Jabil Inc at Barclays Americas Select Franchise Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dong Wang - Barclays - Analyst : So Mike, high level, can you give a high-level intro on Jabil, especially for some of the European audience who maybe don't know Jabil so well? So maybe you can give a high-level pitch on Jabil's story.

Question: Dong Wang - Barclays - Analyst : Great. Great. Just against this uncertain world with tariff and the macro backdrop, maybe if you narrow down -- for Greg and Mike, can you talk about top three or four priorities on your desk you are working on, especially as we're almost halfway through 2025 and heading forward over the next 12 months? Maybe you can talk about key priorities you are working on.

Question: Dong Wang - Barclays - Analyst : Got it. And then Mike, overall, within EMS, the CM landscape, obviously, Jabil has a diverse portfolio. And how is -- would you say it's a key differentiation for Jabil versus some of the peers? From my IT hardware coverage, I also cover some key names like Flex, Celestica, and Fabrinet. So can you talk about competitive advantage, compare and contrast? And how does Jabil uniquely approach customer relationships?

Question: Dong Wang - Barclays - Analyst : Got it. Got it. Also talking about supply chain, obviously, tariff is a focal point. And obviously, Jabil grew over the cycle, everything from the Trump 1.0. So can you brief us in terms of latest thoughts on tariffs? Obviously, you guys talked about indirect and most of a pass-through from the earnings call last time. And also, your production manufacturing in Mexico is largely USMCA compliant. So can you talk about being most of a pass-through impact on tariff and any other refreshed thoughts given the development over the last few months?

Question: Dong Wang - Barclays - Analyst : Yeah. I think that's a good segue to talk about journey for regionalization, onshoring, reshoring. That's obviously been a key thematic investment for Jabil stock. And how far do you think the journey you alluded to, obviously, earlier? And which end markets are you seeing moving the quickest in terms of this onshoring trend?

Question: Dong Wang - Barclays - Analyst : Got it. Maybe you can double-click in terms of the tailwinds from being the US domiciled, US-centric manufacturing. Especially, you guys talked about for the intelligent infrastructure and healthcare. It's really predominantly US-centric. So can you talk about maybe the share gain already happened just because of this macro backdrop or yet to come, provide nice tailwinds over the next few quarters? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 8:00AM, JBL.N - Jabil Inc at Barclays Americas Select Franchise Conference

Question: Dong Wang - Barclays - Analyst : Got it. I think that's good segue to talk about from margin improvement, especially you talked about some AI potentially being accretive, some healthcare as well. So against your medium-term target of 6% OP margin, can you compare contrast in terms of different portfolios and the margin profile?

Question: Dong Wang - Barclays - Analyst : Maybe, Greg, you can add some color in terms of leverage to juice this margin profile in the medium term? You guys talk about ramping some capacity utilization. So as you feel the capacity in the factories that can recapture some margin, but also some cost optimization in the back half.

Question: Dong Wang - Barclays - Analyst : Can you also talk about nuance of some ramp, i.e., the start-up costs? Like earlier, you guys talked about some potential higher costs associated with the product ramp. Now it seems that we are behind that. And then can you talk about maybe the tailwind from potentially continued acceleration in some of the revenue backfilling and they can continue to trend higher for you?

Question: Dong Wang - Barclays - Analyst : Yeah. Mike, maybe we can go back to intelligent infrastructure. And earlier, you alluded to expanded capabilities for Jabil. Maybe we can talk about solution-based approach for Jabil, as nowadays the hyperscalers and the Tier 2 cloud are demanding most of the end-to-end solutions, especially given you beefed up on the liquid cooling capability. And then you do across the entire supply chain ecosystem, if you will. So can you talk about like how that expanded capability can aid into the share gains for Jabil? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 8:00AM, JBL.N - Jabil Inc at Barclays Americas Select Franchise Conference

Question: Dong Wang - Barclays - Analyst : Yeah. Michael, can you talk about how do you approach your own IP, your own products versus more traditional CM and EMS? Obviously, Jabil is still largely CM, EMS and the IP is probably mostly on optical transceiver. So obviously, that's going to be -- continue to be a very small mix. So can you talk about the different approach? Maybe -- obviously, you want to keep both of the balance.

Question: Dong Wang - Barclays - Analyst : Yeah. Mike, maybe you can talk about for Amazon, second-large hyperscale, to the extent you can. Obviously, well choreographed for the Amazon post warrants. But also, I think a second large customer could be underappreciated. You could be -- more of the medium term could be more critical. So can you talk about maybe diversification beyond Amazon?

Question: Dong Wang - Barclays - Analyst : Michael, we talk a lot about compute. I think the other piece is networking switching. Maybe you can double-click a huge attempt there. And especially given the liquid cooling switch, I think that should help as the data center thermal management becomes a more critical issue. So can you double-click on the switching part of the side, aside from compute?

Question: Dong Wang - Barclays - Analyst : So shifting beyond AI, I'd be remiss not to talk about other parts of the portfolio, such as healthcare. So Michael, can you talk about maybe high-level outsourcing trends within healthcare as the penetration increases? In terms of outsourcing, that's how effectively you raised the TAM for healthcare and some of the secular trends in terms of more complex products in the GLP-1. So can you talk about some of the latest development and the tailwinds?

Question: Dong Wang - Barclays - Analyst : Shifting to EV automotive, Michael, can you talk about some of the tailwinds the content increase per vehicle against some of the well-known headwinds in terms of some of the macro uncertainty in the space?

Question: Dong Wang - Barclays - Analyst : How about for the renewables and the core industrial? Can you talk about the latest trends? And how about any tailwinds from the supply chain consolidation, narrow to fewer suppliers? Could they benefit Jabil?

Question: Dong Wang - Barclays - Analyst : So shifting to financials. So Greg, if you look at the guidance growth over the recent years, like how would you pass out in terms of expanding into new markets, in net share gains, share shifts? Just overall, can you talk about in this macro heading to over the next 12 months? Like, can you maybe still -- some of the core attributes are still intact?

Question: Dong Wang - Barclays - Analyst : And can you talk about the current guidance? You guys are probably putting some buffer just because of conservatism with this macro. So -- and can you talk about potential for a downside support just as given --

Question: Dong Wang - Barclays - Analyst : And also in this environment, obviously, very fluid. Just talk about any capital allocation. I assume it's intact. Just how would you balance shareholder return versus tuck-in deals? Are you seeing -- obviously, the valuation is shifting just in terms of bolt-on acquisitions. So do you think that you could potentially more front load some of the share buybacks? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2025 / 8:00AM, JBL.N - Jabil Inc at Barclays Americas Select Franchise Conference

Question: Dong Wang - Barclays - Analyst : So we have one minute left. Maybe, Mike, closing comments, any misconceptions about Jabil you want to talk about like, anything else that investors could be missing about Jabil's story.

Question: Dong Wang - Barclays - Analyst : Great. Great. I think that's a wrap. And once again, thanks so much, Mike, CEO; and Greg, CFO.