Celestica: The Hidden Gem in the Tech Sector

Celestica (TSE:CLS) has been making waves in the tech sector, catching the eye of investors with its impressive performance and strategic acquisitions. The company, a leader in design, manufacturing, and supply chain solutions, has been quietly building a strong portfolio of solutions and a diversified customer base that positions it well to capitalize on emerging trends in technology and manufacturing. Let's dive into the reasons why Celestica has become an attractive investment opportunity.



Strong Financial Performance

Celestica's recent financial performance has been nothing short of impressive. In 2024, the company's revenue grew by 21.17% year-over-year (YoY) to $9.65 billion, while earnings surged by 74.98% YoY to $428.00 million. These strong results reflect Celestica's ability to execute on its growth strategy and deliver value to its customers and shareholders.

Strategic Acquisitions

Celestica's acquisition of Singapore-based PCI Private Limited (PCI) in 2021 was a strategic move that expanded its capabilities in key markets and strengthened its presence in Asia. The acquisition allowed Celestica to increase its engineering capabilities and talent, diversify its customer base, and expand its Advanced Technology Solutions (ATS) portfolio with high-growth programs. This acquisition is a testament to Celestica's commitment to investing in its future and staying ahead of the curve in the rapidly evolving technology landscape.



Focus on High-Growth, High-Margin Markets

Celestica's focus on high-growth, high-margin markets, such as Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions, has positioned it well to capitalize on emerging trends in technology and manufacturing. The company's portfolio of solutions and diversified customer base enable it to serve customers in high-demand, high-margin segments, such as AI, IoT, and cloud computing. This strategic focus has contributed to Celestica's recent performance and investor interest.

Expert Insights

Kevin McFarlin, Design Engineering Director at Celestica, shared his insights on the importance of partnerships and early engagement with a strategic partner in a recent interview with Medical Design & Outsourcing (MD&O) magazine. He highlighted the need for medical device OEMs to consider three key factors when choosing a manufacturing partner: scaling production to meet global demand, integrating key design considerations, and incorporating manufacturing insights into product design. These factors are equally relevant for investors looking to identify promising tech companies like Celestica.



In conclusion, Celestica's strong financial performance, strategic acquisitions, focus on high-growth, high-margin markets, and expert insights make it an attractive investment opportunity in the tech sector. The company's ability to capitalize on emerging trends in technology and manufacturing, coupled with its diversified customer base and global presence, positions it well to continue its impressive growth trajectory. As an investor, keeping an eye on Celestica is a smart move in today's dynamic tech landscape.