Jabil (JBL) 18 Dec 242025 Q1 Earnings call transcript

Greetings, and welcome to the Jabil First Quarter Fiscal Year 2025 Earnings Conference Call and Webcast. [Operator Instructions] It's now my pleasure to introduce your host, Adam Berry, Senior Vice President, IR and Communications. Adam, please go ahead.

Good morning, and welcome to Jabil's First Quarter Fiscal Year 2025 Earnings Call. My name is Adam Berry, and I'm Senior Vice President of Investor Relations and Communications.

call Officer, Financial Mike today's and Greg on Executive Chief Dastoor. me are Officer, Chief Hebard Joining We're happy to be joining you today from St. Florida. Petersburg,

Helene reminder, thereafter. a hours Tampa we our area, made Hurricane Bay September the landfall by As followed in earnings conducted before Milton call

caused were to the back storms efforts XX The all in operational X communities Southeast, slides. to incredible. view visit sites X please Investor of damage streamed. you available that many and during of to damage was homes complete these today's considering Relations to running tireless helped. With sites Florida is within the up Petersburg, jabil.com. our significant website get After be our will in section all these our a Thank on sites referencing that, experienced playback. Although concludes, St. North And these own please the employees we note Carolina today's days. for them To our those that recording remarks, presentation our slides, live being prepared of presentation be will and

whether over otherwise. With the information, result XX, obligation a for new now the and future update list forward-looking revenue with risks we are on for during intention fiscal to and as and risks other involving addition, current could actual currently uncertainties turn to such that forecasts Greg. our I'd cause are making August year anticipated that other like statements regarding outcomes forward-looking statements these results of events revise annual to call be any will among to business, Jabil Form in this the presentation, materially. outlook fiscal expected identified XXXX, and assumptions our and of or things, disclaims or those extensive earnings. These statements or SEC. In net the including, on the that, as expectations, An our year based and ended uncertainties report XX-K differ filings

to start excluding Thanks operating with XX margins at basis today. points income roughly revenue at million, in for to at $X.XX. FY $X operating by came report our solid a everyone. income join good management quarter interest in morning, per Good associated GAAP spite earnings Adam. billion, hurricane-related $X.XX and than in $XX off taking share capital was continued per coming earnings $X. working at a the for our came time call of better 'XX to impact. for pleased Core was billion On to in of we're I'm came GAAP basis, QX you, the $XXX X% the a Thank reflecting the QX in diluted million. Core divestiture year million, the prior up X% operating was quarter. in with Mobility $XXX the approximately year-on-year that expense team. in Net Core anticipated diluted XX share

our in segment to by the quarter. now performance Turning

the XX points divestiture. to to Regulated The operating Industries of Commerce roughly in growth the EV by the we saw equipment XX demand Living segment, were billion, this, margin segment, revenue X.X%. margins and Our in Infrastructure to In infrastructure basis capital Connected our a renewable for segment our This our due down $X.X $X.X and basis Despite year-on-year. year-on-year year markets. was cloud, mobility due billion, core energy data segment and year-on-year AI-related X.X%, billion, improvement prior weakness strong the $X Digital continued point by down X% up driven XX% center segment markets. core our increased for to quarter. In was primarily operating X% revenue of Intelligent reported revenues compared

And the gears of automation deposits, for to in end for year, were for continue sequentially at XX%, continue expect to capital our between expenditures strong inventory at was be margins days commerce year, first quarter XX see we our cash reflecting $XX were QX. Shifting the results. at for $XXX X-day year-on-year the prior but flat XX robust the capital segment very our flow million. Net net and in as and operations balance to the in this Inventory to from warehouse for divestiture we net adjusting days. to Mobility a and of coming QX cash inventory were growth After Thanks where digital days. flow segment XX, target strong, within long-term management at range across increase CapEx metrics Core the approximately quarter the by revenue our Excluding revenue. came full [ expected X.X% sheet to XX working X.X% growth ] was of operating X% quarter-over-quarter, from team, to disciplined million. first markets.

