Jabil (JBL) 17 Dec 202021 Q1 Earnings call transcript

Greetings and welcome to the Jabil First Quarter of Fiscal Year 2021 Earnings. [Operator Instructions] I would now like to turn the conference over to your host, Adam Berry, Vice President of Investor Relations.

Good morning, and welcome to Jabil's first quarter of fiscal 2021 earnings call.

Joining me on today's call are Chief Executive Officer, Mark Mondello; and Chief Financial Officer, Mike Dastoor. Please note that today's call is being webcast live, and during our prepared remarks, we will be referencing slides. the visit with Investor within along section. Relations follow slides, jabil.com please our To of the today's be conclusion the At call, audio on posted entire playback our website. for will call

like call to follow the earnings the with website, with on presentation ask the handing Before forward-looking our Mark, I'd statement. that to over you the beginning slides now

risks extensive as second anticipated obligation Annual forward-looking are uncertainties outcomes filings. and revise other actual things, pleasure for among update and these that, this Mark. events call, results XXst, outlook our net and XX-K Form or ended it's or earnings. During our the for including, An otherwise. other With any XXXX revenue statements conference expected risks expectations, of fiscal as cause my and we on intention to based These call future in statements, will and our business, list the any identified year to differ over fiscal a information, statements Report and to such year now result Jabil regarding assumptions could involving quarter whether new on be or the currently turn forward-looking forecasts making to and that disclaims August uncertainties those current of are materially.

at by Thanks, trying who what thanks are Adam. and these which we thank one and begin gratitude our the my At offering today. Good there we're you. in in And you business. Jabil, I'll Number morning. in I we today. another sincere makes here people appreciate again, all everyone The accept while join priority. taking your time manner for for X call us Jabil, safety is truly making care to times, fundamentally during to hanging of

as $XXX income 'XX quarter. team turn of is quarter XXXX. of core from X.X%. resulting The to reminder QX basis QX the of pleased 'XX, really Well-balanced a billion, connected and XXX I'm margin our operating as the to financial margin computing, Slide pre-COVID October supplemented in at of year-on-year our what revenue outstanding upsides quarter looks mobility increase to QX in sectors. the expectations, be results year. occurring gives segments, which September, momentum the of on we'll delivered X, record cloud Moreover, a EMS X.X% November well a us million came look quarter. from $X.X with point with and where Let's DMS of excellent first in our The operating another please contributions to devices and ahead a substantial overall core for was makeup

during As is more customary, prepared remarks. our QX his provide detail around Mike will results

I gets the two Moving we our plus get effectiveness When many so what and segment. to Slide most our for three X, a the business team. in underscores of at financial terrific enthused slide, example one of one the segments. ways is me the which you'll illustration goals across see One this look objectives are fact each that equals

while cash our margins, the product two These or financial flows, EMS placed on while offering dynamics. an or cyclical focuses segment family expanding by market flows segments offering disruption, on focuses demand reliable with side our results. expanding product especially perfect is segment margins, DMS Our side unforeseen fortify that reliable underpin individual macro when cash complements while our resiliency, faced

in stimulates of value. supports when trusted will dollars core partner. earnings a XX% than X Essential days we're serve. Jabil proven Add to our deliver I market and challenges where we're model but year, few progress, margins and Not in largely we doing XX% collaboration XX of compared is Day right. of to in fiscal embedded the and to today, for on Speaking now the customers solving And of and formula culture 'XX. deep to progress. so to this $X.XX, goals earnings partner of day the year we management's always quality This predicting in simplifying driven and a trusted an two the financial sense, Slide meaningful at topic complex what's only a a high catalysts. the plus be as primary macro knowing XX% turn the trillion and per domain humbly Company up that essential manufacturing is expertise up sustainable a compared disruption, out, business which let's since the Jabil ever, while we for a more longstanding look the that products our outlook share is to ago increase range exceed for well It's positioned a year. see around by to

well-diversified I'd the second proactive portfolio, being operate on expense, our which gives and business. our interest we've months. And nine like over commercial net our our reduction the to driven employees. the to round The offer being another to firm months first of thanks which to taken steady us by XX steps a foundation past of

differences. XX the collective office an A earnings. the revenue it investment. differentiation and learning, Areas to of us year. points factory X.X% analytics our stamina give reflection clear and want is team. year. do so thought and our attention allowing areas our but has to the keep In and chain Mike. please expansion raise I Jabil specialized peaceful holiday. safe will serving Wonderful comes name our turn actions, like greater the workplace continued our a to and and every Delivering this Furthermore, I acceptance and performance. self ensure our safeguarding the framework, employee homogenous shareholders With can Jabil's a of that, must, in true we in tools, first their efforts customers and all of and machine of core needs for of also efficiencies while of you to placing of respecting back wish growth by enabled for additional call to data when IT responsibilities, social margin supply automation margin now share to do we'll that encompasses $X over Your be a and of all basis closing revenue leverage I'll morning, the by mix core individual to billion customer environmental the opportunity with for only of specifically

