Jabil (JBL) 14 Dec 232024 Q1 Earnings call transcript

Hello, and welcome to the Jabil First Quarter Fiscal Year 2024 Earnings Conference Call and webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Adam Berry, Vice President, Investor Relations. Please go ahead, Adam.

Good morning, and welcome to Jabil's First Quarter of Fiscal 2024 Earnings Call.

Chief Dastoor. Kenny are Financial and today Mike Officer, me Executive Wilson; Officer, Chief Joining

of confident agenda detail updated today's discuss outlook as we these and terms to and capital be on provide in following: you in and within slides. In feel and allocation our And our end for provide achieving note call review on for to we the so, despite our also November doing with live, our the the will webcast outlook referencing QX during year this focus that plans, guidance. year. the being begin, QX reiterate we reinforce please EPS results markets before the We'll goals underway prepared today, trends why our serve we discussed we is our plan XX. next, But as margin remarks, core

with portion playback beginning of follow on within will our the like the with jabil.com entirety posted slides, today's visit website. To you ask website, to slides of now call, presentation along conclusion with audio for the the follow the the statement. be forward-looking of with along today's please Relations I'd presentation Investor to the At

call, differ uncertainties risks things, and materially. outcomes are will based involving current could During those this on to for assumptions conference statements business. that other forward-looking and statements These we forecasts cause regarding be results outlook including, among making our the anticipated and expectations, actual and

expectations with any forward-looking results, now to new SEC. shift focus year and Form intention of near as update the our revenue, worth report are to Jabil our into events the customer-controlled XX-K the An disclaims of the ended identified or in the result XX. fiscal year-over-year integrate in in range the billion these filings to any our provided extensive statements space transition and $X.X a in approximately decline move where on delivered September the on majority uncertainties to guidance updated of of XXXX, whether It's low team and and XX, to the announced our other certain I'd August driven annual list model, otherwise. November end like obligation with noting services we that, first we With for or risks cloud our quarter components was or model. information, procure a consignment future where a consignment previously announced by revise line

is to held assets or announced points for Core revenue. operating mix the This patterns million XXX for normal of mobility in seasonal sale. of business $XXX and within income up year-over-year basis accounting impacts our previously the at X% quarter due came an improved business, of

basis expense working as X.X%, than expected $XX XX the inventory Excluding of was by sale, Core points quarter team. lower held assets for a levels of impact revenue roughly capital came operating lower at quarter $X million, result during year-on-year. in up Net the interest management the margin for and of the better million better reflecting

per million, range diluted quarter year the the $XXX per at diluted was September. our Core From share midpoint and income a GAAP GAAP of the was over provided prior share $X.XX, perspective, was $X.XX. earnings improvement XX% operating the in earnings a quarter for we

in year-over-year offset the in our care declines from from weakness Now by driven by Revenue the DMS were businesses. at X% by billion, year, quarter. for and in devices end prior segment turning approximately automotive the the and growth transportation came partially our down to market. health $X.X performance connected segment These continued

impact a same the mix, basis our normal points of pattern at ago, in announced for than higher business assets for margin from and quarter held within seasonal mobility operating accounting X% solid Core came year XXX the the sale. given segment aforementioned and previously

impact our was operating for This in core and in X%. end segment margins held the our consignment print. move DMS at Revenue came for assets and driven associated Excluding softening by a were sale, digital year-over-year. roughly sale XG, EMS decline XX% mobility model to markets for the demand $X.X a with networking of in billion, down like

year-over-year. and this basis impressive margins Given up combination segment consignment X.X% of for mix, the XX EMS core were an points

improved in Next, the flow cash on metrics QX, end I'd our of like of our from inventory to sequentially begin strong QX, XX as with our inventory with deposits days. to consistent customers, balance performance. days QX Net were with which sheet XX an X and days beginning of update inventory

net flows cash at million free flow came cash quarter million during $XXX totaled first from capital in resulting operations quarter. in the adjusted while Our expenditures $XXX $XXX million, in

total approximately we of With this, we ended debt million as us balances billion, EBITDA cash core for In leaving shares on repurchased and of the authorization with XX. $XXX quarter, X.Xx. billion X.X remaining repurchase our $X levels with $X.X to of million current quarter November the

So in good very quarter. largely summary, was QX a

in While than line our good core growth still in adjusted a year-over-year top delivered flow. margins, EPS lower the core growth team and bit came expected, free cash

With over active it At on of own that, solid repurchasing incredibly made we and shares, time, in thank now sale our to you. the progress of our Kenny. hand terms mobility the we I'll same were business.

morning, good everyone. Adam, Thanks, and

in in on our mentioned, based a adjusted demand 'XX reduction customers we slowdown fiscal broad the outlook across to Adam end we a year schedules markets for into heading as reacted on markets. As end multiple announced slowdown short, a end year. of In of November the XX, demand calendar

absorb on across our nature, appropriately customer requirements. adjust with align is our value it be and to to will model effectively industry Agility Although network, part in our key. changes proposition. of Being us able we critical feel this is [indiscernible] is in demand signals a our slowdown react to in temporary our

