Celestica's Stellar Q2 2025 Performance Boosts Outlook
Celestica Achieves Exceptional Financial Results in Q2 2025
(All amounts in U.S. dollars)
Q2 2025 revenue and adjusted EPS significantly surpass expectations.
Celestica Inc. (NYSE: CLS), known for its leadership in innovative design and manufacturing solutions, reported outstanding financial outcomes for the quarter concluding June 30, 2025.
Key Highlights from Q2 2025
1. Revenue reached $2.89 billion, reflecting a substantial growth of 21% compared to $2.39 billion in the previous year.
2. GAAP earnings from operations were reported at 9.4% of revenue, a notable increase from 5.6% year-over-year.
3. Non-GAAP adjusted operating margin stood at 7.4%, compared to 6.3% in Q2 2024.
4. GAAP earnings per share (EPS) were $1.82, soaring from $0.80 in the prior year.
5. Non-GAAP adjusted EPS reached $1.39, up from $0.90 for Q2 2024.
6. The company repurchased 0.6 million shares for cancellation at a total cost of $40 million.
Rob Mionis, President and CEO, expressed, "Our Q2 results showcase our strength in execution and the value we deliver to customers. We exceeded our revenue and non-GAAP adjusted EPS guidance, thanks to rising demand particularly from our Connectivity & Cloud Solutions (CCS) customers. This has led us to raise our 2025 revenue forecast. Now, we anticipate revenues of $11.55 billion, significantly up from our previous guidance of $10.85 billion, and adjusted EPS of $5.50, compared to $5.00 previously expected."
Guidance for the Third Quarter of 2025 (Q3 2025)
The company’s guidance for Q3 2025 estimates revenue to be in the range of $2.875 to $3.125 billion. The expected adjusted operating margin remains around 7.4% at the midpoint of our guidance range, with adjusted EPS projected between $1.37 and $1.53.
Annual Outlook for 2025
Updated Financial Expectations
Celestica anticipates:
- Revenue forecast: $11.55 billion (previous outlook: $10.85 billion)
- Adjusted operating margin: 7.4% (previous outlook: 7.2%)
- Adjusted EPS: $5.50 (previous outlook: $5.00)
- Free cash flow anticipated at $400 million (previous outlook: $350 million)
Market Insights and Strategic Factors
The annual outlook adjustments reflect Celestica's confidence in navigating market dynamics without significant disruptions from tariffs or trade restrictions. Notably, the company expects that most tariffs will be recouped through customer pricing adjustments.
Summary of Q2 2025 Results
Celestica's substantial revenue increase is attributed to robust customer demand, especially in the Communications segment, which yielded $2.07 billion in revenue, marking a 28% growth year-over-year.
This growth trajectory continued within the Hardware Platform Solutions sector, which reported revenue of approximately $1.2 billion, an impressive increase of 82% compared to Q2 2024. Conversely, the Advanced Technology Solutions (ATS) segment also showed progress, totaling $0.82 billion in revenue, reflecting a 7% rise year-over-year.
Looking Ahead
Management plans to host a conference call discussing Q2 2025 results, providing insights into the company's strategic positioning and future initiatives.
Frequently Asked Questions
What were Celestica's Q2 2025 revenue figures?
Celestica reported revenues of $2.89 billion in Q2 2025, which represents a 21% increase from the previous year.
What is the adjusted EPS for Q2 2025?
The adjusted earnings per share for the quarter are $1.39, significantly up from $0.90 in Q2 2024.
How does Celestica plan to adjust its annual outlook?
Due to higher than anticipated demand, Celestica raised its projected revenue for 2025 to $11.55 billion.
What guidance can investors expect for Q3 2025?
Celestica expects Q3 2025 revenue to range between $2.875 billion and $3.125 billion with adjusted EPS between $1.37 and $1.53.
What strategic markets is Celestica focused on?
Celestica primarily focuses on Aerospace and Defense, Communications, Enterprise, HealthTech, Industrial, and Capital Equipment sectors.
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