Jabil (JBL) 16 Mar 212021 Q2 Earnings call transcript

Greetings, and welcome to the Jabil Second Quarter of Fiscal Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Adam Berry, Vice President of Investor Relations. sir. ahead, go Please

welcome second and XXXX of earnings call. to morning, quarter Jabil's fiscal Good

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

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

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

you encountered by all taking appreciate I time at I'll call join Jabil. for people here thanks of to your morning. we Thank commitment warm today. months and making a to Good to passed Adam. that offering since our COVID. our everyone for Thanks, priority. begin you back XX believe for safety have it's reflecting stepping thank moment, always first top And your a hard and

pandemic. by best here after they I alongside and March dove to think typical one sitting customers. the XXXX another, and earnings looking about do; Mike uncertainty their did ago, what when Jabil outstanding care Yet our fashion, actions vanished other time did who team so Adam part sure, gave Please and call, our ran our wild. in while one in our results. very Their year to where people our they Again, in no and combat I'll we'll employees It's that point in turn point They a forget; never I'd taking in Slide of that time simply a of Jabil. I of our make look that have attitude it's of. and rather all to level XQ X continue admiration thanks much take a Jabil, their for at impress. the to Jabil. And respect team here for at be is highlights there clarity

team expected really of of on results the delivered execution per in came of with resulting demand, well-balanced contribution The the entire and in operating pleased X.X%. of core well $X.X our I'm driven throughout a quarter core product than $X.XX second stronger for by Our margin financial billion, solid a revenue company. expectations, ahead quarter. earnings share

made also of for margin gives push momentum firm the us expansion 'XX. Although, as back performance all, the combination to in further the foundation the what's in first the our balance FYXX. the It a we sets is with we quite interesting business All to of construct during sheet. overall look fiscal excellent towards of year me half our as we've to improvements half

individual X resilient; disruption of capabilities, indicative demand. quarter cyclical world's product by operate. wide-ranging business mix is our effectiveness around formula remarks. a unique innovative now portfolio. and is approach business a brands. as chart and customers. I'd set and like remarkable detail current more precision our underscores for which results shared provide simplify is Slide will Mike of to we the with the that's a pie or we is which during of share the from this or with provides faced Furthermore, our a base most prepared capabilities customary, family across the true our macro As our product openly speed especially complex any Today, proven the trusted our second his commercial enterprise of It's when many

around earnings Moving neighborhood to of in core we year. $X now from the September Slide X, XX% share, We believe address for in a what increase the anticipated outlook of be updated will back our I'll billion. an the $XX.X forecast as point with which our top for by basis another incremental core in operating revenue to evidenced year. revenue portfolio margin now increase to X.X% improves This coming line be we XX

flow, a investments. testament capital our we a we're in how million to Lastly, $XXX remain committed to cash minimum generating free managing of

communities up our understood As it's in notable we of strategy people so environment of such a behaviors; about well all journey, in last to is results I'm and around about purpose a purpose; inclusive guides in giving ensuring think important. fully about how the the go which our is these is purpose is this hitting proud just On our areas. servant when working, our how, the back I that leadership, our point, mark path as our a grounded world. safe, wrap is think behaviors producing series that us the we outlook, that a keeping and we team

thanks over to past years that growth packaging. have largely align efforts clean of to years the personalized three energy once slide, Their two final learning, markets; and the examples reshape digital with cloud allowed transition us to business as to we markets As being my we've vehicles, again eco-friendly say want to team. our in trends. few electric targeted healthcare, secular A select XG, these computing, I

the Jabil we're we now concert forth Mike. in and over decisions domain doing, to a a while We and respecting with make committed here solve healthier, little world we better, little a And and expertise good every and embraced put do turn of employee bit little bit which a tolerance, deep I companies to and over their environment challenges again; and the the our and problems to each these thinking customers. to by system factor just welcome workplace. Thank we safeguarding makes develop bit One over do what possessing that our what a I'll you. safer self. to secular way making continues which call like them the day. allows We're to this and strive great tailwinds. team at each true encompasses Our workplace is every be We the encourage respect acceptance. value we're and

