10-QPeriod: Q1 FY2026

CELESTICA INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 27, 2026For Securities:CLS

Summary

Celestica Inc. (CLS) reported a strong first quarter for 2026, demonstrating significant year-over-year growth. Revenue surged by 53% to $4.05 billion, driven primarily by a substantial increase in the Connectivity & Cloud Solutions (CCS) segment. This growth was fueled by high demand in the Communications end market, particularly for data center networking products and AI/ML compute programs. The company's profitability also saw a marked improvement, with net earnings more than doubling to $212.3 million, leading to diluted EPS of $1.83. Financially, Celestica's balance sheet strengthened, with total assets growing to $8.26 billion. The company successfully managed its liquidity, ending the quarter with $378.0 million in cash and cash equivalents, and also secured an upsizing and extension of its credit facility. Management's outlook remains positive, with updated annual guidance for 2026 reflecting continued expected growth and operational efficiency, supported by strong customer demand in key segments.

Financial Highlights

40 data points
Beta

Revenue

$4.05B

10.8% Gross Margin

Net Income

$212.30M

5.2% Net Margin

EPS (Diluted)

$1.83

Total Assets

$8.26B

Cash & Equivalents

$378.00M

Free Cash Flow

$356.30M

Financial Statements
Beta
Revenue$4.05B
Cost of Revenue$3.61B
Gross Profit$437.20M
R&D Expenses$41.20M
SG&A Expenses$117.40M
Operating Income$272.10M
Net Income$212.30M
EPS (Basic)$1.85
EPS (Diluted)$1.83
Shares Outstanding (Basic)114.90M
Shares Outstanding (Diluted)115.70M

Key Highlights

  • 1Revenue increased by 53% year-over-year to $4.05 billion in Q1 2026.
  • 2Net earnings more than doubled, reaching $212.3 million, with diluted EPS at $1.83.
  • 3The Connectivity & Cloud Solutions (CCS) segment saw 76% revenue growth, driven by demand in Communications and Enterprise end markets, particularly for data center and AI/ML applications.
  • 4Gross margin improved to 10.8% from 10.3% in the prior year, attributed to a favorable product mix and strong productivity.
  • 5Celestica amended and upsized its credit facility, increasing the revolving credit facility to $1.75 billion and extending maturity dates.
  • 6The company generated strong operating cash flow of $356.3 million, a significant increase from the prior year.
  • 7Total assets grew to $8.26 billion, indicating a stronger financial position.

Frequently Asked Questions

The substantial 53% year-over-year revenue increase to $4.05 billion was primarily driven by the Connectivity & Cloud Solutions (CCS) segment, which grew by 76%. This growth was fueled by strong demand in the Communications end market, particularly for data center networking products and ongoing switch program ramps, as well as the ramp-up of an AI/ML compute program in the Enterprise end market.

Celestica experienced a significant improvement in profitability. Net earnings more than doubled, increasing by 146% to $212.3 million. This resulted in a diluted Earnings Per Share (EPS) of $1.83, up from $0.74 in the prior year's quarter. The gross margin also improved to 10.8% from 10.3%.

Celestica amended and upsized its credit facility on April 27, 2026. This included increasing the revolving credit facility commitments from $750 million to $1.75 billion and extending the maturity of the revolving credit facility and the new term A loan to April 2031. The company also generated strong operating cash flow of $356.3 million and ended the quarter with $378.0 million in cash and cash equivalents, indicating a healthy liquidity position.

Yes, Celestica relies on a small number of customers for a substantial portion of its revenue. In Q1 2026, the top three customers, all within the CCS segment, individually represented 35%, 15%, and 15% of total revenue. This concentration is a key factor for investors to monitor.