Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $3.65 billion, a 44% increase year-over-year, exceeding guidance [8][9] - Adjusted EPS for the quarter was $1.89, up 70% from the previous year [9] - Full-year revenue for 2025 was $12.4 billion, representing a 28% growth, while adjusted EPS was $6.05, a 56% increase [5][6] - Adjusted operating margin for Q4 was 7.7%, marking the strongest performance in company history [5][9] - Adjusted ROIC was 43%, up 14 percentage points compared to the prior year [10] Business Segment Data and Key Metrics Changes - ATS segment revenue was $795 million, a 1% decline, while CCS segment revenue was $2.86 billion, up 64% [10] - Communications end market revenue increased by 79%, driven by demand for 800G networking switches [11] - Enterprise end market revenue grew by 33%, supported by AI/ML compute programs [11] - ATS segment margin improved to 5.3%, while CCS segment margin was 8.4% [12] Market Data and Key Metrics Changes - The CCS segment accounted for 78% of total company revenue in Q4 [10] - Three customers accounted for 36%, 15%, and 12% of total revenue in Q4 [12] - Inventory balance at the end of Q4 was $2.19 billion, a sequential increase of $141 million [13] Company Strategy and Development Direction - The company plans to increase capital expenditures to approximately $1 billion in 2026 to support growth [14][15] - Investments will focus on expanding capacity in the U.S. and Thailand to meet customer demand [16][17] - The company aims to align its global footprint with customer capacity roadmaps, particularly in data center infrastructure and AI capabilities [15][18] - The outlook for 2026 revenue is raised to $17 billion, with adjusted EPS expected to be $8.75, reflecting strong demand [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, citing strong customer demand and a robust pipeline of growth opportunities [23][25] - The company anticipates continued growth in the CCS segment, driven by hyperscaler demand for networking technologies [26][27] - Management acknowledged macro uncertainties but emphasized a strong demand outlook [35][39] Other Important Information - The company generated $156 million in free cash flow in Q4, totaling $458 million for the year [13] - The gross debt to non-GAAP trailing twelve-month Adjusted EBITDA leverage ratio improved to 0.7 turns [19] - The company repurchased approximately 132,000 shares for $36 million during the quarter [20] Q&A Session Summary Question: Clarification on revenue and EPS guidance for fiscal 2026 - Management confirmed confidence in the 2026 outlook, noting customer forecasts exceed guidance [34] Question: Concerns about funding for future AI-related projects - Management stated that the build-out is based on booked business, with minimal risk of programs not materializing [37] Question: CapEx investment and its impact on revenue growth - Management indicated that current investments are based on booked business and will support growth into 2027 [47] Question: Margin trajectory with enterprise growth - Management expects strong operating leverage and does not foresee significant margin compression despite enterprise growth [55] Question: Supply chain and inflation impact on margins - Management is comfortable with the supply chain and does not anticipate significant margin compression from inflation [104]

Fourth Quarter 2025 Financial Results January 29, 2026 1 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to: strengthening demand in our businesses, demand environment and customer forecasts, our anticipated financial and/or operational results, guidance and outlook, including statements under the headings "Capital Investments," "Q1 2026 Guidance," "Q1 2026 Non-GAAP Tax Rate Estimate," "Q1 2026 End Marke ...

Core Viewpoint - Celestica Inc. has announced its Annual Meeting of Shareholders will take place on May 19, 2026, in a hybrid format, with further details to be provided in the definitive proxy statement [1] Group 1: Meeting Details - The Annual Meeting of Shareholders is scheduled for May 19, 2026, at 9:30 a.m. EDT [1] - The record date for determining eligible shareholders is set for March 27, 2026 [2] - Celestica will utilize the notice-and-access method for delivering proxy materials to shareholders, which will be available on its website and other platforms [3] Group 2: Company Overview - Celestica is a technology leader focused on customer success and market advancements, specializing in data center infrastructure for AI, cloud, and hybrid cloud solutions [4] - The company leverages its expertise in design, engineering, manufacturing, and supply chain to provide competitive advantages to its customers [4]

Celestica Inc. (NYSE:CLS) shares are trending on Thursday.Shares of the Toronto-based data center infrastructure provider fell 5.28% in after-hours trading on Wednesday, to $327.01, following the company's fourth-quarter earnings report and 2026 guidance update.Record Q4 Performance Beats GuidanceCelestica reported fourth-quarter 2025 revenue climbed 44% to $3.65 billion from $2.55 billion a year earlier, topping the high end of its guidance range of $3.325 billion to $3.575 billion. Adjusted earnings per s ...