cash result As the solid in performance cash free for flow at a quarter $XXX generation, of first the quarter million. flow in adjusted came

quarter to first balances We the a for balance million. flow levels cash $X.X shares with In We approximately come approximately continue exited cash at to core billion. billion. $X.X and we $XXX sheet debt QX, million strong X.Xx to year X.X of expect for healthy with the EBITDA free of repurchased

fully $XXX remaining repurchase current share by the committed authorization the to FY 'XX. QX. end million billion current of of have as We on We share our repurchase completing authorization $X of end remain the

for to by a would $X.X in Before revenue flow cash continued The like high We the and results our to let's revenue company remarks anticipate billion, industry regulated I well highly to the FY my will for with demonstrate enhancement margin 'XX turn our environment. is quarter and solid by continues this amid team's guidance, growth, that, EV delivered revenue QX be 'XX year-on-year, on conclude for I Jabil energy the and X% acknowledging QX start free segment. execution the FY resilience quarter dynamic future to reflecting slide guidance. Beginning markets. which renewable generation. down With robust next softness discuss strong positioned

due across for networking, be advanced data quarter and Living cloud revenues segment, revenue Connected the reflecting X% expect to we capital be broad-based equipment, up segment, and markets. In in diluted expected $XXX billion, Infrastructure in $X.XX our to million. $X.XX And center we are for diluted Intelligent to is our Commerce range interest $XX million, expected is $XXX $X.X is in to from Core For to down This estimated to GAAP $XXX it per now growth Digital infrastructure to to will income estimated year-over-year, XX% mainly be the in million. Total million for Core in to FY approximately is divestiture. is company revenue year-over-year, GAAP billion. is operating range $X.X Net for mobility billion QX be $X.X down be billion. to be be $X.X to of the the operating expected expected to what be income range to of QX of of our share $XXX million. expense range share million expect is $X. of earnings per second earnings quarter the September. 'XX, be to $X.XX. in thought in estimated $XXX range we the the

ahead. Jabil. growth call to the tax XX%. With I'd Our dive in turn morning is deeper our for core for strategic areas interest like this over for be to QX to for that, expected year opportunities and to your now rate and Mike you the the I'll exciting your and into thank time

today. you for and Thanks, Greg. call joining morning, our Good thank

our we As anticipated, had stronger Intelligent incremental Greg fiscal quarter in segment. first driven just results strength mainly Infrastructure highlighted, our came than by in

year. able generated with EPS, and strong to pleased and the the the a the shareholders summarize, majority team deliver As result, and our of Furthermore, extremely core dividend quarter. cash positive these flow programs. To cash during I'm we buyback was to margins distributed flows of free results the financial by trajectory

management those details we business are which work I operating regarding and in to few dynamic the a a global us for expansion I'll hard Jabil and moment In return I strong operating commitment, free and to in for core continue allow outlook environment. to to some before here a the updated a take deliver into to flow of balance their capital growth, thank details, want year. But highly to the consistent team dedication at provide the moments, our working team, jump As margin together collectively invest cash shareholders. will

the evolve, years team and come. for hard world remains to nimble, is ensure agile this As working Jabil continues to resilient to many

segment and opened will management also Pete, and to ecosystem our added St. a support quick geographic trying our Croatia, Hendersonville, shift currently end this now where FY GLP-X beginning end anticipate of the a other, we taking test in a broader customers energy many this We quarter Aspell The sales the solution. with large-scale systems the which to in our drug outlook would semiconductors, that to electric the supports as fiscal continued global was and our also European-based a for was thermal OEM. And both of hurricanes vehicles. And teams our in only The delivery quarter, manufacturing data the during liquid team ramp space programs weakness also the our during for in support in like team of in care to a of regulated verticals Jabil capabilities for cool on truly communities growth focus begin acquisition multiple take to our to not automated as all solutions. capabilities segment. I'll site in transportation, storage both time. engineering automotive markets continues to lower the while, market and health customers, our like equipment leader supply. These in care by each through instance, electric through For manufacturing Mikros and 'XX, benching XXXX site automotive driven batteries, specifically I'd market display. shout major during I require demand taking existing like of to culture year-over-year team year center [indiscernible] relocated Technologies, our opportunity but vehicles. care continue and exceed will future by out seek our other and

solutions. automotive pipeline and hybrid glucose term, capabilities Over our new auto-injectors packaging, the wins, as comfortable as and in agnostic continuous feel the continue both transportation we that improve execute including position on we will business our to In EV and care of previously to health and technology of growth launch GLP-X capture vehicle we us our anticipated, longer monitors.