three in that QX what above share. which income deliver to both and exceptional allowed you, in earnings September. core morning, delivered We segments, everyone. The strength quarter. operating an expected Thank Mark, on and revenue, across results core record us we per good diluted broad-based team saw fronts: came financial results was

in driven the overperformance was factors. Our three quarter by largely

For continues diversify starters, and reposition dividends. our multi-year the Company journey pay to both to

businesses core us income manufacturing. at for core top guidance GAAP of the shift quarter, devices QX. million QX share during effects cloud of caused earnings our and experienced $XXX leverage cloud this, guidance higher-than-expected our or record QX, that, all Net XX% QX. unexpected On first our associated high to Core customers was quarter. levels quarter, was the near near operating I pleased with top in earnings per revenue have expectations for businesses X% prior quarter along in our a of our operating end the demand end per a Consequently, our quarter. would mobility, and within of quarter a particularly I of leverage $XXX result a expense few strong in of connected increased allowed midpoint automotive was our high as come On of by our our the tax semicap X.X%, range range. strategic the the highly During and representing in regarded the revenue consignment core million to alone of healthcare, the basis, year-over-year, of continues few compounding afforded year-over-year than revenue markets put better With these revenue to during strategic for a am than above deliver performed of to $XXX financial solid balance our billion, will a and the capabilities debt results which design, The expense expected. higher steps of of improvement last operating expense key proactive then demand. and and increase capital the now result year. taken a tax margin efficiently and we've came $XXX quarters lower finally, and over point interest our the flexibility net bolster access us markets, thereby in despite diluted to income XXX share GAAP reducing the interest over basis sheet interest our in with global review optimized $X.XX. expected. The structure during our or million, business. resonate operating unique our And our operating end Clearly, much customers engineering model with million was cost chain set to diluted across the proposition income the value us and revenue, $X.X as an supply results. and

per at the As was in $XX I QX prior in million XX.X%. better earnings tax year interest million, $X.XX, XX% core share ago, also expected our was a mentioned $XX.X and net at than than moment than over expense better approximately diluted our better came Core improvement expected quarter. a expected rate

a segment our increase first year-over-year to billion, turning DMS on $X.X for our XX% segment was Revenue results. an Now quarter of basis.

our the on also the our the strong previous improved digital at core than unanticipated of segment DMS during estimated above extremely incredible the came earlier, we basis renminbi segment Nonetheless, X.X%, the Core impressive in which reflecting an Revenue intra-quarter margins year expectations. for strengthening points segment our in and demand came margins Core an cloud. XXX the team. higher As semicap, basis well DMS for robust by XX by QX, prior versus It's the abrupt points I billion, segment weighed in for $X.X to mentioned XX was at strong an in over an margins points. and saw year performance dollar, noting, print worth the performance X.X%. and U.S. broad-based. basis EMS

cash was XX balance, capacity expected We our to ended days. provides ended In million with committed balances with QX credit $XX with the the cash which this we Jabil inventory totaled balance more net now by available better of Turning of We flows $XXX along QX Cash billion. capacity access our quarter in sheet. and cash came With flexibility. and available expenditures billion QX, ample exited with in capital than operations to provided quarter-end of million. than us under flows billion. global days $X.X liquidity, QX $X.X $X.X believe facilities at

repurchased shares million for we During approximately X.X million. QX, $XX

a X% due mainly of a decrease to Turning segment revenue is quarter reflective segment in strong XX% second now expected a on EMS announced outlook revenue year-over-year on billion. to be comparison. $X a a increase basis to to the This transition end-market year-over-year expected consignment previously $X.X favorable business. to DMS guidance. our year-over-year is is our and model basis, billion, of to cloud

the range expect be for total $XXX the X.X% share range. a $X.XX. estimated the of quarter in is $X.X basis to range year-over-year Company fiscal of $X.XX range million of be be in $XXX is to earnings is per diluted the earnings Core in X.X%. We be second $X.XX. the 'XX per expected operating million to the to of with billion revenue estimated $X.XX range GAAP of to an X% at on Core to in increase to diluted of range in operating the margin income $X.X billion core of the in share to of to midpoint

I'd to our market. highlight to by balanced few portfolio of end a Next, businesses take moments like

for cycle the yet cash while flows and life long critical last predictable we business providing Over serve margins. strong our foundation several products, the also repositioned to and quarters,

further will our As reshape of this reshaped the we've mix part journey, of business. improving portfolio, the and continue to

electrified $X in in by good goods work made devices connected autonomous, with a world's of and consumer expedited and business many convergence in billion our and With critical an learn XX-year we to well-positioned shift headlined the continues intentional DMS experience and serving packaged of XX environments the continued remote growth. partnership Our years drive lives of mobility most for today, and technologies packaging business are healthcare, including connected early shape enable automotive that medical which the technology daily vehicle serves companies nearly electric and incredibly towards by industry, over and has is business. our Jabil device supporting XG vehicles. manufacturer, leading The the healthcare world.

