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JABIL INC

JBL
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Business Summary

Jabil Inc. is one of the leading providers of engineering, manufacturing, and supply chain solutions, delivering comprehensive design, production, and product management services to companies across a diverse range of industries and end markets. The industry was historically composed of companies that provide a range of design and manufacturing services to companies that utilize electronics components in their products, and subsequently expanded to include customers that require products and services beyond electronic components, including plastics and metal components, packaging, and injection molding. Key structural forces shaping competition include efficient manufacturing, accelerated product time-to-market and time-to-volume, access to advanced design and manufacturing technologies, improved inventory management and purchasing power, and global reach and regional manufacturing. Jabil operates facilities located worldwide, including but not limited to China, Malaysia, Mexico, and the United States.

Jabil's business is highly competitive, and it competes against numerous domestic and foreign electronic manufacturing solutions providers, diversified manufacturing service providers, and design providers, as well as the manufacturing operations of current and potential customers. The principal competitive factors in the manufacturing services market are cost, accelerated production time-to-market, higher efficiencies, global locations, rapid scaling of production, advanced technologies, quality, and improved pricing of components. In fiscal year 2025, Jabil's five largest customers accounted for approximately 36% of net revenue , and 87 customers accounted for approximately 90% of net revenue . Customer A accounted for 16% of net revenue , reported primarily in the Intelligent Infrastructure segment, and Customer B accounted for 11% of net revenue in fiscal 2024 and 17% of net revenue in fiscal 2023, reported in the Connected Living and Digital Commerce segment.

Jabil generates revenue primarily through production and product management services, which encompass the act of producing tangible components built to customer specifications. The company serves customers through dedicated business units that combine highly automated, continuous flow manufacturing with advanced electronic design and design for manufacturability. Most business units serve a single customer, using dedicated production equipment, workers, supervisors, buyers, planners, and engineers. Revenue is recognized over time for the majority of customers based on costs incurred to date relative to total estimated cost at completion, as the manufactured products have no alternative use and the company has an enforceable right to payment for work completed. For certain other contracts, transfer of control occurs at a point in time upon delivery and transfer of risk and title.

Jabil reports its business in three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce. The Regulated Industries segment is focused on regulated markets and includes revenues from customers primarily in the automotive and transportation, healthcare and packaging, and renewables and energy infrastructure industries. The Intelligent Infrastructure segment is focused on the modern digital ecosystem including artificial intelligence infrastructure and includes revenues from customers primarily in the capital equipment, cloud and data center infrastructure, and networking and communications industries. The Connected Living and Digital Commerce segment is focused on digitalization and automation, including warehouse automation and robotics, and includes revenues from customers primarily in the connected living and digital commerce industries. For fiscal year 2025, Regulated Industries represented 40% of net revenue , Intelligent Infrastructure represented 41% , and Connected Living and Digital Commerce represented 19% . For fiscal year 2024, Regulated Industries represented 42% , Intelligent Infrastructure represented 32% , and Connected Living and Digital Commerce represented 26% . For fiscal year 2023, Regulated Industries represented 38% , Intelligent Infrastructure represented 32% , and Connected Living and Digital Commerce represented 30% .

During fiscal year 2025, Jabil completed the acquisition of Pharmaceutics International, Inc. (Pii) on February 3, 2025, for cash consideration transferred of $309 million , which is expected to enhance existing Regulated Industries service offerings including the development and commercial production of auto-injectors, pen injectors, inhalers, and on-body pumps. On October 1, 2024, Jabil completed the acquisition of Mikros Technologies LLC for consideration transferred of $63 million , a leader in liquid cooling solutions for thermal management. On August 1, 2025, Jabil divested its operations in Italy through its indirect subsidiary Jabil Circuit Italia S.r.l., derecognizing net assets of approximately $36 million and recording a pre-tax loss of $97 million , and paid cash consideration of $63 million to the buyer. On September 1, 2025, subsequent to fiscal year end, Jabil completed the acquisition of Rebound Technologies Group Holdings Limited for cash consideration transferred of $134 million . In fiscal year 2024, Jabil completed the sale of the Mobility Business for cash consideration of approximately $2.2 billion , recording a pre-tax gain of $942 million . During fiscal year 2025, Jabil repurchased $1.0 billion of its common stock under share repurchase programs, and the Board of Directors authorized a new $1.0 billion share repurchase program in July 2025. 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, expiring December 27, 2031 .

