Celestica Reports Impressive Q2 2025 Financial Performance

CEO Comments on Q2 2025 Achievements

In an exciting announcement, Celestica Inc. (TSX and NYSE: CLS) shared their robust financial results for the second quarter ending June 30, 2025. The company achieved remarkable outcomes with revenues hitting $2.89 billion—an impressive 21% increase compared to the $2.39 billion reported in Q2 2024. This surge showcases the strength of Celestica’s strategic initiatives and their commitment to innovation in manufacturing and supply chain solutions.

Highlights of Q2 2025 Financials

Celestica delivered impressive growth across various metrics:

• Revenue: $2.89 billion, representing a 21% year-over-year increase.
• GAAP earnings from operations: 9.4% as a percentage of revenue, up from 5.6% in Q2 2024.
• Adjusted operating margin (non-GAAP): 7.4%, marking an increase from 6.3% in the previous year.
• GAAP earnings per share (EPS): $1.82, compared to $0.80 in Q2 2024.
• Adjusted EPS (non-GAAP): $1.39, up from $0.90 in Q2 2024.
• The company repurchased 0.6 million common shares at a cost of $40 million.

Strengthening Demand and Future Outlook

Rob Mionis, President and CEO of Celestica, expressed enthusiasm about the quarter’s performance, stating, "We achieved very strong results in the second quarter, surpassing our expectations. Our robust revenue growth of 21% and an adjusted EPS growth of 54% reflect the effectiveness of our operational execution and the increasing demand from our customers, specifically within the CCS segment. This surge in demand has led us to revise our annual outlook for 2025, now anticipating total revenue of $11.55 billion and an adjusted EPS of $5.50."

Guidance for Q3 2025

Looking ahead, Celestica provided guidance for Q3 2025 as follows:

This guidance indicates an encouraging trajectory for the company as they respond flexibly to market demands and capitalize on growth opportunities within their sectors.

Annual Outlook Revision for 2025

Celestica has also revised its annual outlook for 2025:

• Revenue: Expected to reach $11.55 billion, up from the previous estimate of $10.85 billion.
• Adjusted operating margin (non-GAAP): Forecasted at 7.4%, a slight increase from the prior estimate of 7.2%.
• Adjusted EPS (non-GAAP): Projected at $5.50, a lift from the earlier outlook of $5.00.
• Non-GAAP free cash flow: Prognosed at $400 million, an increase from the previously anticipated $350 million.

Insights on Business Segments

The CCS segment reported revenue of $2.07 billion with a significant growth rate of 28% compared to Q2 2024. The Hardware Platform Solutions segment also performed exceptionally well, increasing by 82% with a revenue of about $1.2 billion. The Advanced Technology Solutions segment saw a 7% rise in revenue to $0.82 billion, indicating steady growth in diverse market conditions.

Upcoming Conference

Management plans to host a conference call on July 29, 2025, at 8:00 AM EDT to discuss the Q2 results in greater detail. This session will provide a further platform for stakeholders to engage with the company's future goals and performance strategies.

About Celestica Inc.

Celestica enhances the operational capabilities of leading global brands. Their customer-centric approach enables them to offer innovative solutions across numerous sectors including Aerospace and Defense, Communications, Enterprise, HealthTech, and Industrial markets. Through a collaborative effort with their customers, Celestica is committed to addressing and solving complex challenges in product development and supply chain execution.

Frequently Asked Questions

1. What was Celestica's revenue for Q2 2025?

Celestica reported revenue of $2.89 billion for Q2 2025, which was a 21% increase from Q2 2024.

2. How did the adjusted EPS change from Q2 2024 to Q2 2025?

The adjusted EPS rose from $0.90 in Q2 2024 to $1.39 in Q2 2025, marking a growth of 54%.

3. What factors contributed to the strong results in Q2 2025?

The results stemmed from a robust operational execution and a strengthening demand landscape, especially from CCS customers.

4. What is the revised annual outlook for 2025?

Celestica now expects an annual revenue of $11.55 billion and an adjusted EPS of $5.50 for 2025.

5. When will the next conference call occur?

The next conference call is scheduled for July 29, 2025, at 8:00 AM EDT to discuss the Q2 financial results.

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