分组1 - Celestica reported quarterly earnings of $1.89 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, and showing a significant increase from $1.11 per share a year ago, resulting in an earnings surprise of +8.62% [1] - The company achieved revenues of $3.65 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 5.46%, and up from $2.55 billion in the same quarter last year [2] - Celestica has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] 分组2 - The stock has gained approximately 12.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.83 on revenues of $3.59 billion, while for the current fiscal year, the estimate is $8.21 on revenues of $16.01 billion [7] - The Electronics - Manufacturing Services industry, to which Celestica belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Financial Performance - Q4 2025 revenue reached $3.65 billion, a 44% increase from $2.55 billion in Q4 2024[5] - Adjusted EPS (non-GAAP) for Q4 2025 was $1.89, up 70% from $1.11 in Q4 2024[5] - Full year 2025 revenue totaled $12.4 billion, representing a 28% increase compared to $9.65 billion in 2024[5] - GAAP revenue for Q4 2025 reached $3,654.9 million, a 43.7% increase from $2,545.7 million in Q4 2024[53] - Net earnings for Q4 2025 were $267.5 million, compared to $151.7 million in Q4 2024, representing a 76.3% increase[61] - Diluted EPS for the year ended December 31, 2025, was $7.16, compared to $3.61 in 2024, marking a 98.6% increase[53] - Earnings per share for the year were $7.22, compared to $3.62 in 2024, reflecting a 99.2% increase[61] - Adjusted net earnings (non-GAAP) for Q4 2025 were $218.8 million, representing 6.0% of revenue, compared to 5.1% in Q4 2024[53] Guidance and Outlook - The company raised its 2026 revenue outlook to $17.0 billion, up from a previous estimate of $16.0 billion[11] - Adjusted EPS (non-GAAP) guidance for 2026 is now $8.75, increased from $8.20[11] - The company anticipates accelerated revenue growth in 2026, with sustained growth into 2027, driven by increased demand from data center customers[30] Capital Investments and Expenditures - Capital investments for 2026 are projected to be approximately $1 billion, about 6% of the annual revenue outlook[20] - Capital investments are expected to support high levels of expenditure by leading hyperscaler, AI, and data center customers[30] Operational Metrics - Adjusted operating margin (non-GAAP) for Q4 2025 was 7.7%, exceeding the mid-point of the guidance range[9] - Adjusted operating earnings (non-GAAP) for Q4 2025 were $282.3 million, which is 7.7% of revenue, compared to 6.8% in Q4 2024[54] - Adjusted gross profit (non-GAAP) for Q4 2025 was $411.4 million, representing 11.3% of revenue, compared to 11.0% in Q4 2024[53] Assets and Liabilities - Total assets increased to $7,213.1 million as of December 31, 2025, from $5,988.2 million a year earlier, reflecting a growth of 20.5%[58] - Total current liabilities increased to $3,939.6 million as of December 31, 2025, from $3,021.4 million in 2024, a rise of 30.4%[58] - Accounts receivable increased to $2,638.1 million in Q4 2025, compared to $2,069.0 million in Q4 2024, a growth of 27.5%[58] Cash Flow and Financing - Free cash flow (non-GAAP) for the year ended December 31, 2025, was $458.3 million, compared to $305.9 million in 2024, indicating a 50.0% increase[53] - The company reported net cash provided by operating activities of $250.6 million for Q4 2025, compared to $143.4 million in Q4 2024, indicating a 74.7% increase[63] - Cash used in investing activities for the year 2025 was $203.7 million, slightly down from $212.5 million in 2024[63] - The company reported a net cash provided by financing activities of $133.8 million in Q4 2025, contrasting with a net cash used of $67.6 million in Q4 2024[63] Research and Development - Research and development expenses for the year were $118.2 million, up 51.3% from $78.0 million in 2024[61] Market and Strategic Focus - The company plans to expand manufacturing capacity in the U.S. to support AI infrastructure, with completion expected in 2027[14] - The company is focusing on new program and production ramps, including 800G and 1.6T networking, as well as AI/ML compute programs[30] - The company plans to align its capacity with business demands and is focused on scaling operations to meet anticipated customer demand[30] - The impact of anticipated market conditions and economic factors will be closely monitored to inform strategic decisions[31] Miscellaneous - Three customers represented 10% or more of total revenue in Q4 2025, accounting for 36%, 15%, and 12% respectively[12] - The company had unrealized losses on hedge derivatives amounting to $4.7 million for the year 2025, down from $13.2 million in 2024[63] - Interest paid for the year 2025 was $54.1 million, compared to $52.9 million in 2024, indicating a slight increase of 2.3%[63] - Stock-based compensation (SBC) increased to $13.0 million in Q4 2025 from $10.1 million in Q4 2024, reflecting a 28.7% rise[63]

