10-KPeriod: FY2025

CELESTICA INC Annual Report, Year Ended Dec 31, 2025

Filed February 27, 2026For Securities:CLS

Summary

Celestica Inc. reported a strong financial performance for the fiscal year ended December 31, 2025, with revenue reaching $12.4 billion, 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 billion, 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 million, 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.

Financial Highlights

46 data points
Beta

Revenue

$12.39B

12.1% Gross Margin

Net Income

$832.50M

6.7% Net Margin

EPS (Diluted)

$7.16

Total Assets

$7.21B

Cash & Equivalents

$595.60M

Free Cash Flow

$659.50M

Financial Statements
Beta
Revenue$12.39B
Cost of Revenue$10.90B
Gross Profit$1.49B
R&D Expenses$118.20M
SG&A Expenses$259.90M
Operating Income$1.04B
Net Income$832.50M
EPS (Basic)$7.22
EPS (Diluted)$7.16
Shares Outstanding (Basic)115.30M
Shares Outstanding (Diluted)116.20M

Key Highlights

  • 1Revenue increased by 28% year-over-year to $12.4 billion, driven by strong performance in the CCS segment.
  • 2CCS segment revenue grew by 42% to $9.19 billion, with HPS business revenue up 81%.
  • 3Gross profit increased by 45% to $1.49 billion, and gross margin improved to 12.1%.
  • 4Net earnings more than doubled to $832.5 million, with diluted EPS rising to $7.16.
  • 5The company's strategic focus on hyperscaler customers and AI-related infrastructure is yielding significant results.
  • 6Capital expenditures are planned to increase in 2026 to support anticipated growth, with approximately $1 billion allocated.
  • 7Celestica continues to execute its strategy of portfolio evolution and operational improvement.

Frequently Asked Questions

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.

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.

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.

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).