What Jabil Inc. told the SEC could break it.

From Feb 2025 the U.S. imposed wide-ranging tariffs (aluminum/steel derivatives, Canadian/Mexican goods, Chinese goods, universal and reciprocal), with retaliatory tariffs in response — raising Jabil's component costs and trade-compliance risk.

“Beginning in February 2025, the U.S. implemented tariffs on a variety of countries and commodities, including, among others, tariffs on aluminum and steel derivative products, imports of certain Canadian and Mexican goods, and imports of Chinese goods, universal tariffs on imports from most countries, and reciprocal tariffs on select countries.”

Jabil's China operations face trade-dispute/tariff risk, heavy government involvement, and limits on funding subsidiaries or remitting currency out of China that could hurt liquidity.

“International trade disputes or political differences with China have and could result in tariffs and other measures that could adversely affect the Company's business. ... If we fail to receive required registrations and approvals to fund our subsidiaries organized in China, or if our ability to remit currency out of China is limited, then our business and liquidity could be adversely affected.”

Jabil's revenue is concentrated: Customer A was 16% of FY2025 net revenue and 24% of accounts receivable (Intelligent Infrastructure segment); the five largest customers were ~36% and 87 customers ~90% of net revenue.

“In fiscal year 2025, our five largest customers accounted for approximately 36% of our net revenue and 87 customers accounted for approximately 90% of our net revenue. ... Customer A (1) 16 % * * 24 % 17 %”

Some products Jabil manufactures contain components available only from a single source; allocations/shortages of such components can substantially curtail production of all assemblies using them and raise costs.

“Some of the products we manufacture require one or more components that are only available from a single source. Some of these components are subject to supply shortages from time to time. In some cases, supply shortages will substantially curtail production of all assemblies using a particular component.”

Some sub-tier suppliers of raw materials — palladium, neon gas and high-grade aluminum — partly depend on Russia/Ukraine-conflict-affected regions, and Jabil sources some parts from Israel, exposing it to conflict-driven shortages and price spikes.

“some sub-tier suppliers providing raw materials such as palladium, neon gas, and high-grade aluminum are partially dependent on supply from the regions that may be impacted by the conflict. We will continue to closely monitor the supply availability and price fluctuations of these raw materials. In addition, we source some parts from certain suppliers located in Israel.”