For the fiscal year ended August 31, 2025, Jabil reported net revenue of $29.802 billion , compared to $28.883 billion in fiscal 2024 and $34.702 billion in fiscal 2023. Net income attributable to Jabil Inc. was $657 million in fiscal 2025, compared to $1.388 billion in fiscal 2024 and $818 million in fiscal 2023. Diluted earnings per share were $5.92 in fiscal 2025, compared to $11.17 in fiscal 2024 and $6.02 in fiscal 2023. Gross profit was $2.646 billion in fiscal 2025, representing 8.9% of net revenue , compared to $2.676 billion and 9.3% in fiscal 2024. Operating income was $1.182 billion in fiscal 2025, compared to $2.013 billion in fiscal 2024. Net cash provided by operating activities was $1.640 billion in fiscal 2025, compared to $1.716 billion in fiscal 2024. Adjusted free cash flow was $1.318 billion in fiscal 2025, compared to $1.055 billion in fiscal 2024.

Business Outlook

Jabil's Intelligent Infrastructure segment is a major growth vector, with net revenue increasing 34% during fiscal year 2025 compared to fiscal year 2024, primarily due to a 30% increase in revenues from existing customers within the cloud and data center infrastructure business and a 10% increase in revenues from existing customers within the capital equipment business . The segment is focused on the modern digital ecosystem including artificial intelligence infrastructure. The acquisition of Mikros Technologies LLC on October 1, 2024, for $63 million , enhances Jabil's capabilities in liquid cooling solutions for thermal management, supporting the Intelligent Infrastructure segment. The acquisition of Rebound Technologies Group Holdings Limited on September 1, 2025, for $134 million , a global supply chain service provider, is expected to enhance end-to-end solutions including global sourcing, data driven analytics, proactive shortage management and obsolescence strategies.

Jabil's Regulated Industries segment is a growth vector through the acquisition of Pharmaceutics International, Inc. (Pii) on February 3, 2025, for $309 million , which is expected to enhance existing service offerings including the development and commercial production of auto-injectors, pen injectors, inhalers, and on-body pumps. The acquisition of ProcureAbility Inc. in fiscal year 2024 for approximately $60 million in cash, a procurement services provider, supports the Regulated Industries segment. The Regulated Industries segment is focused on regulated markets including automotive and transportation, healthcare and packaging, and renewables and energy infrastructure. Jabil also continues to evaluate emerging end-markets and technologies to help ensure its portfolio remains balanced, resilient, and aligned with long-term customer demand.

Jabil's gross profit as a percentage of net revenue decreased to 8.9% in fiscal 2025 from 9.3% in fiscal 2024, primarily due to product mix in the Connected Living and Digital Commerce and Intelligent Infrastructure segments. The company expects to recognize approximately $200 million in pre-tax restructuring and other related costs related to the 2025 Restructuring Plan, which includes headcount reductions across SG&A and manufacturing cost base and capacity realignment. The restructuring charges are expected to include $60 million to $70 million of employee severance and benefit costs , $65 million to $70 million of asset write-off costs , and $55 million to $65 million of contract termination costs and other related costs . The 2024 Restructuring Plan, totaling approximately $300 million in pre-tax restructuring and other related costs, was substantially complete as of August 31, 2024.

Jabil's operational outlook includes a focus on global production facilities, with manufacturing operations in the Americas, Europe, and Asia. The company invests in local-for-local and local-for-regional capabilities to improve resilience, reduce lead times, enhance sustainability, and support customers directly where they operate. Jabil's global manufacturing production sites allow customers to manufacture products simultaneously in optimal locations. The company's global footprint is strengthened by a centralized procurement process coupled with a single Enterprise Resource Planning system, providing end-to-end supply chain visibility. Jabil also utilizes electronic supply chain management tools including procurement intelligence platforms and AI-driven orchestration systems.

