

$2.3

-4%

Regulated Industries Net Revenue

$13.0

$12.3

$11.6

-6%

Core Operating Margin

5.0%

5.3%

Capital Equipment

$1.9

$1.6

$2.5

56%

Cloud & Data Center Infrastructure

$4.8

$4.6

$7.1

54%

Networking & Comms1

$4.5

$3.0

$2.3

-23%

Intelligent Infrastructure Net Revenue

$11.1

$9.2

$11.9

29%

Core Operating Margin

5.0%

5.1%

Connected Living

$3.9

$3.6

$3.1

-14%

Digital Commerce

$2.4

$2.1

$2.4

14%

Mobility2

$4.2

$1.7

Connected Living & Digital Commerce Net Revenue

$10.6

$7.4

$5.5

-26%

Core Operating Margin

5.0%

6.2%

Total Jabil Net Revenue

$34.7

$28.9

$29.0

Core Operating Margin 5.0% 5.5% 5.4%

1 Exited legacy networking business at the end of Q4 FY24, which consisted of approximately $0.7 billion in revenue during fiscal year 2024.

2 Divested Mobility Business in December of 2023.

Our Outlook

MANAGEMENT' S OUTLOOK FOR FY 25

FREE CASH FLOW1

$1.2+

BILLION

CORE EPS1

$9.33

CORE OP MARGIN1

5.4%

NET REVENUE

$29.0

BILLION

FY25 Financial Guidance

1 See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/

JABIL FY 26

ANNUAL INVESTOR BRIEFING

Engineering Led, Supply Chain Enabled, Manufacturing Solutions

Q&A

APPENDIX

GAAP TO NON-GAAP

RECONCILIATIONS

JABIL INC. AND SUBSIDIARIES

OPERATING INCOME, EBITDA and NET INCOME NON-GAAP RECONCILIATION

(in millions, except for per share data) (Unaudited)

Three months ended Nine months ended

May 31, 2025

May 31, 2024

May 31, 2025

May 31, 2024

Operating income (U.S. GAAP)

403

261

845

1,695

Amortization of intangibles

Stock-based compensation expense and related charges

Restructuring, severance and related charges

144

252

Net periodic benefit cost

Business interruption and impairment charges, net

Gain from the divestiture of businesses

(45)

(944)

Acquisition and divestiture related charges

Adjustments to operating income

256

(508)

Core operating income (Non-GAAP)

420

350

1,101

1,187

Core operating income (Non-GAAP)

420

350

1,101

1,187

Depreciation expense

151

163

457

499

Core EBITDA (Non-GAAP)

571

513

1,558

1,686

Net income attributable to Jabil Inc. (U.S. GAAP)

222

129

439

1,250

Adjustments to operating income

256

(508)

Loss on securities

Net periodic benefit cost

(2)

(1)

(7)

Adjustments for taxes

(6)

(18)

Core earnings (Non-GAAP)

279

230

722

786

Diluted earnings per share (U.S. GAAP)

2.03

1.06

3.94

9.86

Diluted core earnings per share (Non-GAAP)

2.55

1.89

6.48

6.20

Diluted weighted average shares outstanding (U.S. GAAP and Non-GAAP)

109.3

121.7

111.5

126.9

Supplemental Information

Days in inventory

74 days

81 days

Days in inventory, net

59 days

58 days

MADE POSSIBLE. MADE BETTER.

Disclaimer

Jabil Inc. published this content on June 17, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 17, 2025 at 11:53 UTC.