Jabil Posts Second Quarter Results

Positive Momentum Expected to Continue

ST. PETERSBURG, Fla. –March 16, 2023Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for itssecondquarter of fiscal year2023.

“The Jabil team delivered another outstanding quarter, highlighted by excellent operational execution and solid revenue growth,”said Chairman and CEO Mark Mondello. “Our diversified portfolio allowed us to successfully navigate a very dynamic macro environment and deliver robust year-on-year financial results,” he added.

SecondQuarter of Fiscal Year2023Highlights:

  • Net revenue:$8.1 billion
  • Diversified Manufacturing Services (DMS) year-on-year revenue growth:8 percent
  • Electronics Manufacturing Services (EMS) year-on-year revenue growth: 7 percent
  • U.S. GAAP operating income:$359 million
  • U.S. GAAP diluted earnings per share:$1.52
  • Core operating income (Non-GAAP):$391 million
  • Core diluted earnings per share (Non-GAAP):$1.88

Third Quarter of Fiscal Year2023Outlook:

  • Net revenue

$7.9 billion to $8.5 billion

  • U.S. GAAP operating income

$336 million to $396 million

  • U.S. GAAP diluted earnings per share

$1.50 to $1.90 per diluted share

  • Core operating income (Non-GAAP)(1)

$363 million to $423 million

  • Core diluted earnings per share (Non-GAAP)(1)

$1.70 to $2.10 per diluted share

Fiscal Year 2023 Updated Outlook:

“I remain confident in both our plan moving forward and with the momentum underway across our business,”said incoming CEO Kenny Wilson. “For the fiscal year, we now believe the team will deliver 4.9% core operating margin on $34.5 billion in revenue,” added Wilson.

(1)Core operating income and core diluted earnings per share exclude anticipated adjustments of $8 million for amortization of intangibles (or $0.06 per diluted share) and $19 million for stock-based compensation expense and related charges (or $0.14 per diluted share).

(Definitions: “U.S. GAAP” means U.S. generally accepted accounting principles. Jabil defines core operating income as U.S. GAAP operating income less amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges, distressed customer charges, acquisition and integration charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges and business interruption and impairment charges, net plus other components of net periodic benefit cost. Jabil defines core earnings as core operating income, less loss on debt extinguishment, loss (gain) on securities, other components of net periodic benefit cost, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations and certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares as determined under U.S. GAAP. Jabil defines adjusted free cash flow as net cash provided by (used in) operating activities less net capital expenditures (acquisition of property, plant and equipment less proceeds and advances from sale of property, plant and equipment). Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash flow to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and free cash flow from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil’s core operating income to its U.S. GAAP operating income, its calculation of core earnings and core diluted earnings per share to its U.S. GAAP net income and U.S. GAAP earnings per share and additional information in the supplemental information.)

Forward Looking Statements:This release contains forward-looking statements, including those regarding our anticipated financial results for our second quarter of fiscal year 2023 and our guidance for future financial performance in our third quarter of fiscal year 2023 (including, net revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings per share, core operating income (Non-GAAP), core diluted earnings per share (Non-GAAP) results and the components thereof, including but not limited to amortization of intangibles and stock-based compensation expense and related charges) and our full year 2023 (including revenue and core operating margin (Non-GAAP)). The statements in this release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for our second quarter of fiscal year 2023 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; scheduling production, managing growth and capital expenditures and maximizing the efficiency of our manufacturing capacity effectively; managing rapid declines or increases in customer demand and other related customer challenges that may occur; the scope and duration of the COVID-19 outbreak and its impact on our operations, sites, customers and supply chain; our dependence on a limited number of customers; our ability to purchase components efficiently and reliance on a limited number of suppliers for critical components; risks arising from relationships with emerging companies; changes in technology and competition in our industry; our ability to introduce new business models or programs requiring implementation of new competencies; competition; transportation issues; our ability to maintain our engineering, technological and manufacturing expertise; retaining key personnel; risks associated with international sales and operations, including geopolitical uncertainties in Russia and Ukraine; energy price increases or shortages; our ability to achieve expected profitability from acquisitions; risk arising from our restructuring activities; issues involving our information systems, including security issues; regulatory risks (including the expense of complying, or failing to comply, with applicable regulations; risk arising from design or manufacturing defects; and intellectual property risk); financial risks (including customers or suppliers who become financially troubled; turmoil in financial markets; tax risks; credit rating risks; risks of exposure to debt; currency fluctuations; and asset impairment); changes in financial accounting standards or policies; and risk of natural disaster, climate change or other global events. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2022 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements.