For fiscal year 2026, Jabil anticipates net capital expenditures to be in the range of 1.5% to 2.0% of net revenue . During fiscal year 2025, capital expenditures were $468 million , and proceeds and advances from sale of property, plant and equipment were $146 million . Jabil's Board of Directors authorized a $1.0 billion share repurchase program in July 2025 (the 2026 Share Repurchase Program), and as of October 10, 2025, $865 million remained available under this program. Jabil expects to continue to declare and pay quarterly dividends of an amount similar to past declarations, with $36 million in dividends paid during fiscal year 2025. Research and development expenses were $26 million in fiscal 2025, representing 0.1% of net revenue .

Jabil faces headwinds from tariffs implemented by the U.S. beginning in February 2025 on a variety of countries and commodities, including tariffs on aluminum and steel derivative products, imports of certain Canadian and Mexican goods, imports of Chinese goods, universal tariffs on imports from most countries, and reciprocal tariffs on select countries. These increased tariffs have impacted and may continue to impact end customer demand, and if Jabil is unable to fully pass on these costs, operating results and cash flows could be adversely impacted. The global tariff landscape continues to shift rapidly, with changes impacting businesses and markets around the world. Additionally, the company faces risks from component shortages, as some products require components only available from a single source, and supply shortages have in the past substantially curtailed production.

Jabil faces constraints from its dependence on a limited number of customers, with five largest customers accounting for approximately 36% of net revenue in fiscal 2025. A reduction in business from one or more of these customers could have a material adverse effect on results of operations. The company also faces risks from its international operations, which derive a substantial majority of revenues, with foreign source revenue representing 75.0% of net revenue in fiscal 2025. These operations are subject to risks including difficulties in staffing and managing foreign operations, labor laws, trade barriers, tariffs, geopolitical unrest, and fluctuations in currency exchange rates. The company's operations in China are particularly important, and revenues associated with China operations are important to its success.

Risk Factors

Jabil's business is highly dependent on a limited number of customers, with five largest customers accounting for approximately 36% of net revenue in fiscal 2025, and a reduction in business from any one of these customers could cause a significant decline in revenue. The company faces risks from component shortages, as some products require components only available from a single source, and supply shortages have substantially curtailed production in the past, which could increase costs and reduce profit. International operations, which generated 75.0% of net revenue in fiscal 2025, are subject to risks including tariffs, trade disputes, geopolitical unrest, and currency fluctuations, with a significant portion of manufacturing conducted in China where economic, political, and legal factors could materially adversely affect results. The company's substantial debt of $2.885 billion as of August 31, 2025, exposes it to interest rate risk and covenant compliance requirements, and a downgrade in credit ratings could increase borrowing costs and limit access to capital markets. Jabil also faces risks from the restructuring of its operations, with the 2025 Restructuring Plan expected to incur approximately $200 million in pre-tax costs, which could adversely affect employee morale and operational targets.

