Companies /Technology

Celestica Inc

NYSE: CLS Electronic Components
$301.15
▼ $16.23 (−5.11%) today
Markets open · 2:53pm ET

Q2 2025 Earnings

Reported Jul 28, 2025, 4:20pm ET · SEC source
$1.39
Beat +12.65%
EPS · est. $1.23
$2.9B
Beat +8.42%
Revenue · est. $2.7B
+3.0%
Beating market
CLS vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%+12%Jul 28Jul 29report 4:20pm ETearnings−0.3%+8.1%
−6%0+6%+12%Jul 28Jul 29earnings−0.3%+8.1%
CLS +8.1%S&P 500 −0.3%
−6%0+6%+12%Jul 28Jul 29report 4:20pm ETearnings−0.2%+7.9%
−6%0+6%+12%Jul 28Jul 29earnings−0.2%+7.9%
CLS +7.9%NASDAQ −0.2%
−7%0+7%Jul 28Aug 5report 4:20pm ETearnings−1.4%+0.4%
−7%0+7%Jul 28Aug 5earnings−1.4%+0.4%
CLS +0.4%S&P 500 −1.4%
−7%0+7%Jul 28Aug 5report 4:20pm ETearnings−1.7%+0.4%
−7%0+7%Jul 28Aug 5earnings−1.7%+0.4%
CLS +0.4%NASDAQ −1.7%
+16.51%
Day of report
+0.20%
Next session
−2.72%
One week
+5.11%
30 days

S&P 500 over the same 30 days: +2.15%.

Did CLS Beat Earnings? Q2 2025 Results

Celestica delivered a blowout second quarter, posting revenue of $2.89 billion, up 21.0% year over year and ahead of the $2.67 billion consensus by 8.42%, while non-GAAP adjusted EPS of $1.39 topped the $1.23 estimate by 12.65%. <a href="https://247wallst.com/investing/2025/07/28/live-will-celestica-soar-after-announcing-q2-earnings-onton/">Shares soared on the results</a>, which were driven primarily by the Connectivity & Cloud Solutions segment, where Hardware Platform Solutions revenue surged 82% versus the year-ago period on robust hyperscaler and AI data center demand, lifting CCS revenue to roughly $2.07 billion. Adjusted operating margin reached 7.4%, a company high, reflecting stronger-than-anticipated operating leverage across both business segments. The strong quarter prompted Celestica to meaningfully raise its full-year 2025 outlook, with revenue guidance lifted to $11.55 billion from $10.85 billion, adjusted EPS raised to $5.50 from $5.00, and non-GAAP free cash flow now expected at $400 million. For Q3 2025, the company guided revenue of $2.88 billion to $3.13 billion and adjusted EPS of $1.37 to $1.53.

Key Takeaways
  • Strong demand in Communications end market driving revenue above guidance
  • Hardware Platform Solutions revenue surged 82% YoY within CCS segment
  • Operating leverage improvements in both ATS and CCS segments
  • CCS segment margin expanded to 8.3% from 7.0% YoY
  • ATS segment margin improved to 5.3% from 4.6% YoY
  • Adjusted operating margin reached 7.4%, a new company high

“We achieved very strong results in the second quarter, with revenue of $2.89 billion and non-GAAP adjusted EPS of $1.39, representing growth of 21% and 54%, respectively, each exceeding the high end of our guidance ranges. This performance was bolstered by strong adjusted operating margin of 7.4%, another new high for the company, demonstrating the strength of our execution.”

Celestica CEO, on the earnings call

Forward Guidance & Outlook

Celestica raised its full-year 2025 outlook: revenue now expected at $11.55 billion (up from $10.85 billion), adjusted operating margin of 7.4% (up from 7.2%), adjusted EPS of $5.50 (up from $5.00), and non-GAAP free cash flow of $400 million (up from $350 million). For Q3 2025, the company guides revenue of $2.875 billion to $3.125 billion, adjusted operating margin of 7.4% at the midpoint, and adjusted EPS of $1.37 to $1.53. Guidance assumes no material changes to tariffs or trade restrictions compared to those in effect as of July 28, 2025, and substantially all tariffs are expected to be recovered from customers.

CLS YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$800.0M$1.6B$2.4B$2.4B$2.9BRevenue$253.8M$371.0MGross Profit$132.9M$272.5MOperating Income$95.0M$211.0MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

CLS Revenue by Segment

Connectivity & Cloud Solutions$2.1B+28.0%
Hardware Platform Solutions$1.2B+82.0%
Advanced Technology Solutions$820.0M+7.0%

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