UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________________ FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2025 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 1-14832 ___________________________________________________________________ CEL ...

Core Insights - Celestica's recent earnings report showed strong performance, with adjusted earnings and revenues surpassing estimates, indicating potential for future growth [2][3]. Financial Performance - Quarterly net earnings reached $267.5 million or $2.31 per share, a significant increase from $151.7 million or $1.29 per share in the same quarter last year, driven by top-line improvement [4]. - Revenues for the quarter were $3.65 billion, reflecting a 44% year-over-year increase, exceeding management's guidance and the Zacks Consensus Estimate by $189 million [5]. - The Connectivity & Cloud Solutions (CCS) segment saw revenues rise 64% year over year to $2.86 billion, accounting for 78.3% of total revenues [6]. Segment Analysis - The Communications end market contributed to the CCS segment's growth, with hardware platform solutions revenues increasing 72% year over year to $1.4 billion, and segment margin improving to 8.4% [7]. - The Advanced Technology Solutions segment experienced a slight decline in revenues, down 1% year over year to $0.8 billion, but its margin improved to 5.3% [8]. Cash Flow and Liquidity - Operating cash flow for the quarter was $250.6 million, up from $143.4 million in the previous year, with free cash flow increasing to $155.9 million [9]. - As of December 31, 2025, the company held $595.6 million in cash and cash equivalents, with long-term debt at $750.5 million [10]. Future Guidance - For Q1 2026, Celestica anticipates revenues between $3.85 billion and $4.15 billion, with non-GAAP earnings per share expected to be in the range of $1.95 to $2.15 [12]. - The company projects 2026 revenues to be approximately $17 billion, an increase from the previous estimate of $16 billion, with non-GAAP adjusted earnings expected to be $8.75 per share [13]. Market Sentiment - Recent estimates for Celestica have shown an upward trend, with a consensus estimate shift of 15.1% [14]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16]. Industry Comparison - Celestica operates within the Zacks Electronics - Manufacturing Services industry, where competitor Sanmina reported a 59% year-over-year revenue increase, highlighting strong industry performance [17].

Group 1 - Financial giants have shown a bullish sentiment towards Celestica, with 58% of traders being bullish and only 16% bearish, indicating strong investor confidence [1] - The analysis of options trading suggests that significant investors are targeting a price range for Celestica between $220.0 and $370.0 over the past three months [2] - Recent trading volume for Celestica stands at 816,552, with the stock price increasing by 2.17% to $297.66, indicating positive market movement [7] Group 2 - Two market experts have provided ratings for Celestica, with a consensus target price of $364.5, reflecting optimistic expectations for the stock [5] - An analyst from Barclays maintains an Overweight rating on Celestica with a target price of $391, while Citigroup continues to hold a Buy rating with a target price of $338, showcasing varied but positive outlooks from analysts [7]

Core Insights - Celestica's share price has experienced a significant increase, rising five times from $70 to $350 between April and November 2025, followed by trading within a narrow range of $280 to $350 due to high volatility [1] Group 1: Stock Performance - The stock price surged from $70 to $350, indicating a fivefold increase [1] - Post-rally, the stock has been trading between $280 and $350, reflecting a relatively narrow trading corridor despite high volatility [1] Group 2: Analyst Background - The article mentions a highly experienced CFO with over a decade in finance, specializing in oilfield and real estate industries, who has developed an interest in equity research [1] - The CFO has provided equity research services for a Dubai-based family office managing over $20 million in assets [1] - The CFO emphasizes the importance of analyzing financial statements and market trends to identify growth drivers in various industries [1]

Core Viewpoint - Stifel reaffirmed its Buy rating and $250 price target on NVIDIA, highlighting a newly expanded multi-year partnership with Meta that focuses on building AI infrastructure [1] Group 1: Partnership Details - NVIDIA announced a multi-generational collaboration with Meta to enhance on-premises, cloud, and AI infrastructure, which extends prior partnerships [1] - The initiative will involve large-scale deployment of NVIDIA CPUs, GPUs, and Spectrum-X Ethernet networking solutions [1][3] Group 2: Technology Adoption - Meta is set to adopt NVIDIA's rack-scale Confidential Computing capabilities as a foundational element of the upcoming Vera Rubin platform [2] - The partnership includes the first large-scale deployment of NVIDIA's Grace CPU-only systems, supported by infrastructure co-design and software optimization efforts [3] Group 3: Strategic Implications - The collaboration strengthens the long-term structural alignment between NVIDIA and Meta, validating NVIDIA's "extreme co-design" strategy, transitioning the company from a chip supplier to a full-stack AI platform solutions provider [4] - Despite competition from hyperscalers investing in proprietary silicon and networking initiatives, NVIDIA is well positioned to compete through its integrated architecture approach [5]