due often XX to months programs. ramp a to to long takes it qualification care, in these XX As health reminder, the cycles

the and weigh operating key renewals term, near on operating end share to focused cost wait with worked gains includes core segment market. continue to a Throughout recovery This solar. primarily solar we as Renewables better the in space customers programs growth for and multiyear energy battery largely However, infrastructure, indicated returns. and weakness product once power to by energy in the they are solid is with infrastructure previously growth cycles generally long do applications management. continues stable these offset renewable well In very enjoy hard position ourselves we've in life This reductions. downturn, ramped, the margins. on

is FY Turning to which 'XX. our capital and of is test driving equipment, In for fabrication which 'XX beyond. the throughout Intelligent Infrastructure expect growth segment, AI in the driving we equipment, to FY semiconductor continue demand of majority and rise

In rack custom AI-driven our their deepen with addition, in we our continue center to the data business. continued largest existing hyperscaler relationship in with strength space, GPU integration

As we with new in had business. won of side hyperscaler photonics our a programs also we've previously silicon indicated, the

in Over of Intelligent term, year. $X.X anticipate the we that expect adjusting and businesses solutions up us after billion be to to address Infrastructure demands approximately power AI of fiscal by investment systems thermal exit legacy last liquid cool will that the the networking longer in for participate the we segment immense allow service. Year-on-year, our now capability

has pressure being Our while the business, Connected remains of digital same and Living, automation Digital is aspects: X driven bullish we Commerce the time, by largely retail segment which remain the commerce which consumer-oriented distinct our Living warehouse at under devices higher on experience. and focuses on Connected

companies maintaining competitive which comments Now manufacturing is my network ability situation as in with customers. global Jabil is increasingly complexities. placed the my continues footprint. And our help to U.S.-domiciled as among our of a becoming combined let's September, opinion, with a our a U.S. adapt the designation we in navigate these discuss best world value manufacturing our customers the global for considerable on to significant is footprint important to our geopolitical service in advantage. And positioned significant evolve, Consistent and factories, provider large-scale we believe

I would on Next, a even few considerable over of the potential couple received topic attention past has that minutes weeks, tariff very early days, spend implications. though to like the it's

of share Here is can as we what today.

largely a a end customer in costs for As Jabil. any been have changes demand, impact while cost tariffs historically reminder, tariff pass-through

being For China predominantly [ very starters, U.S. generated most to local or local portion bound. regional ] that of of region is or our business from with local our in revenues small a

X past remain were reverse from has customer. to Mexico, U.S. We the resources and for well as footprint any manufacturing evolved to due the corporate prepared Secondly, customers' that our the years Mexico of shift solutions bringing proximity operations over and final lift of to our closer

it investments transfers. I and to and never positioned manufacturing tested while will feel our personally has help And better will be footprint U.S. and overcome such Third, there do to been labor our feel challenges I no some is bigger company any the experience lines than in automation than is in expedite us tried robotics there manufacturing as today. grow certainly

the as the last But expect Of all like drivers: warehouse our First, half to footprint then have competitive reminder, year now, cloud advantage. our first and explain And Shifting take course, have how I this automation back is the and core a our QX over several margins full in year earnings seasonality due data we'll margins. the see and programs makes more in operating the following ongoing year we to major now right large-scale infrastructure pronounced. guidance. to divestiture mobility on of in moment a year weighed why years. the guidance. This fiscal reflected in higher as see to now center out half I'd the as and plays the full of manufacturing next a historical mainly year

improvements Additionally, during and will anticipated the to progresses. in semi of higher-margin equipment the second higher efficiency call, earnings also recovery initiatives, we our which margins our half. lastly, discussed optimization deliver year as relatively last business And the operational capital contribute cost our will continued in

foresee thank free trust and I and to approximately of happy we and the For want all I will now Importantly, earnings Putting cash dedication stronger billion in revenue closing, year. the back investors Core to anticipate these over we $X.XX share safe, everyone $XX.X for of FY the prosperous all you generation billion. year together core entire reasons, call in second coming the expected margins robust anticipate like we flow a for continue earnings margins another your In turn continued Jabil to team per new half now say with 'XX of in it our are year, to operating to your of the to $X.X and X.X%. be to support. wish year. I for would now Adam.

for concludes Thanks, we're Mike. prepared Operator, Q&A. our That comments. ready now

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

'XX, has Infrastructure Can to quarter. Congrats of margins? you the recovery and on for segment about we which margin about margins these Connected segment do regulated upside should of Intelligent -- each should in relative the think what talk the Living. and expect so and we you How for industries segments, each fiscal how most

