Celestica (CLS) Q4 2025 earnings summary

Executive summary

• Delivered record Q4 and full-year 2025 results, with revenue of $12.4B (+28% YoY) and adjusted EPS of $6.05 (+56% YoY), both exceeding guidance, driven by strong CCS segment growth and robust demand in AI, data center, and networking.

• Adjusted operating margin reached 7.7% in Q4, the highest in company history, and 7.5% for the year, marking a second consecutive year of 100 basis points improvement.

• GAAP EPS for 2025 was $7.16, up 98% YoY; Q4 2025 GAAP EPS was $2.31, up 79% YoY.

• 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 revenue: $3.65B (+44% YoY), adjusted EPS: $1.89 (+70% YoY), both above guidance.

• Q4 2025 GAAP earnings from operations were $314.4M (8.6% of revenue), up $111.8M YoY.

• Adjusted gross margin: 11.3% in Q4; Q4 2025 gross margin was 11.8%, flat YoY.

• Q4 2025 adjusted ROIC: 43% (+14 ppts YoY); full-year 2025 adjusted ROIC: 37.1%.

• Free cash flow: $156M in Q4; $458M for 2025 (+$152M YoY); full-year 2025 free cash flow was $659.5M.

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).

• 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%.