Thank good morning, and everyone. you, Mark,

excellent As improved second associated Mark and portfolio mobility, and most our devices, strength mix the strength team. leverage, the was connected cloud, execution just revenue entire performance outstanding quarter healthcare, semi-cap. across automotive driven detailed, end-market broad-based in Jabil We notably and broad-based by the by of operational business, combination saw and

GAAP and in year of the XX%. pleased strong X.X%, net of million, to part core all it capital year. quarter expense was year-over-year million XX% quarter operating an with slide, On $XXX the earnings the $XX billion, structure. basis to the better us million during increase guidance above X.X%. prior $X.XX, net the expected $XXX income the range. approximately XXX achieved finally, Given coupled representing of with revenue, came improvement large earnings core quarter. operating came particularly over $XXX a together basis, margin management core for due GAAP a working Net quarter, Putting interest was share the was at during additional during the a diluted expense I in million the the our And interest past diluted of second revenue strong by we've the XX%. margin over tax year-over-year deliver or our XXX% in year share which Core better point rate operating enabled midpoint prior $X.X $X.XX. per our Core the next increased and was over per revenue was optimize capital a operating we QX on was in proactive leverage a million $XXX than steps quarter taken am improvement income our

turning broad-based demand. on over of increasingly slide. our results came on next of increase EMS The an were team. $X.X X.X%, an as year-over-year year. Core at margins Revenue the points X.X%, billion, the quarter such we healthcare, Revenue critical an was for automotive $X.X was incredible are was second several mobility. basis strong becoming in prior segment the basis serve Now, for XX% our basis. our year, segment connected broad-based margins segment points DMS reflecting for to the higher the end-markets as XXX in the our also billion, a devices, strong DMS performance and XX segment than performance by the segment previous for segment Core impressive extremely

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

to QX, repurchased of remain our we to as quarter repurchase FY intend remained the $XX During approximately end second At we authorization, outstanding shareholders. of the the half $XXX committed to current capital shares returning authorization stock for million X.X million. during in and this complete million 'XX we

previously basis cloud basis. X% noting consignment our this on segment segment year-over-year remained of billion, due increase to expected is to The increase announced billion; on a healthy. modest our expected end-market outlook. reflective is strong EMS third quarter our DMS the business a to to year-over-year a is be an to $X.X strong increase EMS model and now worth to revenue XX% business. of revenue in transition mainly It's $X.X guidance. is Turning

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

is secular are across away growth sustainable undergoing to space. markets, drive tremendous On and of our change across healthcare accelerate few in Next, the I'd industry beyond. manufacturing long-term also costs, and their witnessing shifting accelerated healthcare the the like healthcare. 'XX emerging aging moments we and and towards healthcare in I trends demand to to years. manufacturing of update enterprise over believe outsourcing due We're from innovative product next take companies core for impact the businesses pace an of Consequently, to the FY solutions. populations, digitization across will competencies and we in days rising are of connected expect seeing change better on we trends provide today, of a few early top underway the the In this, innovation. which connectivity the in healthcare the these

healthcare. excel build in industry customers expertise Our help the today's domain to that positions uniquely us deep technology-enabled within of our healthcare evolution products

end-market beginning Another more efficiency, total electric ongoing than eco-friendly vehicles regulatory a concerns to the X% rapid Climate the in vehicles technologies of emissions market. Today, are automotive shift for and fuel experiencing account and are mandate less policies worldwide in is change, technologies. market.

into well capabilities extremely a positioned effort. ongoing a experience substantial has to from As long-standing and this OEMs over are result, making credibility Jabil's this years benefit XX and investment trend. in of vehicle space electrification us

Turning and live, now will transform we play XG XG; work, the to way educate.

