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Jabil Inc. Announces $500 Million Investment in Manufacturing Expansion

Jabil's investment will enhance manufacturing capabilities for AI and cloud technologies.

News Summary

Jabil Inc. will invest approximately $500 million to expand its manufacturing capabilities in the Southeast U.S., focusing on technologies for cloud and AI data centers. This move reflects Jabil’s commitment to supporting the domestic production landscape and meets the rising demand for advanced technology solutions. The company reported a strong fiscal third quarter with a net profit of $222 million and anticipates significant growth ahead for the upcoming quarter. The new facility is expected to be operational by mid-2026.

Tampa, Florida – Jabil Inc., a global manufacturing services company, has announced a significant investment of approximately $500 million aimed at expanding its manufacturing capabilities in the Southeast United States. This strategic move is intended to bolster support for customers involved in cloud and artificial intelligence (AI) data center infrastructure. The expansion signifies Jabil’s commitment to enhancing the domestic manufacturing landscape, particularly in light of the rising demand for advanced technology solutions.

In its recently reported fiscal third quarter, Jabil recorded a net profit of $222 million, translating to $2.03 per share. The company’s adjusted earnings surpassed market expectations, with earnings reported at $2.55 per share compared to analysts’ average prediction of $2.33. Total revenue for the quarter reached $7.83 billion, reflecting the company’s strong performance and resilience in a rapidly changing market.

Looking ahead to the fourth quarter, which ends in August, Jabil projects earnings will fall between $2.64 and $3.04 per share, with estimated revenue ranging from $7.1 billion to $7.8 billion. For the complete fiscal year, the company anticipates a total revenue of around $29 billion and earnings of approximately $9.33 per share, underscoring its overall positive growth trajectory.

The forthcoming investment will be directed towards large-scale manufacturing capabilities that cater specifically to technologies vital for cloud and AI initiatives. As part of this expansion, Jabil is finalizing the selection of a site for the new facility, which is expected to be operational by mid-2026. This facility will play a crucial role in Jabil’s vision of strengthening domestic manufacturing infrastructures in response to the growing need for localized production capabilities.

The decision to enhance manufacturing capabilities aligns with a broader strategy that emphasizes the importance of domestic production amidst a dynamic geopolitical environment. The investment complements Jabil’s recent acquisition of Mikros Technologies, a company known for its expertise in liquid cooling and thermal management solutions. Mikros Technologies serves various sectors, including AI data centers, energy storage, and semiconductor testing, positioning Jabil to maximize its footprint in these critical industries.

Executives at Jabil have highlighted the significance of this investment for advancing America’s position in the AI and cloud sectors. The move not only enhances Jabil’s manufacturing portfolio but also strengthens its operational presence within the United States, where it currently operates 30 facilities known for their innovation in automation, robotics, and process optimization.

As the demand for enhanced AI technologies and cloud computing solutions continues to grow, Jabil’s commitment to expanding its manufacturing capabilities signals a proactive approach to meeting emerging market needs. By investing in domestic manufacturing, Jabil aims to secure a competitive edge in an increasingly complex and interconnected technological landscape.

This strategic investment is positioned to revolutionize Jabil’s existing commercial portfolio while delivering advanced manufacturing solutions that keep pace with rapid technological advancements. With its established track record and significant market presence, Jabil appears well-prepared to leverage this new venture for sustained growth and innovation in the years to come.