01—Abstract
Summary
Summary of the 10-Q filed January 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. (JBL) reported a quarter ended November 30, 2024 (Q1 fiscal 2025) with net revenue of $6.99 billiona, down from $8.39 billion in the prior-year quarter, and net income attributable to Jabil Inc. of $100 million, versus $194 million a year earlier.
Diluted EPS was $0.88b, compared with $1.47. Management attributed the revenue decline primarily to the divestiture of the Mobility Business, which was completed December 29, 2023, and to lower revenue in the Connected Living and Digital Commerce segment. The Intelligent Infrastructure segment grew, led by cloud and data center infrastructure.
Gross profit fell to $606 millionc from $775 million, and the company cited product mix in Connected Living and Digital Commerce. Non-GAAP diluted core EPS was $2.00, compared with $2.60 a year earlier. Cash flow and capital returns were a major theme.
Operating cash flow was $312 milliond, and adjusted free cash flow was $226 million. Jabil repurchased treasury stock for $232 million in cash during the quarter. Total stockholders' equity fell to $1.59 billion from $1.74 billion, largely reflecting the buybacks.
Cash and cash equivalents were $2.06 billion, and notes payable and long-term debt were $2.88 billion. The company had $4.0 billion of unused revolving credit capacity. In December 2024 it entered into accelerated share repurchase agreements totaling $310 million and issued a warrant to Amazon.com NV Investment Holdings LLC for up to 1,158,539 shares.
The company launched a 2025 Restructuring Plan in September 2024, expecting $150 million to $200 million in pre-tax charges during fiscal 2025. Restructuring, severance and related charges were $83 million in the quarter, and the company recorded $9 million of business interruption and impairment charges related to Hurricanes Helene and Milton. Management reorganized its reporting into three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce.
02—Key points
Key Highlights
- Net revenue was $6.99 billion, down from $8.39 billion a year earlier, mainly due to the Mobility Business divestiture.
- Net income attributable to Jabil Inc. was $100 million, or $0.88 diluted EPS, versus $194 million, or $1.47 diluted EPS, in the prior-year quarter.
- Non-GAAP diluted core EPS was $2.00, compared with $2.60 a year earlier.
- Gross profit declined to $606 million from $775 million; the gross margin percentage was 8.7% versus 9.2%.
- Operating cash flow was $312 million, and adjusted free cash flow was $226 million, up from $173 million.
- Jabil repurchased $232 million of stock in the open market and has $364 million remaining under the 2025 Share Repurchase Program as of January 2, 2025.
- Cash of $2.06 billion and $4.0 billion of unused revolving credit capacity; the company was in compliance with its debt covenants.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Jabil kept $0.01.
- Revenue$6.99B100.0%
- Cost of revenue−$6.39B91.3%
- Gross profit$606.0M8.7%
- Operating costs−$409.0M5.8%
- Operating income$197.0M2.8%
- Interest, other & tax−$97.0M1.4%
- Net income$100.0M1.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed January 10, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $6.99B$8.39B | −16.6% |
| Cost of Revenue | $6.39B$7.61B | −16.1% |
| Gross Profit | $606.00M$775.00M | −21.8% |
| R&D Expenses | $8.00M$10.00M | −20.0% |
| SG&A Expenses | $305.00M$314.00M | −2.9% |
| Operating Income | $197.00M$303.00M | −35.0% |
| Net Income | $100.00M$194.00M | −48.5% |
| EPS (Basic) | $0.89$1.49 | −40.3% |
| EPS (Diluted) | $0.88$1.47 | −40.1% |
| Shares Outstanding (Basic) | 112.70M129.60M | −13.0% |
| Shares Outstanding (Diluted) | 114.00M132.10M | −13.7% |
05—Questions
Frequently Asked Questions
Why did revenue decline year over year?
The filing attributes the decline mainly to the divestiture of the Mobility Business, which closed December 29, 2023. The Connected Living and Digital Commerce segment net revenue fell 46%, while Intelligent Infrastructure revenue rose 5%, driven by cloud and data center infrastructure.
What is driving the lower gross margin?
Management said gross profit as a percentage of net revenue decreased primarily due to product mix in the Connected Living and Digital Commerce segment. Gross profit was $606 million, or 8.7% of net revenue, compared with $775 million, or 9.2%, a year earlier.
What restructuring is underway?
The Board approved a 2025 Restructuring Plan on September 24, 2024. The company expects $150 million to $200 million in pre-tax restructuring and related costs during fiscal 2025, with approximately $100 million to $130 million in net cash expenditures payable over fiscal 2025 and 2026.
How is Jabil returning capital to shareholders?
The company paid $232 million for open-market repurchases and $10 million in dividends during the quarter. It declared a dividend of $0.08 per share, and $364 million remains under the 2025 Share Repurchase Program. In December 2024, it entered into ASR agreements for $310 million and issued a warrant to Amazon.com NV Investment Holdings LLC for up to 1,158,539 shares.
What is the company's debt and liquidity position?
Notes payable and long-term debt totaled $2.88 billion as of November 30, 2024. Cash and cash equivalents were $2.06 billion, and the company had $4.0 billion of available unused revolving credit capacity and up to $1.8 billion of liquidity under its trade accounts receivable sale programs. The global asset-backed securitization program had no available liquidity as of the quarter end.
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