Celestica Inc Earnings
Celestica Inc, a leading player in data center infrastructure and advanced technology solutions, demonstrated robust performance in the third quarter of 2025. The company announced its financial results for Q3 2025 on October 27, 2025, showcasing notable growth driven by heightened demand. Notably, Celestica's strategic focus on advanced technology and cloud solutions has contributed significantly to their earnings, underscoring their role as a vital enabler of technology infrastructure in high-growth markets.
Celestica Inc Results
Below is a summary of key financial metrics for Celestica Inc in Q3 2025:
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $3.19 Bn | $2.50 Bn | +28% |
| GAAP Earnings per Share | $2.31 | $0.75 | +208% |
| Adjusted Earnings per Share | $1.58 | $1.04 | +52% |
| GAAP Earnings from Operations | 10.2% | 5.5% | +85.5% |
| Adjusted Operating Margin | 7.6% | 6.8% | +0.8% |
These results highlight a strong revenue increase to $3.19 billion for the quarter, marking a significant 28% rise compared to the same period last year. This impressive growth underscores Celestica's effective execution and strategic investments in the cloud and AI infrastructure sectors.
Revenue Breakdown
Here's a breakdown of the revenue performance across Celestica's major segments:
| Segment | Revenue Q3 2025 | Revenue Q3 2024 | YoY Change |
|---|---|---|---|
| Connectivity & Cloud Solutions (CCS) | $2.41 Bn | $1.69 Bn | +43% |
| Advanced Technology Solutions (ATS) | $0.78 Bn | $0.81 Bn | -4% |
Segment Performance Analysis
Connectivity & Cloud Solutions (CCS): The CCS segment exhibited stellar growth, with a revenue increase of 43% year-over-year, amounting to $2.41 billion. Notably, the margins for this segment improved to 8.3% in Q3 2025 from 7.6% in Q3 2024. This growth trajectory was chiefly fueled by the substantial demand for communications and data center infrastructure, reflecting Celestica's strong positioning in the market.
Advanced Technology Solutions (ATS): In contrast, the ATS segment saw a slight decline in revenue by 4% to $0.78 billion. Despite this revenue decline, the segment margin improved to 5.5% from 4.9% year-over-year, indicating increased operational efficiency. The focus on high-margin areas within ATS may have contributed to this positive margin trend despite revenue challenges.
Key Developments
Celestica's quarter was marked by its continued execution excellence and strategic vision. A key highlight from the quarter was the increase in their annual outlook for 2025 and the projection for 2026. The company now anticipates revenue of $12.2 billion in 2025, a rise from the prior $11.55 billion estimate, alongside an increase in expected non-GAAP adjusted EPS to $5.90 from $5.50. Looking forward to 2026, Celestica projects a robust revenue target of $16 billion and a non-GAAP adjusted EPS of $8.20, reflecting continued confidence in their operational strength and market opportunities.
Comments from Company Officers
Rob Mionis, President and CEO of Celestica, commented on the company's performance, stating, "We achieved very strong results in the third quarter, with revenue of $3.19 billion and non-GAAP adjusted EPS* of $1.58, representing growth of 28% and 52%, respectively, each exceeding the high end of our guidance ranges. Driven by these strong results to date and a demand environment that continues to strengthen, we are pleased to increase our 2025 annual outlook."
His remarks underscore the company's strategic growth initiatives and ability to meet dynamic market demands, particularly in AI and data center infrastructure.
Dividends and Share Repurchases
Celestica is committed to enhancing shareholder value via share repurchases. The company plans to file a notice of intention with the Toronto Stock Exchange to commence a new Normal Course Issuer Bid (NCIB). If accepted, Celestica aims to repurchase up to 5% of its outstanding shares over the subsequent twelve months, reflecting its confidence in its financial health and future growth potential.
Celestica Inc Stock Forecast
Based on Celestica's promising Q3 performance and strong forward-looking statements, the stock's growth potential appears robust. With a market capitalization of approximately $6.8 billion and a last-reported stock price of about $1.75, the company's aggressive forecasts for fiscal 2026 position it well for potential upside.
High Projection: Celestica's stock could surge as high as $2.50 by mid-2026 if the company continues to exceed expectations and retains strong demand for its solutions in booming sectors like AI and cloud infrastructure.
Low Projection: While continued macroeconomic uncertainties could impact global technology spending, Celestica's diversified portfolio and robust operational performance suggest limited downside, projecting a lowest range near $1.50, preserving the gains already seen in its price trajectory.
Overall, Celestica's earnings report reveals a company well-positioned to capitalize on future growth opportunities, backed by its robust financial performance and strategic foresight in high-demand sectors.
