On the next slide, in summary, for FY ’25, I’m excited about the underlying momentum across our diversified portfolio, and I’m confident that we’re well positioned to drive multiple paths of growth in FY ’25 as a result of the following: consolidation of share in the renewable energy space, expected recovery of the semi-cap end market, confirmed market share gains with multiple existing customers, new programs booked with new customers, and I am particularly excited about our silicon to solution strategy, which will help accelerate the infrastructure that will be required to fuel the AI/ML macro trend in the market. This is borne out in the continuing mix shift of our networking and storage end market where we continue to replace legacy lower margin networking equipment with higher margin AI driven equipment.
On top of all this, when you consider our optimized cost structure, we are well-positioned to expand core margins to more than 5.7%. In addition, our accelerated share repurchases and expected lower net interest expenses gives me confidence in our ability to deliver core EPS of $10.65 in FY ’25. In my view, Jabil has not just more diversified, but also significantly more resilient than we were several years ago due to our intentional efforts to invest and align our resources with areas in key end markets, which offer higher returns and multiyear secular growth opportunities. Thank you for your time today and for joining us this morning. I’ll now turn the call over to Kenny.
Kenny Wilson: Thank you, Mike, and thanks to everyone for joining us today. Fiscal ’24 was always going to be a transitional year for Jabil, one of which we’ve successfully completed the largest transaction in the company’s history with the mobility sale and its subsequent efforts by our teams to optimize our footprint and cost structure for the go-forward company. For this transaction and the optimization of our footprint were anticipated, the end market slowdown was not. As I have stated previously, the key attribute of our model is agility and our ability to quickly react and effectively absorb changes in revenue. At Jabil, we obsess about operations, working tirelessly to ensure that what is within our control, we control well.
Managing our factories to absorb such a March slowdown does not happen by chance, so it’s pleasing to see our margins hold up. Additionally, dislocations like this provide opportunity for some consolidation and is reassuring to make progress with customers who trust us to allocate more of their spend to Jabil. In tandem with our focus on operational execution, we have been intentional in how we’ve shaped our commercial portfolio. The closing of the mobility deal was not a one-off event, but part of a process where we look telling our capabilities current and future with markets exhibiting the desirable characteristics of long term secular growth at appropriate margins and cash flows. The result of this allows us to help simplify the lives of our current and future customers while making appropriate returns.
For example, in our recent history, this has seen us transition from low tech electronics and automotive to EV and autonomous driving systems, including optical cameras. From PCBA manufacturing and health care to precision machining of customized implantable, from build-to-print servers to highly configurable AI data center racks, from simple network switches to liquid cooled accelerated switching supporting AI applications and from build-to-print in the telco space, starting a seat at the table, as we look to optimize our advanced packaging value chain for silicon photonics across multiple end markets. In short, we are continuously retailing the company to ensure we are ready to support the future needs of our customers. In addition to the mobility deal, another couple of proof points were evident in the quarter.
We are proud to have been awarded a new video security and optics business with Motorola Solutions, including two highly competent manufacturing sites in North America. This supports a focus on supply chain regionalization where we see significant benefits from the ability to leverage our global footprint coupled with the advantage of being domiciled in the U.S. And in the AI data center infrastructure space, we are building low and medium voltage switchgear to support proliferation of AI data centers. We were awarded a liquid cooled accelerated network switching program, which will ramp in fiscal year ’25. While already, we are seeing the benefits of the addition of the Intel Silicon Photonics team with multiple wins in the pluggable transceiver space.
As I think about exiting this year as a more optimized company, coupled with the numerous opportunities across our commercial portfolio, I’m confident in our ability to expand margins year-on-year while also delivering core EPS of $10.65 and free cash flow in excess of $1 billion. Note that in modeling fiscal year ’25, we anticipate total revenues similar to fiscal year ’23 levels, excluding the mobility divestiture. Importantly, we expect mix to be much improved as our business continues to trend toward markets, benefiting from long-term secular trends. In closing, in the last 90 days, I have had the privilege of spending time with multiple customers and internal organizations, including executive team at Motorola Solutions, as we celebrated the new award.
In addition to the Jabil team from Retronix, Procurability and Intel and with our teams in Asia as we celebrated Chinese New Year with a long held Jabil [indiscernible] tradition. While in Asia, it was also my honor to accept a Shingo prize awarded to our health care site in Shanghai, the largest med device side to receive this award in the last 15 years. As I reflect on all of this, I believe it further demonstrates that in addition to having the right capabilities and being in the right end markets, we also have the right team to buy their actions every day, strengthen our unique global culture. All of this puts us on firm footing for fiscal ’25 and beyond. Thank you for your interest in Jabil. I will now hand the call back to Adam.