Thanks, Ruplu.

renewable underutilization I increased bit that but north expect much on drag, X% is now, for So side a of these our X is from level bit different -- would once X little them. think segments, be means do Right seeing margins side, of there. little recover and for the some end I forward the EV of to see of markets infrastructure on I margins above of our the well. X% intelligent capacity a as a is going which higher opportunity for we're

think that's we the I as of well. -- the level next where few over growth years biggest see

recovery there on high that's with consumer-driven. especially side. the perspective, than other markets. From a of [indiscernible], very of Obviously, consumer bit our still look, level that doing and whole higher really So play Connected mainly well all end on in piece with expecting as which is is in of margins, equipment. a we're year, the well There's you're half aware, our second a today, doing a capital relatively the slightly much Living seasonality,

lower bit piece albeit new base. sort engineering their think market. lines, from the good today. driving of design It's always, all I digital new growth future. product segments about rates, a having will opportunities high That a the the X feel As I on going in are commerce stuff is be there capabilities that's high-tech And high-tech the double-digit really margin. new in technologies, But in that

revenues your think some fiscal think of talk and can to had the I -- expectation AI-related changed? be 'XX. about has segment in for is billion well, AI cloud do you your can can revenues time guided Okay. But this forward? $X you revenues going AI related -- for you since last doing new opportunities higher in you Mike, have

Sure.

to to did So billion. I $X billion increase do think we -- time I we $X was think billion that said $X.X it -- last

so So cloud we actually million had space be baked we that seem reckon about cap. in -- $XXX already semi a deepened by $XXX infrastructure I And $XXX hyperscaler. all about of million -- being increase is relationship largest We our We've semi really to piece about doing well data is AI the $XXX driven that recovery of there. on our million million cap there. is with where in

is one number is drive growth, $X last the again, of from the billion to that So that's $X.X a big lot future on our AI a year-on-year, year. billion base going piece

that's right So rate XX% there. growth a

Okay. year? And Can is talk the talked about M&A one How about last -- you Got can about little capital what talk for contribution allocation focus cadence buybacks this the should a acquisition bit the And on is did me. what maybe in we you the revenue you think about more your it. you of your that? further from plans.

Ruplu, take that first Greg. this the I'll of part is question.

XX% perspective, of with still of buybacks. cash going we're So our flow the going capital free from allocation approach share a to

we in the feel execution is of for FY our $X buybacks second completing little have the to undervalued of billion with and continue as the we'll Share the still a to [indiscernible] good weighted first guidance shares authorization feel half X.XX in that. 'XX for the ] be share half cash I bit a versus heavily really we from say are perspective, of [ a buyback would are again, Jabil X.XX We to committed a more on our use But year.

for And the revenue, It very small. very, revenues Jabil, capabilities. acquisition little up engineers. opens relatively -- was are for revenue It us well. hyperscalers have engineering piece and this capability or The from expand as for for plates the was other all center -- coal We're think a to to -- sure. would vertically it cloud team the cooling years, then not on revenues liquid really around for of thermal huge. direct I Right excited bit over piece, whole the infrastructure the next a did the of complete opportunity the been you're here a join segment, few is a designing the We've solution in bunch long that acquisition engineering, say. referring temper did. But Mikros a acquisition as acquired acquire that we've I that think we not whole There's -- that perspective. acquisition we as manufacturing we'll now, data vertical It's we I I core a see the should solutions Ruplu, benefits direct collate time.

is today question Stifel. Next from Sheerin from Matt coming

you're give elaborate, wanted your comments follow does And potential announced your mean just relationship with you in regarding winning size customers. just you the you side, mention you that us the second then I hyperscale of could your opportunity? the business? deepening to Mike, Could customer Could customer? more Or customer. largest that other hyperscale that that on that your up for of on doing terms that things you are photonics

Sure.

referred It's been business. to, with for sort sort There's we've time. performance a long that customer think a for very We've I customer. good I yes, very our good relationship. current them of very So new of working performed winning that a we're that

So potential there. definitely good growth

And it at That not now the ] As [ ] from actually hyperscaler. you XXX,XXX, piece, to if cloud And towards quoting We're about XXX recall, then looking the relates made ] 'XX Intel. It's working right 'XX. that on. of of was G X.XX [ second half [ end into get mainly in G we the more infrastructure acquisition data photonic the sort silicon we're on we in this side. first XXX as 'XX. or

