Celestica Announces Fourth Quarter and FY 2025 Financial Results

Executive Summary

• Celestica reported Q4 2025 revenue of $3.65 B (↑44% YoY) and adjusted EPS of $1.89, both topping the high end of its guidance.
• Full‑year 2025 results showed revenue of $12.39 B (↑28% YoY), GAAP EPS of $7.16 and adjusted EPS of $6.05.
• The company raised its 2026 outlook to $17.0 B revenue and $8.75 adjusted EPS, and announced a $1 B capital‑expenditure plan for 2026–27, to be funded organically.

Key Details

• Q4 2025 Financial Highlights
• Revenue: $3.65 B (↑44% YoY)
• GAAP earnings from operations: 8.6% of revenue (up from 8.0%)
• Adjusted operating margin: 7.7% (vs. 6.8% in Q4 2024)
• GAAP EPS: $2.31 (↑78% YoY)
• Adjusted EPS (non‑GAAP): $1.89 (↑70% YoY)

• Share repurchase: 0.1 M shares for $35.7 M

• 2025 Full‑Year Highlights

• Revenue: $12.39 B (↑28% YoY)
• GAAP EPS: $7.16 (↑98% YoY)
• Adjusted EPS (non‑GAAP): $6.05 (↑56% YoY)
• GAAP operating margin: 8.4% of revenue

• Free cash flow (non‑GAAP): $458.3 M

• Segment Performance

• Connectivity & Cloud Solutions (CCS) revenue: $2.86 B, up 64%; segment margin 8.4%

• Advanced Technology Solutions (ATS) revenue: $0.80 B, down 1%; segment margin 5.3%

• 2026 Outlook Update

• Revenue target raised to $17.0 B (previously $16.0 B)
• Adjusted EPS target raised to $8.75 (previously $8.20)
• Adjusted operating margin outlook unchanged at 7.8%

• Free cash flow outlook unchanged at $500 M

• Capital Investment Plan

• Planned 2026 CAPEX: ~$1 B (~6% of projected revenue)

• Projects include expansion in Dallas‑Fort Worth (TX), new buildings in Thailand, upgrades in Mexico & Japan, and new HPS design centers in Asia & the U.S.

• New Program Wins

• Expanded manufacturing capacity in the U.S. to support Google’s TPU production, slated for completion in 2027.

• Awarded a third hyperscaler customer program to design/manufacture a 1.6 TB switching platform, ramping in 2027.

• Guidance for Q1 2026

• Revenue: $3.85‑$4.15 B
• Adjusted operating margin: 7.8% (mid‑point)

• Adjusted EPS (non‑GAAP): $1.95‑$2.15

• Other Financial Activity

• Net cash provided by operations Q4 2025: $250.6 M
• Purchase of PP&E Q4 2025: $94.7 M (net)
• Repurchase of common stock Q4 2025: $35.7 M

Notable Quotes

• “Our financial performance in the fourth quarter was very strong… both exceeding the high end of our guidance ranges.” – Rob Mionis, President & CEO
• “We are strategically increasing our planned capital investments to $1 billion this year and anticipate fully funding it organically through operating cash flow.” – Rob Mionis