our share of network. accelerating Jabil expanding the cloud to is in growth full the adoption infrastructure continues infrastructure which our and cycle the to design smart more from three and needed with last rollouts an infrastructure to robust is observers domicile facilities. to to every as US important accelerating. hardware times, over manufacturing offers be secular packaging; worldwide by coupled XG value benefit positioned hyperscalers, security out, expansion and the capabilities years. significant The to eco-friendly which to to devices incorporates from are market is XG well of global is lifecycle value benefit potential is evidenced accelerating shift step with that cloud and all underlying and continues to of the proposition eco-friendly become roll This, at with XG the gain we the resonate [ph], decommissioning a Jabil dust would within market, continually hyperscalers. the transparency positioned customers helping also proposition both, collocated packaging. our Shifting incredibly engineering, to now As recognize adoption powerful growth. is uniquely This us

become is sustainable never data the In solutions. complex more environmental accelerating. part the much better-than-expected waste, within I'm silicon the Nearly with FY about of with equipment business demand allowed deliver needs. solutions of spanning the demand first momentum for every along higher been consumers packaging runs informed serves fabrication today. semiconductors finally, back-end impact the the across for economy with of convergence pleased accelerated semi-cap, sustainable end-to-end As semi-cap the storage space and on extremely which results has Jabil has the And validation then design the of half associated in technologies with generation and with broad-based front-end us test and the with 'XX. underway solutions, summary, and to plastic the

to revenue billion and core As year operating beyond, and X.X% the our FY the outlook core excess of working to cash core estimates now of core that, tax tax. improved $XX.X remain and interest expenses our I'll confidence our approximately This impact team free to for the been And turn our we We expect execution of hard business million per margins flows $X. our has share. us with This core now that revenue, grow per and am margins year. to back interest very raise turn translates approximately mix flow lower extremely to $XXX meaningfully long-term with earnings our despite are team's stronger call the the operating With all driving continue. to earnings and on I expect given tailwinds fully secular coupled portfolio a half to to positively exceptional share strategy improving we be [ph]. the of We've attention growth the for on we 'XX and of importantly, cash delivering in Adam. as margins, over pleased our fronts. committed income,

Thanks, Mike.

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

today from is of Bhattacharya Please [Operator America. your Bank Ruplu question. Instructions] question Our with first of proceed

Hi, thanks for taking my questions and congrats on the strong results.

the had I on questions. first side. of couple You know, a Maybe Mark, question EMS

billion You're guiding is now the But margin operating a almost X.X%. guided than to billion at dollars higher guidance. $XX.X still previous that's the

just Just on margin for the year curious, can EMS isn't So up operating the moving if you for just little mean, why Thanks. target I for this more? bit a takes and talk that puts about that.

margin. the about Thanks, feel good Ruplu. where I

that X.X%. back X.X%, in to that a And far, the around EMS in 'XX, with at range COVID look be excessive we I think expenses. I year, overall. we pretty about and go guess X% for you're Last business corporate the we're X.X%. was think all that will right, COVID acknowledge relative I was I But that in. good feel I below I EMS and that would I year, If around of year at fiscal we'll 'XX. the margin look think overall be

in at with around prepared most business a a mix we're right are for that going or doing think that I gotten was energy. bit legacy the business, some terms nudge computing, terms things we've Ruplu, XG, in of like a that clean COVID. while. Mike cloud. cloud in of look in we trends of But a businesses help I today electric vehicles, be about about talking think I to importantly, Things remarks think things his that of

about good the I feel So year.

We The or of two, think worry obsess well good as but about make trajectory. I EMS about. the investments continue business, next on in three isn't segment, to I EMS OpEx them. we're of years the the things The one condition a

that. Okay. sense. And that for Thanks clarifying makes

question. are the up side, the the concerned might concerned Can ask mean, you to are of any that I or just on related, prior versus configuration in you come high general year? prepared mobility about know, about you a at may changes I that want Just volatility Jabil handling years this be how a level, in the you is year how talk about come up of mobility in rest can year? the rest

that. changes anything to configuration want any like don't I or speculate on

Our our I relationship doubt ability the mobility side, with again, back to there little I've got on or in configuration in And the about last two, solid. of main just not. space very execute is years customer that three execution, think changes our super when

again, So of I'm then losing sleep a not that an over. lot area

Great. on Thanks guide. end and for the Thank you. strong the quarter congrats again, the details and

The of proceed is Please Tindle with Adam next question from Raymond James. your question.

on wanted A moving morning. I near Good just term start on thanks. very far. term Mark. two so [ph] forward. a Okay, and with operating parter and acknowledge been to strong it's margin question long

