Companies /Technology
Celestica Inc
NYSE: CLS Electronic Components
$371.57
▼ $16.67 (−4.29%) today
Markets closed · 10:43pm ET

Celestica (CLS) Q1 2025 Earnings

Reported Apr 24, 2025, 4:20pm ET · SEC source
$1.20
Beat +7.60%
EPS · est. $1.12
$2.6B
Beat +3.57%
Revenue · est. $2.6B
+25.9%
Beating market
CLS vs S&P since report
6 quarters
Consecutive EPS beats

How Did CLS Stock React to Q1 2025 Earnings?

% change · around the report
−3%0+3%+6%Apr 24Apr 25report 4:20pm ETearnings+0.7%+0.1%
−3%0+3%+6%Apr 24Apr 25earnings+0.7%+0.1%
CLS +0.1%S&P 500 +0.7%
−3%0+3%+6%Apr 24Apr 25report 4:20pm ETearnings+1.1%+0.1%
−3%0+3%+6%Apr 24Apr 25earnings+1.1%+0.1%
CLS +0.1%NASDAQ +1.1%
−5%0+5%Apr 23May 2report 4:20pm ETearnings+3.6%+6.3%
−5%0+5%Apr 23May 2earnings+3.6%+6.3%
CLS +6.3%S&P 500 +3.6%
−5%0+5%Apr 23May 2report 4:20pm ETearnings+4.5%+6.3%
−5%0+5%Apr 23May 2earnings+4.5%+6.3%
CLS +6.3%NASDAQ +4.5%
−3.35%
Day of report
−1.45%
Next session
+5.64%
One week
+32.64%
30 days

S&P 500 over the same 30 days: +6.74%.

Did CLS Beat Earnings? Q1 2025 Results

Yes. Celestica reported Q1 2025 earnings of $1.20 a share on Apr 24, 2025, beating the $1.12 consensus estimate by 7.6%. Revenue was $2.6B against a $2.6B estimate.

Celestica kicked off 2025 with a convincing beat on both the top and bottom lines, as the electronics manufacturing services company posted first-quarter revenue of $2.65 billion, up 19.9% year-over-year and ahead of the $2.56 billion consensus estimate by 3.57%, while non-GAAP adjusted EPS of $1.20 topped the $1.12 consensus by 7.60%. The standout driver was the Connectivity & Cloud Solutions segment, which surged 28% to $1.84 billion, propelled by Hardware Platform Solutions revenue that nearly doubled to approximately $1.00 billion on robust demand from hyperscaler, AI, and data center customers. That operating leverage helped lift non-GAAP adjusted operating margin to 7.1% from 5.9% a year ago. With momentum firmly in hand, management raised its full-year 2025 outlook, now targeting revenue of $10.85 billion, adjusted EPS of $5.00, and an adjusted operating margin of 7.2%, all above prior guidance, while noting that substantially all tariff costs are expected to be recovered from customers, limiting macro-related earnings risk.

Key Takeaways
  • CCS segment revenue increased 28% YoY driven by strong hyperscaler, AI, and data center customer demand
  • Hardware Platform Solutions revenue nearly doubled, increasing 99% YoY to approximately $1 billion
  • Adjusted operating margin expanded to 7.1% from 5.9% due to unanticipated operating leverage in CCS segment
  • ATS segment margin improved to 5.0% from 4.2% YoY
  • Revenue exceeded high end of guidance due to higher than anticipated customer demand

“Celestica delivered a strong first quarter in 2025, achieving revenue of $2.65 billion and non-GAAP adjusted EPS* of $1.20, both surpassing the high end of our guidance ranges. This strong performance was further highlighted by our highest ever adjusted operating margin* of 7.1%.”

Celestica CEO, on the earnings call

What Was Celestica's Outlook in Q1 2025?

Celestica raised its full-year 2025 outlook: revenue now expected at $10.85 billion (up from $10.70 billion), adjusted operating margin of 7.2% (up from 6.9%), and adjusted EPS of $5.00 (up from $4.75). Free cash flow outlook of $350 million remains unchanged. For Q2 2025, the company guides revenue of $2.575 billion to $2.725 billion, adjusted operating margin of 7.2% at the midpoint, and adjusted EPS of $1.17 to $1.27. Guidance assumes no material changes to tariffs or trade restrictions compared to those in effect as of April 24, 2025, and no material changes from current macroeconomic trends. Substantially all tariffs paid by Celestica are expected to be recovered from customers with no anticipated material impact to adjusted EBIAT or adjusted net earnings.

CLS YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$800.0M$1.6B$2.4B$2.2B$2.6BRevenue$222.1M$273.9MGross Profit$125.8M$128.8MOperating Income$91.8M$86.2MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income
CLS income statement, Q1 2025 versus Q1 2024
Metric Q1 2025 Q1 2024 Year over year
Revenue $2.6B $2.2B +19.9%
Gross Profit $273.9M $222.1M +23.3%
Operating Income $128.8M $125.8M +2.4%
Net Income $86.2M $91.8M −6.1%

CLS Revenue by Segment

Connectivity & Cloud Solutions$1.8B+28.0%
Hardware Platform Solutions$1.0B+99.0%
Advanced Technology Solutions$810.0M+5.0%

Figures from SEC filings and company reports. Not investment advice.