Celestica Reports Robust Second Quarter 2025 Financial Results, Raises Full-Year Outlook
Celestica Inc, a global leader in design, manufacturing, hardware platform, and supply chain solutions, has released its financial results for the second quarter of 2025, ended June 30. The company reported strong revenue growth, substantial earnings increases, and improved operating margins, underscoring the effectiveness of its business strategy and execution. On the back of these results, Celestica has also raised its guidance for the full fiscal year 2025.
Second Quarter 2025 Financial Highlights
Celestica posted revenue of $2.89 billion, a 21% increase from $2.39 billion in the same quarter of 2024. This surge in revenue surpassed the company’s previously issued guidance range of $2.575 to $2.725 billion, reflecting stronger-than-expected customer demand, particularly in the Communications segment.
The company’s GAAP earnings from operations reached 9.4% of revenue, a notable improvement from 5.6% a year earlier. The adjusted operating margin (non-GAAP) also improved, rising to 7.4% from 6.3% in Q2 2024, setting a new company record.
GAAP earnings per share (EPS) rose significantly to $1.82, compared to $0.80 in the prior-year quarter. Adjusted EPS (non-GAAP) increased to $1.39, up from $0.90, marking a 54% improvement year over year and exceeding the high end of Celestica’s guidance range of $1.17 to $1.27.
In the second quarter, Celestica repurchased 600,000 common shares for cancellation at a cost of $40 million, reinforcing its commitment to delivering shareholder value.
CEO Commentary and Strategic Outlook
“We achieved very strong results in the second quarter, with revenue of $2.89 billion and non-GAAP adjusted EPS of $1.39, both exceeding the high end of our guidance ranges,” said Rob Mionis, President and CEO of Celestica. “This performance was bolstered by a strong adjusted operating margin of 7.4%, another record high for our company. These results highlight the strength of our execution and reflect our ability to deliver consistently despite ongoing macroeconomic uncertainties.”
Mionis further emphasized the company’s momentum going into the second half of the year, particularly in the Connectivity & Cloud Solutions (CCS) segment, prompting a revision in Celestica’s full-year guidance.
Updated Full-Year 2025 Outlook
Given the strong first-half results and improved demand visibility, especially from CCS customers, Celestica has revised its full-year 2025 financial projections:
- Revenue: Now expected to reach $11.55 billion, up from the previous forecast of $10.85 billion.
- Adjusted EPS (non-GAAP): Increased to $5.50, from the earlier estimate of $5.00.
- Adjusted Operating Margin (non-GAAP): Expected at 7.4%, higher than the previously projected 7.2%.
- Non-GAAP Free Cash Flow: Forecasted at $400 million, up from $350 million.
These projections assume no major changes in tariffs, trade restrictions, or macroeconomic conditions through the end of the year.
Q3 2025 Guidance
Looking ahead to the third quarter of 2025, Celestica anticipates:
- Revenue: Between $2.875 and $3.125 billion.
- Adjusted Operating Margin (non-GAAP): 7.4% at the midpoint of the guidance range.
- Adjusted EPS (non-GAAP): Between $1.37 and $1.53.
These ranges reflect the expansion of Celestica’s business and aim to account for continued demand strength across its operating segments.
Segment Performance
Celestica’s business is structured into two main operating segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS).
Connectivity & Cloud Solutions (CCS)
- Revenue: $2.07 billion, a 28% year-over-year increase.
- Segment Margin: 8.3%, up from 7.0% in Q2 2024.
- Hardware Platform Solutions Revenue: Approximately $1.2 billion, an 82% increase over Q2 2024, driven by robust demand in servers, storage, and cloud infrastructure.
Advanced Technology Solutions (ATS)
- Revenue: $820 million, a 7% increase from the previous year.
- Segment Margin: 5.3%, compared to 4.6% in Q2 2024.
- The ATS segment includes businesses in Aerospace and Defense, Industrial, HealthTech, and Capital Equipment.
GAAP and Non-GAAP Adjustments
The GAAP EPS of $1.82 in Q2 2025 includes a $0.33 per share pre-tax charge related to stock-based compensation, amortization of intangible assets (excluding software), and restructuring charges. This charge was higher than previously expected due to elevated restructuring costs.
GAAP EPS also includes a $0.84 per share pre-tax gain from a fair value adjustment on a Total Return Swap (TRS), compared to a $0.13 gain in Q2 2024.
Celestica’s GAAP effective tax rate for the quarter was 18%, while the adjusted effective tax rate (non-GAAP) came in at 20%, as anticipated.
Investor Communications and Non-GAAP Use
Celestica management will hold a conference call on July 29, 2025, at 8:00 a.m. EDT to discuss the Q2 2025 results. The webcast will be available at www.celestica.com.
The company continues to emphasize the use of non-GAAP financial measures such as adjusted EPS, operating margin, and free cash flow to offer more insight into the company’s core performance. These metrics help investors and analysts make more accurate comparisons across periods and assess underlying business trends.
Due to the inherent difficulty in forecasting certain items excluded from GAAP calculations—such as future restructuring costs or stock-based compensation—Celestica does not provide reconciliations of forward-looking non-GAAP guidance to the closest GAAP measures.