Core Insights - Celestica (CLS) is positioned as a strong player in AI infrastructure, likened to a classic "picks and shovels" investment strategy, which typically benefits from the growth of the AI sector [1] - The investment philosophy of Kennedy Njagi, a hedge fund manager, focuses on companies with aggressive growth prospects and aims for high profitability within 1-2 years [1] - The emphasis is on long-term discipline and consistent alpha generation, while also acknowledging the inherent risks involved in such investments [1] Company Analysis - Celestica is seen as a beneficiary of the growing demand for AI infrastructure, indicating potential for significant revenue growth [1] - The company is likely to attract investors looking for growth-oriented opportunities in the technology sector, particularly in AI [1] Investment Philosophy - The investment approach highlighted includes a focus on GARP (Growth at a Reasonable Price) strategies, which may appeal to investors seeking a balance between growth and valuation [1] - The philosophy also includes a commitment to improving financial literacy and empowering underprivileged communities, suggesting a socially responsible investment angle [1]

Core Insights - Celestica (CLS) is positioned as a strong player in AI infrastructure, likened to a classic "picks and shovels" investment strategy, which typically benefits from the growth of the AI sector [1] - The investment philosophy of Kennedy Njagi, a hedge fund manager, focuses on companies with aggressive growth prospects and aims for high profitability within 1-2 years [1] - The emphasis is on long-term discipline and consistent alpha generation, while also acknowledging the inherent risks involved in investing [1] Company Analysis - Celestica is seen as a beneficiary of the growing demand for AI infrastructure, indicating potential for significant revenue growth [1] - The company is associated with a hedge fund manager who has a GARP (Growth at a Reasonable Price) investment strategy, suggesting a balanced approach to growth and valuation [1] - The investment approach aims to empower underprivileged communities and enhance financial literacy, reflecting a socially responsible investment ethos [1]

Core Insights - Celestica Inc. (CLS) has transitioned from being viewed as a low-margin manufacturing business in the electronics manufacturing services (EMS) sector to a company with significant growth potential by 2026 [1] Group 1: Company Overview - Celestica Inc. was historically perceived as a low-margin business with limited growth prospects in the EMS segment [1] - The company's outlook has dramatically improved, indicating a solid transformation and potential for higher margins and growth [1] Group 2: Market Position - The shift in perception suggests that Celestica may be capitalizing on new opportunities within the EMS market, which could lead to enhanced profitability [1]

Core Insights - Celestica Inc. (CLS) is a significant player in the global defense industry, focusing on high-reliability electronic systems for military applications [1] - The company provides a range of defense solutions, including rugged avionics, secure communication systems, and radar electronics for various platforms [2] - Celestica supports defense customers throughout the entire product lifecycle, adhering to strict regulatory standards [3] - With rising global defense spending, Celestica is positioned to benefit from increased demand for advanced military electronics [4] Company Overview - Celestica designs and manufactures high-reliability electronics for global defense original equipment manufacturers (OEMs) [8] - The company supplies components built for harsh conditions, including rugged avionics and UAV components [8] Competitive Landscape - Celestica faces competition from Jabil, Inc. and Sanmina Corporation, both of which provide electronics services for defense and aerospace systems [5][6] Financial Performance - Celestica's shares have increased by 112.2% over the past year, outperforming the industry growth of 71.5% [7] - The company trades at a forward price-to-earnings ratio of 30.09, higher than the industry average of 22.97 [9] - Earnings estimates for 2026 have risen by 7.55% to $8.83, while estimates for 2027 have increased by 7.05% to $12.61 [10] Earnings Estimates - The consensus estimate trend shows a positive revision of earnings estimates over the past 60 days, with significant increases for both 2026 and 2027 [11]

Core Viewpoint - Celestica (CLS) has more than doubled in value over the past year and has been in a consolidation phase for the last four months, primarily due to a significant upward revision in revenue and earnings per share (EPS) [1] Group 1: Company Performance - Celestica's stock performance has seen a substantial increase, with its value more than doubling in the past year [1] - The company has been consolidating for the past four months, indicating a period of stabilization after rapid growth [1] - The upward revision in revenue and EPS has been a key driver of Celestica's stock performance [1] Group 2: Analyst Background - The analysis is conducted by a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management [1] - The analyst has a focus on equity valuation, market trends, and portfolio optimization to identify high-growth investment opportunities [1] - The analyst's previous role as Vice President at Barclays involved leading teams in model validation, stress testing, and regulatory finance, showcasing a deep expertise in both fundamental and technical analysis [1]