Jabil Inc (JBL) Q4 2024 Earnings Report

- Q4 2024 revenue: $6.964B; gross margin: 9.52% (0.0952); operating margin (GAAP): 4.57% (EBITDA 434M; EBIT 318M); net income: $138M; basic/diluted EPS: $1.13 / $1.18. Core diluted EPS: $2.30 (+0.07 vs midpoint guidance).
- YoY Q4 revenue: -?% (referenced as weaker year-over-year with a strong sequential finish); QoQ revenue increased modestly as per segment commentary. Core operating income: 401M; GAAP operating income: 318M.
- FY24 cash flow: cash from operations $535M in Q4; full-year free cash flow north of $1B; capital expenditures (full year): $661M (~2.3% of revenue); net debt at year-end: approximately $1.06B (net debt), cash $2.20B; debt: $3.257B; debt-to-core-EBITDA ~1.3x; liquidity over $6.2B including $4B capacity on credit facilities.
- Stockholder returns: 5.3M shares repurchased in FY24 ($2.5B), cumulative ~128M shares repurchased since FY13; new $1B buyback authorization approved for FY25.
- FY25 guidance (enterprise): revenue ~$27B; core margins ~5.4%; coreEPS ~$8.65; free cash flow ~+$1.2B; CapEx 1.5-2% of revenue; 80% of free cash flow to shareholders (dividends + buybacks). Q1 guidance: revenue $6.3B-$6.9B; core OpInc $304M-$364M; core EPS $1.65-$2.05.

- Strategy and segment realignment: JBL introduced a three-segment reporting structure (Regulated Industries, Intelligent Infrastructure, Connected Living & Digital Commerce) to better reflect end-market exposure and growth opportunities. CEO Mike Dastoor emphasized maintaining a diversified growth framework and disciplined capital allocation. Quote: “Our enterprise-level strategy is sound... three distinct businesses” (Mike Dastoor).
- Mobility divestiture and capital return: Management highlighted divesting Mobility for $2.2B and returning the net proceeds through buybacks, contributing to a robust capital return profile. Quote: “divested our Mobility business for $2.2 billion, and returned the majority of those net proceeds to shareholders through a robust buyback program” (Adam Berry).
- AI/data center and OSAT investments: Calls out silicon photonics, advanced packaging OSAT, and data-center retrofits from air to liquid cooling as core growth engines; near-term demand for AI accelerators and high-bandwidth interconnect. Quote: “AI is the next cloud technology cycle... we’re at the center of this evolution” (Matt Crowley).
- Healthcare tailwinds and GLP-1 pipeline: Healthcare end-market (injectors, CGMs, autoinjectors) remains a growth anchor; GLP-1 drug delivery programs expected to contribute meaningfully in FY26-FY27 with near-term wins in Europe and Dominican Republic/Croatia facilities. Quote: “growth of GLP-1 drugs... injectors we manufacture” (Steve Borges).
- Near-term margin and capacity considerations: JBL acknowledged elevated utilization risk due to excess capacity post-Mobility divestiture, guiding to a 20-30 bps headwind to FY25 core margins; plan to expand margin through mix optimization and SG&A efficiency. Quote: “underutilized capacity will weigh on core operating margins in FY25 by 20 basis points to 30 basis points” (Mike Dastoor).
- Auto/EV cyclicality and near-term leverage: Management recognized auto/EV demand volatility in FY25 but remained optimistic about long-term EV adoption; Croatia automotive facility partially repurposed to GLP-1 healthcare manufacturing to optimize utilization. Quote: “ Croatia factory... converting that Croatia factory mainly to a GLP-1 healthcare factory” (Mike Dastoor).
- Pricing/rate environment: Acknowledgement of ongoing pricing pressure in cloud/data-center ecosystems, with JBL noting continued emphasis on value creation and potential consolidation opportunities for customers. Quote: “we’re constantly under price pressure… but it creates opportunities to consolidate” (Matt Crowley).

Jabil’s FY2024 results showcase a disciplined execution framework and meaningful strategic shifts that position the company to benefit from secular AI, data-center, and healthcare tailwinds. The transition to three segments enhances visibility into growth engines and improves forecasting granularity. The near-term risk is primarily a utilization headwind from the Mobility divestiture, which the company acknowledged, but JBL expects a mid- to long-term margin path back toward its 6% target as capacity is filled and SG&A costs are optimized. The combination of a strong balance sheet, substantial liquidity, and an attractive free-cash-flow yield supports ongoing shareholder-friendly capital allocation (80% of FCFF to dividends and buybacks) and a new $1B buyback authorization. On a relative basis, JBL appears positioned to outperform in areas tied to AI-ready data-center infrastructure (DCI), advanced packaging photonics, and healthcare device manufacturing, with potential multiple expansion drivers from improving utilization and continued buybacks. In a competitive context, JBL’s FY25 core margin guidance (5.4%) sits above typical EMS peers’ reported margins, supported by its diversified mix and ongoing efficiency efforts. Competitive benchmarks suggest JBL should be evaluated against diversified hardware manufacturers like Sanmina (SANM) and Plexus (PLXS), which generally exhibit lower gross margins but different exposure profiles. JBL’s improved gross margin (about 9.5% for FY24) combined with an 80% FCFF return framework offers an appealing risk-adjusted return, particularly if the data-center and healthcare programs scale as anticipated. Investors should monitor capacity utilization trends, the pace of AI-driven capex in hyperscalers, GLP-1 program ramps into FY26-FY27, and any changes in regulatory/tax regimes that could impact cash flow and margins.