Product Segments and Risks

Celestica’s conference call is scheduled for tomorrow at 8 a.m. ET, we’ll see if they say anything that raise shares higher than their already very high levels.

As a reminder, at 24/7 Wall St. we called Celestica ‘The Best AI Stock to Buy in May’ back when it was trading for less than $50 per share.

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Congrats to anyone who owns Celestica, these results are a true blowout. Shares are now up 9.6% after-hours and the company continues to ride the massive wave of spending on AI data centers.

“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.”

Rob Mionis, President and CEO

Here’s Celestica’s new annual guidance:

• Revenue of $11.55 billion (previous outlook $10.85 billion)
• Adjusted operating margin (non-GAAP)* of 7.4% (previous outlook 7.2%)
• Adjusted EPS (non-GAAP)* of $5.50 (previous outlook $5.00)
• Non-GAAP free cash flow* of $400 million (previous outlook $350 million)

Revenue is a big increase and the company continues to raise operating margins.

We said earlier in the blog that Celestica would need to significantly outpace Wall Street earnings to rise tomorrow and they’ve done just that.

REVENUE: $2.893B VS $2.69B EST

EST EPS: $1.39 VS $1.23 EST

Celestica earnings are out and the stock immediately jumps 5%.

More updates to follow. 

Cadence Design Systems: Up 6.3%

Rambus: Up 1.7%

Amkor Technology: Up 10.5%

It’s been a good night for technology earnings so far, we’ll see if Celestica is next.

We still don’t have earnings from Celestica.

The other big tech earnings after hours came from Cadence. The company beat last quarter and raised revenue guidance for the year.

Shares are up 5% after hours.

The closing bell has rung and Celestica’s earnings are expected to post soon.

We’ll have analysis shortly after. Stay on this page and new updates will automatically post.

We’re now 45 minutes away from the closing bell. If you’re waiting for Celestica’s earnings, here’s a free resource you might be interested in.

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Before Celestica reports its Q2 earnings, let’s take a look back at what the company reported in Q1. The company reported earnings on April 24th and is up a scorching 84% since then.

CLS | Celestica Q1’25 Earnings Highlights:

• Adj. EPS: $1.20 ✅; UP +44% YoY
• Revenue: $2.65B [✅]; UP +20% YoY
• Adj. Gross Margin: 11.0% [✅]; UP +110 bps YoY
• Net Income: $86.2M [✅]; DOWN -6% YoY
• Free Cash Flow: $93.6M; UP +38% YoY
• Effective Tax Rate: 24% (vs. 13% YoY)

Outlook:

• 2025 Revenue: $10.85B [✅]
  • Celestica raised its full-year 2025 revenue outlook from $10.70 billion to $10.85 billion, driven by a strengthening demand outlook from its CCS customers.
  • The company anticipates non-GAAP adjusted EPS of $5.00, up from the previous estimate of $4.75.

Q1 Segment Performance:

• CCS Segment Revenue: $1.84B [✅]; UP +28% YoY
• CCS Segment Margin: 8.0% [✅]; UP +120 bps YoY
• ATS Segment Revenue: $0.81B [✅]; UP +5% YoY
• ATS Segment Margin: 5.0% [✅]; UP +80 bps YoY

Other Key Q1 Metrics:

• Adj. Operating Income: $187.8M [✅]; UP +43% YoY
• Adj. Operating Expenses: $85.0M [✅]; UP +21% YoY
• R&D Expenses: $17.6M; UP +7% YoY
• GAAP Earnings from Operations: $128.8M [✅]; UP +2% YoY
• GAAP EPS: $0.74; DOWN -4% YoY
• Cash and Cash Equivalents: $303.0M; DOWN -29% YoY

CEO Commentary:

• Rob Mionis: “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%.”

Strategic Updates:

• Celestica repurchased 0.6 million common shares for cancellation for $75.0 million in Q1 2025, reflecting its commitment to returning value to shareholders.