Jabil Inc. AI Infrastructure Growth Fueled by $500M US Investment & Endeavour Partnership

Jabil Inc. Accelerates AI Infrastructure Expansion with $500 Million US Investment and Strategic Endeavour Partnership#

Jabil Inc. (JBL has announced a transformative $500 million investment in U.S.-based manufacturing facilities dedicated to AI hardware and data center infrastructure, complemented by a strategic partnership with Endeavour Energy. This initiative positions Jabil to become a leading provider of gigawatt-scale AI data center solutions, critical for meeting the surging global demand for AI workloads. The new manufacturing capacity, expected to be operational by mid-2026, is designed to produce AI-optimized servers, high-performance computing components, and modular infrastructure solutions, enhancing Jabil's competitive edge in the electronics manufacturing services (EMS) market.

This investment aligns with Jabil's strategic goal to expand its Intelligent Infrastructure segment, which recently accounted for 44% of total revenue, reflecting a remarkable +51% year-over-year growth in Q3 2025. The anticipated AI-related revenue for FY2025 is approximately $8.5 billion, representing a 50% increase from the previous year, underscoring the company's rapid expansion in this high-growth sector.

Strategic Objectives and Market Implications of the US Manufacturing Expansion#

Jabil's $500 million U.S. manufacturing investment aims to achieve several strategic objectives:

• Cost and Speed Efficiency: By localizing production, Jabil expects to reduce upfront capital expenditures by up to 90%, significantly lowering barriers for customers and accelerating deployment timelines by 50-60%.
• Supply Chain Resilience: Domestic manufacturing mitigates geopolitical risks and supply chain disruptions, which have increasingly challenged global EMS providers.
• Market Positioning: Strengthening U.S.-based production capacity solidifies Jabil’s standing as a key player in the rapidly expanding AI hardware market.

The partnership with Endeavour Energy, which leverages its Edged data center platform, enables the delivery of up to 2 gigawatts (GW) of elastic AI infrastructure capacity annually. This modular, just-in-time delivery model allows for scalable, flexible deployments that minimize inventory costs and reduce time-to-market, aligning perfectly with hyperscale cloud providers and enterprise client demands.

Financial Performance Highlights and Analyst Sentiment#

Jabil's recent financial metrics illustrate the effectiveness of its AI infrastructure strategy:

Metric	FY 2024 Actual	FY 2023 Actual	FY 2022 Actual	FY 2021 Actual
Revenue (Billion USD)	28.88	34.7	33.48	29.29
Gross Profit (Billion USD)	2.68	2.87	2.63	2.36
Operating Income (Billion USD)	2.01	1.54	1.39	1.05
Net Income (Billion USD)	1.39	0.82	0.99	0.70
Gross Margin (%)	9.26%	8.26%	7.86%	8.06%
Operating Margin (%)	6.97%	4.43%	4.16%	3.60%
Net Margin (%)	4.81%	2.36%	2.98%	2.38%

The significant improvement in margins from FY2023 to FY2024 reflects operational efficiencies and the growing contribution of higher-margin AI infrastructure products. Net income surged +69.68% year-over-year, and diluted EPS grew +85.55%, demonstrating strong profitability gains amid a revenue decline of -16.77%, attributable to portfolio adjustments and market shifts.

Analysts have expressed confidence in Jabil’s AI-driven growth, with Stifel reaffirming a "Buy" rating and a $245 price target in July 2025, based on the company’s strategic investments and expanding market footprint.

Competitive Landscape and Jabil’s Differentiators#

Jabil operates in a fiercely competitive EMS sector, with competitors also investing heavily in AI hardware manufacturing. However, several factors distinguish Jabil:

• Manufacturing Expertise: Decades of experience in electronics manufacturing and recent acquisitions such as Mikros Technologies enhance its thermal management capabilities, vital for high-density AI servers.
• Modular Infrastructure Innovation: Jabil’s collaboration with Endeavour enables just-in-time, modular data center deployments that reduce capital intensity and accelerate time-to-market.
• Supply Chain Agility: Extensive global sourcing combined with localized U.S. manufacturing bolsters supply chain resilience and responsiveness.

These strengths position Jabil favorably against peers, allowing it to capture a growing share of the AI infrastructure market projected to grow over 20% annually.

Financial Health and Capital Allocation#

Jabil maintains a solid financial foundation supporting its strategic investments:

Financial Metric	Latest Value
Market Cap (USD Billion)	23.42
Cash & Equivalents (USD Billion)	2.2
Total Debt (USD Billion)	3.26
Net Debt (USD Billion)	1.06
Debt to Equity Ratio	2.59x
Current Ratio	0.98x
Return on Equity (ROE)	38.64%
Return on Invested Capital (ROIC)	15%
Free Cash Flow (USD Million)	932
Dividend Yield	0.15%

The company’s ROE of 38.64% and ROIC of 15% indicate efficient capital use and strong profitability. The debt-to-equity ratio of 2.59x reflects leverage consistent with industry norms, supported by robust cash flows. Free cash flow increased +32.39% year-over-year, enabling continued capital expenditure on manufacturing capacity and shareholder returns, including a stable dividend payout.

Capital expenditures in FY2024 totaled $784 million, largely directed toward the new U.S. manufacturing facilities and technology enhancements.

What Does This Mean for Investors?#

Jabil’s strategic $500 million investment and partnership with Endeavour mark a decisive step in capturing the rapidly expanding AI infrastructure market. The company's ability to scale domestic manufacturing and deliver modular, just-in-time AI solutions addresses key industry challenges of cost, speed, and supply chain resilience.

The financial data underscores Jabil’s successful execution, with substantial margin expansion, increased profitability, and strong cash flow generation despite a recent revenue contraction. This points to improved operational efficiency and a portfolio shift toward higher-margin AI infrastructure products.

Investors should monitor the upcoming launch of new manufacturing capacity in mid-2026 and the operational integration of the Endeavour partnership. These developments are likely to drive revenue growth and margin improvement in the coming years, supported by analysts’ positive outlook and price targets.

Key Takeaways#

• Jabil’s $500 million U.S. manufacturing investment targets AI hardware production capacity to meet booming AI infrastructure demand.
• The Endeavour partnership enables delivery of up to 2 GW of scalable AI infrastructure annually through modular, just-in-time deployment.
• Q3 2025 results show the Intelligent Infrastructure segment growing +51% year-over-year, highlighting AI as a major revenue driver.
• Margin expansion and profitability gains are evident with net income growth of +69.68% in FY2024 despite a revenue decline.
• Strong financial metrics including ROE of 38.64%, ROIC of 15%, and robust free cash flow support ongoing strategic investments.
• Analysts like Stifel maintain a bullish stance with a $245 price target based on Jabil’s AI growth prospects.

Sources#

• StockTitan News - Endeavour and Jabil Collaboration
• Investing.com - Endeavour and Jabil Partnership
• StreetInsider - Jabil and Endeavour Data Center Partnership
• GuruFocus - Gigawatt-Scale AI Infrastructure Collaboration
• Manufacturing Dive - Jabil's $500M US Expansion
• Jabil Investors - Investment Announcement