Core Insights - Celestica Inc. reported strong financial results for Q4 2025, with revenue of $3.65 billion and adjusted EPS of $1.89, both exceeding guidance [3][11][16] - The company raised its annual outlook for 2026, expecting revenue of $17.0 billion and adjusted EPS of $8.75, driven by strong demand for AI-related data center technologies [4][13] - Celestica plans to increase capital investments to $1 billion in 2026 to support anticipated growth, which will be funded organically through operating cash flow [4][24][27] Q4 2025 Highlights - Revenue for Q4 2025 was $3.65 billion, a 44% increase compared to Q4 2024's $2.55 billion [6][11] - Adjusted operating margin for Q4 2025 was 7.7%, up from 6.8% in Q4 2024 [6][11] - The Connectivity & Cloud Solutions (CCS) segment revenue reached $2.86 billion, a 64% increase year-over-year [11][12] 2025 Full Year Results - Total revenue for 2025 was $12.4 billion, a 28% increase from $9.65 billion in 2024 [3][18] - Adjusted EPS for 2025 was $6.05, compared to $3.88 in 2024 [18][19] - Three customers represented over 10% of total revenue, contributing 32%, 14%, and 12% respectively [18] Q1 2026 Guidance - For Q1 2026, Celestica expects revenue between $3.85 billion and $4.15 billion, with an adjusted operating margin of 7.8% at the mid-point [6][8] - The guidance assumes an adjusted effective tax rate of approximately 21% [7][8] Business Updates - Celestica is expanding its manufacturing capacity in the U.S. to support Google's production of TPU systems, with completion expected in 2027 [20][21] - The company is also investing in its manufacturing capacity in Southeast Asia to support Google's TPU platform and networking technologies [21][22] - A new program for the design and manufacturing of a 1.6 terabyte switching platform has been awarded to Celestica by a hyperscaler customer, with production expected to ramp up in 2027 [28]

​Celestica Inc. (NYSE:CLS) is one of the High-Flying Tech Stocks to Buy. On January 23, RBC Capital reiterated an Outperform rating on the stock with a $400 price target. Earlier, on January 20, Aletheia Capital also reiterated a Buy rating on Celestica Inc. (NYSE:CLS) and raised the price target from $330 to $410. ​Recently, on January 22, DigiTimes report stated that Inventec, one of the competitors of Celestica Inc., is expected to expand its role in Google Tensor Processing Unit manufacturing and ramp ...

Company Overview - Celestica Inc. (NYSE:CLS) provides end-to-end supply chain and manufacturing solutions, including design, production, testing, logistics, and after-market services [2] - The company delivers hardware and software platform solutions for clients across various sectors such as technology, aerospace, industrial, healthcare, and business [2] Market Sentiment - Concerns have arisen regarding Celestica's relationship with Google, with speculation that Google may back out, leading to a recommendation to trim positions in the stock [1] - A recent decline in Celestica's stock price was perceived as a targeted decline, with no specific reasons identified for the drop, suggesting potential market manipulation [2] Investment Perspective - While Celestica is recognized as a good company, there are opinions that certain AI stocks may offer greater upside potential and carry less downside risk compared to Celestica [3]

Core Insights - Celestica Inc. is a key player in the electronics manufacturing services sector, providing design, manufacturing, and supply chain solutions across various industries, with a quarterly earnings report expected on January 28, 2026, projecting earnings per share of $1.73 and revenue of approximately $3.49 billion [1][6] Financial Performance - Analysts project Celestica's earnings per share to be $1.73 and revenue around $3.49 billion for the upcoming quarter [1][6] - The company's stock price experienced a decline of $18.83 per share, or 6.08%, closing at $290.92, following news that Google may shift assembly work to other suppliers [2][6] Valuation Metrics - Celestica's current price-to-earnings (P/E) ratio is approximately 54.97, indicating a high valuation as investors are willing to pay a premium for earnings [3][6] - The price-to-sales ratio stands at about 3.41, and the enterprise value to sales ratio is around 3.46, suggesting a strong market valuation relative to sales [3] Financial Health - The company's debt-to-equity ratio is 0.45, reflecting a moderate level of debt compared to equity [4] - Celestica's current ratio is approximately 1.47, indicating a solid ability to cover short-term liabilities with short-term assets [4] Market Sentiment - Despite the recent stock price dip, Celestica has been upgraded to a "Buy" rating, driven by strong demand for AI infrastructure and anticipated growth in hyperscale data centers [4] - The upcoming earnings report is considered significant, with implications for market expectations based on options trading, particularly in the context of infrastructure themes [5]