[ multi-customer SAP, is up common systems, specifically our of disparate ability is margin-rich and instance are we manufacturing of revenue. agility just focus slowdown. DNA sites a focus some end plus at flexible to and examples core campus our can EPS set we $X broad-based part with manage automation, while downside areas believe In one ] of consistent our of margins effectively in disciplines manage a in absorbing in embedded large our to and execution on This single These are of part guide markets. reflected value-added QX services model. assets, Tangible absorb why

Turning to we of and are anticipated. than slower we remains deeper a we business modestly In expect trying look, vehicles like previously end Jabil. health a accomplish to electric in care, key markets. pace foundational what albeit When areas at take intent growth renewables, our and robust still at

outsourcing customers paramount is areas that market. go and and we're continue solutions our quality in to complex in is to underpenetrated key provide to ability Our underpins confidence end will capabilities this we

forward by relative data seem center drive near reality, a growing moved is this unusually XX%. likely to devices, volumes within consignment In cloud, in seen team our look into space. model last year, the to previous in change connected business revenue continued while low the Remember, which business to we've term. some years, the this for roughly softening In and doesn't makes time,

on enterprise expect communications softness based global and While rollouts. XG, continue we to in

optimistic our on interest customer current We've of reduced rates and renewables. softness combination remain based some new wind inventory of base. supply by multiple wins Outlook-wise, a we Turning impact business channel and sell-through, solar consolidation to incentive within and uncertainty. driven in seen chain

The collaboration on really really with our are we the our sale to pleased Mobility see. progress sales the customers are business, the our pleasing we I'm between the deal, mind, teams, needs closing remain been top On ensuring of of making. working has

flowing product managing job, keeping while is day Focusing on your hard. complex transition a

point our The fact partner Electronics managing are successfully is belief transaction. for of is that this BYD proof we that this a another correct so

be on growth basis. Reflecting expect above, Taken a revenue despite choppiness, it's driving on in altogether, core cash we associated see in satisfying model resilience with down EPS, year-over-year X% all of not of like-for-like never of to post year-on-year while excess $X free margins end-market mobility we pretty and divestiture flows. in to also expect billion our the the to the

guidance, remain have say BYD of as services team for to will procurement planning hand closing, the $XX.XX. the to joined year goodbye X.X% our in In as forward to call focus in photonics our Intel want today on welcome would In my Welcome a to of technical to us your joining interest I previous Saturday the plus we future Procurability I Thank EPS company. now to and they I Electronics. you excess from final I we to Mike. fiscal colleagues look from the like of chapter always are team and and our and as diversification. the silicon we Jabil. company's growth margins we committed for next contribution Further, and and your at Jabil transition to 'XX our thought. inclusive share

Thanks, Kenny, everyone. good morning, and

following: slide FY guidance. 'XX, more Over an the turn I you plans. remains let's and I'll With first, our quarter plan the And November walk financial provide update then the our information to for that, next buyback through minutes, XX. QX our our few on outlook with I'll execution provide for on accelerated announcement consistent on largely which second to next

where of We The close drive QX exact we will during land. anticipate the 'XX. date multi transaction the of close FY to

per Net of in for to assumptions The is the to our in assumes $X.XX is XX, to For estimated is $XX QX range earnings closes billion. Core the to per $X.XX. $X.X Core million expect earnings to diluted in $X the $XXX in estimated the range GAAP midpoint million. interest estimated range diluted the operating total transaction to is expected in in QX, to range we to Mobility of to which expected be income is million. be $XXX of in be range income share $XXX this operating to company expense of second to September. $X.XX. $X.XX million with revenue is the range be The billion of be $XXX be modeling January the of quarter GAAP million. consistent share

it's date. turning worth materially Before guidance, influenced year guidance close noting transaction Mobility our is the to that our by full QX

thought financial helpful close. you with provide would of if I I be impact earlier an the it

our the close outlook of For modeling core by $X.XX, ranges would purposes, midpoint respectively. $XXX a and approximately December EPS and revenue QX million reduce

expense net would outlook expected to core the be million through of be repurchases interest funds. the the in EPS lower and earlier it year, revenue receipt also For would reduce loss by while our accelerated given offset $XXX

the Now on moving year guidance on full next slide. to

As we the customer towards slowdown we few our quarter, end announced demand. noticed a a widespread in ago, of weeks

in secular of target seeing and plays net we our good XX excess once range view inventory of to note which is the important by remain in term up, is the channel growth. intact inventory being customers' channel, trends Jabil's shape driven that the we're short In we're us is nature. across optimistic our view, our majority The in consistent gives excess slowdown and that our remains It days in to future XX business with days. confidence inventory as

modeling $XX For we to be January our the FY for 'XX, close approximately billion expect a XX of assumption Mobility transaction. revenue for

