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Can Jabil's Advanced Automotive Solutions Drive Future Profits?

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Key Takeaways

  • Jabil helps automakers build high-quality vehicles with advanced engineering and supply chains.
  • The company produces ADAS camera modules, EV batteries, inverters, and charging components.
  • Jabil partners with AVL to accelerate design and manufacturing of next-gen vehicle electronics.

Jabil Inc. (JBL - Free Report) plays a significant role in the automotive industry by enabling advanced engineering, manufacturing and supply-chain solutions that support the rapid transformation of modern vehicles. It allows customers to develop and deliver innovative, high-quality automotive products quickly while meeting industry standards for performance, safety and reliability.

Jabil produces advanced camera and imaging solutions for ADAS, including modules for collision warning, lane departure and blind-spot monitoring. The company also manufactures batteries, inverters, converters, and charging components for hybrid and electric vehicles, supporting automotive electrification. Additionally, Jabil develops high-performance vehicle compute platforms and zonal controller systems that integrate hardware and software to enable smarter, more efficient connected cars.

Jabil is working with AVL Software and Functions GmbH to design and manufacture solutions for next-generation vehicle technologies, where its manufacturing and supply chain capabilities combine with AVL’s design and software expertise to help automakers build complex vehicle electronics faster and more efficiently.

Per a report from Precedence Research, the global automotive engineering services market will reach nearly $466.37 billion by 2034 at a CAGR of 8.94%. Jabil focuses on strengthening next-generation vehicle technologies by manufacturing and integrating advanced automotive electronics to remain competitive in the automotive industry.

How Are Competitors Performing in the Automotive Industry?

Jabil faces fierce competition from Celestica, Inc. (CLS - Free Report) and Flex Ltd. (FLEX - Free Report) . Celestica supports hybrid and electric vehicles by producing power electronics components, such as inverters, battery management systems, and EV charging solutions. CLS’ experience in LiDAR sensors and complex automotive electronics helps support next-generation vehicles, including electric and autonomous technologies.

Flex introduced a high-voltage power electronics system for electric vehicles that improves power management, boosts efficiency, and reduces cost and weight by removing the need for auxiliary low-voltage batteries. Flex partnered with Infineon to make a zone controller platform that helps automakers manage vehicle power systems faster.

JBL’s Price Performance, Valuation and Estimates

Jabil has gained 52.6% in the past year compared with the Electronic-Manufacturing Services industry’s growth of 91.7%.

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Image Source: Zacks Investment Research

Going by the price/earnings ratio, the company’s shares currently trade at 19.7 forward earnings, lower than 25.1 for the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings estimates for Jabil for 2025 have moved up 4.52% to $11.55 per share over the past 60 days, while the same for 2026 has increased 2.52% to $13.41. 

Zacks Investment Research
Image Source: Zacks Investment Research

Jabil currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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