I It's for dividends we're benefits what the think that with one that being our it what go really we capability. been this acquisition. actually did to We good And it's was on always seeing as play. That's well. out see I'm it. acquire paid of we based and last glad year,

integration And instance, as with other have strategy, skill part systems to look of at you well? hyperscale that new you that as customer, customers the as and for cross-sell sets the

Yes.

of I -- in We product-based. ecosystem, strategy, of of done an if you one it just then the things all we've think our engineering double go always on architecture try think not with the product intelligent or vertical integrate single down of and customers. with don't We codesigned as and an infrastructure we're We're sorts platform, focus products. our solutions. on we providing sort design

not linked it's of So engineering sort just in of business, there's [ complexity reconcile level high very to a ] that.

good half job It the then guiding growth And 'XX? a half you've second back higher like you're inventory. flows. should revenue we very fiscal of Okay. back you're have done of the question, inventory improving down cash the expect that going flattish regarding bringing in given my looks to of How inventory, sort for

, in inventory say year will the there's range range. again, feel inventory, between days. On Greg. number XX our is we would This on in in lower back of be some that the the the be cyclicality that And and but we XX during part Yes. still of would net half,

So manage to we inventory able we're still feel confident levels. to those

is coming Fox Steven from Fox from Advisors. Next question

A couple for questions of me.

programs add more And your in the needs X looking the what just ahead, follow-up. And in. talk then First was willingness you about to can quarter. little how Mike, Can color U.S. see say, capacity little a in as bit had you perspectives. of changes over say, into more One, to bit give your U.S., meet, us about sort from a the X we the urgent next you moved footprint a mentioned all, X then I think tariffs? move you that moved versus production U.S. of some some months ability we to the do to into on

Sure.

the in we've -- some that on piece. the the So businesses you the our if at battery, actually had we've sites grown infrastructure few side. are data the mainly We've always cloud over ramps here U.S., Look, ramp look movements in even that management we've last years. the had the

think number. in the call, sites X-X. in my now we is I big the That's I mentioned number a last that of XX, have U.S.

we're moving the that's today, So moved our manufacturing in And -- our wherever across constantly to deliver. business more there model. does We U.S. the move we're seem to to be -- go. wants we happy interest which customer to

think well positioned. really I we're really,

that our you locations If have, of cetera. think you et we local you the think expertise, of the all the that people geography, we you of have, knowledge think think of

I sort any think remarks. was table that's my well move. in think prepared bring trying for And to the of the positioned I we're I to point

noncustomers potential a this -- for a good Jabil will company model as -- that's need so and this and is even right our now. really like think customers is customers opportunity I help

a position Steve? help. Can your So repeat I you be in to we'll think second question, good

I'm and would near term just considering versus needs capacity you currently meet some start in like to your that of have when is these sort expansions sites some of wondering maybe happen? of to at the how

Yes.

we pieces where So land. right of of try we our the and have I -- adjacent land on have of refusal one of do so first the is think things factories most expansion

one We tell opened St. do up a that. you thing. I'll can factory Petersburg. we So in

in factory time. a was was a less it went whole We X set than think clause. It I in people hired bunch down up record of the months.

the So have expertise. we

knowledge. the have We

our We Manufacturing have experience. core. have the that we is capabilities.

Today, to level huge. some set one. of the not happy up we So surplus anything capacity, it's -- have but capacity for

there down So pockets be expansion there will it to. will of comes be some if

mean business helping That's general you of does cloud what like And moves silicon neutral? to specifically as silicon, curious in helpful. the piece, but new are the to Jabil already, largest that your as roll I on a general Is advanced What we then covered out? customer see details was just the that cloud a for Great. impacts? these your lot

Yes, Steve.

it But a days. business. do of of will think driver driver I early new a it's growth, So be

I sort means that drive finger think it's ship forward color the -- 'XX. We'll as of we for move what FY revenues put I for provide my will revenue. I can't Jabil, through on exactly custom new think more that

I now, further. estimate that do to given 'XX. relationship FY to And FY bit 'XX. in helpful we've that expand is our rate I a think much. don't low a beyond change might 'XX think FY for For best growth there's We have then opportunity going little

from next Mark Our question Instructions] from [Operator is coming Delaney Goldman Sachs.

