Jabil (JBL) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Strategic repositioning and AI infrastructure outlook

• Revenue exposure to AI has grown to 40%, supported by proprietary capabilities from recent acquisitions, including Intel assets and Hanley.

• The business model has shifted from contract manufacturing to an engineering-led, supply chain-enabled solutions provider.

• AI infrastructure demand is robust, with no signs of a bubble; capacity constraints are being addressed through facility expansions in the US, Mexico, and India.

• Diversification across power management, service racks, liquid cooling, and maintenance enables end-to-end data center solutions.

• The company is positioned to benefit from increasing hyperscale CapEx and complexity in AI hardware.

Margin improvement and business model evolution

• Margins have improved from 3% to above 6% through repositioning and higher-value offerings in engineering and supply chain.

• The organization does not see a ceiling for margin expansion and will continue to move up the value chain.

• Growth is balanced with disciplined margin expansion, focusing on business opportunities with higher returns.

• Asset-light Intelligent Infrastructure business supports strong free cash flow and limited capital expenditure.

Segment opportunities and technology leadership

• Liquid cooling, enabled by Mikros acquisition, is a key entry point for broader data center solutions.

• Hanley acquisition expands power product capabilities, with expected business growth from $200M–$500M and beyond in three years.

• Silicon photonics and co-packaged optics, supported by Intel asset acquisition, provide a competitive moat and advanced packaging capabilities.

• The company manufactures both Ethernet and InfiniBand switches, with flexibility to adapt to market mix shifts.