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    Jabil Inc (JBL)

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    Jabil Inc. is a leading provider of worldwide manufacturing services and solutions, offering comprehensive electronics design, production, and product management services to companies across various industries and end markets . The company operates through two main segments: Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS) . Jabil's revenue is primarily derived from production and product management services, which involve manufacturing tangible components built to customer specifications . The company has a global presence, with a substantial portion of its revenue generated from international operations .

    1. Electronics Manufacturing Services (EMS) - Leverages IT, supply chain design, and engineering technologies centered on core electronics, serving industries such as 5G, wireless and cloud, digital print and retail, industrial and semi-capital equipment, and networking and storage .
    2. Diversified Manufacturing Services (DMS) - Provides engineering solutions with an emphasis on material sciences, technologies, and healthcare, catering to automotive and transportation, connected devices, and healthcare and packaging industries .
    NamePositionStart DateShort Bio
    Adam E. BerrySenior Vice President, Investor Relations & CommunicationsJune 2024Adam E. Berry was named Senior Vice President, Investor Relations & Communications at Jabil in June 2024. He previously served as Vice President, Investor Relations from September 2018 and has held various roles of increasing responsibility since joining Jabil in 2010 as Director of Investor Relations .
    Steven D. BorgesExecutive Vice President, Global Business UnitsMay 2024Steven D. Borges was named Executive Vice President, Global Business Units in May 2024. He previously served as Executive Vice President, Chief Executive Officer, Diversified Manufacturing Services from June 2022, and held various leadership roles at Jabil since joining the company in 1993 .
    Matthew CrowleyExecutive Vice President, Global Business UnitsMay 2024Matthew Crowley was named Executive Vice President, Global Business Units in May 2024. He most recently served as Senior Vice President, Global Business Units from May 2022, and from March 2019 until April 2022, as Vice President, Global Business Units. Before joining Jabil in 2018, Mr. Crowley held positions with Dell and Amazon Web Services .
    Michael DastoorChief Executive OfficerMay 2024Michael Dastoor was named Chief Executive Officer of Jabil Inc. in May 2024. He has been with Jabil since 2000, holding multiple leadership roles across the company's global markets. Prior to becoming CEO, he served as Chief Financial Officer from April 2018 to April 2024 and as Senior Vice President, Controller from July 2010 .
    Gregory B. HebardChief Financial OfficerMay 2024Gregory B. Hebard was named Chief Financial Officer of Jabil Inc. in May 2024. He joined Jabil in 2009 and has held various roles of increasing responsibility in finance, including Senior Vice President, Treasurer since 2021, Senior Vice President, CFO Green Point from 2017 to 2021, and Vice President, Financial Planning & Analysis from 2013 to 2017 .
    Frederic E. McCoyExecutive Vice President, OperationsMay 2024Frederic E. McCoy was named Executive Vice President, Operations at Jabil in May 2024. He previously served as Executive Vice President, Global Business Units since August 2023, and as Executive Vice President & Chief Executive Officer, Electronics Manufacturing Services, from December 2021. Mr. McCoy joined Jabil in 2001 .
    Francis ("Frank") G. McKaySenior Vice President, Chief Procurement OfficerJanuary 2019Francis ("Frank") G. McKay was named Senior Vice President, Chief Procurement Officer at Jabil in January 2019. Prior to his current role, he served as Vice President, Procurement & Purchasing Services from October 2014 and has held a variety of management positions in Europe, Asia, and the US since joining Jabil in 1997 .
    Kristine MelachrinoSenior Vice President, General CounselOctober 2022Kristine Melachrino was named Senior Vice President, General Counsel at Jabil in October 2022. She joined Jabil in 2007, holding various roles in the legal department supporting the functional and business teams globally. Prior to her current role, she served as Vice President, Senior Deputy General Counsel for the global Commercial legal team .
    Andrew D. PriestleyExecutive Vice President, Global Business UnitsMay 2024Andrew D. Priestley, aged 53, was named Executive Vice President, Global Business Units in May 2024. He most recently served as Senior Vice President, Global Business Units from April 2014. Since joining Jabil in 1996, he has held positions of increasing responsibility across the company, including as Vice President, Global Business Units since 2012 .
    Gary K. SchickSenior Vice President and Chief Human Resources OfficerOctober 2023Gary K. Schick was named Senior Vice President and Chief Human Resources Officer in October 2023. He previously served as Vice President, HR Operations from October 2022. Mr. Schick has held several positions of increasing responsibility in human resources since joining Jabil in August 2018 as a Senior Director, Human Resources .
    May Y. YapSenior Vice President, Chief Information OfficerSeptember 2020May Y. Yap was named Senior Vice President, Chief Information Officer at Jabil in September 2020. She joined Jabil in 2014 as Vice President and CIO of Jabil Green Point. Ms. Yap holds an MBA and a master's in Computer Science from the University of Hull and a doctorate in business administration and management from New York University .
    1. Your utilization rates have dropped to around 70% due to surplus capacity, yet you have decided not to restructure or reduce the number of sites, believing end markets will come back. How confident are you in this approach, and what is the risk to margins if demand does not recover as expected?
    2. In fiscal '24, you divested your mobility business and reshaped your portfolio away from legacy networking, accounting for $2.4 billion in revenue loss. How do you plan to achieve organic growth in fiscal '25, and what strategies are in place to offset this significant reduction in revenue?
    3. Given the anticipated 12% year-on-year growth in the Intelligent Infrastructure segment, primarily driven by AI and data center infrastructure, are you seeing any signs of slowdown or risks to sustaining this growth rate, especially considering potential impacts from consignment in fiscal '25?
    4. With your AI-related businesses expected to deliver margins in line with or slightly accretive to enterprise targets, can you provide more clarity on the profitability of these investments, and how sustainable are these margins given the rapid pace of technology advancement and competition in AI hardware?
    5. Despite acknowledging challenges in harnessing AI and the need for significant investment in capabilities such as advanced packaging OSAT and process development for photonics, how are you addressing these challenges to ensure Jabil remains competitive, and what are the potential risks if these investments do not yield the expected returns?
    Program DetailsProgram 1Program 2
    Approval DateQ1 FY 2024 Q1 FY 2025
    End Date/DurationQ1 FY 2025 Not specified
    Total additional amount$2,500 million $1,000 million
    Remaining authorization$0 million $916 million
    DetailsAmended from $1,000 million to $2,500 million in September 2023 N/A
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2026499 1.700% Senior Notes1.700 17.3% = (499 / 2,882) * 100
    2026N/ABorrowings under revolving credit facilities (maturity dates: January 22, 2026, and July 31, 2026) N/AN/A
    2027497 4.250% Senior Notes4.250 17.2% = (497 / 2,882) * 100
    2028498 3.950% Senior Notes3.950 17.3% = (498 / 2,882) * 100
    2029297 5.450% Senior Notes5.450 10.3% = (297 / 2,882) * 100
    2030497 3.600% Senior Notes3.600 17.2% = (497 / 2,882) * 100
    2031594 3.000% Senior Notes3.000 20.6% = (594 / 2,882) * 100
    CustomerRelationshipSegmentDetails
    Apple
    Electronics manufacturing and supply chain services
    DMS
    Contributed 11% of Jabil's FY 2024 total revenue of \$28.883 billion (i.e., approximately \$3.177 billion)
    NameStart DateEnd DateReason for Change
    Ernst & Young LLP2010 PresentCurrent auditor