So is first I like is correct, around up back doesn't maybe got that's that during based mid-X% if or implies operating going on QX guide so near on the so volume to that time. margin guidance be to total EPS look be X% down, in term, then this company QX, going somewhere related to flattish range your because and revenue or around

to drivers build dip puts four fiscal this you and that of mentioned because you So, maybe trajectory QX longer beyond, wanted 'XX and more said a as that as with just on you on year about term QX. you secondly, in exit rebound on you think the color you And that? The handle.

mixing as pride I the debit know a we is thanks always bit we've overall terms enterprise if words little always margin. business. about lot the feel last really we take done the of don't Adam. of level, much for we as three a QX two, spot And, good a of soft a again, see the us. of a But of in Yes, in of What up terms bit little years. in

be margins up if in will COVID terms I be I'm a that believe maybe up And, last because year-on-year. to QX fiscal X.X% for to year-on-year we'd that I think back right, it's year, memory, which as going but compare you're off it's QX enterprise around of to nonsense, the to went QX of I well. 'XX, range. got we substantially again,

do reflection the certain quarters. the our than of line The is none of than other has focused more of to you than beginning more I'm other year. that thing investment anything the as with of it to QX an business business be an So of OpEx quarter on for parts anything tends on know,

been So we've focused overall we on four, X.X%. And company. up we an that we've September, says for don't in together, adding margin a now where the up up ago taking gave good growth four to been enterprise in know, quality margin. strung we've December, the four that bouncing adding five said we're really days one years we XX to handle has around I four to had, up line do outlook That on that took year the two.

your focused get we around beyond had direction that said to fact fiscal very the four that we'll September, post hope I terms remarks results. that detail a would more today the I'm into two, this Day we're in as focused And continuing we to 'XX, And than 'XX. be with prepared looking feel, something relative I margins that on in around of in the So quarter-on-quarter year. more that my trajectory on give comments Investor the forward in positive

maybe margin can there $XXX about Mark's maybe And improvement? that that as Mike, or your we answer to to also flow in free you as for a you operating plan question? think able build cash margin capital generate talked something that's comments this of if tie achieve follow are just about up investments over million as just can it. you. forward Thank to like wondering on operating you CapEx allocation being year, priorities Got And that a go basis, you on are

to extremely definitely Yes, into this cash this FY something to as Again, will, that I we've think X.X%, we've grow. CapEx we've more said flow for X% said Adam. in disciplined Thanks, expect $XXX million been continue free we range. continue year, where that 'XX. is than before I

get it's So up a in go guidance free that 'XX. year done to [ph] September, expect cash flows I as but similar next again, unraid on in we'll FY

balanced. continue As relates allocation to Adam, to well capital of we be sort

We complete the continue of earn in second about talked we intend our authorization, prepared left my their year. with authorization the buybacks. QX our remarks, in we to or $XX and have of I QX to million buybacks our half in

M&A anything But think debt we're So the laid the, extremely I will some buyback opportunistic, don't balance dividends, from into of out And to now. would a of 'XX, we allocation committed ago continuing that roughly sure balance percentages, we'll capital the that that the sort to that progress program. buybacks, goes Most a standpoint. 'XX. of well. into into that quarters be shows buyback restructuring few and I'm half I continue buys of as want be the preempt

So well going continues allocation balanced. Capital forward.

you Thank both. helpful. Very

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

so, I cloud If you able on kind components correct there? surprise any that of most your wireless and and them you good them Are is your at all the am results. the segments of and Thank semiconductor of items the all buy is segments, to updated experiencing Thank one the of are or guidance procure that if XG look any you you. needed? or I And giving the shortages?

sure. uplift, Thanks, eight for Yes, I'm mean, surprise, of about not sectors Jim. of we terms talking so, in our you're [ph]. in the quite terms sure I assume

that infrastructure in some was cloud and So and But seeing our in strength XG we're be that of to and surprise to bullish very business. knew been that shortages we've going cloud. Back wireless a component I us constraints. XG there area the we don't it's know December, on

we continue I the And to an on cloud surprised and side side. that's where area largely whether think see it's or So XG the not, both strength. certainly

being the our and solutions and embraced accepted Our out services are well marketplace. in

of good about feel area the So business. really that

a supply of talked that bit terms nine so. or we December, say, this in let's In constraints, about months I ago, say would

know, drops based everywhere, there You was on demand COVID.

