01—Abstract
Summary
Summary of the 10-Q filed April 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Jabil Inc. (JBL) reported its 10-Q for the quarter ended February 28, 2025.
Net revenue for the three months was $6.73 billiona, down from $6.77 billion a year earlier, and for the six months was $13.72 billion versus $15.15 billion, reflecting the divestiture of the Mobility Business. Operating income fell to $245 million from $1.13 billion, a comparison that was inflated in the prior-year quarter by a $944 million divestiture gain. Net income attributable to Jabil was $117 million, or $1.06 diluted EPS, versus $927 million and $7.31 in the prior-year quarter.
Excluding non-GAAP adjustments, diluted core earnings per share were $1.94b for the quarter versus $1.68 a year earlier, and the filing defines core operating income as $334 million versus $338 million. The balance sheet and capital allocation were central to the period. Cash and cash equivalents were $1.59 billion, down from $2.20 billion at August 31, 2024, and total stockholders' equity was $1.36 billion, reflecting $636 million of treasury stock purchases in the six months.
The company acquired Pharmaceutics International, Inc. for $307 millionc and Mikros Technologies LLC for $63 million, and it issued a warrant to Amazon.com NV Investment Holdings LLC for up to 1,158,539 shares. Senior notes outstanding totaled $2.88 billion, and $4.0 billion of revolving credit capacity was available as of the period end. The company reorganized into three reportable segments effective September 1, 2024: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce.
Intelligent Infrastructure revenue rose 12% for the six months, driven by cloud and data center infrastructure, while Connected Living and Digital Commerce fell 34% largely due to the Mobility Business divestiture. The 2025 Restructuring Plan is expected to generate $150 million to $200 milliond in pre-tax charges during fiscal 2025.
02—Key points
Key Highlights
- Net revenue of $6.73 billion for the quarter ended February 28, 2025, down 0.6% from $6.77 billion; six-month revenue of $13.72 billion, down 9.4%.
- Diluted EPS of $1.06 for the quarter versus $7.31 a year earlier, which included a $944 million divestiture gain; diluted core EPS rose to $1.94 from $1.68.
- Gross margin of 8.6% for the quarter versus 9.3%, attributed to product mix in the Connected Living and Digital Commerce segment.
- Cash and cash equivalents fell to $1.59 billion from $2.20 billion at August 31, 2024, with six-month net cash used in financing activities of $746 million.
- Treasury stock purchases of $636 million in the six months, with $28 million remaining under the 2025 Share Repurchase Program as of April 3, 2025.
- Acquisitions of Pharmaceutics International, Inc. ($307 million) and Mikros Technologies LLC ($63 million), and a warrant issued to Amazon for up to 1,158,539 shares.
- 2025 Restructuring Plan expected to deliver $150 million to $200 million in pre-tax charges during fiscal 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Jabil kept $0.02.
- Revenue$6.73B100.0%
- Cost of revenue−$6.15B91.4%
- Gross profit$576.0M8.6%
- Operating costs−$331.0M4.9%
- Operating income$245.0M3.6%
- Interest, other & tax−$128.0M1.9%
- Net income$117.0M1.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed April 8, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $6.73B$6.77B | −0.6% |
| Cost of Revenue | $6.15B$6.14B | +0.2% |
| Gross Profit | $576.00M$630.00M | −8.6% |
| R&D Expenses | $7.00M$10.00M | −30.0% |
| SG&A Expenses | $256.00M$308.00M | −16.9% |
| Operating Income | $245.00M$1.13B | −78.3% |
| Net Income | $117.00M$927.00M | −87.4% |
| EPS (Basic) | $1.07$7.41 | −85.6% |
| EPS (Diluted) | $1.06$7.31 | −85.5% |
| Shares Outstanding (Basic) | 110.00M125.20M | −12.1% |
| Shares Outstanding (Diluted) | 111.10M126.90M | −12.5% |
05—Questions
Frequently Asked Questions
Why did net income and EPS decline so sharply compared with the prior-year quarter?
The prior-year quarter included a $944 million pre-tax gain from the divestiture of the Mobility Business, which lifted operating income to $1.13 billion. Without that gain, the filing shows restructuring charges and lower gross profit as the main factors, with quarterly net income at $117 million versus $927 million.
How did the company's segments perform?
For the six months, Intelligent Infrastructure net revenue rose 12%, driven by a 16% increase in cloud and data center infrastructure revenue. Regulated Industries revenue fell 8%, and Connected Living and Digital Commerce revenue fell 34%, primarily due to the Mobility Business divestiture.
What is the company's liquidity position?
Cash and cash equivalents were $1.59 billion at February 28, 2025, and the company had $4.0 billion of unused revolving credit capacity. Senior notes and debt totaled $2.88 billion, and the company stated it was in compliance with its debt covenants.
How much has Jabil returned to shareholders?
In the six months ended February 28, 2025, the company paid $636 million for treasury stock and $19 million in dividends. As of April 3, 2025, 6.5 million shares had been repurchased under the 2025 program for $972 million, leaving $28 million of authorization.
What is the Amazon warrant?
On December 27, 2024, Jabil issued a warrant to Amazon.com NV Investment Holdings LLC to acquire up to 1,158,539 ordinary shares at an initial exercise price of $137.7671 per share. The warrant vests as Amazon purchases products and services over a seven-year term, with 59,582 shares vested at issuance.
06—Continue