Incredible performance from CLS last night with very strong numbers yet again, and another raise on guidance for end of FY26.
“Our financial performance in the fourth quarter was very strong, with revenue of $3.65 billion and adjusted EPS of $1.89, both exceeding the high end of our guidance ranges. We had a solid finish to 2025, achieving revenue of $12.4 billion, up 28%, while our adjusted EPS (non-GAAP)* grew 56% year-over-year,” said Rob Mionis, President and CEO of Celestica.
“Driven by very strong results in 2025, and improved momentum into 2026, we are pleased to be raising our annual outlook. As demand for AI-related data center technologies continues to strengthen, we now expect revenue of $17.0 billion and adjusted EPS (non-GAAP)* of $8.75 for 2026.”
“We are continuing to align with our largest customers on their multi-year capacity roadmaps in support of their long-term AI infrastructure investments. We believe the revenue growth trajectory that we anticipate in 2026 will be sustained into 2027, and as a result, we are strategically increasing our planned capital investments to $1
billion this year. Importantly, we anticipate being able to fully fund this expansion organically through our operating cash flow.”
This is a very well run company operating in an industry that is clearly still in high demand.
Total Revenue this Q was the highest ever, up 44% YoY, with their CCS revenue (which counted for 78% of total revenue) up 64% YoY!
Their non GAAP EPS was up 70% and their free cash flow up 63%.
These were very solid numbers, and CLS remains one of my longest held stocks and is a core holding for me.
The AH market did not seem to like the ER as much as I did, which is strange, but I think that it should rise again once the market digests these numbers more. The Earnings call is this afternoon (well, afternoon for me in the UK).
Full release here
https://corporate.celestica.com/static-files/3f82636d-2990-46aa-af30-3b7ddbc66b60
Jonathan