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- **Record Revenue Growth**: Q3 revenue up 28% YoY to $3.19B, driven by 43% CCS growth. Full-year 2025 revenue guidance raised to $12.2B (+26% YoY).
- **Profitability Expansion**: Adjusted EPS of $1.58 (+54% YoY), with non-GAAP operating margin at 7.6%, highest in company history. 2026 EPS guidance of $8.20 (+39% YoY).
- **Hyperscaler Dominance**: 76% of revenue from CCS, with 800G switches leading. 1.6T programs and digital native AI systems set to drive 2026-2027 growth.
- **Strategic Investments**: R&D spend to double in 2026, supporting 1.6T, scale-up Ethernet, and liquid cooling. Texas/Thailand expansions to meet hyperscaler demand.
- **Margin Resilience**: ATS segment margin improved to 5.5% in Q3, with focus on high-margin industrial and health tech programs.

**【CEO Summary Section】**
- **Revenue Growth and Margin Expansion**: Q3 revenue of $3.19 billion (+28% YoY), driven by 43% growth in the Connectivity & Cloud Solutions (CCS) segment. Adjusted EPS of $1.58, up 54% YoY. Non-GAAP operating margin reached 7.6%, the highest in company history.
- **Segment Performance**: CCS revenue ($2.41B) accounted for 76% of total, with hyperscalers leading demand. Advanced Technology Solutions (ATS) revenue ($781M) declined 4% YoY but improved segment margin to 5.5%.
- **2025 Outlook**: Full-year revenue guidance raised to $12.2B (+26% YoY), with adjusted EPS of $5.90 (+52% YoY). Free cash flow outlook increased to $425M.

**【CFO Financial Commentary】**
- **Q3 Financial Highlights**: Adjusted gross margin 11.7% (+100bps YoY). Free cash flow of $89M, year-to-date $302M. Capital expenditures ($37M) remain disciplined at 1.2% of revenue.
- **Q4 Guidance**: Revenue $3.325B-$3.575B (+36% YoY midpoint). Adjusted EPS $1.65-$1.81 (+56% YoY midpoint). Non-GAAP operating margin expected to remain at 7.6%.
- **Long-Term Vision**: 2026 revenue projected at $16B (+31% YoY), with adjusted EPS of $8.20 (+39% YoY). Focus on AI-driven data center infrastructure and hyperscaler partnerships.

**【Segment Highlights】**
- **CCS Growth**: 800G switch programs dominate, with 1.6T ramps expected in 2026. Digital native customer wins include a rack-scale AI system for 2027. HPS revenue mix drives margin expansion.
- **ATS Restructuring**: Reshaping A&D portfolio improves margins to 5.5% in Q3. Industrial and health tech businesses show strong growth, offsetting softness in semiconductor capital equipment.
- **Capacity Expansion**: Texas and Thailand expansions support hyperscaler demand. Texas site to add thousands of AI racks; Thailand to scale production for 2027-2028 ramps.

**【Q&A Highlights】**
- **R&D and CapEx**: R&D spend to increase 50%+ in 2026, targeting 1.6T, scale-up Ethernet, and liquid cooling. CapEx 2%-2.5% of revenue in 2026, focused on growth programs.
- **Customer Commitments**: 12-15 months of visibility on demand. Digital native customer AI system expected to generate >$1B in 2027. Hyperscaler storage wins highlight diversification.
- **Market Share**: 41% share of 800G+ switch ports, leading competitors. 1.6T program wins with multiple customers, positioning for 2026-2027 ramps.


Celestica Inc (CLS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CLS

CLS fundamentals

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