Jabil (JBL) Q1 2025 earnings summary

Executive summary

• Q1 FY25 net revenue was $6.99B–$7.0B, down 16.6%–17% year-over-year, mainly due to the Mobility Business divestiture and lower Connected Living & Digital Commerce sales.

• Net income for Q1 was $100M, down from $194M in the prior year; GAAP diluted EPS was $0.88.

• Core (non-GAAP) operating income was $347M with a 5% margin; core diluted EPS was $2.00.

• Adjusted free cash flow reached $226M, with strong cash flow from operations at $312M.

• Opened a new manufacturing site in Croatia and completed the acquisition of Mikros Technologies.

Financial highlights

• Q1 GAAP operating income: $197M; core operating income: $347M; gross profit: $606M (8.7% margin).

• GAAP diluted EPS: $0.88; core diluted EPS: $2.00; net income: $100M.

• Net cash from operating activities: $312M; adjusted free cash flow: $226M; net capital expenditures: $86M.

• Cash and cash equivalents at quarter end: $2.1B; debt-to-core EBITDA: 1.4x.

• Share repurchases: 1.8M shares for $232M in Q1; $768M remains on $1B authorization.

Outlook and guidance

• FY25 revenue guidance: $27.3B; core operating margin: 5.4%; core EPS: $8.75; free cash flow: $1.2B.

• Q2 FY25 revenue expected between $6.1B–$6.7B; core diluted EPS: $1.60–$2.00.

• FY25 net CapEx to remain 1.5%–2% of revenue; $150–$200M in pre-tax restructuring and related costs expected.

• No material impact expected from global minimum tax changes for FY25.

• Core tax rate for Q2 and FY25: 21%.