Q4 2025 revenue and adjusted EPS* above the high end of our guidance ranges;
Raising 2026 annual outlook
(All amounts in U.S. dollars)
TORONTO, (GLOBE NEWSWIRE) — Celestica Inc.1 (NYSE: CLS) (TSX: CLS), a global leader in data center infrastructure and advanced technology solutions, announced its financial results for the fourth quarter ended December 31, 2025 (Q4 2025).
Q4 2025 Highlights
- Revenue: $3.65 billion, increased 44% compared to $2.55 billion for the fourth quarter of 2024 (Q4 2024).
- GAAP earnings from operations as a % of revenue: 8.6%, compared to 8.0% for Q4 2024.
- Adjusted operating margin (non-GAAP)*: 7.7%, compared to 6.8% for Q4 2024.
- GAAP earnings per share2 (EPS): $2.31, compared to $1.29 for Q4 2024.
- Adjusted EPS2 (non-GAAP)*: $1.89, compared to $1.11 for Q4 2024.
- Repurchased 0.1 million common shares for cancellation for $35.7 million.
2025 Highlights
- Revenue: $12.39 billion, increased 28% compared to $9.65 billion for 2024.
- GAAP EPS2: $7.16, compared to $3.61 for 2024.
- Adjusted EPS2 (non-GAAP)*: $6.05, compared to $3.88 for 2024.
“Our financial performance in the fourth quarter was very strong, with revenue of $3.65 billion and adjusted EPS (non-GAAP)* of $1.89, both exceeding the high end of our guidance ranges. We had a solid finish to 2025, achieving revenue of $12.4 billion, up 28%, while our adjusted EPS (non-GAAP)* grew 56% year-over-year,” said Rob Mionis, President and CEO of Celestica.
“Driven by very strong results in 2025, and improved momentum into 2026, we are pleased to be raising our annual outlook. As demand for AI-related data center technologies continues to strengthen, we now expect revenue of $17.0 billion and adjusted EPS (non-GAAP)* of $8.75 for 2026.”
“We are continuing to align with our largest customers on their multi-year capacity roadmaps in support of their long-term AI infrastructure investments. We believe the revenue growth trajectory that we anticipate in 2026 will be sustained into 2027, and as a result, we are strategically increasing our planned capital investments to $1 billion this year. Importantly, we anticipate being able to fully fund this expansion organically through our operating cash flow.”
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).
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 (*).
First Quarter of 2026 (Q1 2026) Guidance
| Q1 2026 Guidance | |
| Revenue (in billions) | $3.850 to $4.150 |
| Adjusted operating margin (non-GAAP)* | 7.8% at the mid-point of our revenue and adjusted EPS (non-GAAP) guidance ranges |
| Adjusted EPS (non-GAAP)*(1) | $1.95 to $2.15 |
(1) Q1 2026 guidance excludes a negative $0.35 to $0.41 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. Q1 2026 guidance assumes an adjusted effective tax rate (non-GAAP)* of approximately 21%.
2026 Annual Outlook Update
- Revenue of $17.0 billion (previous outlook $16.0 billion) (1)
- Adjusted EPS (non-GAAP)* of $8.75 (previous outlook $8.20) (1)(2)
Our previous adjusted operating margin (non-GAAP)* outlook of 7.8% and free cash flow (non-GAAP)* outlook of $500 million remain unchanged.
(1) The increase of our 2026 annual outlook is driven by expected stronger customer demand for Q1 2026 and improvements in our demand visibility for the remainder of 2026.
(2) 2026 guidance assumes an adjusted effective tax rate (non-GAAP)* of approximately 21%.
Our 2026 Annual Outlook Update assumes no material changes to tariffs or trade restrictions compared to what are in effect as of January 28, 2026 and no material changes from current macroeconomic trends and uncertainties. Substantially all tariffs paid by Celestica are expected to continue to be recovered from our customers, and are not expected to materially impact our adjusted operating earnings (adjusted EBIAT) (non-GAAP)* or adjusted net earnings (non-GAAP)* dollars.
* See Use of Non-GAAP Measures and Schedule 1. For our Q1 2026 Guidance and 2026 Annual Outlook Update, we present certain forward-looking non-GAAP metrics. A reconciliation of such forward-looking non-GAAP measures to the most directly comparable GAAP measures on a forward-looking basis has not been provided because the items that we exclude from GAAP to calculate the comparable non-GAAP measure are dependent on future events that management is not able to reliably predict and are not part of our routine operating activities. We are unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty in predicting the occurrence, the financial impact and the periods in which the adjustments may be recognized. The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact our GAAP results.
Summary of Selected Q4 2025 Results
| Q4 2025 Actual | Q4 2025 Guidance(3) | ||
| Revenue (in billions)(1) | $3.655 | $3.325 to $3.575 | |
| GAAP earnings from operations as a % of revenue | 8.6% | N/A | |
| GAAP EPS(2) | $2.31 | N/A | |
| Adjusted operating margin (non-GAAP)* | 7.7% | 7.6% at the mid-point of our revenue and adjusted EPS (non-GAAP) guidance ranges | |
| Adjusted EPS (non-GAAP)* | $1.89 | $1.65 to $1.81 | |
CCS segment revenue: $2.86 billion, increased 64% compared to Q4 2024; CCS segment margin(4): 8.4% compared to 7.9% for Q4 2024. Hardware Platform Solutions (HPS) revenue of approximately $1.4 billion increased 72% compared to Q4 2024.
ATS segment revenue: $0.80 billion, decreased 1% compared to Q4 2024; ATS segment margin(4): 5.3% compared to 4.6% for Q4 2024.
