Jabil Inc. (NYSE: JBL) is a global manufacturing services company that provides comprehensive engineering, supply chain, and manufacturing solutions to various industries worldwide. The company operates over 100 facilities and leverages its global reach combined with local expertise to serve its major customers.

Jabil reported second-quarter fiscal year 2025 results indicating a stable condition with modest year-over-year growth. Total revenue reached $6.7 billion, while core operating income for the quarter was $334 million, resulting in a core operating margin of 5%. Jabil’s GAAP operating income was $245 million, equating to a GAAP diluted earnings per share of $1.06. The company’s core diluted earnings per share stood at $1.94, reflecting an increase from $1.68 in the same quarter last year.

Revenue growth can be attributed primarily to the Intelligent Infrastructure segment, which reported an 18% increase year-over-year, amounting to $2.6 billion. This growth was driven by demand in AI-related cloud and data center infrastructure markets, contributing to a core operating margin of 5.3%, a year-over-year improvement of 110 basis points. Conversely, the Regulated Industries segment saw an 8% decline in revenue to approximately $2.7 billion due to reduced demand in renewable energy and electric vehicles, despite a slight margin increase to 4.8%. The Connected Living & Digital Commerce segment reported revenue of $1.3 billion, down 13% year-over-year, which was also influenced by the divestiture of its Mobility business.

Inventory days increased by four days sequentially to 80 days but decreased by seven days year-over-year. Cash flow from operations was $334 million, with net capital expenditures of $73 million for the quarter. Adjusted free cash flow reached $261 million, bringing the year-to-date total to $487 million. For the fiscal year, Jabil anticipates adjusted free cash flow will exceed $1.2 billion.

Looking forward, Jabil provided guidance for the third quarter fiscal year 2025, expecting total revenue to range between $6.7 billion and $7.3 billion. Core operating income is projected to be between $348 million and $408 million, and core diluted earnings per share is estimated between $2.08 and $2.48. For the full fiscal year, total revenue is now expected to be $27.9 billion, with core operating margins of 5.4%, and core diluted earnings per share projected at $8.95.