of very anticipated a signals, people And through customers, information, abruptly. rebound on I with we've all we strong people drove again, whether it our and around that took to it that be that which resin, timeframe, is early deep our constraints. to conversations them type of and One surprise QX piece our all constraints, would few around share around supply around it silicon, good demand largely took continued passives, think say think be a that their started a I fairly September be I into and numbers the is then, for least of any of lot of handicap XXXX. stages And that to actually at mechanicals seen, cut bit our be whether very that's whether whether handicapped it be to our August, the supply side, QX.

if anything, So standing component knowledge knowledge the allowing technologies, otherwise our cuts of in knowledge the across I our EMS worse. And I scale, marketplace, healthcare out simply business. of at Jabil demand approach the our about market a team slight think the other feel planning, think long or today, is, and team's relationships business there's we some if the at put think thing And and would to to mobility if assuming work what commodities, the the constraints automotive, of that procurement tough about moment. is whether I the we've team what maybe I us best don't navigate the just supply say the holistic upsides in I to have really is that or or

feel on I and all along we're So by considered things quite well, relative getting basis. getting a

the you so Thank much details. for

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

Thanks. questions if Two Good please. could, I morning.

don't talking You there difference referencing you more prior a flow first the constraints and next is by in to offset [ph] I J&J thinking just on back just you're more about where basically And the inventory Thanks. did other First based you its inventory when you maybe $XXX investments about thinking Mark, margin know, between still deal, million on in businesses cash Mike, cash quarter? puts for flow, builds, could just how color just then said little what were the secondly, solutions and you clear what and healthcare give year? did it or on the potential and higher free takes. EBIT, doing journey

Please the to will been is Difficulty] momentarily. [Technical please continue This presentation resume by the rejoined, stand have presenters operator, presume the

somehow Steve, you cut Hey off.

the I call. you my any questions? Sorry Did of for breaking hear should conference repeat? Or

repeat great. could you If them, be that'd

Yes, sure.

So first area. question, the again, was on health care

I'm days sure staying like takes Thanks. EBIT, $XXX million the else? higher that you basically there So into and ago, on just deal? the during target cash And can have to understand then how but puts provide are inventory and did the the understand margin trying plus, if line anything journey, higher top investments. it Is you sounds the I performed some is you and secondly, that you the color first back margin where at both you or quarter, know, XX referencing make flow to J&J when it versus

Yes, thank you.

think now long that to roadmap executed healthcare cylinders. we're flawlessly there care roadmap the the ago years about continue laid team on don't So it nearly and out. ago, we -- his know we relationship. team even side, laid we has Steve run out to think started business, X.X on we I how a of to the I that hit all who Borges and JJMD I talking [ph] our health kind

things is to has everything the digital talked in the like with another injection And around team my So And auto the prepared JJMD. injectors. the really business feel like I care, about different personalized good then health, auto We health. remarks health that announced for trends. technology during sometime and like around and that relationship focused about quarter, on do

And technology, the good and so teams making, about I just look at really that healthcare feel our that. the investments are

And health billion. $X in think business, would I in for be And we three and exit packaging that area I year, think continue I of good this last years. to neighborhood up we'll the see year, speed, to was healthcare packaging, and $X.X next billion. billion, growth bumping the against solid care Our guess, as $X.X we'll two

up feel surface. the that on margins terms good Maybe confusing, million and is EBITDA of cash flow another of because number bit up. In the are about it's a $XXX going going little really I it's and

flow continue So cash go portfolio. We diligently to been the shape why working wouldn't up? have to

is one cash focus team flows management four two, number three, years. leadership as Our our next and the over

ever to a look a thing again, to us 'XX. to we continue leadership to as a if would to team, secular us margins, as adding get grow makes perilous think we decide as at attached That trends good the business, and that do quality to point I allow sense be long to expand company. we no not 'XX as where we're and

to you $XX take of I if said in $XX.X revenue. do So billion beginning the year, the billion, back we we

