JABIL INC

JABIL INC Annual Report Summary – Plain Talk for Investors

Hey there! Let’s break down how JABIL, the “behind-the-scenes” maker of tech, medical, and car parts, did this past year. Here’s what everyday investors need to know:

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1. The Big Picture: Steady in a Storm

JABIL helps big brands build things like phone parts, medical devices, and electric car tech. This year was mixed:

• Good news: They grew in electric vehicles (EVs) and healthcare (like MRI machines).
• Bad news: Sales of 5G gear and consumer electronics (phones, laptops) slowed.
  Takeaway: They’re pivoting toward hotter markets to offset weaker areas.

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2. Money Talk: Selling Less, Earning More

• Revenue: $34.7 billion (down 13% from last year).
• Profit: $1 billion net income (up 8% from last year).
  Why? They sold fewer products but focused on higher-margin projects (like medical tech) and cut costs.

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3. Wins vs. Challenges

Wins ✅

• Expanded in EVs and healthcare (aging populations = more medical devices needed).
• Improved profit margins by streamlining factories and supply chains.
• Amazon partnership: Gave Amazon a special deal to buy JABIL shares at $115 each by 2025. Could mean closer collaboration.

Challenges ❌

• Weak demand for consumer electronics (their biggest headache).
• Supply chain delays (though less severe than last year).

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4. Financial Health Check

• Cash: $2.5 billion (up slightly).
• Debt: $3.1 billion (down 10%, but still a chunk to manage).
• Stock moves: Aggressively buying back shares (boosts stock price by reducing supply).
  Verdict: Solid, but keep an eye on debt.

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5. Risks to Watch

• Customer concentration: Top 5 clients = 40% of sales. Losing one would hurt.
• Tech spending swings: If Apple or Cisco cuts budgets, JABIL feels it.
• Global supply chains: Shipping delays or material shortages could pinch profits.

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6. How They Compare to Rivals

• Profit margins: Better than Flex, thanks to cost-cutting.
• Focus: Smaller than Foxconn but specializes in complex, high-quality products (like medical devices).

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7. Leadership & Strategy

• New CEO: Kenny Wilson (a 25-year JABIL veteran) took over in December. No major strategy shifts—just doubling down on EVs and healthcare.
• Moving away: Slowly exiting lower-margin consumer electronics.

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8. What’s Next?

• Stock buybacks: Spending big to reduce shares outstanding through 2025 (could lift stock price).
• Growth forecast: 3-5% revenue growth next year as EVs and healthcare ramp up.

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9. Market Trends

• Opportunities: EV boom and healthcare demand.
• Threats: Trade wars (U.S.-China) and environmental regulations (could raise costs).

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Bottom Line for Investors

👍 Pros:

• Adapting well to economic bumps.
• Profits rising even with lower sales.
• Aggressive stock buybacks show confidence.

👎 Cons:

• Relies heavily on a few big clients.
• Debt isn’t trivial.

Who’s this for? Investors who want:

• A stable, “behind-the-scenes” tech/healthcare/EV supplier.
• A company that’s prioritizing profits over rapid growth.

Think twice if: You’re wary of customer concentration or want explosive growth.

Final thought: JABIL isn’t flashy, but their moves into EVs and healthcare—plus disciplined cost-cutting—make them a cautious “hold” or buy for steady long-term growth. Watch the debt and customer diversity!

Let me know if you’d like me to simplify anything else! 😊