Celestica Q4 Earnings Beat Estimates, Boosts FY25 Outlook On Strong CCS Segment Performance

Celestica, Inc. CLS shares traded higher in premarket on Thursday following better-than-expected fourth-quarter results and issued first-quarter guidance above estimates.

Revenue rose 19% year-over-year (Y/Y) to $2.55 billion beating the consensus of $2.53 billion.

Adjusted operating margin expanded to 6.8% from 6.0% a year ago quarter.

CCS segment revenue surged 30% Y/Y to $1.74 billion, with segment margin of 7.9% vs.  6.8% in prior year quarter. Hardware Platform Solutions (HPS) revenue escalated 65% Y/Y to $0.8 billion in the quarter.

ATS segment revenue remained flat Y/Y at $0.81 billion, with segment margin of 4.6% compared to 4.7% in year ago quarter

Adjusted EPS of $1.11 beat the consensus of $1.05.

The company repurchased 0.3 million common shares for cancellation for $25.5 million.

As of December 31, cash and cash equivalents stood at $423.3 million.

2025 Outlook Raised: The company raised revenue guidance to $10.7 billion (from $10.4 billion prior) vs. consensus of $10.6 billion and adjusted EPS to $4.75 (from $4.42 earlier) vs estimate of $4.48. This reflects strong demand in the CCS segment.

First-Quarter Guidance: Celestica sees revenue of $2.475 billion-$2.625 billion (vs. street view of $2.419 billion) and adjusted EPS of $1.06 to $1.16 (vs. consensus of $1.00).

Rob Mionis, president and CEO, Celestica said, ‘'Overall, the current demand environment for data center hardware is robust, as evidenced by recent customer forecasts as well as new AI program awards over the last 90 days, including our second and third 1.6T program wins. As such, we believe the positive momentum we are experiencing will continue beyond this year, and into 2026.”

Price Action: CLS shares are up 16.03% at $116.60 at the last check Thursday.

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