Importantly, vehicles, energy infrastructure, the renewable experiencing tailwinds centers for to expect growth health end year-on-year the across year, cloud we and strong markets multiyear care. are in that notably and continue electric AI data

the in more Despite of seen be to same Moving confident we've we are slide. near traditionally to level geographies, able across next term, headwinds that the we this, revenue erosion expect customers slowdowns. markets. in Because diversified margin resilient and the end of as the products, past Jabil don't will

flow focused to Our on confidence for 'XX, in these near-term relationships us gives operating dynamics committed margins core the through we strong diversified X.X%. to the despite and And footprint value. cash staying X.X% of We're like how with would challenges. margins global weathering range of lower be able revenue. to and delivering Notably, walk maintain to FY to customers we adapting, and in expect approach, now margins are you still I

process we reminder, of fixed construct of one businesses. cost the business. a our completely We're have our As highest the divesting in changed of

been able X Additionally, is at health year-on-year, we EVs, investments end and which our volumes yet. deleveraging our incurred are limited care, cloud are and push to costs lower not anticipated, of albeit have as means markets, which planned levels growing renewables previously than

pushing ramp with moving back costs, ahead our In our our of the SG&A footprint. reducing also and global optimizing the addition half year in to we're investment in

to All margins deliver X.X% in of in this operating our the X.X% in 'XX. ability gives me range core FY to confidence

to authorization and previously of accelerated on the we in $X.X execute 'XX. intend FY totaling 'XX FY repurchase repurchases buybacks a accelerated of to do share of provide executed update year. expected repurchase. I'd share the entire like FY the million In million accelerated In series our in $XXX We we billion to billion Next, for QX, mentioned $XXX series September, a 'XX. buybacks in originally $X.X now an

[indiscernible] $XXX range FY be in to As the a million of to 'XX. expect for $XXX million result, now I

interest of our expect levels also September million lower we $XXX compared with this year We capital revenue. million be to working range now the to expense $XXX in expect lower to in decline to as expectations

All cash income to remains FY share. of year and we lower these billion flow offset outlook FY and deliver excess of in flow in 'XX $X to actions gives be are for we $X me And free our will core robust, that per committed earnings in excess 'XX. the for delivering of cash adjusted confidence

is years. to our environment, economic current positioned performance well the In past my several evidenced navigate view, the by Jabil over

markets, our align several end and for with this diversified, turn ago growth. for today markedly not morning. are due are years intentional secular multiyear Adam. to in but only well areas Thank joining We you to we now I'll us than key which resilient your call and were our efforts the over undergoing also resources invest to time more

Thanks, Mike.

you well positioned for future we see, of as your you the So and Q&A. time. ready can Operator, bullish now for Thank we're remain extremely Jabil. on

is question of coming Bhattacharya Our first Instructions] from today Ruplu Bank [Operator from America.

own the in in address risk you you plus how And I risk you hit for second the gives inventory? have be environment? how $X-plus in example, $X also question The Jabil's what likely have still to on you EPS managing we Can you And in half? this guidance billion be 'XX. fiscal would For revenues a you're any and can for for this confidence with visibility limited comment EPS follow-up. Can target year? $XX can that

Ruplu.

So let our of we the I take your which model relatively think consistent me take first, part last question that there, inventory is don't is risk.

we order. underwritten So a that by or is a forecast everything buy purchase

pretty with in slowdown there. that. at XX pretty you at we the it's and we're are confident we're where QX, still comfortable industry-leading, if days, So look And in so

team where way If set you we then up, leadership you at look support leads, run that. to at will is the look divisions our a company division get

we're So our pretty intimate with customers.

teams of very, our have very customer our active All base. been with

in the myself last Asia of to year. looking with for markets. and And a also. the in is we none what's our see I relatively impacts in what's the in feedback, what balance happening different And lot QX, -- You're happened What different at meeting -- the end of going customers although incidentally, mean Europe consistent. over month,

feedback We much and the their and all remember, is get we So months they're selling. what forecast what at XX -- we see forecast for pretty of customers. they're pooling look our feeds,

feedback we inventory of be and decent shape. in the quarters we the expect So to next that, generally think we're couple is, look, beyond correction,

the And for we've baked that the into back half see what of year. we

is for perspective. having, thing this discussions that we're other consolidation ultimately be emphasize like The I'd good in can to from times a the like us

helping business active number how with easier in pretty the their about discussions by chain make so to that we business So simple we're consolidate a manage. them is our can of customers supply

not I we're our like it The really We're mean be QX balance we we'll that our will year. of through, but over of sold guide think the into next be the for with that the customers. would inventory we'd monitoring get say consistent. we deal is quarters. I to it's -- mean for pretty closely. the really But it close So for couple I bake

our we've billion, if just I Ruplu, revenue, look first $X could billion of down add, the by half. is you if at revenue about $X.X that And taken

right not as to recover. our of from a conservative billion half than year, being it's now, we're little perspective, our the about taking limited half out $X.X not as second rather but We're from visibility customers' the well. absolutely is coming perspective So the going still second

the stage. So think this second $X.X we is billion for half appropriate at

in how then the at $XXX we million critical just million. we said of September, to provided $XXX important can, let through is EPS me you change what I a -- And to very look we've because if walk this expect piece and you range if

