Jabil (JBL) Q3 2024 earnings summary

Executive summary

• Q3 FY24 net revenue was $6.8 billion, down 20% year-over-year, mainly due to the mobility business divestiture and lower demand in key segments.

• Q3 GAAP net income was $129 million, with a core diluted EPS of $1.89 and GAAP diluted EPS of $1.06.

• A $944 million pre-tax gain was recorded from the mobility business divestiture.

• Management reaffirmed FY24 guidance, focusing on AI data center growth, margin improvement, and capital allocation.

• The company completed the acquisition of ProcureAbility for $60 million to expand procurement services.

Financial highlights

• Q3 GAAP operating income was $261 million; core operating income was $350 million.

• Adjusted free cash flow for Q3 was $415 million; for nine months, it was $636 million, up from $368 million year-over-year.

• Cash and cash equivalents totaled $2.5 billion as of May 31, 2024.

• Share repurchases in Q3 totaled $499 million; $1.82 billion repurchased in nine months, with $700 million remaining on the $2.5 billion authorization.

• Core EBITDA for Q3 was $513 million.

Outlook and guidance

• Q4 FY24 net revenue expected between $6.3–$6.9 billion; core operating income $365–$425 million; core EPS $2.03–$2.43.

• FY24 guidance: net revenue $28.5 billion, core operating margin 5.6%, core EPS $8.40, adjusted free cash flow over $1 billion.

• FY25 net interest expense projected at $275 million; core tax rate expected at 22–24% due to global minimum tax.

• The company expects to recognize about $300 million in pre-tax restructuring and related costs in FY24.

• Regular quarterly dividends and share repurchases are expected to continue, subject to board approval and market conditions.