Jabil (JBL) risk factors: FY2025 10-K

1. Our ability to schedule production, manage capital expenditures, and maximize the efficiency of our manufacturing capacity is highly dependent on the actions of our customers, who generally do not commit to long-term production schedules and cancel orders, change production quantities, delay production, and/or change sourcing strategy.
2. Because we depend on a limited number of customers, a reduction in sales to any one of those customers has and could again cause a significant decline in our revenue.
3. Efficient component and material purchasing is critical to our manufacturing processes and contractual arrangements. A shortage of components or an increase in price could interrupt our operations and reduce our profit, increase our inventory carrying costs, increase our risk of exposure to inventory obsolescence and cause us to purchase components of a lesser quality.
4. Customer relationships with emerging companies present more risks than with established companies.
5. The success of our business is dependent on our ability to keep pace with technological changes and competitive conditions in our industry and our ability to effectively adapt our services as our customers react to technological changes and competitive conditions in their respective industries.
6. Introducing new business models or programs requiring implementation of new competencies, such as new process technologies and our development of new products or services, has and could affect our operations and financial results.
7. We compete with numerous other diversified manufacturing service providers, electronic manufacturing services, design providers, and others.
8. Our business has and could be adversely affected by any delays, or increased costs, resulting from common carrier or transportation issues.
9. We may not be able to maintain our engineering, technological, and manufacturing expertise.
10. We depend on attracting and retaining officers, managers, and skilled personnel.
11. We derive a substantial majority of our revenues from our international operations, which are subject to a number of different risks and often require more management time and expense than our domestic operations.
12. Energy price increases or shortages may negatively impact our results of operations.
13. We have on occasion not achieved, and may not in the future achieve, expected profitability from our acquisitions; divestitures may adversely affect our business, reputation, financial condition, results of operations, or cash flows.
14. We face risks arising from the restructuring of our operations.
15. Disruptions to our information systems, including security breaches, losses of data or outages, and other security issues, have and could in the future adversely affect our operations.Cybersecurity

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1. We are subject to extensive government regulations and industry standards and the terms of complex contracts; a failure to comply with current and future regulations and standards, or the terms of our contractual arrangements, could have an adverse effect on our business, customer relationships, reputation, and profitability.
2. If we manufacture products containing design or manufacturing defects, demand for our services may decline, our reputation may be damaged, and we may be subject to liability claims.
3. We may face heightened liability risks specific to our medical device business as a result of additional healthcare regulatory related compliance requirements and the potential severe consequences (e.g., death or serious injury) that could result from manufacturing defects or malfunctions of the medical devices we manufacture or design.
4. Compliance or the failure to comply with current and future environmental, health and safety, product stewardship, and producer responsibility laws or regulations could cause us significant expense.
5. We are subject to litigation and proceedings, which may result in substantial expenses, settlement costs, or judgments; require the time and attention of key management resources; and result in adverse publicity, any of which may negatively impact our financial performance.
6. Our operations result in exposure to intellectual property claims.
7. The success of certain aspects of our business depends in part on our ability to obtain, protect, and leverage intellectual property rights.

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1. Exposure to financially troubled customers or suppliers may adversely affect our financial results.
2. When financial markets experience significant turmoil, the financial arrangements we may need to enter into, refinance or repay and our customers may be adversely affected.
3. We are subject to the risk of increased taxes.
4. Our credit rating may be downgraded.
5. Our amount of debt could significantly increase in the future.
6. An adverse change in the interest rates for our borrowings has and could adversely affect our financial condition.Interest rates
7. We are subject to risks of currency fluctuations and related hedging operations.
8. An impairment in the value of our assets would reduce the value of our assets and reduce our net income in the year in which the write-off occurs.

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1. Changes in financial accounting standards or policies have affected, and in the future may affect, our reported financial condition or results of operations.
2. We are subject to risks associated with natural disasters, climate change, and global events.
3. Expectations relating to environmental, social, and governance considerations expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business.

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