And by on is in of markets $X.XX. we're take impacts the is the roughly from been I you're especially the we've focused growing midpoint down. $XXX year-on-year, billion year-on-year, sort if and which cloud, automotive, renewables, not health in bit about So that, us $X.X that X end a growing care, deleveraging going loss start when revenue of that

grow very year-on-year So is deleverage when you limited.

You can bunch a ramps of costs actually push out and to from whole quarters investments out and here.

So and markets. ignoring the of there's in we're a bit ads end right that are most people here little new that

income, All in on little showing margin the but year-on-year or of buyback X%, some losing the it's from of buybacks you still even X% not much. And lower there deleveraging margin businesses. we're X% remarks. businesses, of albeit then not if levels, The the but are is double growth. about growth a We still million at you lower-margin a level year-on-year, prepared them the that my some completed to September. that bit lower talked I impacted $XXX in still

was That double done I are That is in biggest buyback we quarter. my ever that the going on mentioned single remarks down a And was we've what huge. prepared that. to in

So additional in in anticipated $XXX September, million we doing in billion and 'XX. 'XX $X.X an

a done a get do the once is still It's over of free best funds feel good Now our the return flows appropriate of divestiture billion we're mobility a we the We from time the that undervalued. cash will to good is we from this is is 'XX. get time. we highly all $X And can proceeds going buybacks slowdown done. be in left think going it FY when that in, there's to

costs there easily working between capital quite lower be revenue, So pick saying, if think a well, after a buyback $X.XX, yesterday's news, be but and long-winded pickup of interest lower what little bit of will answer, rates is plus it's bit could because do will because the well. Fed interest lower interest there's I $X.XX as as up a lower you of

and of we So bunch but the strong whole $X-plus. there's takes, about puts a feel pretty

Okay. Kenny appreciate Mike and I that.

any me for margin for that level that -- XX XX-plus investments, is, Let fiscal follow-up to be revenue I risk revenue see that fiscal the mentioned ask hurting EPS to able you future to What what you're in out need is doing hit guiding really do question you of push is some 'XX can the which of question again, XXXX plus. maintaining a and 'XX. there same mean you're target to X.X% target question, growth. you operating and you in terms the but

So just that your that? have 'XX fiscal and I you are thoughts on you guidance details. the appreciate maintaining in the how for confident

Yes.

you QX run extrapolate $XX rates, as and at if annual in QX QX, Ruplu, second the number So look that done and we QX our half year. the the you revenue provided obviously, so of can billion we've

of If of We're rates you run some recovery. a FY level even those take coming big small through. not 'XX recovery into thinking

the which new the Some level in of already business, is pipeline, way. by

stretch. we're if be to grow even X.X% the So is X.X% in multiple that margin, you X.X% X%, overall, in on if $X.X a going smaller a And you at said from to doing new we're X%, X%, from it's by 'XX, the we least at wins. 'XX base, working midpoint not business million

So margins, we to higher. expect that be

entire if billion of us look at result authorization repurchase FY you a the in you lower share -- as 'XX. [indiscernible] we'll have $X.X look 'XX not only doing at the in If

in entire the There's 'XX. an well you're impact impact [indiscernible] in because 'XX as getting

overall, think is 'XX I in really good FY So shape.

from coming is Advisors. question from Next Fox Steven Fox

how to playing wanted revenues it's up served made the different the just markets. on comments just on by the you out and I of some follow

new are that costs mentioned you So program down.

assume that down, in customer seeing mainly. existing you also I I programs are But for you're then markets. is pushouts So which certain forecasts coming mentioned guess

and a was dissect every related where you're more I sort but wondering single follow-up. just program then had So if of where demand? and And I to you of why not more line new current item, it's sort could seeing end picture big pushouts

Steve. Thanks, Yes.

