Celestica Inc.: Celestica Announces Fourth Quarter and FY 2025 Financial Results

Q4 2025 revenue and adjusted EPS* above the high end of our guidance ranges;
Raising 2026 annual outlook

(All amounts in U.S. dollars)

TORONTO, Jan. 28, 2026 (GLOBE NEWSWIRE) -- Celestica Inc.¹ (NYSE: CLS) (TSX: CLS), a global leader in data center infrastructure and advanced technology solutions, today announced its financial results for the fourth quarter ended December 31, 2025 (Q4 2025).

Q4 2025 Highlights

• Revenue: $3.65 billion, increased 44% compared to $2.55 billion for the fourth quarter of 2024 (Q4 2024).
• GAAP earnings from operations as a % of revenue: 8.6%, compared to 8.0% for Q4 2024.
• Adjusted operating margin (non-GAAP)*: 7.7%, compared to 6.8% for Q4 2024.
• GAAP earnings per share² (EPS): $2.31, compared to $1.29 for Q4 2024.
• Adjusted EPS² (non-GAAP)*: $1.89, compared to $1.11 for Q4 2024.
• Repurchased 0.1 million common shares for cancellation for $35.7 million.

2025 Highlights

• Revenue: $12.39 billion, increased 28% compared to $9.65 billion for 2024.
• GAAP EPS²: $7.16, compared to $3.61 for 2024.
• Adjusted EPS² (non-GAAP)*: $6.05, compared to $3.88 for 2024.
  

"Our financial performance in the fourth quarter was very strong, with revenue of $3.65 billion and adjusted EPS (non-GAAP)* of $1.89, both exceeding the high end of our guidance ranges. We had a solid finish to 2025, achieving revenue of $12.4 billion, up 28%, while our adjusted EPS (non-GAAP)* grew 56% year-over-year," said Rob Mionis, President and CEO of Celestica.

"Driven by very strong results in 2025, and improved momentum into 2026, we are pleased to be raising our annual outlook. As demand for AI-related data center technologies continues to strengthen, we now expect revenue of $17.0 billion and adjusted EPS (non-GAAP)* of $8.75 for 2026."

"We are continuing to align with our largest customers on their multi-year capacity roadmaps in support of their long-term AI infrastructure investments. We believe the revenue growth trajectory that we anticipate in 2026 will be sustained into 2027, and as a result, we are strategically increasing our planned capital investments to $1 billion this year. Importantly, we anticipate being able to fully fund this expansion organically through our operating cash flow."

