“In Capital Equipment, the rise of AI is driving demand for semiconductor fabrication and test equipment, which we expect to continue throughout FY'25 and beyond. The AI piece is the one that's going to drive a lot of our future growth, $1.5 billion year-on-year is a big number on that $5 billion base from last year.”
— Mike Dastoor, CEO
03Detailed Report
JBL
Company JBL
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
- 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.
Key Performance Indicators
Revenue
Decreasing
6.99B
QoQ: 0.43% | YoY: -16.61%
Gross Profit
Decreasing
606.00M
8.66% margin
QoQ: -8.60% | YoY: -21.81%
Operating Income
Decreasing
197.00M
QoQ: -38.05% | YoY: -34.98%
Net Income
Decreasing
100.00M
QoQ: -27.54% | YoY: -48.45%
EPS
Decreasing
0.89
QoQ: -21.24% | YoY: -40.67%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $6.994B; YoY change (reported) -16.6%; QoQ +0.4%. Excluding Mobility Divestiture, revenue was up about 1% YoY.
- Gross Profit: $606M; gross margin 8.66%; YoY gross profit change -21.8%; QoQ -8.6%.
- Operating Income (GAAP): $197M; operating margin 2.82%.
- Core Operating Income: $347M; core operating margin 5.00%.
- Net Income: $100M; net margin 1.43%; EPS GAAP $0.89; EPS Diluted $0.88; Management notes a higher "core" EPS figure of $2.00 for Q1 (per call remarks).
- EBITDA: $359M; EBITDA margin 5.13%.
- Free Cash Flow: $215M; CFO $312M; Net CapEx $86M; full-year CapEx guidance 1.5–2% of revenue; FY25 free cash flow guidance $1.2B.
- Cash & Equivalents: $2.058B; Total Debt: $3.279B; Net Debt: $1.221B; Debt/Core EBITDA ~1.4x.
- Balance Sheet Strength: Cash position and $2B+ operating cash flow underpin flexibility for buybacks and selective M&A.
- Segment Highlights: Regulated Industries revenue ~$3.0B (down 7% YoY; core margin 4.7%); Intelligent Infrastructure revenue ~$2.5B (up 5% YoY; core margin 4.8%); Connected Living & Digital Commerce revenue ~$1.5B (down 46% YoY; ex-Mobility ~+12% YoY; core margin 5.8%).
- Guidance (Q2FY25): Revenue $6.1–$6.7B; Core OI $286–$346M; Core EPS $1.60–$2.00; GAAP OI $183–$263M; Tax rate 21%; Net interest ~$60M.
- Full-year Guidance: Revenue ~$27.3B; Core margin ~5.4%; Core EPS ~$8.75; Free cash flow ~$1.2B; buybacks under way with $768M remaining on a $1B authorization.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.99B
-16.61%
0.43%
Gross Profit
606.00M
-21.81%
-8.60%
Operating Income
197.00M
-34.98%
-38.05%
Net Income
100.00M
-48.45%
-27.54%
EPS
0.89
-40.67%
-21.24%
Key Financial Ratios
Gross Profit Margin
Weak
8.66%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
2.82%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
1.43%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.56%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.28%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.06
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.06
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Growth
38.27x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
9.61x
Very high premium suggests asset-light business model or lofty expectations
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