- JBL delivered a solid start to FY2025 with quarterly revenue of $6.99B and GAAP operating income of $197M, while core operating income reached $347M and core margins stood at 5.0%. This reflects a split performance across segments: Regulated Industries faced continued weakness stemming from renewable energy and EV softness, Intelligent Infrastructure demonstrated year-over-year growth driven by AI-related cloud and data-center demand, and Connected Living & Digital Commerce declined due to the Mobility Divestiture but showed 12% YoY growth excluding Mobility.
- Management articulated a clear, AI-centric growth trajectory for FY25, highlighted by an elevated AI/data center revenue outlook (core AI/DSC-related growth) and strategic assets such as Mikros Technologies for liquid cooling. The company also outlined a restructuring of margins in the back half of the year, driven by ramping AI-related capex, cost optimization initiatives, and the exit of legacy, higher-capital-intensity Mobility activities. Long-term free cash flow remains robust at ~$1.2B, supported by a healthy balance sheet (net debt ~$1.22B, cash ~$2.06B) and a strong buyback program.
- Near-term uncertainties center on end-market cyclicality (renewables/EVs, solar exposure), potential tariff shifts, and regulatory dynamics (EV tax credits). JBL’s strategic advantage rests on its global, US-domiciled manufacturing footprint, automation/robotics capabilities, and a growing suite of thermal-management and Silicon Photonics capabilities through Mikros, positioning it to benefit as hyperscalers and AI workloads expand.