Jabil (JBL) Q4 2024 earnings summary

Executive summary

• FY24 was marked by the $2.2B Mobility business divestiture, driving a significant transformation and transition to three new reporting segments: Regulated Industries, Intelligent Infrastructure, and Connected Living & Digital Commerce.

• Despite a 17% revenue decline to $28.9B, strong margins, core EPS of $8.49, and over $1B in adjusted free cash flow were achieved, reflecting increased resilience.

• $2.5B was returned to shareholders via buybacks, with a new $1B repurchase authorization announced for FY25.

• Leadership transition to a new CEO, with a continued focus on profitable growth, risk reduction, and maintaining a diversified, resilient business model.

• Achieved growth in AI datacenter and warehouse automation sectors, while facing challenges in Mobility, 5G, and Connected Devices.

Financial highlights

• FY24 net revenue was $28.9B, down from $34.7B in FY23; Q4 revenue was ~$7B, $364M above guidance midpoint.

• FY24 core operating income was $1.6B (5.5% margin); GAAP operating income was $2.0B.

• FY24 core diluted EPS was $8.49; GAAP diluted EPS was $11.17.

• Adjusted free cash flow for FY24 exceeded $1B; operating cash flow was $1.72B.

• Ended FY24 with $2.2B in cash, $4B in credit facility capacity, and $6.2B in available liquidity.

Outlook and guidance

• FY25 revenue is projected at $27B, with a core operating margin of 5.4% and core EPS of $8.65.

• FY25 adjusted free cash flow is expected to be $1.2B; CapEx to be 1.5%-2% of revenue.

• 80% of free cash flow to be returned to shareholders, including a new $1B buyback authorization.

• Q1 FY25 revenue guidance: $6.3B-$6.9B; core EPS $1.65-$2.05.

• Tax rate expected at 21% for FY25, rising to 23%-24% beyond due to global minimum tax legislation.