Celestica Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did CLS Beat Earnings? Q1 2025 Results
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.
- 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
Forward Guidance & Outlook
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
CLS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.