Celestica 2025 Q2 Earnings Strong Performance as Net Income Surges 122%

Celestica Inc. (CLS) reported impressive fiscal 2025 Q2 earnings on July 28th, 2025, with revenue and adjusted EPS exceeding expectations. The company achieved a total revenue of $2.89 billion, surpassing estimates of $2.65 billion, and reported adjusted EPS of $1.39 against the forecasted $1.22. In light of these strong results, Celestica raised its full-year 2025 revenue outlook to $11.55 billion from the previous estimate of $10.85 billion and adjusted EPS to $5.50 from $5.00. The company’s robust performance reflects a strengthening demand outlook from CCS customers, positioning it for continued growth.

Revenue

Celestica recorded a notable revenue increase of 21% year-over-year, reaching $2.89 billion for 2025 Q2, up from $2.39 billion in the same quarter last year. The Connectivity & Cloud Solutions (CCS) segment led the growth with a substantial 28% rise, generating $2.07 billion. Meanwhile, the Advanced Technology Solutions (ATS) segment contributed $819.10 million, marking a 7% increase from the previous year.

Earnings/Net Income

Celestica's earnings per share (EPS) surged 128.8% to $1.83 in 2025 Q2 from $0.80 in 2024 Q2, reflecting significant earnings growth. Net income also saw remarkable improvement, increasing by 122.1% to $211 million from $95 million in the previous year. These figures indicate a strong performance.

Price Action

The stock price of Celestica edged up 2.04% during the latest trading day, climbed 6.35% during the most recent full trading week, and surged 16.32% month-to-date.

Post-Earnings Price Action Review

The investment strategy of purchasing Celestica shares 30 days after a quarter-over-quarter revenue increase on the earnings release date has proven highly successful over the past three years, delivering an exceptional total return of 1904.69%. This performance significantly outpaced the benchmark return of 88.74%, showcasing an excess return of 1815.95%. With a compound annual growth rate (CAGR) of 82.66%, the strategy emerged as a potentially rewarding investment despite its relatively high volatility of 53.18% and a Sharpe ratio of 1.55. Although it experienced no maximum drawdown, the approach indicates a risky but lucrative investment profile. The strategy's emphasis on buying shares following revenue increases has clearly been effective, presenting a compelling case for investors seeking high returns.

CEO Commentary

"We achieved very strong results in the second quarter, with revenue of $2.89 billion and non-GAAP adjusted EPS of $1.39, representing growth of 21% and 54%, respectively, each exceeding the high end of our guidance ranges. This performance was bolstered by strong adjusted operating margin of 7.4%, another new high for the company, demonstrating the strength of our execution," stated Rob Mionis, President and CEO. "With our strong first half results, and a strengthening demand outlook from our CCS customers, we are increasing our full-year 2025 outlook."

Guidance

"We now expect revenue to reach $11.55 billion, an increase from the prior $10.85 billion, and anticipate non-GAAP adjusted EPS of $5.50, up from our previous estimate of $5.00. Q3 2025 guidance includes revenue of $2.875 to $3.125 billion and adjusted EPS of $1.37 to $1.53."

Additional News

Celestica has been active in enhancing shareholder value through strategic repurchases. In the second quarter of 2025, the company repurchased 600,000 shares of its common stock for $40 million, reflecting its commitment to return value to shareholders. Additionally, Celestica continues to position itself as a leader in supply chain solutions, capitalizing on the growing demand for AI data centers. The company's proactive approach in adapting to industry trends and customer needs has been pivotal, as evidenced by its raised full-year guidance. Despite fluctuations in the broader market, Celestica remains focused on leveraging its strengths and expanding its footprint in the technology sector. The company's ability to navigate challenges and seize opportunities has solidified its standing among top performers in the industry, further aided by its robust financial strategies.