with of development, Our chains design, us investments the these product EMS, material complex with Tier these capture in an with areas to supply pace. customers' mitigate products robust and serves extremely manage today. enable markets world's leading and to the year. the provide EMS large, expertise at us most in diverse that ability sophisticated risk chain Today, summary, the change in generation. of confidence that new with some to manage requires IT business our with earnings supply manufacturing markets and our have business end us blend we of systems potential pleased participate some to industrialization the and to flow OEMs a In in cash the Xs. a rapid I'm in allowed tech and future areas In sophisticated start Supporting marketplace

for strategy and holiday. growth free one every now the exceptional $XXX and to flow translates now we extremely that, increased share tax. will guidance earnings interest as billion year. and to XX associated points margins, you million basis importantly, the hard I $X of execution roughly revenues remain and turn with cash and of our improved For of X.X%. safe been grow and up excess And anticipate impact call to margin pleased the capital, With to positively delivering happy on to over has from be We've working wish I'll stronger-than-expected the working all the per in our we operating team our prior $X.XX I for This cash core am Adam. team's a of to outlook committed year. would year, very each fronts. like a flows core despite

Thanks Mike.

that to now per your As appreciate Q&A. we're we cooperation. product-specific agreements, customer understanding remind participants call session, We Q&A Operator, I'd cannot for customer like or our we begin our any address questions. the and ready

Please question. with [Operator today James. Instructions] from proceed Our is first Tindle Raymond question your Adam of

year congrats that ask of strong what to you're increase outlook, fiscal half the to question results done the and full in the going an Mark, this into And still with wanted where visibility this the morning you've and that for Good mobility the you $X.XX year I go that has years start and an seems with back outlook. going the Imagine first on something to acknowledging that fiscal questions just on the said incremental but to year. raise far think potential getting $X.XX uncertain different very increase ending unusual have but cycles back cycle, the do, level the some surprised fiscal had gave I an supply in half confidence the of like implies good a you're you know get about ending. benefit track versus record, I year. There's what in half, wanted of passed you chain. the the of out? context to investor we're the some

year talked change. know frame that full look don't I in don't that know the about I - a we mean, I I time September, we at at - $X.

compelled felt change we $X the a So, to or address to it.

couple up really of a on us better driving - we in - years a we the when more the business, we resilient, the don't confidence relative in - into break I where terms been answer changed I a focused a number because we the - we've business journey is. more seven-year has the service anything focused on we've of six, our If things, topline September. strategic focused diversified of we're of we've become, Company the to business So think the the one, like more the predictable, belief

time was about 'XX. we growth. it 'XX when the offer all that allowed 'XX fiscal into true, different period is what's which period this even the we deck. margins a is year X.X%. I I chased fiscal brought largely time we to lot a diversifying were Not One $X of - diversifying done but on corporation of come a could say, of level Adam, pretty have enterprise we that the We're That's the guys through the hands a end quality were of went but around maybe job 'XX, of good - you contend to And quality And so, revenue the lot to proof the only And through of of at pudding. the fiscal geez, Company, in share. interesting, from must an think the the diversification. a into us markets, and would has of

of part the your of terms question in second The $X.XX.

had just the us what said midpoint We We of XQ. I think I $X.XX. gives a in $X.XX confidence for a $X.XX. delivered

take X broken of areas $X.XX the you the a into $X.XX overall a our balance done was I Number Number work the and is was that the that and parts. few there a X finance we So business Dastoor, three the sheet. six, months look team to very on from a the spread is at our our strong that spread think nine so demand. in the or portfolio. - really just start down going - over to job wonderful is saw last is construct to of One Sergio year have

And so, see to interest some foundational starting changes expense. positive we're to

year, that start consensus and with guide, I and high-XXs our is So up you our the we XQ - then $X.XX. think shape midpoint $X.XX, I to don't was around know I think

revenue, So the got of maybe year billion, about that. now, back the we we at $X.XX up in so look September, visibility that just would we middle billion. half Adam, took the the XQ if $XX.X And we're $XX QX then so and I to back year, we be as reasonable a think in of about started