¹ Celestica has two operating and reportable segments: Connectivity & Cloud Solutions (CCS) (consists of our Communications and Enterprise (servers and storage) end markets) and Advanced Technology Solutions (ATS) (comprised of our Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses). Segment performance is evaluated based on segment revenue, segment income, and segment margin (segment income as a percentage of segment revenue).
² Per share information included in this press release is based on diluted shares outstanding unless otherwise noted.
* See Use of Non-GAAP Measures and Schedule 1 for, among other items, non-GAAP financial measures (and ratios) included in this press release, their definitions, uses, and a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. Non-GAAP measures in this press release are denoted with an asterisk (22.4- (109.3- (39.6- FCC Transitional ADJ - 0.4 - 0.1 Adjusted gross profit (non-GAAP)- 411.4 11.3- - 279.8 11.0- - 1,415.0 11.4- - 1,019.0 10.6- GAAP SG&A- 70.1 1.9- - 57.6 2.3- - 259.9 2.1- - 293.5 3.0- Employee SBC expense (7.0- (5.5- (39.6- (32.6- TRS FVAs: gains 33.7 29.1 143.7 51.4 FCC Transitional ADJ - - - 1.4 Adjusted SG&A (non-GAAP)- 96.8 2.6- - 81.2 3.2- - 364.0 2.9- - 313.7 3.3- GAAP earnings from operations- 314.4 8.6- - 202.6 8.0- - 1,040.7 8.4- - 599.3 6.2- Employee SBC expense 13.0 10.1 69.8 57.4 TRS FVAs: (gains) (61.4- (51.5- (253.0- (91.0- FCC Transitional ADJ - 0.4 - (1.3- Amortization of intangible assets (excluding computer software) 9.9 9.9 39.8 38.8 Restructuring and other charges, net of recoveries 6.4 2.1 29.7 19.4 Adjusted operating earnings (adjusted EBIAT) (non-GAAP)- 282.3 7.7- - 173.6 6.8- - 927.0 7.5- - 622.6 6.5- GAAP net earnings- 267.5 7.3- - 151.7 6.0- - 832.5 6.7- - 428.0 4.4- Employee SBC expense 13.0 10.1 69.8 57.4 TRS FVAs: (gains) (61.4- (51.5- (253.0- (91.0- FCC Transitional ADJ - 0.4 - (1.3- Amortization of intangible assets (excluding computer software) 9.9 9.9 39.8 38.8 Restructuring and other charges, net of recoveries 6.4 2.1 29.7 19.4 Miscellaneous Expense 0.5 1.2 4.9 15.0 Adjustments for taxes⁽¹⁾ (17.1- 6.3 (20.5- (5.5- Adjusted net earnings (non-GAAP)- 218.8 6.0- - 130.2 5.1- - 703.2 5.7- - 460.8 4.8- Diluted EPS Weighted average # of shares (in millions) 115.9 117.3 116.2 118.7 GAAP EPS- 2.31 - 1.29 - 7.16 - 3.61 Adjusted EPS (non-GAAP)- 1.89 - 1.11 - 6.05 - 3.88 # of shares outstanding at period end (in millions) 114.9 116.1 114.9 116.1 GAAP cash provided by operations- 250.6 - 143.4 - 659.5 - 473.9 Purchase of property, plant and equipment, net of sales proceeds (94.7- (47.6- (201.2- (168.0- Free cash flow (non-GAAP)- 155.9 - 95.8 - 458.3 - 305.9 GAAP ROIC % 48.0- 34.0- 41.6- 26.1- Adjusted ROIC % (non-GAAP) 43.1- 29.1- 37.1- 27.2-

(1) The adjustments for taxes represent the tax effects (reflecting applicable effective tax rates) of the non-core items, which include our non-GAAP adjustments above.

Our GAAP effective tax rate is defined as (i) GAAP tax expense divided by (ii) earnings from operations minus finance costs and Miscellaneous Expense (Income) recorded on our statement of operations; our adjusted effective tax rate (non-GAAP) is defined as (i) adjusted tax expense (non-GAAP) divided by (ii) adjusted operating earnings (non-GAAP) minus finance costs. The following table sets forth, for the periods indicated, our calculation of GAAP effective tax rate and adjusted effective tax rate (non-GAAP):

	Three months ended								Year ended
	December 31								December 31
		2025				2024				2025				2024
GAAP tax expense	-	33.8			-	37.8			-	150.7			-	104.2
Earnings from operations	-	314.4			-	202.6			-	1,040.7			-	599.3
Finance costs		(12.6	-			(11.9	-			(52.6	-			(52.1	-
Miscellaneous Expense		(0.5	-			(1.2	-			(4.9	-			(15.0	-
	-	301.3			-	189.5			-	983.2			-	532.2
GAAP effective tax rate		11	-			20	-			15	-			20	-
Adjusted tax expense (non-GAAP)	-	50.9			-	31.5			-	171.2			-	109.7
Adjusted operating earnings (non-GAAP)	-	282.3			-	173.6			-	927.0			-	622.6
Finance costs		(12.6	-			(11.9	-			(52.6	-			(52.1	-
	-	269.7			-	161.7			-	874.4			-	570.5
Adjusted effective tax rate (non-GAAP)		19	-			19	-			20	-			19	-

The following table sets forth, for the periods indicated, our calculation of GAAP ROIC % and adjusted ROIC % (non-GAAP) (in millions, except GAAP ROIC % and adjusted ROIC % (non-GAAP)):

	Three months ended								Year ended
	December 31								December 31
		2025				2024				2025				2024
GAAP earnings from operations	-	314.4			-	202.6			-	1,040.7			-	599.3
Multiplier to annualize earnings		4				4				1				1
Annualized GAAP earnings from operations	-	1,257.6			-	810.4			-	1,040.7			-	599.3
Average net invested capital for the period*	-	2,619.5			-	2,386.7			-	2,498.7			-	2,292.4
GAAP ROIC %		48.0	-			34.0	-			41.6	-			26.1	-
	Three months ended								Year ended
	December 31								December 31
		2025				2024				2025				2024
Adjusted operating earnings (adjusted EBIAT) (non-GAAP)	-	282.3			-	173.6			-	927.0			-	622.6
Multiplier to annualize earnings		4				4				1				1
Annualized adjusted EBIAT (non-GAAP)	-	1,129.2			-	694.4			-	927.0			-	622.6
Average net invested capital for the period*	-	2,619.5			-	2,386.7			-	2,498.7			-	2,292.4
Adjusted ROIC % (non-GAAP)		43.1	-			29.1	-			37.1	-			27.2	-

