Jabil Inc. Reports Decline in Revenue and Profitability for Q2 Fiscal 2025

Jabil Inc. reported its financial results for the second quarter of fiscal year 2025, revealing a decline in both revenue and profitability compared to the same period last year. For the three months ended February 28, 2025, the company generated net revenue of $6.728 billion, a decrease of 0.6% from $6.767 billion in the prior year. The gross profit for the quarter was $576 million, down from $630 million, resulting in a gross margin of 8.6%, compared to 9.3% in the previous year. Net income attributable to Jabil Inc. was $117 million, or $1.07 per share, significantly lower than the $927 million, or $7.41 per share, reported in the same quarter last year.

The decline in revenue was attributed to several factors, including a 34% decrease in the Connected Living and Digital Commerce segment, primarily due to the divestiture of the Mobility Business. The Regulated Industries segment also saw an 8% drop in revenue, driven by reduced sales in the automotive and healthcare sectors. Conversely, the Intelligent Infrastructure segment experienced an 18% increase in revenue, bolstered by growth in cloud and data center infrastructure. For the six months ended February 28, 2025, total revenue was $13.722 billion, down 9.4% from $15.154 billion in the prior year.

In terms of strategic developments, Jabil completed two acquisitions during the fiscal year, acquiring Pharmaceutics International, Inc. for $307 million and Mikros Technologies LLC for $63 million. These acquisitions are expected to enhance Jabil's capabilities in regulated industries and intelligent infrastructure. The company also underwent a restructuring plan aimed at optimizing its organizational effectiveness, which included headcount reductions and realignment of its support infrastructure.

Operationally, Jabil's total assets increased slightly to $17.396 billion as of February 28, 2025, compared to $17.351 billion at the end of the previous fiscal year. The company reported a total employee headcount of approximately 250,000, reflecting ongoing adjustments in its workforce. Jabil's cash and cash equivalents decreased to $1.592 billion, down from $2.201 billion, while accounts receivable rose to $3.708 billion, indicating a potential increase in sales outstanding.

Looking ahead, Jabil anticipates continued challenges in the market, particularly in light of the ongoing restructuring efforts and the impact of recent acquisitions. The company expects to maintain its focus on optimizing operational efficiency and enhancing its service offerings across its three segments. Jabil's management remains cautious about the economic environment but is committed to leveraging its global presence and capabilities to drive future growth.