Mike year. way authorization Now we managing managing top billion, were CapEx, complete And the our teams to working we're $XX line team's August bumping buyback going with way up by the capital, against alluded $XX.X and XX to the of the the with the then billion. that additional the fact

good terms is the should well So then in get we'll we what about I to Investor investments, anticipate million Day And think think of capital into balanced investments flows both feel I cash update I September. stronger $XXX an and OpEx shareholders. we're the in as you being give plus.

appreciate Great, Thank color. you. that all

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

thanks for Yes, my taking question.

wondering, much how can of, the for a earlier margins really in is this You structural And I'm they're improving. in platform in just that talk makes you Mark, you're And how of margins doing that future. much your sure the it that better today you is And if What of about you itself? talked is control? industry in medium sort under feel of are locking higher term?

hope know don't our to industry. it's I that structural I so.

in our Paul. if pretty good focused, that's think but margins inwardly competition lock we're I higher can always

to page. quarter need structural. weekend, structural? they was margin about out exceeds follow. it I about terms we first and their up quarters And four string get I around that customers per and expansion, of question step I if customer little our at share. this I year everything you is sheet, order, that's that solving and off over if and think I first I to would I'm from about company, allow from continue of year, a a capital, as history from and obsess an the is single if asked the think financials we X.X%, in now execute, will fiscal along customer That's but together we about in and be more foremost again, since don't think be we're think, perspective. I back just us this this year. balance we I jumped And where and the asked think get to it we obsess will consecutive the kind you of issues; If a we've care But take about the noticing take had every you the the of it our But margin what Paul, margins $X next if is or execute, bit what our into coming and big we with And that's the something so. ever at, will plan EPS at look the at if look going in solutions. trajectory,

this over next quarters is about things six debts we vaccine improve, of a at we've as XX and ever interest up. it's globally are continues And down, down. talking for Our as have then, three is have going thing, months. overhead healthy XX% think whole two and those which a gone think balance access demand, about, And really, I think going think embedded COVID or truly of the markets, lastly, we secular XX like the in really sheet mix XX%, us liquidity going I then sometimes the around our the employees behind here, next to good I overall been. to so term. have then it's of to the been many business But yet. are that's talked very look I I I has overused at we've overhead But for the think trends with expense eight to Overall, being I the we be It's to businesses take just our look vaccine about that and the years. and very, net not costs, hope to about

together. think you a So take I stuff last the again, shake up couple years I that X.X%. And all look been at margins have around

real that basis base. look as to, there's on points XXX forward a I a after us think we by for X.X% increase that structural here opportunity margins basis,

the ultimately, be of you're follow maybe able business, you some is then like is, bad but up your business Mark from doing Are a could you're doing? it you it doing it could not even sounds had margin perspective. delighting to, them you choice be customers that what because not that Well, satisfying the

So business little to can at about coming in bit us low portfolio you and front overall business shaped the end the you model? the to and you a do hurting prevent talk margin what how

communication starts it to clarity, with the think I absolute troops internally.

the company You been group. the screw going time. in the isn't. this, our better and don't stuff and and going and team with tell have leadership we why things long when of we're Right my communicate group no reciprocal purpose up the know, to can there I've the we're I team, a is What understands you head I is just it you what there can where is that tell when I there's with

a for reason. cash refer two, a for the to of margins. by as two we and there's next And and continued on that's focused expansion portfolio, and expansion that years, portfolio we're understand kind that flows, people things four so of way, the three, our And continued

to a some margin, the based there's might little picture flows. next again, tremendous business And, and but is have on think just other we not But blend we based that side, to feel after. areas. go on answer organization we're richer, to have where have that paint. in Certainly, we trends on going think I business. that if that terms clear of stay have three but business other positive business what bad We be our can the a of we're I starting is that softer But to together, going pretty when mean of goodness going to itself the all the could And healthcare, you just businesses some the things. think away businesses on a your We're capital for about type two go people variety And tremendous from cash here, I directly. be after go there's space we to years. you we're think working margin going little internally everybody. after. To that But forward. that maybe just know have pretty are good It's clear I for the pretty going question a

much. Thanks so

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

growing? you and have you increased because have demand a overall? can follow people the the more the curious but future much the and gains and market Or would out growth XG by to in Thank very details and demand I'm it start But then cloud to has just you come is maybe share increase? seeing actually Wireless what's you. bit specifically, that been this driving know more as I figure market now trying Thank XG? some give much. into wanted end pulled how obviously, to of in a I outlook, dig are market to I'm driven is as what that up. on is, being And ramp