(1) In Q4 2025, three customers individually represented 10% or more of our total revenue (36%, 15%, and 12%).
(2) GAAP EPS of $2.31 for Q4 2025 included an aggregate charge of $0.25 per share (pre-tax) for employee SBC expense, amortization of intangible assets (excluding computer software), and restructuring charges (Q4 2024 — $0.17 per share (pre-tax)). This aggregate charge was within our previously communicated Q4 2025 anticipated range of between $0.23 to $0.29 per share (pre-tax) for these items.
GAAP EPS for Q4 2025 also included a $0.53 per share (pre-tax) positive impact attributable to our total return swap agreement (Q4 2024 — $0.44 per share (pre-tax) positive impact).
(3) For Q4 2025, our revenue exceeded the high end of our guidance range due to higher than anticipated customer demand, particularly in our CCS segment. Our adjusted operating margin (non-GAAP) for Q4 2025 exceeded the mid-point of our revenue and adjusted EPS (non-GAAP) guidance ranges and our Q4 2025 adjusted EPS (non-GAAP) exceeded the high end of our guidance range, primarily driven by stronger than anticipated operating leverage in our CCS segment. Our GAAP effective tax rate for Q4 2025 was 11%. Our adjusted effective tax rate (non-GAAP) for Q4 2025 was 19%, lower than our anticipated estimate of approximately 20%, primarily due to a valuation allowance release, which was largely offset by accruals for tax uncertainties and jurisdictional profit mix.
(4) Segment margin is segment income as a percentage of segment revenue. Segment income is defined as a segment’s revenue less its cost of sales and its allocatable portion of selling, general and administrative expenses (SG&A) and research and development expenses. Segment income excludes Miscellaneous Expense (Income), FCC Transitional ADJ, employee SBC expense, TRS FVAs, amortization of intangible assets (excluding computer software), restructuring and other charges, net of recoveries (each defined in Schedule 1 below) and finance costs.
Summary of Selected Full Year 2025 Results
| 2025 Actual | 2025 Outlook (previously published on October 27, 2025) |
|||
| Revenue (in billions) (1) | $12.4 | $12.2 | ||
| GAAP earnings from operations as a % of revenue | 8.4% | N/A | ||
| GAAP EPS (2) | $7.16 | N/A | ||
| GAAP cash provided by operations (in millions) | $659.5 | N/A | ||
| Adjusted operating margin (non-GAAP)* | 7.5% | 7.4% at the mid-point of our revenue and adjusted EPS (non-GAAP) guidance ranges | ||
| Adjusted EPS (non-GAAP)* | $6.05 | $5.90 | ||
| Free cash flow (non-GAAP)* (in millions) | $458.3 | $425 | ||
(1) In 2025, three customers individually represented 10% or more of total revenue (32%, 14% and 12%).
(2) GAAP EPS for 2025 included $2.18 per share (pre-tax) positive impact attributable to our total return swap agreement (2024 — $0.77 per share (pre-tax) positive impact).
* See Use of Non-GAAP Measures and Schedule 1.
Business Updates
We are pleased to announce the following developments with respect to investments in our business and new program wins:
Celestica’s investments to support Google’s US production of TPU systems
Celestica is pleased to announce it is expanding its manufacturing capacity in the United States, to support the growing demand for next-generation AI infrastructure. This expansion, scheduled for completion in 2027, is designed to enhance Celestica’s ability to support the production of complex data center hardware, including Google Tensor Processing Unit (TPU) systems.
As a preferred manufacturing partner for Google’s data center hardware and systems, Celestica remains strategically aligned with Google to provide the advanced technical capabilities required for the continued evolution of the TPU platform.
Celestica will also continue to invest in the growth of its manufacturing capacity in South East Asia, to support Google’s TPU platform and leading-edge networking technologies.
By strategically expanding its global network, Celestica is reinforcing its commitment to support its customers with high-reliability manufacturing capacity, industry-leading design engineering and supply chain services. These investments empower Celestica to serve as a vital partner in deploying the next generation of data center infrastructure to enable the future of AI applications.
Expanded capital investment plans enabling capacity to support multi-year demand outlook
We are increasing our capital investment plans for 2026 and 2027 in order to align our global design and manufacturing footprint with our data center customers’ multi-year capacity plans.
We now anticipate our 2026 capital expenditures will be approximately $1 billion, or approximately 6% of our latest annual revenue outlook. The additional capacity is expected to become available throughout 2026 and 2027, and is intended to enable our network with the necessary scale and capabilities to support anticipated growth in demand, particularly in our CCS segment.
Our multi-year view on capacity requirements has been developed through close collaboration in planning with several of our key customers, and is supported by accelerating growth in the scale of our existing engagements, and improved long-term demand visibility.
The investments will include a combination of capacity additions, upgrades to manufacturing capabilities, including investments in power, and new customer driven investments in the United States. Some highlights of the planned investments include the expansion of our manufacturing footprint in the Dallas-Fort Worth, Texas metro area, the construction of multiple new buildings at our Thailand campus, investments in our existing sites in Mexico and Japan, as well as new HPS design centers in Asia and the United States.
We anticipate to fully fund our increased 2026 capital expenditures organically with cash provided by operations.
Third 1.6T program award with a hyperscaler customer
Celestica has been awarded the program for the design and manufacturing of the 1.6 terabyte switching platform with a third hyperscaler customer. The HPS program is expected to begin ramping production in 2027.
Q4 2025 Financial Results
Management will host its Q4 2025 financial results conference call on January 29, 2026 at 8:00 a.m. Eastern Time (ET). The webcast can be accessed at www.celestica.com.
