Q1 2026 adjusted EPS* above the high end of our guidance range; Raising 2026 annual outlook
(All amounts in U.S. dollars)
TORONTO — Celestica Inc.1 (NYSE: CLS) (TSX: CLS), a global leader in data center infrastructure and advanced technology solutions, today announced its financial results for the first quarter ended March 31, 2026 (Q1 2026).
Q1 2026 Highlights
- Revenue: $4.05 billion, increased 53% compared to $2.65 billion for the first quarter of 2025 (Q1 2025).
- GAAP earnings from operations as a % of revenue: 6.7%, compared to 4.9% for Q1 2025.
- Adjusted operating margin (non-GAAP)*: 8.0%, compared to 7.1% for Q1 2025.
- GAAP earnings per share2 (EPS): $1.83, compared to $0.74 for Q1 2025.
- Adjusted EPS2 (non-GAAP)*: $2.16, compared to $1.20 for Q1 2025.
- Repurchased 0.1 million common shares for cancellation for $20 million.
“Celestica delivered a strong first quarter to begin 2026, achieving revenue of $4.05 billion and adjusted EPS (non-GAAP)* of $2.16. Our solid results included adjusted operating margin* of 8.0%, a new milestone for the company,” said Rob Mionis, President and CEO.
“We continue to see accelerating growth from our CCS customer base, alongside increasing profitability in both our CCS and ATS segments. Driven by this momentum, we are raising our 2026 annual outlook to $19.0 billion in revenue and $10.15 in adjusted EPS (non-GAAP)*. Our outlook for 2027 also continues to strengthen from just 90 days ago, supported by new program wins as well as improved forecast visibility with our customers.”
1 Celestica has two operating and reportable segments: Connectivity & Cloud Solutions (CCS) (consists of our Communications and Enterprise (servers and storage) end markets) and Advanced Technology Solutions (ATS) (comprised of our Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses). Segment performance is evaluated based on segment revenue, segment income, and segment margin (segment income as a percentage of segment revenue). See note 3 to our March 31, 2026 unaudited interim condensed consolidated financial statements (Q1 2026 Interim Financial Statements) for further detail.
2 Per share information included in this press release is based on diluted shares outstanding unless otherwise noted.
* See Use of Non-GAAP Measures and Schedule 1 for, among other items, non-GAAP financial measures (and ratios) included in this press release, their definitions, uses, and a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. Non-GAAP measures in this press release are denoted with an asterisk (*).
Second Quarter of 2026 (Q2 2026) Guidance
| Q2 2026 Guidance | |
| Revenue (in billions) | $4.15 to $4.45 |
| Adjusted operating margin (non-GAAP)* | 8.0% at the mid-point of our revenue and adjusted EPS (non-GAAP) guidance ranges |
| Adjusted EPS (non-GAAP)*(1) | $2.14 to $2.34 |
(1) Q2 2026 guidance excludes a negative $0.24 to $0.30 per share (pre-tax) aggregate impact on net earnings on a GAAP basis for employee stock-based compensation (SBC) expense, amortization of intangible assets (excluding computer software), and restructuring charges. Q2 2026 guidance assumes an adjusted effective tax rate (non-GAAP)* of approximately 21%.
2026 Annual Outlook and Long-Term Demand Update
- Revenue of $19.0 billion (previous outlook $17.0 billion) (1)
- Adjusted EPS (non-GAAP)* of $10.15 (previous outlook $8.75) (1)(2)
- Adjusted operating margin (non-GAAP)* of 8.1% (previous outlook 7.8%) (1)
Our previous free cash flow (non-GAAP)* outlook of $500 million remains unchanged.
We expect to grow revenue by more than $6.5 billion in 2026 based on our latest Annual Outlook, and we now expect to grow revenue significantly more than this in 2027, as a result of improved visibility and new program wins.
Business Updates
Celestica receives award for Co-packaged Optics (CPO) switch program with a hyperscaler customer
Celestica has been awarded a program for the design and manufacturing of a CPO Ethernet switch with a hyperscaler customer. The switch, optimized for AI scale out networks, will utilize 1.6 Terabit switch silicon, leveraging co-packaged optical interconnects, and liquid cooling technology. The HPS program is expected to begin ramping production in 2027.
Celestica Amends and Upsizes Credit Facility
On April 27, 2026, we amended our existing senior secured credit agreement (“Existing Facility”), upsizing the total facility to approximately $2.5 billion (the “Amended Facility”) to align available liquidity with the growing scale of our business.
The Amended Facility consists of the following key changes to the Existing Facility:
- Increased the commitments under our revolver1 from $750 million to $1,750 million
- Refinanced our existing $228 million term A loan into a new $250 million term A loan facility1
- Maturity date of the revolver and the new term A loan extended from June 2029 to April 2031
The new term A loan was fully drawn at closing. The proceeds of the new term A loan were used to repay all amounts outstanding under the refinanced term A loan facility and certain fees and expenses related to the Amended Facility, with any remaining proceeds to be used for general corporate purposes. Amounts drawn under the Revolver are permitted to be used for general corporate purposes.
The Amended Facility was provided by a syndicate of lenders, with Bank of America, N.A. acting as Administrative Agent. BofA Securities, Inc. acted as Left Lead Arranger and Left Lead Bookrunner. Canadian Imperial Bank of Commerce and CIBC World Market Corp., Crédit Agricole Corporate and Investment Bank (Canada Branch) and TD Securities acted as Joint Lead Arrangers, Joint Bookrunners and Co-Syndication Agents. BNP Paribas Securities Corp. and Royal Bank of Canada acted as Co-Documentation Agents.
Q1 2026 Financial Results
Management will host its Q1 2026 financial results conference call on April 28, 2026 at 8:00 a.m. Eastern Time (ET). The webcast can be accessed at www.celestica.com.
