JABIL INC. THIRD QUARTER FISCAL YEAR 2024 RESULTS
June 20, 2024
Forward Looking Statement
Forward Looking Statements: This presentation contains forward-looking statements, including those regarding our anticipated financial results for our third quarter of fiscal year 2024; our guidance for future financial performance in our fourth quarter of fiscal year 2024 (including, net revenue, segment revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings per share, core operating income (Non-GAAP), net interest expense, core tax rate (Non-GAAP), core diluted earnings per share (Non-GAAP) results and the components thereof); our full year 2024 (including revenue by end market, net revenue, core operating margin (Non-GAAP), core earnings per share (Non-GAAP) results and the components thereof, and free cash flow); and our 2025 tax rate and interest expense; those related to our outlook for secular trends and end markets; our expectations regarding growth in AI solutions; our financial priorities; and our expectations with respect to stock repurchase activities. The statements in this presentation are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for our third quarter of fiscal year 2024 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; unexpected costs or unexpected liabilities that may arise from the sale of our Mobility business; scheduling production, managing growth and capital expenditures and maximizing the efficiency of our manufacturing capacity effectively; managing rapid declines or increases in customer demand and other related customer challenges that may occur; the effect of COVID-19 on our operations, sites, customers and supply chain; our dependence on a limited number of customers; our ability to purchase components efficiently and reliance on a limited number of suppliers for critical components; risks arising from relationships with emerging companies; changes in technology and competition in our industry; our ability to introduce new business models or programs requiring implementation of new competencies; competition; transportation issues; our ability to maintain our engineering, technological and manufacturing expertise; retaining key personnel; risks associated with international sales and operations, including geopolitical uncertainties; energy price increases or shortages; our ability to achieve expected profitability from acquisitions; risk arising from our restructuring activities; issues involving our information systems, including security issues; regulatory risks (including the expense of complying, or failing to comply, with applicable regulations; risk arising from design or manufacturing defects; risk arising from compliance, or failure to comply, with environmental, health and safety laws or regulations and intellectual property risk); financial risks (including customers or suppliers who become financially troubled; turmoil in financial markets; tax risks; credit rating risks; risks of exposure to debt; currency fluctuations; and asset impairment); changes in financial accounting standards or policies; risk of natural disaster, climate change or other global events; and risks arising from expectations relating to environmental, social and governance considerations. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2023 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements.
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Third Quarter FY 2024
Income Highlights
THREE MONTHS ENDED | |||
May 31, | |||
(In millions, except for per share data) | 2024 | 2023 | |
$8,475 | |||
Net revenue | $6,765 | ||
U.S. GAAP operating income | $261 | $375 | |
U.S. GAAP net income | $129 | $233 | |
U.S. GAAP diluted earnings per share | $1.06 | $1.72 | |
Core operating income (non-GAAP)1 | $350 | $404 | |
Core earnings (non-GAAP)1 | $230 | $269 | |
Core diluted earnings per share (non-GAAP)1 | $1.89 | $1.99 | |
1 See U.S. GAAP to non-GAAP reconciliation in appendix.
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Third Quarter FY 2024
Segment Results
DIVERSIFIED MANUFACTURING SERVICES (DMS)
- Net Revenue decrease 23% y/y
- Core margin* (non-GAAP) of 4.6%
ELECTRONICS MANUFACTURING SERVICES (EMS)
- Net Revenue decrease of 18% y/y
- Core margin* (non-GAAP) of 5.7%
TOTAL COMPANY
- Net Revenue decrease of 20% y/y
- Core margin* (non-GAAP) of 5.2%
EMS $6.8B
50% REVENUE
DMS 50%
* Core margin defined as core operating income divided by net revenue │ See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/
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Third Quarter FY 2024
Cash Flow Highlights
($ millions)
Net cash provided by operating activities
Acquisition of property, plant and equipment
Proceeds and advances from sale of property, plant and equipment
Net capital expenditures1
Adjusted free cash flow (non-GAAP)2
Core EBITDA (non-GAAP)1
Share repurchases
THREE MONTHS
ENDED
MAY 31,
2024
$515
($106)
$6
($100)
$415
$513
$499
1 See U.S. GAAP to non-GAAP reconciliation in appendix and U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/ 2 See U.S. GAAP to non-GAAP reconciliation on Form 8-K filed on June 20, 2024.
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Fourth Quarter FY24
Guidance
Segment Revenue Guidance | Q4 FY23 | Q4 FY24E | ||
Diversified Manufacturing Services | $4.44B | $3.4B | ||
Electronics Manufacturing Services | $4.02B | $3.2B | ||
Consolidated Guidance | Q4 FY24E | |||
Net revenue | $6.3B | - $6.9B | ||
U.S. GAAP operating income | $285M | - $355M | ||
U.S. GAAP diluted earnings per share | $1.40 | - $1.88 | ||
Core operating income (non-GAAP)1 | $365 - $425M | |||
Net interest expense2 | $67M | |||
Core tax rate (non-GAAP)3 | 20% | |||
Core diluted earnings per share (non-GAAP)1 | $2.03 | - $2.43 |
- See U.S. GAAP to non-GAAP reconciliation on Form-8K filed on June 20, 2024.
- Net interest expense = interest expense, net + loss on sale of AR
- The core tax rate (non-GAAP) is a normalized annual income tax rate with regard to core earnings. See U.S. GAAP to non-GAAP definitions located at https://investors.jabil.com/
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FY24 Revenue by End-Market
$ in billions | ||||
Revenue by End-Market | FY23 | FY24E | Y/Y % ∆ | |
Auto & Transportation | $4.4 | $4.6 | 5% | |
Healthcare & Packaging | $5.6 | $5.5 | -2% | |
Networking & Storage | $3.1 | $2.7 | -13% | |
Industrial & Semi-Cap | $4.4 | $3.7 | -16% | |
Digital Print & Retail | $3.1 | $2.6 | -16% | |
Connected Devices | $4.0 | $3.2 | -20% | |
5G Wireless & Cloud | $6.1 | $4.5 | -26% | Cloud transitioning to a consignment model |
Mobility | $4.0 | $1.7 | Divested in December 2023 | |
Jabil | $34.7 | $28.5 |
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Our Outlook
FY24 Financial Plan
NET REVENUE CORE OP MARGIN1CORE EPS1FREE CASH FLOW1$28.5 | 5.6% | $8.40 | $1+ |
BILLION | BILLION |
MANAGEMENT'S OUTLOOK FOR FY24
1 See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/
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Business Update
Our Outlook
FY24 Financial Plan
NET REVENUE CORE OP MARGIN1CORE EPS1FREE CASH FLOW1$28.5 | 5.6% | $8.40 | $1+ |
BILLION | BILLION |
MANAGEMENT'S OUTLOOK FOR FY24
1 See U.S. GAAP to non-GAAP definitions and reconciliations located at https://investors.jabil.com/
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Jabil Inc. published this content on 20 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 June 2024 11:51:06 UTC.