I the obviously a would so some say, see customers -- mean, if our give I through you to end run is there. soft, So serve, just markets to you and markets, that XG want I slowdown color, just end we from that if in you

switching going and guns with of switching we're kind the and network really space. an Our the we globe, and business see around great inventory space compass AI softer enterprise accelerated

us for that's So health pretty care. been in positive

that [indiscernible] see not is terms to your devices which of to to people going the going grow but to a out be if said new to see expectation auto, right at always there we you products, always we question business What then some think are to auto products be the that And in is we lumpy. it's our about think lots in degree. I you up getting look is we've in it's what going going linear. up. saying I XX%, be And now. new at look, market, that the would are and look right, is pushed -- And the auto we XX%, It's but that. inventory the is say are

nicely we we're at growing residential there. so renewables, on look we effectively, So in is pretty still Mike's then see interest commercial down still slowing with reasonably although the pushout okay. rates some going And earlier to automotive, point,

see quickly going in. to the the year We storage of backlog we're think here, as recover really to wait get for the people relatively But after. bedded kind energy we in slowdown IRA a

So key that. AI in cloud, new is really We're mentioned I markets. a driving the business. of end operating some mean, think -- cloud in I to I where our support that's facility

So there. up we're

-- hopefully, softer there so the is your delayed. space, products to help for bit new which industry see answers generally, going the some with that pushout renewable sure, is recovers as little and is So do consolidation a renewables of just think question. some orders. We automotive a in being us But we

-- inventories add has choppiness, the at seen seen at I I you look et think if just EVs, dealers, increased could the everyone if And everyone's a cetera.

question out to cost OEMs, Who company. you and out. get companies when to early already played All you becomes want go get a of all and EMS their are down your cost. to try the cost EV now to an their have do think I they've going adopters got the the It EVs.

EMS well So EV manufacturing proposition from for positioned an this that a from EVs. value provides perspective, we're

hybrids. for positioned well We're

you look provide actually who down battery because the bit systems, that's second that, of good the all not we're their at a just the be cost adoption some If cardial costs to to the value a now wave of a pace the in to EV early compute wave few that have OEMs ago. management quarters based, optics, will we wrote take

by And Great. billion follow-up, and That's very I for the of then as plus off Mike, if just just a the numbers November helpful. assumptions know revenue free my announcement, you're $X I still saying turn but flow, working changed kept capital cash sales guidance? we cash lower free million Or I flow the see missing of more the sort of revised type my in of can calculation. like flow something? free $XXX was am of that off cash change that Is the worth

is income $X.X margin part is dollars the do you though lose when Steve, come obviously, lose of out. So free and you your income, billion, even cash maintained to flow

offset. an there's So

the working is right capital working baked but also sort absolutely in, income. the that and lose You're does you on capital, of go down

that stopped Steve. I why would that but plus, it That's expect early the as very billion do its at with and been help times, we days, that? area to investments. we're out CapEx CapEx We've $X is looking flow free pushing out In In We're be disciplined higher some we're other cash even disciplined. level of we're always these more The pushing carefully. than well.

from from coming is Matt Stifel. Sheerin question Next

free flow. inventories related just cash and had another question I to

back. we XX% will want to In that back talked short XX customers But because that deposits. we does years given about have And isn't the there flow? number and need You for are days, inventory, buffer that you days, cash more they deposits down. is reduce times your over wouldn't cash the need you to cash give backed roughly that shortage situation net And as for other you free think which the how is gross of guess, that don't that impact number, I lead that customer by future words, pretty ago? pay them of I components, assume inventory

answer just different sync, it. So to that deposits inventory go expect up, in the always up yes, there let me days start of inventory range. the days slightly level expect inventory than goes XX-day is XX- normalizing, asked return in coming I be way inventory you've inventory down When deposits. or a to a but in

a to flow in answer is, is see to in So start go pop inventory to no. down? cash -- your going the a going question The free a days. XX free pop XX flow are still it we is because quick in to answer be will It's cash

down the of matter sync. a just inventory down the gross It's going going number and deposits in

So that's that working something front. something relationships That's particular we're good always and we customers, have good really with at managing. we're on

will a get It's So stay. XX%, no, won't flow it where our cash baked free already pop. into numbers that at that's XX%, and

of terms couple you to earlier, some take saw, saw that competitors customer the just be lagging of Okay. months guided a the November similar and numbers you quarter, weeks your a ago, pre-announcement cut in And someone your couple month base. in way. to We saw a came right? a of obviously of And seem big had back after across then, you from for Kenny, what competitors big they down of your then

end think you other it seeing competitors of do a But of later we end the markets. of what because So different or is know you I reasons? do difference because right, correction, supply why markets -- seeing you're some in think rolling -- the than that terms and are

our the in of little as degree perspective, a the quarter. think I -- I of our but when it our from our in reduce some have end we of And that markets report some outlook. results. a to the the generally, But the lot customers. calendar we've we mean And are we've there's took And they it seen actions really report was people new Yes. see our later quarters. bit across We're announcements seen customers. also to of broad-based that customers back of

job would customer we into to that of a visibility disconnected I is mean, competitors, and that good base our push back don't quite So honest. our be our strongly I as do

think I that towards was in of just it on our feedback that time back got the we and end based it's quarter.

be answer. that So would my

trying Yes, Okay. out that. was I just I wasn't at figure appreciate to all. suggesting I that the perspective.