and for is of first thinking of the their guess to think I potentially some when of to maybe, capacity. able having customers they generally Mexico that they fully you're about differential. sense to to business look you with loaded how And through more better maybe some relative and Do be on costs example, -- the just overcome? us can something in think their move Or in as they the give U.S. would Can to a follow up Mexico. get Mexico, the discussion. compare labor they their you tariffs tariff costs keep cost engaged the in U.S. cost that would absorb versus

Mark. Thanks, that we're The in. end markets

our for I that absorbed U.S., think I'll going cost we a Mexico pass-through on than Obviously, are by observe. from the elastic specifically. costs is the end pass which sort if much question look more customers? to easier reiterate, The than be more is increases you cost It's not of higher. sort at end that price move on? we are to Jabil, be certain others, Can it market each of to will be we to that need how easier be -- there. something on tariffs? to of markets this is passed Can There it pass us.

back historical a look you revenues our doubled ex perspective, from divestiture. the If we've actually almost mobility

the it's So office. last time administration took this

this So quite we've But of bit, grew we it. so suggesting it's a positive. big positive. I see I'm a grown a not as because huge

domicile a a manufacturing, you're corporation piece, have markets. our across when the you're part sites automation, U.S. AI, all, whole I huge in think different robotics, that across that when typically But part, play moving above use the end we moving the decisions. ML those we capabilities all big

So business well I automation positioned from to robotic standpoint, we're across. move an and think really

other you're better [ guidance guidance by to year business to the EPS seeing to its prior conceptualize up relative earnings My trying for full is relative your question $X.XX, Company full ] how you the just in year B outlook. XQ took by the $X.XX.

that from slightly the math is relative over guidance? business just expecting. old So X the previously earnings least what putting next for quarters expectation you versus basic in it does EPS next that at lower too change Or actually point quarters fine on any the the seeing for there's new a been you've the environment? to meaningful just Are imply, X

yes, it's So that takes. think about data we're infrastructure, cloud most up. I is we puts the and excited piece that took the

you uncertainty, EV think end automotive to adjusted there's as especially little hybrids, some at the look I down post on other if transition that of a our comes the EVs we bit side markets, we from election, back.

'XX, right bit to from transition hybrids have to But EVs. another we this -- is is one. Renewables to it. the EV -- definitely help be have in FY come middle companies being little capabilities we the of we'll for navigate hybrid, back prudent. maybe So a more which

more at solar cautious, little some of a post particularly we're think bit I election. just being think the if I players, look you

So guidance. a prudent series overall, trying puts I and be we Marine to as can we're on of forward-looking as takes, our think it's

is Your next from Wang question coming from Barclays. Mark George

quarter Congrats results. strong I on have X ones. the quick

And growth on versus Obviously, the for And year. kind implying double-click ATE can a this the guys still AE to pass share have better about year-over-year. you cap up modest WFE? year? should update the XX% WFE? want of performance equipment recovery It on just relatively you that you did seems out Are I how Firstly, guidance semi still any guys expecting this

Yes.

players. spread strong. the well parts with knows related everyone EVs, all a on think WFE, I Other to and [ as Autos, there's that bit business little as So of weak continues is the of a WFE Chinese ] be Zuber geographic the

piece. that dominating So

driver is stronger. automated on biggest the growth that is us, equipment much test much, of the For side,

silicon for us. seeing testing, chips need a a automated more good whole bunch of whole is I people to which and bunch nuances more and the testing. There's of the think testing need there, customization piece, out fabricated newly you're hyperscalers

we're If some the scale shift [ of XNM to the you first, was ]. looking it at at look

XNM ] XNM ]. it's Now [ All going requires to [ additional that testing.

I sole as to market let's equipment forward. going percentage capital actually larger shift this well see say, So a roughly ATE can from, in XX% much our shifting

Great. Okay.