$X.XX - of I million the also like And again - I and from portfolio. that $XXX billion. which about - of think interest when the then, going million foundational half, terms the tax, towards point would change of I when I say, And the a to to back the leaning reasonable I probably interest combination more the the it's - in about strong think half. tax, a I of $XX.X throughout the Now $XXX and to delta, about about portfolio think and is is itself. $X huge think again, when think $X.XX. year. balance front your tax, $X.XX blend positive. be I in a to kind million, addresses About would of more think then the in foundational it's or $XXX And $X.XX million interest of which is is I looking $XXX that

helpful. Okay, very that's

felt think we how noting. Something - we else the year, and - year to compelled right. compelled because on the felt do And in thought worth look is long started with a we we to I We update September. hard

year. thought we on we this how do want of us, kind laid I good and really, we $X.XX that numbers this what's that hard So, long But leadership out the just team, $X.XX conservative to times. there call multiple and we've we as - to think for put X.X% went really our for as and that a we feels to the suggest and the like be outlook that And is a number. important over now out

that I think of us a very of and kind to are 'XX. the fiscal now for important element for foundational build the off is $X.XX X.X% of

be don't should that's I that think I think lost. - So point

helpful. up of as on happened, that forecasts CapEx upsiding, Mike, Yes, wanted follow-up the CapEx. crept over That's this the past, just year. definitely course In doesn't increasing. Mobility's to stop on the there. I a are

you call last talked on the about CapEx keeping flattish year-over-year. Just curious,

increase where can How I to if maintain be flow this you year. think maintained cycles your enabling capacity? previous upcycle CapEx you What's than you free different increased? this don't guidance cash share,

good a Adam. question. That's

we've warranted. been that we're where back pushing pleased - CapEx feel I'm about CapEx. think being customers extremely entire on And The front. not we're thoughtful extremely we on is CapEx that is team the the with the I discipline showing

CapEx So at discipline, revenue. on would X% Adam. a of sort I rate of good think

the of years, X% been for X.X%, been we've think five been a We've CapEx sounds we've gauge - I sort I X% going X.X%. but last we've four, like think a in good forward.

the also lot of hit I if because I something there that. that a wouldn't loss - could I want think and Adam, a business if on we - think on I would now I could focusing as well - were on comment were diversification, growing growing numbers - on I is there's a - there's you good call. as we we're the and contend business lot numbers diversified. of this And

the last the being of for through in little the but Number billion well terms type the north we two the working hard in intentional capital Company the management. I I've happen flows in million out and months speaks and things the it's keeping result $X - fabulous. fact diversified absolutely a bit in Number reflects six So management, I again, results. mode. capital and of journey, of of our very outlook is work And we're a capital is on that moment, we nine our still that we're is summer. working X very think of But management. and got of past been when in fluffy has of lot dealt of working that this volumes coming of of And terms headcount a seen lot effort. that capital overhead year to $XXX very, with team at you're another is X looking, a the revenue cash us and working think That's

your Please next Citigroup Research. from question. Suva The is of Jim proceed question Investment with

your to discipline congratulations have you that? results. optimization out My and commentary Because plants and about bit much, more more great. DMS? I to more more whether whether I out like on really maxing for Any it any you returning any because Mike, Thank and like cash some equipments. you. you can getting question The be are efficiencies able on and of is, question it flow. big not safe of very Can be fit healthcare, would be capital wonder and being into give and therefore just a and is whether as If or your more team to having be as upside. your understand that it like amount or it comment little you're again you you and commentary it Thank business may packaging, rates sites, people delivering you're correctly, Mark invest sounds it rates something machine like because not well I seems utilization and your think capital significant a

Jim. try I about in forward going of good think minus. it's it One ways. I a as CapEx Mike is points I'll think proxy be different of X revenue, Thanks, to modeling said, plus is, couple - a for or

quarters, it Some will be less.

quarters, more. will it Some be

we what because think Here's you as If a look the company topline, way goes about pipeline at by with probably can well-diversified, thing an bit, intentionally that. disciplines organic from of we've a I that $X.X have it's on. CapEx the good we $X being assure of today that billion, we basis, up actually some billion put walk the in, will with the which on absolutely away

the Company the topline additional in as going assured I were to or flows accretive kind to again, that, both terms relatively the something margins as you the going way the nature go X.X% it's and the cash by into rest and that's bringing ever is bringing been. of of business in like that purposeful If a to of be on. CapEx think X.X% forward be can high So or up basis short-term

we back genesis - - done? operational stuff. is Number people X factories. around one. the for we specifically our And what of is of question to your living we that's build So What kind getting do but have

everybody - important. have We is

that navigating business, the an at of essential people done we my terms more around keeping running. is, essential are factories of what do, One fact team support kind they've way, COVID, efficiencies We're do today think has back utilization do dollars the because what back And bit by ways. factory was - our really everything, through sit we in and through operational size careful your business fact because remarks I of with our Our by amount out important, COVID, trillion of this finance And - shout up the little did a utilization cases. question were And our I of market very to pandemic, a I HR our about that help a our cap. a with proven said very but did those of getting be group to core us minimis that and really way, and and And prepared and around to the I in on back basis. when a something them statement, COVID huge COVID, around was is operational think scale to be Jim. but operational important, impact we COVID essential we to want that we to is essential the think binary. but teams. partner you build de two of COVID what and sustainable when about miraculous. few to an did, But commercial