question from Next Chatterjee is coming JPMorgan. from Samik

just but can across end to semi the you one weakness on of for and why out weakness markets like seeing I in sort of one embedding trying and to Looks confirm with reduction sort you're that broad-based it's know I that just what saw you're billion rank I'm -- you're your markets, -- $X.X end that confirm in interpreting If start right. guide. wanted that the mentioning just cap industrial more and and and that the of autos

to Secondly, you describing address EV to is just going seeing of thinking I that in a lot it the penetration X market, be now. particular, do given are is now looking overall, lower a but we how do years weakness that just expected you is be, probably think concerns than there was lot the when EV out out on investor what demand sort profile the average the how you're temporary, of

have on long-term So around the EVs changes this how growth I any thoughts And more for follow-up. quick of a profile you? sort

Yes.

in that slow X, look I moves and me down, we've in the we the on mean would EV space term, take are this and remember longer at first. EV the bullish been year. longer demand that years. we've X, said up that, And So I mean, -- term. the that this the XX we although X, mean XX%, we've growing let one still and always down I

global and our we where from consistently We then look we've a things footprint. is we perspective, the globe. and So at demand do across there's the patterns, do what got

and growth slows it regions. footprint in each we've markets down of that those So means in in that the Asia, there's got other a fact

we positively base that The customer have we've and a North base customer got really America, really is Asia. -- good in Europe in focused

demand in So EVs changes look where got here. demand we're to right We've we the if customers China. in cycles. able picking you adapt to is And build China, up, multiple now

the get trend markets, think we're We capability. areas. right in We think in we think right we'll right we think long-term good there. the we're So and the the is

to we It's of up XX%, to numbers. be any We can adapt the those and going it's So -- think going to be we XX%, to think XX%. right.

confident pretty So EV we're term strategy. the long our of in

So in growing. still we're terms of other markets,

we think and X%. auto going is XX%. to care the that prepared our said remarks in packaging, business Health I grow

that areas growing Mike focused as at with business on renewables are our continue the secular So grow we we're tailwinds, still of think really mentioned, X%. to

all So those yes, across end we're a spot we of think good in markets. that

margin for And next the as is from question you some assumption When back today, maintained year? those as don't follow-up, most of margins next the out those into to that need investments the we're assuming in pushing back guidance model sort the put Or about of getting investment. margin investors is out of be mentioned we're despite them of for 'XX? investments year, my think terms you that fiscal next guidance push on year come the

be to back, as No, expect we sometime I revenue think this out, the comes will be if revenue is an will there back those the the 'XX, offset. come costs think When comes it FY comes but of way cost out. in the to

impact neutral. net-net, margin on will So the be

those to X.X%. not remember, business do that be we those that always I last X markets underestimate those those to by got construct not markets. on years. we've But because completely. end long-term markets our we've end thought are said X.X% think it's of end grow I over X intentionally in end we the focused few to markets secular changed the the we've continue Yes, to think the chance happen We've

about way there. think back. that will revenue whether the costs suddenly overall, dependent those think, If revenue come pushouts, back, completely to I cost is comes So the on it's

So come X.X% revenues if suddenly back. those I'm X.X% will to saying up not jump a

to annualized continue XX at to will view, balance. by continue the on plans of my and that of go least up provide basis to will margin basis, continue points piece other as itself the making we to robotics, mix the mix as revenue add provide to in change we automation the an continue the have efficiencies, XX business, ML, side, on operational all AI, We new the

So completely pushout revenue-driven. yes, I think the is

from Barclays. coming George question next Wang Your is from

kind want devices. connected just on to double-click of the Yes,

the You guys too didn't elaborate prepared remarks. much in

of kind took year, expecting last 'XX. XX% heels down versus FY last Just XX% XX% time on of down you guys the now down and

Maybe -- of of there. of kind Just broad-based a customers can kind devices mostly or weakness? kind kind slowdown the double-click within the any you of curious connected the driving few of

thanks the George, question. for

devices being because, sometimes is always successful for if area cycles, short is we We where we consumer. consumer can to you're are going as is products we that do we'll So selective effectively a, an about dependent be of rest talk that or life What connected business. we what be and not. our find capabilities view that there incubate do across can support the us quite

the expectation be an margins pretty us. there's margins for Sometimes tight will in that

case profile case selective side specific a being it's of a in So for the defocusing of us programs. business margin our not on some of of but it's us terms that

So you'll across I margins. see our think And on previous to and I should think see question you network. the --

long-term and people to Look, the continue and capabilities and of will and flows business cash our capabilities footprint and think that our we're going our accretive that areas margins. to our be focus we support our to support

think instance, it's So customers capabilities that can we our more or of value for X other because choosing I in engage X in a markets. of where think we're -- areas to case not our maybe with we then really different the add this end business it's just

Okay. follow-up. That just have I makes quick X sense.