Supplemental Information Regarding Non-GAAP Financial Measures:Jabil provides supplemental, non-GAAP financial在此版本中促进评价措施of Jabil’s core operating performance. These non-GAAP measures exclude某些金额中包含最可怕ctly comparable U.S. GAAP measures, do not have standard meanings andmay vary from the non-GAAP financial measures used by other companies. Management believes these “core” financialmeasures are useful measures that facilitate evaluation of the past and future performance of Jabil’s ongoing operations on acomparable basis.

Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash flows to provide investors an additional method for assessing operating income, earnings, earnings per share and free cash flow from what it believes are its core manufacturing operations. Among other uses, management uses non-GAAP financial measures to make operating decisions, assess business performance and as a factor in determining certain employee performance when determining incentive compensation.

For fiscal year 2023, the Company adopted an annual normalized tax rate (“normalized core tax rate”) for the computation of the non-GAAP (core) income tax provision to provide better consistency across reporting periods. In estimating the normalized core tax rate annually, the Company utilizes a full-year financial projection of core earnings that considers the mix of earnings across tax jurisdictions, existing tax positions, and other significant tax matters. The Company may adjust the normalized core tax rate during the year for material impacts from new tax legislation or material changes to the Company’s operations.

Prior to fiscal year 2023, the Company determined the tax effect of the items included and excluded from core earnings quarterly.

Detailed definitions of certain of the core financial measures are included above under “Definitions” and a reconciliation of the disclosed core financial measures to the most directly comparable U.S. GAAP financial measures is included under the heading “Supplemental Data” at the end of this release.

Meeting and Replay Information:Jabil will hold a conference call today at 8:30 a.m. ET to discuss its earnings for thesecondquarter of fiscal year2023. To access the live audio webcast and view the accompanying slide presentation, visit the Investor Relations section of Jabil’s website, located at https://investors.jabil.com. An archived replay of the webcast will also be available after completion of the call.

About Jabil:Jabil (NYSE: JBL) is a manufacturing solutions provider with over 250,000 employees across 100 locations in30 countries. The world’s leading brands rely on Jabil’s unmatched breadth and depth of end-market experience, technical anddesign capabilities, manufacturing know-how, supply chain insights and global product management expertise. Driven by acommon purpose, Jabil and its people are committed to making a positive impact on their local community and theenvironment. Visit www.monkeybarkid.com to learn more.

Investor Contact
Adam Berry
Vice President, Investor Relations
Adam_Berry@jabil.com

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)

February 28, 2023

(unaudited)

August 31, 2022

ASSETS

Current assets:

现金和现金等价物

$ 1,200

$ 1,478

Accounts receivable, net

3,715

3,995

Contract assets

1,175

1,196

Inventories, net

6,519

6,128

待摊费用和另外一些er current assets

1,172

1,111

Total current assets

13,781

13,908

Property, plant and equipment, net

3,903

3,954

Operating lease right-of-use asset

501

500

Goodwill and intangible assets, net

852

862

Deferred income taxes

217

199

Other assets

313

294

Total assets

$ 19,567

$ 19,717

LIABILITIES AND EQUITY

Current liabilities:

Current installments of notes payable and long-term debt

$ 323

$ 300

Accounts payable

6,965

8,006

Accrued expenses

5,866

5,272

Current operating lease liabilities

128

119

Total current liabilities

13,282

13,697

Notes payable and long-term debt, less current installments

2,577

2,575

Other liabilities

297

272

Non-current operating lease liabilities

405

417

Income tax liabilities

206

182

Deferred income taxes

126

122

Total liabilities

16,893

17,265

Commitments and contingencies

Equity:

Jabil Inc. stockholders’ equity:

Preferred stock

Common stock

Additional paid-in capital

2,742

2,655

Retained earnings

4,046

3,638

Accumulated other comprehensive income (loss)

9

(42)

Treasury stock, at cost

(4,124)

(3,800)

Total Jabil Inc. stockholders’ equity

2,673

2,451

Noncontrolling interests

1

1

Total equity

2,674

2,452

Total liabilities and equity

$ 19,567

$ 19,717

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except for per share data)

(Unaudited)

Three months ended

Six months ended

February 28, 2023

February 28, 2022

February 28, 2023

February 28, 2022

Net revenue

$ 8,134

$ 7,553

$ 17,769

$ 16,120

Cost of revenue

7473年

6,944

16,365

14,836

Gross profit

661

609

1,404

1,284

Operating expenses:

Selling, general and administrative

285

280

604

588

Research and development

8

8

17

17

Amortization of intangibles

9

8

17

16

Restructuring, severance and related charges

45

Operating income

359

313

721

663

Interest and other, net

72

29

135

62

Income before income tax

287

284

586

601

Income tax expense

80

62

156

138

Net income

207

222

430

463

Net income attributable to noncontrolling interests, net of tax

Net income attributable to Jabil Inc.