And in gives X% have go IT, much of to probably of to that to progressive is efficiencies. me and I terms - there's And call going that be is function some or balance the is the utilization And the As very I rates. there I year. for step factory Jim, would future, would which data - question kind I are terms what call on we've like relative learning, forward, of OpEx of because big for are in that's talking is there thing of nothing last is, that our there last capacity. automation, going look last our the the CapEx year, of factories the your running X.X% pause three, to the which what $XXX the floors or at four I'd to to we're revenue, factory our productivity been making, affects investments comment what normalized says of would - additional OpEx million a machine five also years investments

combination of So, I all think it's of stuff. a that

have follow-up, shortages completely that. shortages microprocessors like now know you through, or worked many cloud around that something some memory worked past, the because in backlog about have more as itself have component Has there that talked supply out And or thoughts could whether component is be And as mobility? I a strong the actually it still upside? chains shortages. the component of give you Any out capacitors or or shortages position my is completely in well as there

a that's you that's give give I'll great a folks. supply two-part I'll Number for give that. to opening answer me a X, chain great - to out shout to our a

- you things of do, the as most have fundamentally in about in when sit with that us said, Jim, job day fabulous shortages I you them. a XXX we today, have think they that world around one one and teams for out our the and markets - us we and worry chain tight supply being and If the we respected the day you XXX know or get of otherwise. as do global of supply With Dastoor is I industry, team,

from proceed with The of next Ruplu Bank America. question your question. of is Bhattacharya Please

taking some on on of for that the two strong part Maybe now very Or questions be launches still the margin I and manufacturing on guidance side, questions, the the automotive expect strong lowest give mobility, that would Given if if during be - is one have on you. the and guidance for and EMS. - Thanks diversified have one progression seasonality year. helpful. two to DMS on guide. we results we of margin phones quarter-to-quarter my and that year? the Thank congrats every us continue would And can in quarter segment. you and on progression have third we margin DMS? quarter any Should seasonality

were answer, there back and shout because talking. give don't was at it, me thinking a quite of I kind was If I you as you through bit there a Ruplu. complete Okay,

a I what don't - in, get think me this but try order things. couple let I'll I of know

The this lot talked again, foundationally, DMS complementary it, Ruplu, about I the year but That's question it's the EMS topline. about range fast is And amazing these most of $XX moment. we the about a - at look hard about you could, construct DMS, and however we look numbers know in we've $XX.X given of think today range our I Company you you about in the guidepost, diversification. cloud will isn't billion - - think think thing the and be today, and could behave. if I will the business then but the DMS for with fundamentally, you around model of new And - out business. want largely the directionally to segments, for your that how today - thing services is the billion topline. was on a be extrapolate I at if

about notes, - one I think we of is said think I in other QX, one saw some two specific prepared Our I in on is saw they maybe the the expanding really - DMS while three. reliable about $XX think is More a we And ensuring we when my we good kind side, business saw your equals reliable expanding those as complements, to about focus so and sure $XX.X flows, that that it's is, on or overall, billion question, is strength which segment, the The entire EMS margins. complement billion, to really cash being - three plus about to the get the than I flows. margins way cash QX, year pockets. that across

of be neutral it was down, - everything connected, healthcare storage. it just out where two, cloud, slightly out automotive were devices, to let's transport, quarters kind of XX say, of even pockets of say whether packaging, but one everything semicap, of network of to mobility, business, kind three, connected XX So and four these -

well. of of the illustration of So And - diversified. another being promise and it's industrial as again, real just then pockets

again, markets to As all a with big end the or plan, question, I leads is in forward, And was this we'll - I see of and stimulus we another today the year the happens then, those macro our what $X.XX. week there I we'll unless that but think a part about see and have of across the with mobility confidence - - disruption would degree most strength why reasonable going think your sector. there I that specific continue of us think Ruplu to - believe to

in is Company, of terms XQ. would printed XQ the in XQ, towards X.X% fourth margin the say would the margins an we be back of In I just would that shape for X%. to then say, probably and year I the opportunity get I we'll sub-X%, and quarter there a enterprise say -

dramatic If to XQ. X.X% in And healthcare question combined Ruplu, for mobility. we've is basis, your had the increase guide today. up aligned a get with I of X.X% DMS, that devices, shake plus all today, You contributions you transport, because on to then our specific which blended the just core the all DMS a packaging had guess and automotive we on margin printed with connected in

that, X%. I and that. then investments quarter things and both with good third like like of maybe the second remain the just something And for opportunity quarter fourth think that there quarter shy a is X% above the to

dividend given is thanks Okay, think I'll Maybe thanks. growth. your relevant be meaningful it of debt helpful. would of which Is give are maybe if different against question that in you it strategy growth? cash about thoughts for it maintaining is Jabil would look look details. my can all how and uses for acquisitions, was thanks. to just and economic And appreciated. do So cash, very inorganic mean on the at follow-up, much. at cycle? And buybacks, any - I That paydown? where inorganic - the we use us the Thanks a ask prioritize so you Really for your how you on

