Technology
Electronic Components
$17.15B
138K
Jabil Inc. provides manufacturing services and solutions worldwide. It operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. The company offers electronics design, production, and product management services; electronic circuit design services, such as application-specific integrated circuit design, firmware development, and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA). It also provides three-dimensional mechanical design comprising the analysis of electronic, electro-mechanical, and optical assemblies, as well as various industrial design, mechanism development, and tooling management services. In addition, the company provides computer-assisted design services consisting of PCBA design, as well as PCBA design validation and verification services; and other consulting services, such as the generation of a bill of materials, approved vendor list, and assembly equipment configuration for various PCBA designs. Further, it offers product and process validation services, such as product system, product safety, regulatory compliance, and reliability tests, as well as manufacturing test solution development services. Additionally, the company provides systems assembly, test, direct-order fulfillment, and configure-to-order services. It serves 5G, wireless and cloud, digital print and retail, industrial and semi-cap, networking and storage, automotive and transportation, connected devices, healthcare and packaging, and mobility industries. The company was formerly known as Jabil Circuit, Inc. and changed its name to Jabil Inc. in June 2017. Jabil Inc. was founded in 1966 and is headquartered in Saint Petersburg, Florida.
Key insights and themes extracted from this filing
Net revenue decreased from $34.702 billion to $28.883 billion, a decrease of 16.8%. This decline is attributed to decreases in both the EMS and DMS segments, with the divestiture of the Mobility Business significantly impacting the DMS segment.
Gross profit as a percentage of net revenue increased from 8.3% to 9.3%. This improvement is primarily due to product mix and the removal of depreciation and amortization expenses related to long-lived assets of the divested Mobility Business.
Net income attributable to Jabil Inc. increased from $818 million to $1,388 million. This increase is largely due to the pre-tax gain of $942 million from the divestiture of the Mobility Business.
The sale of the Mobility Business to BYDE resulted in a pre-tax gain of $942 million. This divestiture is part of a strategic realignment to focus on higher-return areas of the business.
The acquisition of ProcureAbility, a procurement services provider, for approximately $60 million in cash, broadens Jabil's capabilities in technology-enabled advisory and managed services.
The company approved the 2024 Restructuring Plan, totaling approximately $300 million in pre-tax restructuring and other related costs and the 2025 Restructuring Plan, totaling approximately $150 million to $200 million in pre-tax restructuring and other related costs. These plans aim to realign the cost base and optimize the global footprint.
Management is actively implementing restructuring plans to improve utilization and realize cost savings. These initiatives involve changes to production facilities, staff reductions, and realignment of business processes.
Strategic and efficient component and materials purchasing is an aspect of the company's strategy. The company is managing supply chain to mitigate risks and maintain favorable pricing.
The company has established written policies and procedures to help ensure that cybersecurity incidents are quickly assessed and addressed.
The company's ability to schedule production, manage capital expenditures, and maximize manufacturing capacity efficiency is highly dependent on customer actions, including order cancellations, quantity changes, and sourcing strategy changes.
A significant percentage of net revenue is derived from a relatively small number of customers. A reduction in sales to any one of these customers could significantly decline revenue.
The company's international operations are subject to a number of risks, including difficulties in staffing and managing foreign operations, labor unrest, compliance with foreign laws, and political and economic instability.
The business is highly competitive. The company competes against numerous domestic and foreign electronic manufacturing solutions providers, diversified manufacturing service providers, and design providers.
The company also faces competition from the manufacturing operations of current and potential customers, who are continually evaluating the merits of manufacturing products internally against the advantages of outsourcing.
The success of our business is dependent on our ability to keep pace with technological changes and competitive conditions in our industry and our ability to effectively adapt our services as our customers react to technological changes and competitive conditions in their respective industries.
Operating results are impacted by the level of capacity utilization of manufacturing facilities, indirect labor costs, and selling, general, and administrative expenses.
Efficient component and material purchasing is critical to the company's manufacturing processes and contractual arrangements.
The company has undertaken initiatives to restructure its business operations with the intention of improving utilization and realizing cost savings.
The company continuously engages in R&D activities designed to create new and improved products and manufacturing solutions for its customers.
Design services support products across all markets and include products such as cloud data center server platforms; medical and consumer health devices; automotive assemblies for software defined vehicles, advanced driver assistance systems, autonomous systems, and electrification.
The company makes available to customers and suppliers an electronic commerce system/electronic data interchange and cloud-based tools to implement a variety of supply chain management programs.
The company repurchased shares of its common stock under share repurchase programs authorized by the Company's Board of Directors.
For Fiscal Year 2025, the company anticipates net capital expenditures to be in the range of 1.5 percent to 2.0 percent of net revenue.
The company expects to continue to declare and pay regular quarterly dividends in amounts similar to its past declarations.
The company believes that respect for fundamental human rights as an essential element of responsible corporate citizenship.
The company's diverse workforce provides the innovation and creativity that have allowed the company to continue its success.
The company is subject to a variety of federal, state, local, and foreign environmental, health and safety, product stewardship, and producer responsibility laws and regulations.
Many factors outside of the company's control impact its customers and their ordering behavior, including recession in end markets, changing technology and industry standards, commercial acceptance for products and shifting market demand, product obsolescence, global pandemics, and loss of business.
Although the impact of the Russia/Ukraine conflict on our supply chain has not been significant, some sub-tier suppliers providing raw materials such as palladium, neon gas, and high-grade aluminum are partially dependent on supply from the regions that may be impacted by the conflict.
International trade disputes or political differences with China have and could result in tariffs and other measures that could adversely affect the Company's business.