Management Priorities

Management's message emphasizes Jabil's vision to be the world's most technologically advanced and trusted manufacturing solutions provider, with strategies focused on establishing and maintaining long-term customer relationships, product diversification toward higher-return and strategically important segments, utilizing customer-centric business units, leveraging global production, expanding value-added services, delivering design expertise, and pursuing strategic acquisitions. Key themes include the company's focus on balancing its portfolio toward segments such as cloud and data infrastructure, healthcare, packaging, automotive and transportation, warehouse automation, networking and communications, and semi-capital equipment. Management highlights the completion of the 2025 Restructuring Plan to align support infrastructure and optimize organizational effectiveness, expecting approximately $200 million in pre-tax restructuring costs. The filing notes that management regularly reviews financial and non-financial performance indicators, including sales cycle, inventory turns, days in accounts receivable, days in inventory, and days in accounts payable, to assess operating results and liquidity.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Customers and Marketing
  2. [2] Item 1, Business — Customers and Marketing
  3. [3] Item 1, Business — Customers and Marketing
  4. [4] Item 1, Business — Customers and Marketing
  5. [5] Item 1, Business — Customers and Marketing
  6. [6] Item 7, MD&A — Results of Operations
  7. [7] Item 7, MD&A — Results of Operations
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  15. [15] Item 7, MD&A — Acquisitions and Divestitures
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  22. [22] Item 7, MD&A — Acquisitions and Divestitures
  23. [23] Item 7, MD&A — Liquidity and Capital Resources
  24. [24] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  25. [25] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  26. [26] Item 7, MD&A — Liquidity and Capital Resources
  27. [27] Item 7, MD&A — Liquidity and Capital Resources
  28. [28] Item 8, Consolidated Statements of Operations
  29. [29] Item 8, Consolidated Statements of Operations
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  38. [38] Item 7, MD&A — Results of Operations
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  41. [41] Item 8, Consolidated Statements of Operations
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  43. [43] Item 8, Consolidated Statements of Cash Flows
  44. [44] Item 8, Consolidated Statements of Cash Flows
  45. [45] Item 7, MD&A — Non-GAAP (Core) Financial Measures
  46. [46] Item 7, MD&A — Non-GAAP (Core) Financial Measures
  47. [47] Item 7, MD&A — Results of Operations
  48. [48] Item 7, MD&A — Results of Operations
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  50. [50] Item 7, MD&A — Acquisitions and Divestitures
  51. [51] Item 7, MD&A — Acquisitions and Divestitures
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  53. [53] Item 7, MD&A — Acquisitions and Divestitures
  54. [54] Item 7, MD&A — Results of Operations
  55. [55] Item 7, MD&A — Results of Operations
  56. [56] Item 7, MD&A — Restructuring, Severance, and Related Charges
  57. [57] Item 7, MD&A — Restructuring, Severance, and Related Charges
  58. [58] Item 7, MD&A — Restructuring, Severance, and Related Charges
  59. [59] Item 7, MD&A — Restructuring, Severance, and Related Charges
  60. [60] Item 7, MD&A — Restructuring, Severance, and Related Charges
  61. [61] Item 7, MD&A — Liquidity and Capital Resources
  62. [62] Item 8, Consolidated Statements of Cash Flows
  63. [63] Item 8, Consolidated Statements of Cash Flows
  64. [64] Item 5, Market for Registrant's Common Equity — Issuer Purchases of Equity Securities
  65. [65] Item 7, MD&A — Liquidity and Capital Resources
  66. [66] Item 7, MD&A — Liquidity and Capital Resources
  67. [67] Item 8, Consolidated Statements of Operations
  68. [68] Item 7, MD&A — Results of Operations
  69. [69] Item 1, Business — Customers and Marketing
  70. [70] Item 7, MD&A — Results of Operations
  71. [71] Item 1, Business — Customers and Marketing
  72. [72] Item 7, MD&A — Results of Operations
  73. [73] Item 8, Consolidated Balance Sheets
  74. [74] Item 7, MD&A — Restructuring, Severance, and Related Charges
  75. [75] Item 7, MD&A — Restructuring, Severance, and Related Charges
  76. [76] Item 8, Consolidated Statements of Operations
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  85. [85] Item 7, MD&A — Results of Operations
  86. [86] Item 8, Consolidated Statements of Operations
  87. [87] Item 7, MD&A — Results of Operations
  88. [88] Item 8, Consolidated Statements of Cash Flows
  89. [89] Item 8, Consolidated Statements of Cash Flows
  90. [90] Item 7, MD&A — Non-GAAP (Core) Financial Measures
  91. [91] Item 7, MD&A — Non-GAAP (Core) Financial Measures
  92. [92] Item 8, Consolidated Balance Sheets
  93. [93] Item 8, Consolidated Balance Sheets
  94. [94] Item 8, Consolidated Balance Sheets
  95. [95] Item 8, Consolidated Balance Sheets
  96. [96] Item 7, MD&A — Loss (Gain) from the Divestiture of Businesses
  97. [97] Item 7, MD&A — Loss (Gain) from the Divestiture of Businesses
  98. [98] Item 7, MD&A — Loss on Securities
  99. [99] Item 8, Consolidated Statements of Operations
  100. [100] Item 7, MD&A — Results of Operations
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Analysis on 6/8/2026