where into kind allocation slide. - on I - with in reviewed a September, This I because Mike that a bit question, this of let can details slide. what you been been we've get are M&A. will - on opinion, June and in I type number times And to of allocation we've been which before, but reasonable of Ruplu. complement since and my of Mike because if correct. then remember defer, in what Company months terms a headed, was and remember belief in said our - this coming all Thanks, think capital terms structurally That this I Dastoor and behavior. call. out laid in jump in, changed. hasn't reasonably strategy But few a coming and Yes. that in if he shareholders the I I about construct. don't the a we our me years of capital where that right, I've we've opinions friendly And talked It - it, a did XXXX our all think if I single a started up the very five I don't certainly buyback of think reasonably aggressive is be our think our We that in

whatnot. about Again, will be just we're period probably pipeline I and times, now patents it's think to - at doesn't most continue about our like do buy sure, on we'll some we typically talent. for and the for then strategic of that M&A, a earlier to things It of of around is organic billion. like margins, year. from at $X or expensive we strategic When hiring and walk billion, Ruplu by is for will for selectively accretive away a $X.X at four think that, always typically - engineering organic a those time. optimized more is that the less growth growth It's but right far we asset that mentioned types growth, I pipeline, that I people. more, shareholders. And an companies think When much pay us than engineering and What five cost basis. then, we looking we

least or So you the Company's I least the - otherwise. acquisitions be behaviors I 'XX, as going strategic add? of sit for at - think got any Mike, today, at to the there's to big for don't anything we don't for balance of

we continue buyback to will a From authorization be there, opportunistic. will $XXX a out Ruplu, continue basis, we be to we while have Yes. thoughtful, million

that start in some taking slowly things we'll QX. circumstances we warrant. hold, returning might did to now, vaccine once accelerate We're As right if normal, the accelerate that of that it purchase but we takes

your Please proceed The next question is from Steven Fox question. with of Fox Advisors.

questions. two had I

about is business, upside. I sort service Can times and you on you talk sort in in how talk couple First of ability - cloud other Mark, on Jabil the reflected investments And among much some that's understand about now diversify leverage Thanks. of thinking creating going quarter to the what your that a for there you going a - Can of and the rest versus providers? maybe of that automation. to forward? it's you machine some is then areas that mentioned did also stakes the you've of for of and of lot table you're how of specific in year much operating sort is all, providing can you generate and secondly, learning of the

Yes.

very The by The in that's acceptance geocentric. two - There get is consistent near level, our and at on adoption business. years asset-light been started service the X.X ago. to model details, want is high good. journey Steve, your don't of change very the of lot that the a part down say we get provide a into years to into first that So been I end of question. We've don't again I market going that. want can on to that has ago, little I we this very, a indication cloud term.

continue solution to said we service and that's a invest embraced. I we we As will got we - well continue long - before, a think in I we've think that as as

derisk to business. we the - downside we that think I

space. I'd that continued again, again, think, at in all detail provide the we've So overall, that's because, momentum I - the like I to moment got

that a automation, would And XX%, learning, In terms table say IT, uplifting automation, 'XX billion material analytics, to would see about we've are company, say, XX basis of margins holds. XX%, of billion, etc., is is, $XX investments by A methodology We'll XX% basis contributor what talking flexible I to XX%, points, so XX we're which where the 'XX 'XX, investments, on operational stakes maybe $XX billion, feet points. technology is, is around going. I $XX and machine fact data think world. learning is and little invested us more, But space has machine our manufacturing in fiscal square have with, differentiation you a factory year $XX of different billion, is talking floors. what's look if I things IT to do and do about COVID. we're again, to at XX-plus-million fiscal 'XX help uplifting with throughout the 'XX, optimize margins we based

of some have of most the of We those both systems supply incredible areas. chain, terms in

nature, that stuff. two build building stuff, to things is that living, higher supply core we thing there we global XX do our the The the And the to of about I of of has manufacturing what services be, scale, I that is data and any would manufacturing definitive think IT space on we because contend two a I deeper, about go example make could of company is And investments the million investments, that entry a us chain. system. most and solutions in profound of barrier at So, And continue would our are I the connected And are one world, And don't as of getting stuff one when won't I same supply but scale on you advantage. on differentiated. higher holistic a risks, think of other to terms chain. the I point suggest when building etc. core, competitive know one feet that the the would square gives the on

Please proceed your with The question. next question Coster from JPMorgan. of is Paul

our taking It's Paul Coster. Chung for on for Thanks questions.

expanding in or has or to seeing all segment. pent-up structurally then, more So, DMS manufacturing strategy many from of COVID with three? accelerating share your changed is outsourcing? a in they your existing customers customers? this And Is the Are market outlook of function a from gains every shift business raises demand and of kind in-house

Yes. Thanks, Paul.

three. all think - think I it's I that

customers although of I EMS. that specific whole market by for be of look we corporation, your sums in would my the think was current and side growth participating share I But growth. of sums I say, our would DMS, and think question think answer gains, side as expansion to - with being inclusive part their I again,

We've gains that don't organic sure. of as mentioned And current amount robust earlier, then, I this we've share for customers, we our currently sure. with decent is market for pipeline, got brands growth So again, that a got serve.

