We're obviously a U.S. domiciled manufacturing service provider. We're U.S. headquartered. We've been in the U.S. for 60 years, so we have a lot of experience... we have 30 sites in the US all over the place. The ability to move manufacturing is highly, highly doable.
— Mike Dastoor
03Detailed Report
JBL
Company JBL
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Jabil delivered solid operating performance in Q2 FY2025, underscored by a diversified, resilient portfolio and strong cash generation. Reported revenue of $6.728 billion supported a GAAP operating income of $245 million and net income of $117 million, while core (non-GAAP) operating income reached $334 million, signaling a 5% core margin profile even as GAAP margins remained lower at ~3.6%. Excluding the divested Mobility segment (~$250 million in the prior year), year-over-year revenue grew about 3%, reflecting stabilization and modest growth as key end markets evolved. Management highlighted meaningful progress across the Intelligent Infrastructure/AI-centric growth engines, with AI-related revenue now guided to about $7.5 billion for FY2025—a ~40% year-on-year rise—driven by data-center infrastructure demand, GPU-based workloads, and silicon photonics capabilities acquired via strategic collaboration with Intel. The company reaffirmed its multi-year growth cadence, including a firmer view of FCF generation (> $1.2 billion for FY2025), a robust US manufacturing footprint (30 sites), and ongoing deleveraging (net debt ~ $1.7 billion; debt/EBITDA ~1.4x). Management also signaled prudent guidance for Q3 and FY2025 amid ongoing tariff discussions and mixed end-market trajectories (notably 5G, EVs, and renewables). Overall, JBL is positioned to benefit from AI/data-center buildouts and digital automation, while remaining vigilant on near-term cyclicality and margin progression.
Key Performance Indicators
Revenue
Decreasing
6.73B
QoQ: -3.80% | YoY: -0.58%
Gross Profit
Decreasing
576.00M
8.56% margin
QoQ: -4.95% | YoY: -9.00%
Operating Income
Decreasing
245.00M
QoQ: 24.37% | YoY: -22.22%
Net Income
Decreasing
117.00M
QoQ: 17.00% | YoY: -87.38%
EPS
Decreasing
1.07
QoQ: 20.22% | YoY: -85.54%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability snapshot:
- Revenue: $6.728B in Q2 FY2025 (YoY -0.58%; QoQ not disclosed in detailed figures). Excluding ~$250M Mobility divestiture in the prior-year quarter, revenue was up ~3% YoY per company commentary.
- Gross Profit: $576M; gross margin 8.56% (YoY gross margin was about -9.0% YoY; QoQ -4.95% in gross margin).
- Operating Income: GAAP $245M (operating margin 3.64%); Core operating income $334M (core margin ~5.0%).
- Net Income / EPS: Net income $117M; net margin 1.74%; GAAP EPS $1.06, diluted $1.06; core diluted EPS $1.94 (YoY EPS -85.5% vs prior year, QoQ +20.2% for reported metric).
- Cash Flow and capital deployment: Cash flow from operations $334M; capex $73M; free cash flow $218M in the quarter; YTD free cash flow $487M; full-year guidance for free cash flow > $1.2B.
- Balance sheet and liquidity: Cash and cash equivalents $1.592B; total cash & equivalents ~$1.592B; total assets ~$17.396B; total liabilities ~$16.038B; total stockholders’ equity ~$1.358B; net debt ~$1.701B; debt to core EBITDA ~1.4x.
- Segment mix (Q2 by management commentary): Regulated Industries ~ $2.7B (−8% YoY, margins +20 bps to 4.8%); Intelligent Infrastructure ~$2.6B ( +18% YoY, margins +110 bps to 5.3%); Connected Living & Digital Commerce ~$1.3B ( −13% YoY, ex-Mobility + approx. 4% YoY). Q2 segment margins were ~4.5% for CLDC, 4.8% for Regulated, and 5.3% for Intelligent Infrastructure.
- Guidance (Q3 FY2025): Total revenue guidance $6.7B–$7.3B; Core operating income $348M–$408M; Core diluted EPS $2.08–$2.48. Net interest expense ~ $61M; FY2025 target net interest expense $240M–$245M; core tax rate ~21%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.73B
-0.58%
-3.80%
Gross Profit
576.00M
-9.00%
-4.95%
Operating Income
245.00M
-22.22%
24.37%
Net Income
117.00M
-87.38%
17.00%
EPS
1.07
-85.54%
20.22%
Key Financial Ratios
Gross Profit Margin
Weak
8.56%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
3.64%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
1.74%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.67%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
8.62%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.02
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.42
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Growth
36.41x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
12.55x
Very high premium suggests asset-light business model or lofty expectations
Management Insights Available for Members
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