	December 31 2025			September 30 2025			June 30 2025			March 31 2025			December 31 2024
Net invested capital consists of:
Total assets	-	7,213.1		-	6,606.7		-	6,241.1		-	5,834.9		-	5,988.2
Less: cash		595.6			305.9			313.8			303.0			423.3
Less: ROU assets (operating and finance leases)		173.1			178.9			174.9			178.6			180.8
Less: accounts payable, accrued and other current liabilities and provisions (excluding finance and operating lease liabilities) and income taxes payable		3,882.0			3,445.4			3,265.7			3,000.3			2,969.2
Net invested capital at period end*	-	2,562.4		-	2,676.5		-	2,486.7		-	2,353.0		-	2,414.9
	December 31 2024			September 30 2024			June 30 2024			March 31 2024			December 31 2023
Net invested capital consists of:
Total assets	-	5,988.2		-	5,924.8		-	5,872.8		-	5,711.5		-	5,890.5
Less: cash		423.3			398.5			434.0			308.1			370.4
Less: ROU assets (operating and finance leases)		180.8			186.3			200.1			196.1			170.0
Less: accounts payable, accrued and other current liabilities and provisions (excluding finance and operating lease liabilities) and income taxes payable		2,969.2			2,981.6			2,946.2			2,992.6			3,168.4
Net invested capital at period end*	-	2,414.9		-	2,358.4		-	2,292.5		-	2,214.7		-	2,181.7

* We use a two-point average to calculate average net invested capital for the quarter and a five-point average to calculate average net invested capital for the 12-month period. Average net invested capital for Q4 2025 is the average of net invested capital as of December 31, 2025 and September 30, 2025 and average net invested capital for full year 2025 is the average of net invested capital as of December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024.

CELESTICA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions of U.S. dollars) (unaudited)
	December 31 2025				December 31 2024
Assets
Current assets:
Cash and cash equivalents	-	595.6			-	423.3
Accounts receivable, net		2,638.1				2,069.0
Inventories		2,188.0				1,760.6
Other current assets		251.5				259.3
Total current assets		5,673.2				4,512.2
Property, plant and equipment, net		586.0				537.2
Operating lease right-of-use assets		124.1				124.4
Goodwill		333.1				340.5
Intangible assets, net		266.2				308.0
Deferred income taxes		156.4				87.7
Other non-current assets		74.1				78.2
Total assets	-	7,213.1			-	5,988.2
Liabilities and Equity
Current liabilities:
Current portion of borrowings under credit facility and finance lease obligations	-	26.0			-	26.5
Accounts payable		1,866.1				1,294.8
Accrued and other current liabilities and provisions		1,896.8				1,606.6
Income taxes payable		150.7				93.5
Total current liabilities		3,939.6				3,021.4
Long-term portion of borrowings under credit facility and finance lease obligations		750.5				770.2
Pension and non-pension post-employment benefit obligations		89.5				83.8
Other non-current liabilities and provisions		176.0				167.4
Deferred income taxes		41.2				49.4
Total liabilities		4,996.8				4,092.2
Equity:
Total equity		2,216.3				1,896.0
Total liabilities and equity	-	7,213.1			-	5,988.2

CELESTICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of U.S. dollars, except per share amounts)
(unaudited)

