Celestica (CLS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $3.65B, up 44% YoY, with adjusted EPS of $1.89, both above guidance; full-year 2025 revenue was $12.4B, up 28%, and adjusted EPS grew 56% to $6.05.

• Record profitability with GAAP EPS of $7.16 for 2025, up 98% YoY; non-GAAP adjusted EPS was $6.05, up 56%.

• Results driven by strong CCS segment growth in Communications and Enterprise end markets, and robust demand in AI/data center infrastructure.

• Raised 2026 annual outlook: revenue to $17B (+37% YoY) and adjusted EPS to $8.75 (+45% YoY), maintaining free cash flow outlook at $500M.

• Significant capital investments planned for 2026–2027 to expand capacity, especially in Texas, Thailand, Mexico, and Japan, to support hyperscaler and AI/data center growth.

Financial highlights

• Q4 2025 GAAP EPS was $2.31, up 79% YoY; adjusted EPS was $1.89, up 70% YoY; Q4 revenue was $3.65B, up 44% YoY.

• Adjusted operating margin reached 7.7% in Q4, the highest in company history, and 7.5% for the year.

• Adjusted gross margin was 11.3% in Q4; GAAP gross margin was 11.8%.

• Free cash flow for 2025 was $458M (+$152M YoY); Q4 free cash flow was $156M.

• Inventory at Q4 end was $2.19B, up $427M YoY; cash cycle days improved by 8 days YoY.

Outlook and guidance

• Q1 2026 revenue guidance: $3.85B–$4.15B (+51% YoY at midpoint); adjusted EPS: $1.95–$2.15 (+71% YoY at midpoint); adjusted operating margin 7.8%.

• 2026 annual revenue outlook raised to $17B (+37% YoY); adjusted EPS to $8.75 (+45% YoY); free cash flow outlook maintained at $500M.

• CCS segment expected to grow ~50% in 2026; ATS segment to remain flat to mid-single digits growth.

• CapEx for 2026 projected at ~$1B (6% of revenue), funded by operating cash flow.

• Q1 2026 non-GAAP tax rate estimate: 21%.