$ 207

$ 222

$ 430

$ 463

Earnings per share attributable to the stockholders of Jabil Inc.:

Basic

$ 1.55

$ 1.55

$ 3.21

$ 3.22

Diluted

$ 1.52

$ 1.51

$ 3.14

$ 3.15

Weighted average shares outstanding:

Basic

133.6

143.5

134.2

143.8

Diluted

136.3

146.4

137.1

147.0

JABIL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(Unaudited)

Six months ended

February 28, 2023

February 28, 2022

Cash flows provided by operating activities:

Net income

$ 430

$ 463

Depreciation, amortization, and other, net

514

524

Change in operating assets and liabilities, exclusive of net assets acquired

(364)

(787)

Net cash provided by operating activities

580

200

Cash flows used in investing activities:

Acquisition of property, plant and equipment

(637)

(704)

Proceeds and advances from sale of property, plant and equipment

169

430

Cash paid for business and intangible asset acquisitions, net of cash

(18)

Other, net

(16)

Net cash used in investing activities

(484)

(292)

Cash flows used in financing activities:

Borrowings under debt agreements

2,021

984

Payments toward debt agreements

(2,070)

(1,038)

Payments to acquire treasury stock

(288)

(272)

Dividends paid to stockholders

(23)

(25)

Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan

27

26

Treasury stock minimum tax withholding related to vesting of restricted stock

(36)

(44)

Other, net

(2)

(12)

Net cash used in financing activities

(371)

(381)

Effect of exchange rate changes on cash and cash equivalents

(3)

(1)

Net decrease in cash and cash equivalents

(278)

(474)

现金和现金等价物at beginning of period

1,478

1,567

现金和现金等价物at end of period

$ 1,200

$ 1,093

JABIL INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES

(in millions, except for per share data)

(Unaudited)

Three months ended

Six months ended

February 28, 2023

February 28, 2022

February 28, 2023

February 28, 2022

Operating income (U.S. GAAP)

$ 359

$ 313

$ 721

$ 663

Amortization of intangibles

9

8

17

16

Stock-based compensation expense and related charges

20

16

62

51

Restructuring, severance and related charges

45

Net periodic benefit cost(1)

3

7

7

14

Adjustments to operating income

32

31

131

81

Core operating income (Non-GAAP)

$ 391

$ 344

$ 852

$ 744

Net income attributable to Jabil Inc. (U.S. GAAP)

$ 207

$ 222

$ 430

$ 463

Adjustments to operating income

32

31

131

81

Net periodic benefit cost(1)

(3)

(7)

(7)

(14)

Adjustments for taxes

20

21

Core earnings (Non-GAAP)

$ 256

$ 246

$ 575

$ 530

Diluted earnings per share (U.S. GAAP)

$ 1.52

$ 1.51

$ 3.14

$ 3.15

Diluted core earnings per share (Non-GAAP)

$ 1.88

$ 1.68

$ 4.19

$ 3.60

Diluted weighted average shares outstanding (U.S. GAAP & Non-GAAP)

136.3

146.4

137.1

147.0

  1. Pension service cost is recognized in cost of revenue and all other components of net periodic benefit cost, including return on plan assets, are presented in other expense. We are reclassifying the pension components in other expense to core operating income as we assess operating performance, inclusive of all components of net periodic benefit cost, with the related revenue. There is no impact to core earnings or diluted core earnings per share for this adjustment.

JABIL INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

ADJUSTED FREE CASH FLOW

(in millions)

(Unaudited)

Six months ended

February 28, 2023

February 28, 2022

Net cash provided by operating activities (U.S. GAAP)

$ 580

$ 200

Acquisition of property, plant and equipment (“PP&E”)(1)

(637)

(704)

Proceeds and advances from sale of PP&E(1)

169

430

Adjusted free cash flow (Non-GAAP)

$ 112

$ (74)

  1. Certain customers co-invest in property, plant and equipment (“PP&E”) with us. As we acquire PP&E, we recognize the cash payments in acquisition of PP&E. When our customers reimburse us and obtain control, we recognized the cash receipts in proceeds and advances from the sale of PP&E.

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