	Three months ended								Year ended
	December 31								December 31
		2025				2024				2025				2024
Revenue	-	3,654.9			-	2,545.7			-	12,390.9			-	9,646.0
Cost of sales		3,221.8				2,248.5				10,896.8				8,612.3
Gross profit		433.1				297.2				1,494.1				1,033.7
Selling, general and administrative expenses		70.1				57.6				259.9				293.5
Research and development		30.2				23.4				118.2				78.0
Amortization of intangible assets		12.0				11.5				45.6				43.5
Restructuring and other charges, net of recoveries		6.4				2.1				29.7				19.4
Earnings from operations		314.4				202.6				1,040.7				599.3
Finance costs		12.6				11.9				52.6				52.1
Miscellaneous expense		0.5				1.2				4.9				15.0
Earnings before income taxes		301.3				189.5				983.2				532.2
Income tax expense (recovery)
Current		86.1				47.7				219.1				136.1
Deferred		(52.3	-			(9.9	-			(68.4	-			(31.9	-
		33.8				37.8				150.7				104.2
Net earnings	-	267.5			-	151.7			-	832.5			-	428.0
Earnings per share:
Basic	-	2.33			-	1.30			-	7.22			-	3.62
Diluted	-	2.31			-	1.29			-	7.16			-	3.61
Weighted-average shares used in computing per share amounts (in millions):
Basic		115.0				116.3				115.3				118.1
Diluted		115.9				117.3				116.2				118.7

CELESTICA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions of U.S. dollars) (unaudited)
	Three months ended								Year ended
	December 31								December 31
Cash provided by (used in):		2025				2024				2025				2024
Operating activities:
Net earnings	-	267.5			-	151.7			-	832.5			-	428.0
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization		52.7				40.0				175.7				151.9
Stock-based compensation (SBC)		13.0				10.1				69.8				57.4
Total return swap (TRS) fair value adjustments		(61.4	-			(51.5	-			(253.0	-			(91.0	-
Restructuring and other charges		4.4				-				7.3				5.9
Unrealized losses on hedge derivatives		1.0				2.1				4.7				13.2
Deferred income taxes		(52.3	-			(9.9	-			(68.4	-			(31.9	-
Other		(21.1	-			15.9				3.0				11.1
Changes in non-cash working capital items:
Accounts receivable		(198.8	-			(61.3	-			(569.1	-			(270.7	-
Inventories		(141.3	-			59.9				(427.4	-			343.7
Other current assets		(17.8	-			8.1				(25.1	-			45.1
Accounts payable, accrued and other current liabilities, provisions and income taxes payable		404.7				(21.7	-			909.5				(188.8	-
Net cash provided by operating activities		250.6				143.4				659.5				473.9
Investing activities:
Cash paid for business acquisition, net of cash acquired		-				-				-				(36.1	-
Purchase of property, plant and equipment		(94.7	-			(47.6	-			(201.2	-			(170.9	-
Proceeds from sale of assets		-				-				-				2.9
Other		-				(3.4	-			(2.5	-			(8.4	-
Net cash used in investing activities		(94.7	-			(51.0	-			(203.7	-			(212.5	-
Financing activities:
Borrowings under revolving loans		-				313.0				500.0				798.0
Repayments under revolving loans		-				(313.0	-			(500.0	-			(798.0	-
Borrowings under term loans		-				-				-				750.0
Repayments under term loans		(4.4	-			(4.4	-			(17.5	-			(617.7	-
Principal payments of finance leases		(3.9	-			(2.6	-			(11.5	-			(9.7	-
Proceeds from issuance of capital stock		-				-				0.3				3.9
Repurchase of capital stock for cancellation		(35.7	-			(25.5	-			(153.4	-			(152.0	-
Purchase of treasury stock for SBC plans		-				(18.0	-			(221.6	-			(119.6	-
Proceeds from TRS settlement		246.6				-				345.2				32.3
SBC cash settlement		(68.8	-			(15.6	-			(224.8	-			(84.6	-
Debt issuance costs paid		-				(1.5	-			(0.2	-			(11.1	-
Net cash provided by (used in) financing activities		133.8				(67.6	-			(283.5	-			(208.5	-
Net increase in cash and cash equivalents		289.7				24.8				172.3				52.9
Cash and cash equivalents, beginning of period		305.9				398.5				423.3				370.4
Cash and cash equivalents, end of period	-	595.6			-	423.3			-	595.6			-	423.3
Supplemental disclosure information:
Interest paid	-	13.4			-	12.3			-	54.1			-	52.9
Net income taxes paid	-	72.9			-	34.4			-	174.8			-	106.3
Non-cash investing activity:
Unpaid purchases of property, plant and equipment at end of period	-	59.4			-	29.7			-	59.4			-	29.7