Celestica Shares Rise 12% Amid Q2 Earnings Beat, Guidance Raise

Celestica shares rose 12.1% pre-market after reporting better-than-expected Q2 earnings and raising FY25 guidance. The company reported EPS of $1.39, beating the consensus estimate of $1.22, and sales of $2.893 billion, exceeding the estimate of $2.652 billion. Other stocks moving in pre-market trading include Salarius Pharmaceuticals, Scinai Immunotherapeutics, ScanTech AI Systems, Shineco, Sarepta Therapeutics, Fulcrum Therapeutics, Chart Industries, Cellectis, Donegal Group, AIM ImmunoTech, Bakkt Holdings, Wang & Lee Group, Profusa, Ekso Bionics Holdings, Leslie's, VisionWave Holdings, and Wag! Group Co.

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 [1].

The revenue increase of 21% year-over-year, reaching $2.89 billion for 2025 Q2, was driven primarily by the Connectivity & Cloud Solutions (CCS) segment, which saw 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 [1].

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 [1].

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 [1].

The company's CEO, Rob Mionis, stated, "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" [1].

Celestica raised its 2025 annual revenue outlook from $10.85 billion to $11.55 billion and increased its non-GAAP adjusted EPS outlook from $5 per share to $5.50 per share, reflecting a 42% year-over-year growth. The company also raised its free cash flow outlook for the year from $350 million to $400 million, assuming no material changes to tariffs or trade restrictions [2].

For Q3 2025, revenue is projected to be between $2.875 billion and $3.125 billion, with adjusted EPS anticipated between $1.37 and $1.53. The CCS segment is expected to see nearly 30% growth for the full year, while the ATS segment outlook remains flat compared to 2024 [2].

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 [1].

References:
[1] https://www.ainvest.com/news/celestica-2025-q2-earnings-strong-performance-net-income-surges-122-2507/
[2] https://seekingalpha.com/news/4473733-celestica-raises-2025-revenue-outlook-to-11_55b-while-advancing-800g-networking-ramp