01—Abstract
Summary
Summary of the 10-K filed October 28, 2024. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. (NYSE: JBL) reported fiscal year 2024 (ended August 31, 2024) net revenue of $28.9 billiona, down from $34.7 billion in fiscal 2023, and net income attributable to Jabil Inc. of $1.39 billion, up from $818 million.
The increase in net income was driven largely by a $942 millionb pre-tax gain on the divestiture of the Mobility Business (Chengdu product manufacturing and Wuxi component manufacturing), which closed December 29, 2023 for pre-tax cash proceeds of approximately $2.2 billion. Diluted EPS was $11.17 versus $6.02, while diluted core EPS (non-GAAP) was $8.49 versus $8.63. Core operating income (non-GAAP) declined to $1.59 billion from $1.73 billion.
Restructuring, severance and related charges rose to $296 millionc, mainly from the 2024 Restructuring Plan, which is substantially complete. Cash and cash equivalents were $2.2 billion at year-end. Net cash provided by operating activities was $1.72 billion, and adjusted free cash flow (non-GAAP) was $1.06 billion.
The company repurchased $2.5 billiond of common stock during fiscal 2024 under its amended 2023 program and had $916 million remaining under a new $1.0 billion 2025 program as of October 21, 2024. Total notes payable and long-term debt was $2.88 billion, with $4.0 billion of unused revolving credit capacity. Customer concentration remains significant: the five largest customers accounted for approximately 36% of net revenue, and Apple, Inc. accounted for 11%, down from 17% in fiscal 2023.
Beginning September 1, 2024, Jabil will report three new segments (Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce) in place of EMS and DMS. In September 2024 the Board approved a 2025 Restructuring Plan expected to cost approximately $150 million to $200 million in pre-tax charges during fiscal 2025.
Management also changed in May 2024, with Michael Dastoor named Chief Executive Officer and Gregory B. Hebard named Chief Financial Officer.
02—Key points
Key Highlights
- Net revenue fell to $28.88 billion in fiscal 2024 from $34.70 billion in fiscal 2023, with EMS revenue down 18% and DMS revenue down 16%, the latter including a 13% decrease from the Mobility Business divestiture.
- Net income attributable to Jabil Inc. rose to $1.39 billion from $818 million, helped by a $942 million pre-tax gain on the Mobility Business sale; diluted EPS was $11.17 versus $6.02.
- Non-GAAP diluted core EPS was $8.49 versus $8.63 in fiscal 2023, and core operating income was $1.59 billion versus $1.73 billion.
- Operating cash flow was $1.72 billion and adjusted free cash flow (non-GAAP) was $1.06 billion; cash and cash equivalents ended the year at $2.2 billion.
- The company repurchased $2.5 billion of common stock in fiscal 2024, and $916 million remained under the 2025 Share Repurchase Program as of October 21, 2024.
- Five largest customers accounted for approximately 36% of net revenue; Apple, Inc. accounted for 11% of fiscal 2024 net revenue, down from 17% in fiscal 2023.
- Starting September 1, 2024, Jabil reorganizes into three new segments, and a 2025 Restructuring Plan is expected to produce $150 million to $200 million in pre-tax charges in fiscal 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Jabil kept $0.05.
- Revenue$28.88B100.0%
- Cost of revenue−$26.21B90.7%
- Gross profit$2.68B9.3%
- Operating costs−$663.0M2.3%
- Operating income$2.01B7.0%
- Interest, other & tax−$625.0M2.2%
- Net income$1.39B4.8%
04—Financials
Financial Highlights
Figures from 10-KFY2024filed October 28, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $28.88B$34.70B | −16.8% |
| Cost of Revenue | $26.21B$31.84B | −17.7% |
| Gross Profit | $2.68B$2.87B | −6.7% |
| R&D Expenses | $39.00M$34.00M | +14.7% |
| SG&A Expenses | $1.07B$1.21B | −11.2% |
| Operating Income | $2.01B$1.54B | +31.0% |
| Net Income | $1.39B$818.00M | +69.7% |
| EPS (Basic) | $11.34$6.15 | +84.4% |
| EPS (Diluted) | $11.17$6.02 | +85.5% |
| Shares Outstanding (Basic) | 122.40M133.00M | −8.0% |
| Shares Outstanding (Diluted) | 124.30M135.90M | −8.5% |
05—Questions
Frequently Asked Questions
How did the Mobility Business divestiture affect Jabil's fiscal 2024 results?
On December 29, 2023, Jabil sold its Mobility Business (Chengdu product manufacturing and Wuxi component manufacturing) to an affiliate of BYD Electronic for pre-tax cash proceeds of approximately $2.2 billion, subject to post-closing adjustments. The company recorded a pre-tax gain of $942 million and incurred about $70 million of acquisition and divestiture related charges. The gain is excluded from core earnings, and the sale also reduced reported revenue and foreign source revenue percentages.
Why did net revenue decline in fiscal 2024?
Net revenue decreased 16.8% to $28.88 billion. The EMS segment fell 18%, mainly due to a 9% decline from existing 5G, wireless and cloud customers as the cloud business transitioned to a customer-controlled consignment model. The DMS segment fell 16%, including a 13% decrease from the Mobility Business divestiture.
What are the company's plans for restructuring and reporting segments?
The 2024 Restructuring Plan, about $300 million in pre-tax costs, was substantially complete as of August 31, 2024. On September 24, 2024, the Board approved a 2025 Restructuring Plan expected to generate $150 million to $200 million in pre-tax charges during fiscal 2025, with net cash expenditures of about $100 million to $130 million over fiscal 2025 and 2026. Beginning September 1, 2024, Jabil will report three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce.
How strong is Jabil's liquidity and capital return position?
Jabil ended fiscal 2024 with $2.2 billion in cash and cash equivalents and $4.0 billion of unused borrowing capacity under its revolving credit facilities. Total notes payable and long-term debt was $2.88 billion, with no maturities in fiscal 2025. The company paid $42 million in dividends and repurchased $2.5 billion of stock during the year, and it expects to continue quarterly dividends of an amount similar to past declarations.
06—Continue