a AI, talk consignment from margin pretty nowadays. of about can in you of kind of this model of much margin to also extract the obviously, kind within additive the investors the is of Just ramping and And of center bottom that's kind being the the data slightly how profile. more line can guys topic with popular just terms you consignment the maybe kind in shift, terms additional projects on shift,

looking be requirements what AI at there's think the we'll looking that grow we that at basis. do that margin ways GPUs of annual new be the we think value I an new stable. AI exponentially be that add multiple our the that will margin Those relatively cooling, the photonics. services sort will provide, to It's of on we new stack it are requirements The accretive. today, in drive piece, highly terms pieces and liquid to on continue going it's the space drive of

I'm over to go to AI But do the expect time, immediately. be more not the stack based. I suggesting will margin cloud entire data that happen up value-add centers, that

is question Your Vogt from coming next UBS. from David

you of, sort you of are allocation, go at you How and maybe, 'XX. then your that think inventory categories kind kind the first. $X.X and sort So maybe the of customers Is one latest since in of Kenny, fiscal saying. Obviously, and would your the today for quarters, couple I you're of frame I and do time terms said Mike the X to you of think imagine, back dive what a digestion? feedback do you know capital pre-release, the you've the hearing weeks from deeper say had one a entire you I heard partners heard you're quarters. for I that on X buyback say I billion in going I X to

in EPS do that 'XX the for you know guidance about your means talk context I fiscal the don't normally think So what but of year, $XX.XX you reiteration? following

David, you. thank

have but of and what been -- lot say folks as the a David, Phoenix. of so marginally anything a as we you quarters still our our have customers couple I hasn't So to discussed in areas, areas relatively subsequent meeting worse, I better, quarter it's mentioned, in it's sentiment a if would some I with in consistent certainly on got inventory meeting that correction, Phoenix,

more long-term So to what looking that's slightly no the reemphasize their positive supply is we're us, with we having, suppliers. negative, to just fewer we -- see -- that consolidate are chains to just discussions we the seeing But us. for are opportunities positive. to change positive customers our And maybe for

you're the buyback this only impact year to [indiscernible] down billion $X.X absolutely that positive whole try not a from FY and 'XX. going we're a right, David, perspective, And has get on

I to then we've last XX a our end million so program. done FY $XXX And for years, said X, year. you $XXX back million the look think a history about normalized by the if X, have we've over $XXX And buyback X, 'XX. at million 'XX, less of we'll

it So will safe. be

to but 'XX. I'd don't the have Again, early board last years you where saying -- I on mouth the days XXX it will that, that that buybacks undervalued. we've -- $XXX with so And still to price to feel best what that XXX And as done proves when out the of early our we sort It's we're to all 'XX, do of put been our money keep plus we range. down the add our is [indiscernible] expect our be FY that and funds. we in share use depending goes the we've in is, of yet that our highly that history continue -- authorization for we million over

follow-up. Great. And can make I just quick a

I business. can think felt most of your which the rates lower end Kenny, about impact would have the think could a kind interest to you I could Mike by stimulative most given if rates the mix, where think mentioned do effect sensitive market, is imagine you on be of Maybe, the help us more

really IRA, but sure -- mean, from space. And are guidance we've to rollouts for space. capabilities at kind with the of -- I renewables solar look we're through developing the for Renewables for -- Yes, sure. got sure. if we in we've doubt things great renewables and rates be interest waiting impacting for the in also just residential

of say all will I tailwind would see the I there. help So auto business, to #X would would of renewables our But also, expect out we think obviously. be but us a

To expect spend level improve. to of some enterprise level

changes that perspective. I going the enterprise-level CFOs purchases, think a just pulling down, been interest environment macro whole back rates on lot have With on of purchases.

immediately, an time, for and probably positive So we do markets it the well. have Will happen end a expect it not. for almost other have will over impact? as us impact to But company other every

Raymond coming from James. from Our next Fairbanks Melissa is question

comment supply about driving the comments about made supply and consolidation X like or Talk area that getting wire. in curious you've chain under made services, I'm the in chain on your that's know this I the renewables. engagement business overall. is more direct customer you've that

chain? downstream. further is are renewables, happening managing in you their Or So this customers supply with consolidation working directly these

Melissa. Hey,

bit. little would disconnect a X I the So

make chain us material had with we announcements for summit that some we're We've a building Chain actually our meet the in been for time, fabulous blocks to just is there place Supply us obviously, longer support customers. suppliers. talking long So the in our in from been supplier services putting our but today, what Services, been supply and which and term, yesterday just to to

suppliers, the that, In of goes that have hugely that dual to was good chain terms world thought sourced. what difficult multiple people is it supply where back to, we're and was finding manage. pre-COVID chain then that be -- supply out think, to I consolidation, diversification found And

simplify dislocations life? like can how I my So think get you customers this when

