ST. PETERSBURG, Fla., December 18, 2024--(BUSINESS WIRE)--Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its first quarter of fiscal year 2025.
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 first fiscal quarter results, which came in stronger than we anticipated driven by 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 flow generation during the quarter," said CEO Mike Dastoor. "We 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 flow generation of $1.2 billion," he concluded.
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
_______________
(1)
Core operating income and core diluted earnings per share exclude anticipated adjustments of $13 million for amortization of intangibles (or $0.11 per diluted share) and $20 million for stock-based compensation expense and related charges (or $0.18 per diluted share) and $70 million to $50 million (or $0.62 to $0.44 per diluted share) for restructuring, severance and related charges.
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 flow (Non-GAAP)
$1.2 billion
(Definitions: "U.S. GAAP" means U.S. generally accepted accounting principles. Jabil defines core operating 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 benefit cost. Jabil defines core earnings as core operating income, less loss on debt extinguishment, loss (gain) on securities, other components of net periodic benefit cost, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations and certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares as determined under U.S. GAAP. Jabil defines adjusted free cash flow as net cash 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 flow to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and free cash flow from what it believes are its 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 financial results for our first quarter of fiscal year 2025 and our guidance for future financial performance in our second quarter of fiscal year 2025 (including, net revenue, U.S. GAAP operating income, U.S. 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 differ materially from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for our first quarter of fiscal year 2025 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; scheduling production, managing growth and capital expenditures and maximizing the efficiency of our manufacturing capacity effectively; 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 efficiently and reliance on 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 profitability from acquisitions; risk arising from our restructuring activities; issues involving our 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); financial risks (including customers or suppliers who become financially troubled; turmoil in financial markets; tax risks; credit rating risks; risks of exposure to debt; currency fluctuations; and asset impairment); changes in financial accounting standards or policies; risk of natural disaster, climate change or other global events; and risks arising from expectations relating to environmental, social and governance considerations. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2024 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements.
Supplemental Information Regarding Non-GAAP Financial Measures: Jabil provides supplemental, non-GAAP financial measures in this release to facilitate evaluation of Jabil’s core operating performance. These 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 financial measures used by other companies. Management believes these "core" financial measures are useful measures that facilitate evaluation of 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 flows to provide investors an additional method for assessing operating income, earnings, earnings per share and free cash flow from what it believes are its core manufacturing operations. Among other uses, management uses non-GAAP financial measures to make operating decisions, assess business performance and as a factor in determining 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 financial projection of core earnings that considers the mix of earnings across tax jurisdictions, existing tax positions, and other significant tax matters. The 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 definitions of certain of the core financial measures are included above under "Definitions" and a reconciliation of the disclosed core financial measures to the most directly comparable U.S. GAAP financial 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 first quarter of fiscal year 2025. To access the live audio webcast and view the accompanying slide 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, offering 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
(unaudited)
August 31, 2024
ASSETS
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
96
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
93
93
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
92
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
1,593
1,737
Noncontrolling interests
—
—
Total equity
1,593
1,737
Total liabilities and equity
$
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, 2024
November 30, 2023
Net revenue
$
6,994
$
8,387
Cost of revenue
6,388
7,612
Gross profit
606
775
Operating expenses:
Selling, general and administrative
305
314
Research and development
8
10
Amortization of intangibles
13
6
Restructuring, severance and related charges
83
127
Acquisition and divestiture related charges
—
15
Operating income
197
303
Interest and other, net
58
68
Income before income tax
139
235
Income tax expense
39
41
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, 2024
November 30, 2023
Cash flows provided by operating activities:
Net income
$
100
$
194
Depreciation, amortization, and other, net
182
206
Change in operating assets and liabilities, exclusive of net assets acquired
30
48
Net cash provided by operating activities
312
448
Cash flows used in investing activities:
Acquisition of property, plant and equipment
(97
)
(288
)
Proceeds and advances from sale of property, plant and equipment
11
13
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
13
1
Net cash used in investing activities
(136
)
(75
)
Cash flows used in financing activities:
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 financing activities
(312
)
(620
)
Effect of exchange rate changes on cash and cash equivalents
(7
)
(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
November 30, 2023
Operating income (U.S. GAAP)
$
197
$
303
Amortization of intangibles
13
6
Stock-based compensation expense and related charges
44
46
Restructuring, severance and related charges(1)
83
127
Net periodic benefit cost
1
2
Business interruption and impairment charges, net(2)
9
—
Acquisition and divestiture related charges
—
15
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 benefit cost
(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
_______________
(1)
Charges recorded during the three months ended November 30, 2024 and 2023, primarily related to the 2025 Restructuring Plan and 2024 Restructuring Plan, respectively.
(2)
Charges recorded during the three months ended November 30, 2024, relate primarily to costs associated with damage from Hurricanes Helene and Milton, which impacted our operations in St. Petersburg, Florida and Asheville and Hendersonville, North Carolina.
JABIL INC. AND SUBSIDIARIES SUPPLEMENTAL DATA ADJUSTED FREE CASH FLOW (in millions) (Unaudited)
Three months ended
November 30, 2024
November 30, 2023
Net cash provided by operating activities (U.S. GAAP)
$
312
$
448
Acquisition of property, plant and equipment ("PP&E")(1)
(97
)
(288
)
Proceeds and advances from sale of PP&E(1)
11
13
Adjusted free cash flow (Non-GAAP)
$
226
$
173
_______________
(1)
Certain customers co-invest in PP&E with us. As we acquire PP&E, we recognize the cash payments in acquisition of PP&E. When our customers reimburse us and obtain control, we recognize the cash receipts in proceeds and advances from the sale of PP&E.
