Q4 2024 adjusted EPS* above the high end of the guidance range; Raising 2025 annual outlook
(All amounts in U.S. dollars)
TORONTO (GLOBE NEWSWIRE) — Celestica Inc. (TSX: CLS) (NYSE: CLS), a leader in design, manufacturing, hardware platform and supply chain solutions for the world’s most innovative companies, today announced financial results for the quarter ended December 31, 2024 (Q4 2024)1.
Reported results in accordance with U.S. GAAP (GAAP), transitioning from IFRS.
Q4 2024 Highlights
- Revenue: $2.55 billion, increased 19% compared to $2.14 billion for fourth quarter of 2023 (Q4 2023).
- GAAP earnings from operations as a % of revenue: 8.0%, compared to 5.1% for Q4 2023.
- Adjusted operating margin (non-GAAP)*: 6.8%, compared to 6.0% for Q4 2023.
- GAAP earnings per share2 (EPS): $1.29, compared to $0.77 for Q4 2023.
- Adjusted EPS2 (non-GAAP)*: $1.11, compared to $0.77 for Q4 2023.
- Repurchased 0.3 million common shares for cancellation for $25.5 million.
“We are pleased with the company’s strong performance in the fourth quarter and solid finish to 2024. Fourth quarter revenue of $2.55 billion was up 19% year-over-year, while non-GAAP adjusted EPS* of $1.11 was our highest quarterly EPS ever. For the full year 2024, Celestica achieved 21% revenue growth, while our non-GAAP adjusted EPS* grew 58% year-over-year,” said Rob Mionis, President and CEO, Celestica.
“Looking towards 2025, we are pleased to raise our full-year outlook, reflecting strengthening demand in our CCS segment. We now anticipate revenue of $10.7 billion, an increase from our previous outlook of $10.4 billion, and non-GAAP adjusted EPS* of $4.75, up from our previous outlook of $4.42. Overall, the current demand environment for data center hardware is robust, as evidenced by recent customer forecasts as well as new AI program awards over the last 90 days, including our second and third 1.6T program wins. As such, we believe the positive momentum we are experiencing will continue beyond this year, and into 2026.”
1 Celestica has two operating and reportable segments: Advanced Technology Solutions (ATS) (comprised of our Aerospace and Defense (A&D), Industrial, HealthTech and Capital Equipment businesses), and Connectivity & Cloud Solutions (CCS) (consists of our Communications and Enterprise (servers and storage) end markets). Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue).
* 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 (*).
2 Per share information included in this press release is based on diluted shares outstanding unless otherwise noted.
First Quarter of 2025 (Q1 2025) Guidance
| Q1 2025 Guidance | |
| Revenue (in billions) | $2.475 to $2.625 |
| Adjusted operating margin (non-GAAP)* | 6.8% at the mid-point of our revenue and non-GAAP adjusted EPS guidance ranges |
| Adjusted EPS (non-GAAP)* (1) | $1.06 to $1.16 |
(1) Q1 2025 guidance excludes a negative $0.29 to $0.35 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 2025 guidance assumes a non-GAAP adjusted effective tax rate* of approximately 20%.
2025 Annual Outlook
- Revenue of $10.7 billion (previous outlook was $10.4 billion)
- Adjusted operating margin (non-GAAP)* of 6.9% (previous non-IFRS outlook was 6.7%)
- Adjusted EPS (non-GAAP)* of $4.75 (previous non-IFRS outlook was $4.42)
- Free cash flow (non-GAAP)* of $350 million (previous non-IFRS outlook was $325 million)
Our 2025 outlook assumes an annual non-GAAP adjusted effective tax rate* of approximately 19%.
* See Use of Non-GAAP Measures and Schedule 1. For our Q1 2025 Guidance and 2025 Annual Outlook, 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 are not able to be reliably predicted by management 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 Q1 2025 and 2025 GAAP results.
Summary of Selected Q4 2024 Results
| Q4 2024 Actual (3) | |||
| Revenue (in billions) (1) | $ | 2.55 | |
| GAAP earnings from operations as a % of revenue | 8.0 | % | |
| GAAP selling, general and administration expenses (SG&A) (in millions) | $ | 57.6 | |
| GAAP EPS (2) | $ | 1.29 | |
| Adjusted operating margin (non-GAAP)* | 6.8 | % | |
| Adjusted SG&A (non-GAAP)* (in millions) | $ | 81.2 | |
| Adjusted EPS (non-GAAP)* | $ | 1.11 | |
CCS segment revenue: $1.74 billion, increased 30% compared to Q4 2023; CCS segment margin(4): 7.9% compared to 6.8% for Q4 2023. Hardware Platform Solutions (HPS) revenue of $0.8 billion increased 65% compared to Q4 2023.
ATS segment revenue: $0.81 billion, remained flat compared to Q4 2023; ATS segment margin(4): 4.6% compared to 4.7% for Q4 2023.
