01—Abstract
Summary
Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Celestica Inc. reported a strong financial performance for the fiscal year ended December 31, 2025, with revenue reaching $12.4 billiona, a significant 28% increase year-over-year.
This growth was primarily driven by the Connectivity and Cloud Solutions (CCS) segment, which saw a 42% surge in revenue to $9.19 billionb, largely fueled by robust demand in data center networking and a substantial 81% increase in the Hardware Platform Solutions (HPS) business. The Advanced Technology Solutions (ATS) segment experienced a more modest 1% revenue increase, reaching $3.20 billion. Profitability also saw significant improvement, with gross profit increasing by 45% to $1.49 billion and gross margin expanding to 12.1%, up from 10.7% in the prior year.
This was attributed to strong revenue growth, improved operating leverage, and a favorable business mix. Net earnings more than doubled to $832.5 millionc, resulting in a diluted EPS of $7.16, a substantial increase from $3.61 in 2024. The company also continued its commitment to returning capital to shareholders through share repurchases.
02—Key points
Key Highlights
- Revenue increased by 28% year-over-year to $12.4 billion, driven by strong performance in the CCS segment.
- CCS segment revenue grew by 42% to $9.19 billion, with HPS business revenue up 81%.
- Gross profit increased by 45% to $1.49 billion, and gross margin improved to 12.1%.
- Net earnings more than doubled to $832.5 million, with diluted EPS rising to $7.16.
- The company's strategic focus on hyperscaler customers and AI-related infrastructure is yielding significant results.
- Capital expenditures are planned to increase in 2026 to support anticipated growth, with approximately $1 billion allocated.
- Celestica continues to execute its strategy of portfolio evolution and operational improvement.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Celestica Inc kept $0.07.
- Revenue$12.39B100.0%
- Cost of revenue−$10.90B87.9%
- Gross profit$1.49B12.1%
- Operating costs−$453.4M3.7%
- Operating income$1.04B8.4%
- Interest, other & tax−$208.2M1.7%
- Net income$832.5M6.7%
Where FY2025 revenue went
$12.39B- Cost of revenue: $10.90B, 88% of revenue
- Net income: $832.5M, 6.7% of revenue
- R&D: $118.2M, 1.0% of revenue
- SG&A: $259.9M, 2.1% of revenue
- Other operating costs: $75.3M, 0.6% of revenue
- Interest, other & tax: $208.2M, 1.7% of revenue
Kept 6.7% as net incomeNet income $832.5M · 6.7%Other operating costs $75.3M · 0.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 27, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $12.39B$9.65B | +28.5% |
| Cost of Revenue | $10.90B$8.61B | +26.5% |
| Gross Profit | $1.49B$1.03B | +44.5% |
| R&D Expenses | $118.20M$78.00M | +51.5% |
| SG&A Expenses | $259.90M$293.50M | −11.4% |
| Operating Income | $1.04B$599.30M | +73.7% |
| Net Income | $832.50M$428.00M | +94.5% |
| EPS (Basic) | $7.22$3.62 | +99.4% |
| EPS (Diluted) | $7.16$3.61 | +98.3% |
| Shares Outstanding (Basic) | 115.30M118.10M | −2.4% |
| Shares Outstanding (Diluted) | 116.20M118.70M | −2.1% |
05—Questions
Frequently Asked Questions
What was the primary driver of Celestica's revenue growth in 2025?
The primary driver of Celestica's revenue growth in 2025 was the Connectivity and Cloud Solutions (CCS) segment, which experienced a 42% increase. This was largely propelled by strong demand in data center networking, particularly within the Hardware Platform Solutions (HPS) business, which saw an 81% rise in revenue.
How did Celestica's profitability improve in 2025?
Celestica's profitability saw significant improvement in 2025. Gross profit increased by 45% to $1.49 billion, and gross margin expanded to 12.1% from 10.7% in 2024. This was attributed to strong revenue growth, improved operating leverage, and a more favorable business mix.
What is Celestica's capital expenditure plan for 2026?
Celestica plans to increase its capital expenditures significantly in 2026, allocating approximately $1 billion (about 6% of currently anticipated revenue) to support anticipated growth in customer demand, particularly from hyperscaler customers and for AI/ML programs. These investments will focus on capacity additions, manufacturing capabilities, and new design centers.
What is the company's approach to returning capital to shareholders?
Celestica has a balanced approach to capital allocation. The company generated strong free cash flow in 2025 and continues to prioritize returning capital to shareholders primarily through opportunistic share repurchases under its Normal Course Issuer Bid (NCIB).
06—Continue