]. X.XX silicon transceiver the you And of term, guys beyond ]. gaining concerning eventually go just the ] of Just LPOLL on the let upside potentially a have in of Can the transceiver, you further photonics talk just just we design, to the sharing you Jabil lead potentially. not [ heading for plugables about Obviously, alluded share you sort [ because to maybe quick share -- to next-generation design [ kind on kind business. beyond the to XXXG, had medium some follow-up Sif term, CPO, the the are intermediate in guys silicon of some as photonics gains

last started Intel silicon think with piece our photonics So from I year. acquisition the

million engineering So design it that a a the that acquired was small experience. very $XXX today. acquisition, capacity, $XXX job capabilities actually million, done with out great We've expect engineers, with do it the It's the in base. that range. taking We we the in

] is XXX for we're we'll XX need already what year. is XXX, next XXX, XXX different back the And doing slightly the sure, of ]. requirements, sort switch catching this but at out looking to gear get to what expect that a -- the Obviously, [ lot [ ] X.XX and on customers. today, We we're end [ have piece whole front up more try end, might we're

some that not where an be to base level a growth next few we exciting could of I see But So piece with. caution, it's the start do to want years. over big

on think it be will I So steps one. that baby

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

just also across We've the wanted have not some auto EV team. over what new I'm I'm in a seeing past on understanding, If It's we color of coming into incrementally improvement the about what's transport, if and I to buses see put some in out wondering you're you more to weaker? the recent programs in not, earnings China market with Borges if little the supply there I'll the like and my most Steve sure earnings parts the cycle. chain. transport of heard is room. go cycle, could from this some in just moving

Right.

from on Melissa, a capability There's So the We're of uncertainty EV weakness a election. there's side, a of bit there. bit little post obviously, standpoint. especially well right now, little positioned again,

not the they go capabilities platforms. across pivotable. we've EVs across go done They across as is So always in one different obviously We've platform, ICE those go pivoted, that played well. across is hybrid,

do I well prepared EVs, my we think I back transition think work EVs almost. hybrids, from diagnostic I to used maybe And positioned to as So remarks. technology regardless on to we're we're

think EV I as China and it's is as is play side, very right the not much the up doing the on now. well China -- the play the Europe play. that U.S.

of a in in recover. have participating definitely we have sort there. other an in bit we're that. Transport, little We agricultural to So as That's transportation do segments development agriculture well. slow

think I it we in do business, some the 'XX, I even growth But show big to I suddenly think maybe rates don't 'XX. FY overall, the have EV Overall, expect FY play point at in play We're think again the platforms. being a some softened whole do time Melissa. on to piece, just And potential will I bit. in not multiple that little prudent China

great Okay. color. Great. That's

know -- people or many are mobility was not as of able of monolift the constantly, we any big a things? or When the as of moving I pattern seasonality business, parse may As with too trying yet. to Is bit either do a -- asked as a -- of X model to you of are just move lot none them was any easier at of of quite are the through. to of there point, within and a the resegmentation, predict that something be I little may seasonality piece this answer a the is Mobility follow-up, to it the was get segments kind this there parts

that Absolute's in mobility that's historically think our that orders about -- to it where well second is to always and space, need a good a clarify the XX piece, since warehouse first do half, divestiture. semi DCI little little in margins. maybe dilutive I the always We some the side. bps mobility is feel half and for ramps that to versus bit is reckon first been a ramp of we that, all half. across have Scott, I mainly margins why automation bit it's as especially sort brought impact the XX, half margins was of on mobility and you just the the business, we because up I question, in the did higher-margin -- have positive second we cap of margin impact to want the recovery

take reasons. will with That So beneficiary there I bps initiatives that. cost And then QX be a could the if there's well. XX, multiple of optimization where pickup you our think up XX biggest that as be

half, X there's reasons mobility the across just half balanced the not about, So notable just second I reasons for piece. talked story. It's first X or that

Melissa, this is Greg.

business see mobility of on divested below more intensive. the on intensity CapEx very capital and the Just add was seasonality one the now business forward, just the that thing this where we X%, was capital other to going Mobility

CapEx see improving to So down. divestiture. with flow the cash and that definitely going going line free

coming is from Samik from question next Chatterjee Our JPMorgan.

This on Samik is Chatterjee. MP for

first So upward is to around was for FY I like despite saying some question revisions volume my 'XX.

operating margins prior. Your expectations to similar are for

conservatism are embedding some of think that we should there? you So level

it's the we're are being provided, get they're not guidance I we would that the or conservative think I overly not appropriate an say not wouldn't I numbers extremely I -- appropriate. these -- valid. provided, think, conservative that are aggressive, we I actually or don't conserves --

Okay.

potential credit impact please and for EV your big another how U.S. like of dissect I automotive is, an can had or So the be tax repeal question in impact can that you business? us help of EV

can part repeat of Sorry, I question. that? missed the main you the

please the EV you the the credit us of tax help potential -- Can impact of repeal dissect in or potential U.S.

