Jabil Inc. has recently released its 10-K report, revealing a comprehensive overview of its business operations. The company provides engineering, manufacturing, and supply chain solutions globally and operates in three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living and Digital Commerce. Jabil offers a wide range of services, including electronic hardware and embedded software design, plastic and metal components design, cloud data center server platforms, and smart controls for digital buildings and utilities. The company serves various industries such as 5G, wireless and cloud, automotive, healthcare, and mobility.
In the 10-K report, Jabil Inc. reported its financial results for the fiscal year ended August 31, 2025. The company's net revenue for the year was $29.8 billion, representing a 3.2% increase compared to the previous year. However, when compared to fiscal year 2023, there was a 16.8% decrease in net revenue. The gross profit for the year was $2.6 billion, and the operating income stood at $1.2 billion. Net income attributable to Jabil Inc. was reported at $657 million, with earnings per share of $6.00 (basic) and $5.92 (diluted).
Management's discussion and analysis of financial condition and results of operations highlighted several key performance indicators. The company's sales cycle, which measures how quickly manufacturing services are converted into cash through sales, improved from 34 days in the previous year to 18 days in the current year. Inventory turns remained consistent at 5 turns annually, indicating effective inventory management. Days in accounts receivable decreased to 44 days, reflecting an increase in net revenue and improved timing of payments, while days in inventory decreased to 69 days due to higher consumption of inventory to support sales. Days in accounts payable increased to 96 days, primarily due to higher purchases of customer-controlled consignment components and the timing of cash payments.
The report also outlined critical accounting policies and estimates, including revenue recognition, inventory valuation, long-lived assets, and income taxes. Jabil Inc. discussed its approach to estimating income tax provisions and the judgment involved in assessing the realization of deferred tax assets.
Additionally, the company provided insights into recent accounting pronouncements and discussed the distribution of revenue across its segments, emphasizing the fluctuation of revenue due to factors such as customer demand, business growth, and product performance.
The market has reacted to these announcements by moving the company's shares -0.19% to a price of $209.34. For the full picture, make sure to review JABIL INC's 10-K report.