How relative saying, I mean, people Jabil. indicator it Can just you manage and of inventory we well, our discussions and long me as can with in you chain? can can world? should And build to is your to our gives sites? as simplify peers you maybe I around, less I they're see at look what my an trust my that's be safe supply with It you engage can deliver. look, it people that

that it we at dislocation if look So times And driving that's like is been happened for has business. good what those found other -- that's this I our discussions. that really

If expect for that at will so pre-to-post also this do term. COVID the good us we look in the be longer you

couple a Great. photonics of silicon follow-up, I'm Great. mentioned Maybe as ago. a glad questions you

Photonics we I simply really bringing in Does along competitive it interesting moat a does haven't longer really the it business? kind does any of is of supply And already adding with Intel reflected in then talked provide Or your is it? and business, more of acquisition of of about lot. it's in. think term, the acquisition more this internally Silicon stack the but a bring value, about terms in this this revenue

Yes.

we do. you That's was talk in in optical key small to with we've acquisition longer the space term. business, that the on give a was the We was and me little did always just the it then what we've background that a we're tuck-in on been telco for it be focused XXXX of why space. let And us value. the of it's optical that. datacom me like capability let but And about sure, for gradually a going building the in seen about talk -- bit So -- business doing.

So capability. is think not we've but capability we that material the for been we that can us, something growing usually develop. It's

of providers. So a out with really discussion -- opportunity cloud came this it our Intel is

We want for are be to to and disaggregate chains there looking it us looking more vertical. supply

and So we're XXX up capability we pick a that's developing X.XX. gig, gig XXX got

I the number of is more that road along So of map. will team that with look value. come for people in suppliers and who What mode technical think minimize add help technical engage that is, the us that does because kind a really really, it's competitive do can

centers, the AI sure, going with critical more -- to Photonics data in becoming For is is and power be more related.

So all we a see of that as positive.

like telco industry for call data example, automotive, of player for be as talked you'll macro Manages I'd but in I I play, of I develop revenues areas that other haven't we driving focused which think guide there, that think 'XX that's think 'XX, I the business we our for more about much just capability to on a KW is much, that our look automotive, there. do of through and X.XX made some mean, center is but expert. I And to there's is out going have a see out Asia this into that, big an because [indiscernible] that that think the we become we us

So are that real better we're well. Intel selling feeling in and in are getting the team

in longer pretty term, feeling that the bullish about Melissa. we're So

So asking. thanks for

Next Goldman Sachs. coming from Delaney question is Mark from

looking seeing chain manufacturing North order have done in have Or changes altered meaningfully to about their any And still supply improve of in lead times plans? you in of more resiliency? demand those America regionalization. Question to customers and or component are

Mark, it's an interesting question.

it's nuanced market. by think I So end

XXX%. get push the into So real a sure we're and to America. renewables, [indiscernible] for the seeing for North -- That's and incentives of benefit

X relatively where active. X a in more us we're expect you next from scale fact, to that discussion the In in large months. And

consistent. I seeing that, is point the your So definitely I mean Outside think of pace still -- renewables. think I in We're relatively about regionalization.

we for still tariffs, and cetera, for market build Asia. the European being Europe build we for EVs America et obviously, Asia can We to and North Mexico, in can asked more are and them

localized. sped So in other seeing think to down ask any that's don't and definitely be up for I or necessarily pickup slowed space, than a renewables the us we're

me cloud saying supply So be us the will cloud with I renewables also of -- becomes tailwind -- quite by think Melissa that on be that, in to that's business We longer the there for I think and is let important, player earlier secure which in a consistent. the so the rest space, going we qualify relatively and think talked the term. also Photonics, a

as the margins years. lead on the you're company outlook to as weaker you higher seeing recognizing demand, has for of is and cost normalize seeing margins question I'm times understand through better other in last change made for any over in pricing you've pass hoping your to seen also several My you're the the so and around have and progress conditions? ability customers those negotiate components with market light changing improved

view kind we I -- talk all. mean it we about with and leverage I of talk would about don't people that at way -- customers,

our of engage for through summit our coming and -- mean and and renegotiate pass are with I we've I As -- customers a we we got right supplier lot through then a behalf, suppliers. to surely now customers' that down. we mentioned, our [indiscernible] pass

our based margins down. is not in lead seen So on and reduction we that business we've our -- as [indiscernible] in pickup up write -- and any times

any changes see no, so And there. real don't we

end reached back closing or comments. over have our for management turn further to of any session. the I'd to We like question-and-answer floor

today. much peaceful wish interest holiday. very to And of happy the here joining XXX in looking very We a Everyone those, Jabil. you S&P your for Thank tomorrow. all joining to like holiday, our a appreciate forward are call we would

great holiday. So have a

and you. does webcast. Thank today's That conclude teleconference

your a you today. We this at for You participation have disconnect and time, may thank your lines wonderful day.