    Recent developments and announcements about JBL.

    Financial Reporting

      Earnings Call

      ·
      Dec 18, 2024, 3:51 PM

      Jabil has recently released its earnings call transcript for the first quarter of fiscal year 2025. Here are the key points from the call:

      • Revenue and Profit Performance: Jabil reported Q1 revenue of $7 billion, which is a 1% increase year-on-year, excluding the impact of a $1.45 billion mobility divestiture from the prior year. Core operating income for the quarter was $347 million, with core operating margins at 5% despite some impact from hurricanes. GAAP operating income was $197 million, and GAAP diluted earnings per share was $0.88, while core diluted earnings per share was $2 .

      • Management’s Forward Guidance: For the second quarter, Jabil expects total company revenue to be between $6.1 billion and $6.7 billion. Core operating income is projected to be between $286 million and $346 million, with GAAP operating income expected to range from $183 million to $263 million. Core diluted earnings per share is estimated to be between $1.60 and $2, and GAAP diluted earnings per share is expected to be between $0.69 and $1.27 .

      • Market Conditions and Strategic Initiatives: Jabil is seeing strong demand in its Intelligent Infrastructure segment, particularly in AI-related cloud and data center infrastructure markets. The company is also focusing on expanding its capabilities in thermal management and data center ecosystems through acquisitions like Mikros Technologies .

      • Analyst Questions and Management Responses: Analysts inquired about the impact of new silicon in the cloud segment and its implications for Jabil's business. Management indicated that while it's early days, they expect it to drive growth and new business opportunities. They also discussed the impact of hurricanes on margins and the strategic focus on M&A to enhance capabilities in growth markets like healthcare and intelligent infrastructure .

      • Capital Allocation: Jabil is committed to completing its $1 billion share repurchase authorization by the end of FY '25, with 80% of free cash flow allocated to share buybacks and 20% to M&A. The company is focusing on expanding capabilities in growth markets through strategic acquisitions .

      Overall, Jabil is optimistic about its growth prospects, driven by strong performance in key segments and strategic initiatives aimed at enhancing its market position.

      Earnings Report

      ·
      Dec 18, 2024, 1:06 PM

      Jabil Inc. has released its earnings results for the first quarter of fiscal year 2025, reporting strong financial performance. The company achieved a net revenue of $7.0 billion, with a U.S. GAAP operating income of $197 million and a U.S. GAAP diluted earnings per share of $0.88. On a non-GAAP basis, the core operating income was $347 million, and the core diluted earnings per share was $2.00. The results were driven by strength in the Cloud, Data Center Infrastructure, and Digital Commerce end-markets .

      Looking ahead, Jabil has raised its fiscal 2025 outlook, now anticipating approximately $27.3 billion in net revenue and core operating margins of 5.4%. The core earnings per share are expected to be $8.75, with robust adjusted free cash flow generation of $1.2 billion for the year .

      For the second quarter of fiscal year 2025, Jabil projects net revenue between $6.1 billion and $6.7 billion, U.S. GAAP operating income between $183 million and $263 million, and U.S. GAAP diluted earnings per share ranging from $0.69 to $1.27. The core operating income is expected to be between $286 million and $346 million, with core diluted earnings per share between $1.60 and $2.00 .