Jabil : First Quarter 2025 Press Release

Published: 2024-12-18 07:53:06 ET JBL

NEWS RELEASE

Jabil Posts Strong First Quarter Results

2024-12-18

Raises Fiscal 2025 Outlook

ST. PETERSBURG, Fla.--(BUSINESS WIRE)-- Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited

results for its

First Quarter of Fiscal Year 2025 Highlights:

Net revenue: $7.0 billion

U.S. GAAP operating income: $197 million

U.S. GAAP diluted earnings per share: $0.88

Core operating income (Non-GAAP): $347 million

Core diluted earnings per share (Non-GAAP): $2.00

"I am very pleased with our

incremental strength in our Cloud, Data Center Infrastructure, and Digital Commerce end-markets. As a result, the team was able to deliver strong Core EPS and cash

now anticipate approximately $27.3 billion in net revenue, with core operating margins of 5.4%. Core earnings per share now are expected to be $8.75. Importantly, for the year we continue to foresee robust adjusted free cash

Second Quarter of Fiscal Year 2025 Outlook:

• Net revenue

$6.1 billion to $6.7 billion

• U.S. GAAP operating income

$183 million to $263 million

• U.S. GAAP diluted earnings per share

$0.69 to $1.27 per diluted share

• Core operating income (Non-GAAP)(1)

$286 million to $346 million

• Core diluted earnings per share (Non-GAAP)(1)

$1.60 to $2.00 per diluted share

_______________

Fiscal Year 2025 Outlook:

• Net revenue

$27.3 billion

• Core operating margin (Non-GAAP)

5.4%

• Core diluted earnings per share (Non-GAAP)

$8.75 per diluted share

• Adjusted free cash

$1.2 billion

( De

: "U.S. GAAP" means U.S. generally accepted accounting principles. Jabil de

income as U.S. GAAP operating income less amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges, distressed customer charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, gain from the divestiture of businesses, acquisition and divestiture related charges, plus other components of net periodic bene

components of net periodic bene

discontinued operations and certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil de

outstanding diluted shares as determined under U.S. GAAP. Jabil de

provided by (used in) operating activities less net capital expenditures (acquisition of property, plant and equipment less proceeds and advances from sale of property, plant and equipment). Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash

assessing operating income, earnings, diluted earnings per share and free cash

core manufacturing operations. See the accompanying reconciliation of Jabil's core operating income to its U.S. GAAP operating income, its calculation of core earnings and core diluted earnings per share to its U.S. GAAP net income and U.S. GAAP earnings per share and additional information in the supplemental information.)

Forward Looking Statements: This release contains forward-looking statements, including those regarding

our anticipated

performance in our second quarter of

GAAP diluted earnings per share, core operating income (Non-GAAP), core diluted earnings per share (Non-GAAP) results and the components thereof, including but not limited to amortization of intangibles, stock-based compensation expense and related charges and restructuring, severance and related charges); and our full year 2025 (including net revenue, core operating margin (Non-GAAP), core diluted earnings per share (Non-GAAP), the components thereof and Adjusted Free Cash Flow (Non-GAAP)). The statements in this release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to di

determination as we and conditions di

managing growth and capital expenditures and maximizing the e

managing rapid declines or increases in customer demand and other related customer challenges that may occur; our dependence on a limited number of customers; our ability to purchase components e

a limited number of suppliers for critical components; risks arising from relationships with emerging companies; changes in technology and competition in our industry; our ability to introduce new business models or programs

requiring implementation of new competencies; competition; transportation issues; our ability to maintain our engineering, technological and manufacturing expertise; retaining key personnel; risks associated with international sales and operations, including geopolitical uncertainties; energy price increases or shortages; our ability to achieve expected pro

information systems, including security issues; regulatory risks (including the expense of complying, or failing to comply, with applicable regulations; risk arising from design or manufacturing defects; risk arising from compliance, or failure to comply, with environmental, health and safety laws or regulations; risk arising from litigation; and intellectual property risk);

impairment); changes in

global events; and risks arising from expectations relating to environmental, social and governance considerations. Additional factors that could cause such di

year ended August 31, 2024 and our other

obligation to update these forward-looking statements.

Supplemental Information Regarding Non-GAAP Financial Measures: Jabil provides supplemental,

non-GAAP

non-GAAP measures exclude certain amounts that are included in the most directly comparable U.S. GAAP measures, do not have standard meanings and may vary from the non-GAAP

companies. Management believes these "core"

the past and future performance of Jabil's ongoing operations on a comparable basis.

Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash

provide investors an additional method for assessing operating income, earnings, earnings per share and free cash

certain employee performance when determining incentive compensation.

The Company determines an annual normalized tax rate ("normalized core tax rate") for the computation of the non-GAAP (core) income tax provision to provide better consistency across reporting periods. In estimating the normalized core tax rate annually, the Company utilizes a full-year

considers the mix of earnings across tax jurisdictions, existing tax positions, and other signi

Company may adjust the normalized core tax rate during the year for material impacts from new tax legislation or material changes to the Company's operations.

Detailed de

reconciliation of the disclosed core

measures is included under the heading "Supplemental Data" at the end of this release.

Meeting and Replay Information: Jabil will hold a conference call today at 8:30 a.m. ET to discuss its earnings

for the

presentation, visit the Investor Relations section of Jabil's website, located at https://investors.jabil.com. An archived replay of the webcast will also be available after completion of the call.