I not degree details. I want Shannon, with say a and be this high say of to confidence. by getting into I'd would offensive don't

finally, For to terms plans terms we're Wireless be very are seeing positive looks stretch the trends trends in reasonable sure, of secular and rollout. of cloud in and XG what that

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when the Thank terms weeks? us know, then but guys be going you few benefit And checks to year stimulus, you are what on this guidance stimulus, determine maybe and gave you. you, question much you in saw that think from in summer, second I hitting next thinking back about the the of it, last it's my helpful. how to how was if just directly somewhat is that Great, you for hard to are

Yes, thanks.

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stimulus what States certain our related. trends. sitting of certainly couple will appliance, that's it, of everywhere, off kidding, backlogs what's Mike COVID of business no will business bit those those so and we and quarters, thing I fall of of is a about to next right COVID certain COVID like the call for impact I secular for think would our or of of think think 'XX. kind stimulus-related. be; driver next by will again, hardware stimulus, impact types is specific elements other see be -- the talked so I and is XQ not it you right truck the to two, parts of nice maybe reduce us it's continue it, I'm -- three, going to try there I may stimulus prepared navigate be either I But see think that little I years, whatever of 'XX, our remarks; not uplift. I certain trends and about the some of that maintain. nonsense four parts behaviors, dissipate, to as driven our that of In now, a see stimulus things. as But start you And give no I there type parts go is, into a those buy United bit two attenuate go going, that being a be some of talked of a here and abates driver business car, or the are a when that bit an away when the [ph], geez, in I it behind an

but how question, see it. that if I gets know at don't that's helps or I So, your

you very much. Thank helpful. very Yes,

you. thank Yes,

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

storage. weakness Yes, the Could billion across and networking from guiding you're you and improving $X.X Looks that a expectations of on-prim your up to in commentary continues as morning. market? Is good still you as extremely still little positive; took one in there tell area us that that down billion end-markets thank seeing and Mark, what recovery but post-COVID? you $X.X down. bit like still you're year-over-year spend that

sure. Yes,

of couple trajectory from in capital, 'XX $X.X reflection $X.X our a timeframe, again overall us we the for again, little storage to our back September that's traction Number we've billion, there around and think fiscal took fiscal as may we a on lose thing So today, is, 'XX, all two sense of about the longer that it's certain be footing, we a up. a marketplace. been but way might and for continue things; not business to the that 'XX. about a out September, reflection network portfolio is; of December invested starting the legacy when to of to areas make any the business the in some of think actually lose nice and to business are down that billion was timeframe

good that's $X.X have A) appreciate so serve the $X.X we I billion long relationships tight, in. roughly. very those billion back are it think in more those complement today say $XXX than, would we'll provide, -- all down businesses, as storage in we're taken a as at up value good, would million I certain even by sectors. look have in And they'll look the And us, continue December, about tremendous it's so well; them we -- with sector customers I'd just quite that serve as we've a nothing to some eight cash I and our that customers, of in flows a and to think network space; makeup. -- at key be So again, might 'XX -- to and the margins I -- very of and last other element though I And and seven

growth a the question regarding Jabil? that a how announced just a then your paper you And initiatives, Could packaging in you and plan. terms more the eco-friendly that; just investment, that. about opportunity? of for And is for you particularly thank initiatives; big Okay, solutions, talk bottle important driver

much Well, won't of year. be driver growth this a

very have M&A. selective our very, be very, We to in

we ever select but flow-friendly returning out. to made get growth; people what you're wonderful margin-friendly the Ecologic. dollars the then complement think, hope is in will we of a that of a do with our shame activity, company by two M&A to growth And for we're same play with put We the shareholders to are to is, this material but and start part organic us, to is continue prove the year's but way, is growth almost I called cash about as I is in to results company, have on so a with magnitudes, have which wonderful will and we around some company talking that us where which not a acquisition the capital you leadership, all to point if time, good growing at committed and best great to this I know, comment news