OEMs OEMs EV not say impacted. will other their of et all OEMs. we There Yes. of on space sort already of in forget, some to think respond. our demand. lower numbers. the has not I'd some be a But rebates, of be or credit, level look, market levels much forecasting place. the to is to that cetera, growth tax to It's it's for any, some the customer largest first have in level pass There baked that their in. adjust absorption. ability is I level end credits, of the The we'll huge We're some will don't will going that on an if consumer ability were going If of a have certain higher expecting be to than lot pass of impact do sure, EV on

and guidance a is good it's So if to credit the be small FY huge just as EV a far opinion, is as more going shape. we're on We'll don't impact. 'XX have impact, in personal I concerned, think a color My be piece FY honest. provide be that to will own huge beyond impact. does my

regarding revision of driving the like large also cloud is there the is my upward AIP final And question part to Okay. -- the and growth saw outlook. and like you robust a

more around -- particular particular outlook of any the product sort more color which impact which infrastructure there is any to driving like obviously, So there? segment,

Yes.

driven that mentioned taken of $XXX networking to $X billion. think about cloud, from I up million then cetera, we've space, piece. $XXX and about i.e., that business driver by earlier liquid with let's of I capital equipment is our -- the -- $X.X AI-driven along et another So call the et pool $X.X the silicon switching, cetera. here, billion photonics by, it, million The mainly up billion is That's

million another So $XXX that's increase. year-on-year about

main infrastructure cloud cloud among these that growth. So spread the $X.X is the with being being of and mainly center driver billion the main data out

Next question from Vogt is David UBS. coming from

outlook you the talk uplift. has sort for that revenue Mike, on maybe been know from I margin typically the hasn't one sort the sort impacting of -- then margin the pretty revenue for for delta you kind year? And appreciate data the I for cloud all margin color some the that of best and there's one maybe competitive Can sort players overall guys. Can of one your an to that you you of industry for of that uplift? Greg. in and/or is And segment you Greg. talk margin center. Can and gross through

of of capital is that business point? sort know talk outside of And for been the on Maybe be of hear in you what space has of a datacom kind M&A. of Health didn't factor and the we XXXX where at M&A networking is I tactical subsegment Is well. I been and more of about we kind as in in focus way this kind flattish beyond can dividend the traditional other opportunistic sort a in the if should care talked segments the to You return, but today. buybacks has much you, packaging and part strategy. deals of focused

me start let question, margin So with the David.

know not that it's data center from, is don't business infrastructure margin. it it 'XX. the prepared I I is But in margins through data bps mentioned perceptions did and XX overall, The on into enterprise think as I impact well. -- FY remarks, sort his flows -- cloud come enterprise the XX, level have think that Greg an Obviously, mentioned margin, is a our I that of where in hurricane QX. dilutive. but

business above semicap margins. is actually Our enterprise

So were call. answers 'XX. on now there that talked to about FY last We the think I

capacity -- done ]. FY If which fill X.X% get from our of you Croatia 'XX. will good. GLP-Xs we But is be EV the about is driver and the up up obviously 'XX. it the in comes online take bit we margin in surplus that QX, [ and suggested main remember, XX, impact do supposed by we job have GLP-X, XX a great the We've et cetera, where look, market, We've we did Croatia end qualifications, I piece site that be live in FY set to a to have overall, bps to that's time, due We to open only capacity. really pivoting of

of in I nuances factor some extremely the an you just mentioned, If margin. healthy it's

don't going at the well don't I see all. us So on backwards as I perspective margin

on Great. allocation. Greg And capital

it's Greg. David, Yes.

continuing to capital on to look focus expand want that allocation, continue to to we capabilities on. on M&A. We're So at

of example we acquisition a Micros great the think QX did is I that. in

capability end be at you and certain growth and be we that, be we're space. where to to area to M&A though, XX% buybacks some the markets focus. of would addition at care allocation can an that focus super for see general, we at but still And see In capital continuing share XX% markets in if that to we're look In really focusing health in markets and from really intelligent thoughtful this grow. time on, M&A, do doing the in our focusing we're infrastructure, to thoughtful that to continue markets, on where

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

our call happy for holidays. much, you Thank all That's today. very and

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

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