Celestica Inc. Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

Celestica delivered strong Q4 2025 results, exceeding guidance, driven by robust CCS segment growth in communications and enterprise markets. Full-year 2025 marked another record year with sustained margin expansion and operating leverage. The company raised its 2026 annual outlook, citing accelerating AI-related demand, record bookings, and expanded capacity investments. All comparisons below are year-over-year unless noted.

Key Q4 2025 Financial Metrics (vs Q4 2024)

  • Revenue: $3.65 billion (+44%), above high end of guidance
  • Non-GAAP operating margin: 7.7% (+90 bps), record high
  • Adjusted EPS: $1.89 (+70% or +$0.78), above high end of guidance
  • Adjusted gross margin: 11.3% (+30 bps)
  • Adjusted ROIC: 43% (+14 percentage points)
  • Free cash flow: $150 million

Full Year 2025 Performance (vs 2024)

  • Revenue: $12.4 billion (+28%)
  • Adjusted EPS: $6.05 (+56%)
  • Adjusted operating margin: 7.5% (+100 bps for second consecutive year)
  • Free cash flow: $458 million (+$152 million)
  • Three customers each >10% of revenue (32%, 14%, 12%)
  • Capital expenditures: $201 million (1.6% of revenue)

Segment Performance (Q4 2025)

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Operator: Ladies and gentlemen, thank you for joining us, and welcome to the Celestica Q4 2025 Financial Results and Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press 9 to raise your hand and 6 to unmute when called upon. I will now hand the conference over to Matthew Pilotta, head of investor relations. Please go ahead. Matthew Pilotta: Good morning, and thank you for joining us on Celestica's Q4 2025 financial results conference call. On the call today, we have Rob Mionis, president and chief executive officer, and Mandeep Chawla, chief financial officer. Please note that during the course of this call, we will make forward-looking statements, including statements relating to the future performance of Celestica, our business outlook, guidance for 2026, our 2026 annual outlook, and anticipated trends in our industry and their anticipated impact on our business. These are based on management's current expectations, forecasts, and assumptions, including that there are no material changes to tariff or trade restrictions compared to what is in effect as of January 28. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations, and their potential impact on our results cannot be reliably predicted at this time. For identification and discus
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