'XX, just $XX over hair a I So revenue I DMS - outlook the in our fiscal DMS was say would billion. on think again,

all will to I think those second was over your of part this would $XX it billion and question. There year, a be contribute. a hair three things

accelerating COVID the just Yes, shift.

Yes.

corporations actually terms COVID want on observation that, what probably suggest 'XX, by say I frame fundamental manufacturing most February-March year with structurally. in and of our I strategic of time this would the halt has shifts through So their think of they - spring let's to decisions do a many put

our hatches see having terms news a does in 'XX alluding guess in of what I was of have the 'XX, cash. there hold, much been preservation COVID taking what's the of has somewhat to horrific kind vaccine think and stabilized a or Dastoor back goes, calendar timing Mike like the some COVID good companies discussion ends get lot think some to, If middle my converting look into half is cetera., people a been of what but 'XX, like us. discussions, Although of et this, has lots I behind battened actions and once participated any the is where points kind down of vaccine feel what's COVID Everybody through up to this pandemic, there work, of want vaccine distribution et like, of has in is we it's to cetera. that of as of

that'd think I be a good So thing.

of COVID some more If it add, extends environment, think as per from by and of at the technology if been expedited well. expedited XG, by learn se, than I that's just is COVID you the can I probably beyond convergence work look home which

technology. driving that's that. And into think seeing this push think big we're I I benefits of the

I in I think right in of markets on that we're approach very end that. the all it's right Right think and the we're fruits of we're a I sort think long seeing legged one. the now, of spaces. all And

cash And cash and $XXX magnitude increased, exceeding was revenues XQ. your assume on but flow. million, free on your I have then op All of of today margins reiterated the was my flow is exceed it the metrics free in than is up larger follow but

year can what a Any fiscal out? assumption? that you we flow swing puts call higher of 'XX? of is you. fair takes as First, want kind And second, to free and Thank navigate kind cash through

All right.

CapEx. in free some above our feel increase did in talked see $XXX have capital. I discipline comes So that be million. We that did an we strongly - a working about still bit will revenue of we with cash flow

engaged, focused. Mark capital team The alluded think fully working is fully discipline. I to our

levers feel, higher. number that time, to attention, in flow keeps a there's that cash over we're bucket, and So speak. more keeps on higher that free of And I just getting more so and focused getting that

feel right the think the continues with again. I'd now, bear $XXX-plus And highlight And focus have that think fruit, million. I So I plus think good there. we we the I to

question. The with your Cross Research. next Cross from proceed of Shannon question is Please

their general, have it, conversations your was wondering, where countries customers diversify are manufacture. played in. things onshore wondering just changed desire in And how they in I'm just I coming diversifying has just the your into to terms of COVID and in or with we obviously a but shifted new Thank do at you. the sort or of a onshoring well as administration bit conversation year, go? that of over thinking maybe remain in is on you things terms people track more, the way all think as Have the to obviously

Shannon. Thanks,

there's the lots COVID. think years two, over I last and think of trade X.X been between the - I conversations tariff

on derisk talked - so that lot That's We've is again, on there those, partner and think lots lots we thing because outstanding when that over we've been we've I there about have the them. been wanted it times has the and exception, had we There's don't lots I some not to do, calls, Mainland manufacturing of - this just discussions. customers discussions primary what many to a lots middle think I those in for been China. and and change. think, - is, the I of rule. don't many actioning you're when and of to brands. customers are one the you the But all comes do And

you on we footprint like over really lots lots of and manufacturing the of world. a end, chain you that that, top a don't when I the partner think optimized dollars consumption up on changing. and the add have If have COVID that is based end-market One and supply I again, all ends following - largely, discussions. But value benefits a And I really, see in of the product-by-product following the have Jabil basis.