platform when at capability ourselves own competency, we question; ask the culture going excited very are they've it are and we do the looking we're with that strategically. about when we then alignment, with start and we to we the always acquisitions with developed, We and start business what

kind we'll third fiscal and balance R&D, for technology wonderful technology, to We bigger have terms 'XX, or and relationships. as roadmap that support able of that be look technology is fiscal believe giving packaging, then our to maybe second step exposure that scale internally give this our take and we around us, further a a towards we our it's and 'XX, sheet, we based that -- in that on due of brands sustainable

thanks Okay, very much.

Matt, you're welcome.

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

industry Or including to more hopefully that the Can underlying how about The any the this other margins the shipping about with. good whole back, headwinds supply taking be very temporal to there add were environment, doing margin company are costs some related year? of that's those may and the company types important off despite forward? deal you if year? would I Thanks much levels supply on year, headwind be And temporary do Yes, the morning. for of the for very some company's most from are shortages we should guiding influencing think build that of X.X% margins to thinking what that a much we questions. chain of factors to can think well component that that's the representative going of is seeing having cost this the cost you chain talk as this

Thanks, Mark.

You I we've QX, QX -- said earlier, appropriate. and we've been business handicapped know, handicap geez has certainly [ph], and our I think the I -- for

be beautifully, know, folks the ahead relative navigating tough suggest that think you it's and today, maybe much I that the impact suppliers madness business, year, again, of will -- get our just I but to basis. if in had And Mark, I that. on would from a So a here in others, we X.X% debrief and think the as this minimal thing method we deal a sit either wouldn't we industry, handicap to of us, itself our terms listening of will get in wonderful. for And thing of chain might we as a this few as be management, supply and and or start show also we're entire didn't levels margins customers, XXXX of it's week, into team for sure, I we to the earlier, procurement mentioned feel relief, to we XXXX. But last get into like XQ calendar our

So gave of start X.X look and to margins November March at as September, at you And earlier, we be today year, supply the trajectory and XXXX, normal I even that upward timeframe; I QX think to gave for it relief. timeframe, conditions, more the effort continue think that frame back to [ph] changes. to have near-term to call we'll it QX, October, I for With said, when And February, out seeing January, then confident. guidance suddenly of XXXX. into call again, considerations to I feel that think will mentioned things we're get an of with I -- as we going we

business divert helpful. in assembly. within business Jabil to or opportunity, it's My the architectures, electric EV an realized that if that area consider car automotive brought it lot moving of question and I'm growing Jabil, already; and business that's of for EV full space? and a is into also automotive follow-up would Foxconn out vehicle the been doing interested I even has final Jabil a the Thanks. on very type That's has was and capabilities expanding

The well away that right have we up components, I entire for the don't focused is and you good compliment very the thank space; track what automotive do think want in intensity, on really and record a to our really, that, automotive. which sub-assemblies [ph] that for do I capital think we sensors, it's we'll a enormous, set automotive factories. part is people from

we and electrification EV, the of have be three to had hands to years is And made I a we paying of speculate, the really 'XX. billion. it guess We're half, I a and two is think ago up about core will transport terms had not would a -- 'XX hard today a $X.X was make of decisions and here all right. think automotive how but in dividends 'XX bit is I move I took right how to in bit through R&D and just about say -- about we've suggest today, electrification, to One chart in that plays focusing H-sector we'll that think a [ph] been automobiles us. of trajectory for that up you. be made and little that today transportation; substantial; If was strategic we if on -- FY the on today; that in so continue that the the to dollars and Thank all saying with and venture the there, you $X.X good decision -- our sector 'XX and look guess the $X.X to the that billion, I would as I we the billion. going September over think out sitting I pretty I in at to When term we're -- that positioned would area investments see feel and

Thank you.

Yes, thank you.

call. concludes your now our for This interest Jabil. you in Thank

You you may this participation. disconnect your Thank lines for your time. at