Celestica (CLS) investor relations material

Executive summary

• Q3 revenue was $5.83B, up 83% YoY, and adjusted EPS was $3.30, up 109%; both exceeded the high end of guidance.

• Adjusted operating margin reached a record 8.5%, up 90 bps YoY, on stronger demand and execution.

• Hyperscaler and AI infrastructure demand drove CCS growth; raised FY26 outlook and initial FY27 guidance call for $40B revenue and 9.0% adjusted operating margin.

Financial highlights

• Q3 revenue was $5,829.7M versus $3,194.0M YoY; GAAP net earnings were $397.2M versus $267.8M, and adjusted net earnings were $402.1M versus $183.1M.

• GAAP diluted EPS was $3.26 versus $2.31; adjusted EPS was $3.30 versus $1.58.

• GAAP gross margin was 11.0% versus 13.0% YoY; adjusted gross margin was 11.2% versus 11.7%, with CCS mix and TRS fair-value changes weighing on reported results.

• Q3 operating cash flow was $389.7M and free cash flow was $127.5M; YTD operating cash flow was $1,156.9M and non-GAAP free cash flow was $412.5M.

• YTD revenue rose 67% to $14.58B; net earnings increased 73% to $978.3M and diluted EPS was $8.30 versus $4.86.

Outlook and guidance

• Q4 guidance: revenue $6.275B–$6.575B, adjusted EPS $3.37–$3.57 and adjusted operating margin of 8.7% at the midpoint; adjusted tax-rate assumption ~20%.

• FY26 outlook: revenue $21.0B, up 69%; adjusted EPS $11.55 and adjusted operating margin 8.4%. Free cash flow outlook was reduced to $460M from $600M for targeted working-capital investment.

• FY27 outlook: revenue $40.0B, up 90%; adjusted EPS $21.50, adjusted operating margin 9.0% and capex $1.5B–$2.0B.

• FY27 adjusted free cash flow is expected to be a net use of funds, driven by working capital and capex; 2028 customer demand forecasts are meaningfully above the FY27 revenue outlook.

• FY26 capex is expected at ~$1B; FY27 CCS revenue is expected to grow ~110% and ATS ~10%.