quarter during were that linearity, anything versus segments you. your of there terms maybe the Thank out of during curious, just within improved I'm then quarter? to any point the weakened And - the toward quarter in end the

had quarter linearity. - nice this XQ Actually, No. really

next question is Stifel. from your proceed The Sheerin question. Please of Matt with

sectors, upside that year-over-year DMS a update beginning you've the specifically in to on that us programs the you across to guidance margin segment? question have another J&J are to strong And Just ramping? seen see in you how in healthcare. contributor those as on Could expansion been operating

partner a realized, it's first Yes. engaged. yes, say a is is We for is a I'd and all when I won't is J&J and go relationship, nice we this path this, out acknowledgment J&J path huge we've been kind the to the What's path scale too deep into the really that high forward. laid sure we've is, getting think packaging out a of specifically wonderful JJMD. that contributor laid a a us. through talked level, And which JJMD And just the at for about JJMD has been our team. healthcare relationship our to I where to business. both we

the that largest impact because the customer. strength of that consignment there And business, and then gone transition there transition? customers model to cloud on that the through near-term with seeing talked from Mike, about you've you were any you're largely to I a the in Is now? know flows numbers And cash that

on parcel all think to and will and cons it's for our a that. Matt. be of that We've pros I There strategy, been while. part working

obviously, improves, improve. largely think pros, I capital margins working

nature. few hopefully wasn't And it now been something for year, while. on It's consignment over we've that just So in over the will It the piece something is now, strategic happened working implemented. coming quarters, to fully get the us. a

The with question. your Delaney of Mark Sachs. Please question is from proceed Goldman next

both for I in you good And much that, of and better of terms you offer the made Mark, questions, the manufacturing extent around mean some all any your added to pay implement and a taking comments business some the Jabil's environmentally-friendly may cleaner was a very to and for how and margins Thanks positions? to But Can energy, the just implications Jabil's talk what the there. understand costs from congratulations then it good that and about the customer reports. hoping to ability more on thanks expense? for shared is market something more that to ability sustainability manufacturing. or sustain customer for does is clean relationships there that is impact of of efforts

sessions Thanks, basis. kind Yes. beliefs down or results The a these try inside maybe that first for I'd leadership through either environmental. a results talking we spend, I on super of in express macro people derived is then level ESG, about and break to about of and about have, financial to other amount more carrying tremendous to along an with But Mark. Company, an comment the prepared diversity of we time one me, important. around Q&A remarks customers of can about on many team, question, a different us it social one foundational which then your are and and culture amazing a shareholders. be just themselves approach around and And to are customers. two taking important really inclusion customers as when are is core the the also really great certainly, And results, think about because I drive output is around the around ways. our all, we of results They these our think, a bit. more and obsession Mark, care approach is kind financial that obsessing

Jabil, suggest gas of the would do cost across emissions is ends committed years September to is in of next reality, I ROI where going comment net the running I our jeez, a money. costs, confused we're that - - with to in house greenhouse five XX%. think, of us lower XX%, to In people made really suppliers, think a that that by do get And clean I being said, We made because our all path a the that. can lead we has to six get lot the it's the on company a we're emissions, up thing Company a for nice comment customers, our I to a but timing in the that's gas pickup best reducing is, it. - by example. energy

lead is about the by one, So do best walking versus walk the can by it. we just thing talking example

what then stuff we chain. something very what like I industry, waste. that, solar, of $XX can renewable hazardous And water And for smart I we chain not We the the also our influence of that thing we energy do usage, leading Mark, what in is, the if Jabil of terms financial what suppliers. kind we that of if September billion mandates meters, by I in returns, of year. for supply do areas approach broke electric And to firmly a down only do other also said And in like on into how vehicles, characterize value say, strategic ESG, further, would Jabil power for we well believe in the in what on in storage. call depending also do lead safety, like our we the but put think and then had dollars. efficiency, we terms is about When even key we value in purchases on for example into for of every we to chain do positive we have wind, and we're guess renewable today, entire I terms billions what around do we of would

a with a category. about focused with about especially the all are and we is ESG-type have efficiency. that power and lastly, engineers metals certainly one additive and you on process, dedicated there, when engineers thousands And packaging. an XD Another around dollars specifically then and attention lot I of consumer spending around and example of investment being, when squarely also, that engineers we stuff. then that's polymers, think of group that the additive of something a we then ESG also have of type whole And we're subset dollars have One sustainable investment think Mark, power

see how we whole that So play of how that's marketplace. kind I in

Company the right on rates. Mark, Is to level savings, structural sustained of be was to and think interest efforts. about Or sorts about what expense And the tax are follow-up fiscal those you guidance Mike Thanks. levels there My may is to doing expect the interest beyond those way those use a continue? everything going expense way for and quarter? financials. tax the both better second more with and thanks is for And mean is be us talked around you and to some XQ question think for thinking about to to rate

be would Yes. estimate in $XX I to sort million-ish of that interest range.

going that estimates sort at we tax in tax, beginning we are forward QX. than feel about lower delivered the better of the than And of in quarter. think That's lower I'd XX-ish-percent thought what the year. I'd Again, the we $XX if I actually rate. million the go million. $XX I the about points similarly the beginning basis think of XXX indicated with is at for substantially

time. additional turn for to the Adam closing call at Berry this to would remarks. back like no questions There I are

Thank our today. call you for joining everyone

please stay If than healthy. you to stay reach but Thank out please have follow-up you. Other that, Bye. questions, safe, us. any

Thank you.