Celestica (CLS) investor relations material

Executive summary

• Q2 2025 revenue reached $2.89B, up 21% YoY, with adjusted EPS of $1.39 (up 54%) and GAAP EPS of $1.82 (up 128%), both exceeding guidance; record adjusted operating margin of 7.4% and GAAP margin of 9.4%.

• CCS segment saw robust growth from hyperscaler and communications demand, with revenue up 28% and HPS up 82%; ATS segment revenue rose 7% with improved margins.

• Free cash flow for Q2 was $120M, up $54M YoY; total liquidity stood at ~$1B.

• Repurchased 0.6M shares for $40M in Q2; $115M YTD under NCIB.

• Notable developments included the acquisition of NCS Global Services and a new long-term incentive plan.

Financial highlights

• Q2 revenue: $2.89B (+21% YoY); adjusted EPS: $1.39 (+54% YoY); GAAP EPS: $1.82 (+128% YoY); gross margin: 12.8% (up from 10.6%).

• Adjusted operating margin: 7.4%; GAAP operating margin: 9.4%.

• Adjusted ROIC: 35.5% (up from 26.6% YoY); GAAP ROIC: 45.0%.

• Free cash flow for Q2: $120M; YTD free cash flow: $214M.

• Inventory turns increased to 5.4x; cash balance at Q2 end was $314M.

Outlook and guidance

• 2025 annual outlook raised: revenue $11.55B (20% YoY growth), adjusted EPS $5.50 (42% YoY growth), free cash flow $400M.

• Q3 2025 revenue guidance: $2.88B–$3.13B; adjusted EPS: $1.37–$1.53; operating margin expected at 7.4%.

• Communications revenue projected to increase low 60s percent YoY in Q3; Enterprise expected to decrease mid-20s percent.

• CCS segment expected to grow nearly 30% for the year; ATS revenue to remain flat YoY.

• Guidance assumes no material changes to tariffs, trade restrictions, or macroeconomic trends.