About Jabil: At Jabil (NYSE: JBL), we are proud to be a trusted partner for the world's top brands, o

comprehensive engineering, manufacturing, and supply chain solutions. With over 50 years of experience across industries and a vast network of over 100 sites worldwide, Jabil combines global reach with local expertise to deliver

both scalable and customized solutions. Our commitment extends beyond business success as we strive to build

sustainable processes that minimize environmental impact and foster vibrant and diverse communities around the

globe. Discover more at www.jabil.com.

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)

November 30,

2024

ASSETS

(unaudited)

August 31, 2024

Current assets:

Cash and cash equivalents

2,058

2,201

Accounts receivable, net

3,718

3,533

Contract assets

1,103

1,071

Inventories, net

4,320

4,276

Prepaid expenses and other current assets

2,029

1,710

Total current assets

13,228

12,791

Property, plant and equipment, net

2,915

3,024

Operating lease right-of-use assets

385

360

Goodwill and intangible assets, net

838

804

Deferred income taxes

125

Other assets

280

276

Total assets

17,771

17,351

LIABILITIES AND EQUITY

Current liabilities:

Current installments of notes payable and long-term debt

Accounts payable

6,875

6,190

Accrued expenses

5,466

5,499

Current operating lease liabilities

Total current liabilities

12,434

11,782

Notes payable and long-term debt, less current installments

2,882

2,880

Other liabilities

327

416

Non-current operating lease liabilities

304

284

Income tax liabilities

109

Deferred income taxes

139

143

Total liabilities

16,178

15,614

Commitments and contingencies

Equity:

Jabil Inc. stockholders' equity:

Preferred stock

Common stock

Additional paid-in capital

3,002

2,841

Retained earnings

5,851

5,760

Accumulated other comprehensive loss

(52)

(46)

Treasury stock, at cost

(7,208)

(6,818)

Total Jabil Inc. stockholders' equity Noncontrolling interests

Total equity

Total liabilities and equity

1,593

1,737

1,593

1,737

17,771

17,351

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except for per share data)

(Unaudited)

Three months ended

November 30,

Net revenue

Cost of revenue

Gross pro

Operating expenses:

Selling, general and administrative Research and development Amortization of intangibles

2024

2023

6,994

8,387

6,388

7,612

606

775

305

314

Restructuring, severance and related charges

127

Acquisition and divestiture related charges

Operating income

197

303

Interest and other, net

Income before income tax

139

235

Income tax expense

Net income

100

194

Net income attributable to noncontrolling interests, net of tax

Net income attributable to Jabil Inc.

100

194

Earnings per share attributable to the stockholders of Jabil Inc.:

Basic

0.89

1.49

Diluted

0.88

1.47

Weighted average shares outstanding:

Basic

112.7

129.6

Diluted

114.0

132.1

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions) (Unaudited)

Three months ended

November 30,

Cash

2024

2023

Net income

100

194

Depreciation, amortization, and other, net

182

206

Change in operating assets and liabilities, exclusive of net assets acquired

Net cash provided by operating activities

312

448

Cash

Acquisition of property, plant and equipment

(97)

(288)

Proceeds and advances from sale of property, plant and equipment

Cash paid for business and intangible asset acquisitions, net of cash

(63)

(59)

Proceeds from the divestiture of businesses, net of cash

258

Other, net

Net cash used in investing activities

(136)

(75)

Cash

Borrowings under debt agreements

100

395

Payments toward debt agreements

(130)

(436)

Payments to acquire treasury stock

(232)

(500)

Dividends paid to stockholders

(10)

(12)

Treasury stock minimum tax withholding related to vesting of restricted stock

(40)

(67)

Net cash used in

(312)

(620)

(7)

Net decrease in cash and cash equivalents

(143)

(254)

Cash and cash equivalents at beginning of period

2,201

1,804

Cash and cash equivalents at end of period

2,058

1,550

JABIL INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES

(in millions, except for per share data)

(Unaudited)

Three months ended

November 30,

2024

2023

Operating income (U.S. GAAP)

197

303

Amortization of intangibles

Stock-based compensation expense and related charges

Restructuring, severance and related charges(1)

127

Net periodic bene

Business interruption and impairment charges, net(2)

Acquisition and divestiture related charges

Adjustments to operating income

150

196

Core operating income (Non-GAAP)

347

499

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

100

194

Adjustments to operating income

150

196

Net periodic bene

(1)

(2)

Adjustments for taxes

(21)

(45)

Core earnings (Non-GAAP)

228

343

Diluted earnings per share (U.S. GAAP)

0.88

1.47

Diluted core earnings per share (Non-GAAP)

2.00

2.60

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

114.0

132.1

_______________

JABIL INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

ADJUSTED FREE CASH FLOW

(in millions) (Unaudited)

Net cash provided by operating activities (U.S. GAAP)

Acquisition of property, plant and equipment ("PP&E")(1)

Proceeds and advances from sale of PP&E(1)

Adjusted free cash

Three months ended

November 30,

2024

2023

312

448

(97)

(288)

226

173

_______________

Investor Contact

Adam Berry

Senior Vice President, Investor Relations and Communications

[email protected]

Media Contact

Timur Aydin

Senior Director, Enterprise Marketing and Communications [email protected]

Source: Jabil, Inc.

Disclaimer

Jabil Inc. published this content on December 18, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 18, 2024 at 12:52:08.266.