Americas Technology: Hardware: AI Project Pulse: January 2026 29 January 2026 | 1:57PM EST Equity Research We summarize recent announcements and developments in the AI project space across neoclouds, sovereigns, and enterprise made in January 2026. This represents select project announcements and is not indicative of the total AI infrastructure opportunity. We also include an interactive data center project cost calculator to provide a high-level framework on how to size spend by total power or number of XP ...

Core Insights - Celestica reported strong financial performance for fiscal year 2025, with revenue of $12.4 billion and adjusted EPS of $6.05, reflecting growth of 28% and 56% respectively [1] - The company achieved an adjusted operating margin of 7.5%, marking the second consecutive year of 100 basis points improvement, driven by AI-related demand and operational execution [1] Financial Performance - For Q4 2025, Celestica's revenue reached $3.65 billion, a 44% increase year over year, exceeding guidance [3][4] - Adjusted EPS for Q4 was $1.89, up 70% from the previous year, also surpassing the top end of guidance [3][4] - The adjusted operating margin for Q4 was a record 7.7%, up 90 basis points [3][4] Segment Performance - The Connectivity & Cloud Solutions (CCS) segment drove growth, with revenue increasing 64% to $2.86 billion, accounting for 78% of total revenue [6][7] - The Advanced Technology Solutions (ATS) segment saw a slight decline of 1% to $795 million, attributed to lower volumes in capital equipment and portfolio reshaping [8] Capital Expenditure and Growth Plans - Celestica plans to significantly increase capital expenditures to approximately $1 billion in 2026, up from $201 million in 2025, to expand operations in Texas, Thailand, and other locations [5][10] - The company raised its 2026 revenue guidance to $17 billion and adjusted EPS to $8.75, representing year-over-year growth of 37% and 45% respectively [15] Market Demand and Future Outlook - Demand from hyperscalers for networking and AI compute systems is expected to support CCS segment revenue growth of approximately 50% in 2026 [17] - Celestica has secured a design and manufacturing award for a 1.6T networking switch platform, with production expected to begin in 2027 [18] - Customer visibility extends into 2027 and beyond, with Celestica being viewed as a technology leader rather than just a supply chain partner [20]

Group 1 - The article does not provide specific insights or analysis on any companies or industries, focusing instead on the author's personal disclosures and lack of investment positions [1][2]

Key Takeaways Celestica posted Q4 results with adjusted EPS and revenue beats, driven by 44% sales growth led by CCS.CLS saw CCS revenues rise 64% as Communications demand lifted HPS sales by 72% on hyperscale networking.Celestica raised 2026 outlook to ~$17B revenues, $8.75 non-GAAP earnings per share.Celestica, Inc. (CLS) recorded strong fourth-quarter 2025 results with adjusted earnings and revenues beating the respective Zacks Consensus Estimate.This Toronto-based electronics manufacturing service provi ...

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved revenue of $3.65 billion, a 44% increase year-over-year, exceeding guidance [10] - Adjusted EPS for the quarter was $1.89, a 70% increase compared to the previous year [10] - Full-year revenue for 2025 was $12.4 billion, representing a 28% growth year-over-year, while adjusted EPS was $6.05, up 56% [7][8] - Adjusted operating margin for Q4 was 7.7%, marking the strongest performance in company history [7] Business Line Data and Key Metrics Changes - Revenue in the ATS segment for Q4 was $795 million, a 1% decline year-over-year, while the CCS segment revenue was $2.86 billion, up 64% [11][12] - The CCS segment accounted for 78% of total company revenue in Q4, with communications end market revenue increasing by 79% [12] - The ATS segment margin improved to 5.3%, while the CCS segment margin was 8.4% [13] Market Data and Key Metrics Changes - The company anticipates revenue growth in the communications end market to be in the low sixties percentage range, driven by ongoing ramps in 800G programs [23] - The enterprise end market is expected to see very strong growth in the high teens percentage range, supported by AI/ML compute program ramps [23] Company Strategy and Development Direction - The company is significantly increasing capital investment plans for 2026 and 2027 to support long-term capacity planning and growth opportunities [16][17] - Investments will focus on expanding manufacturing capabilities in the U.S. and Thailand, aligning with customer demand for data center infrastructure and AI capabilities [18][19] - The company aims to maintain a strong balance sheet while funding increased capital expenditures through operating cash flow [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, raising revenue guidance to $17 billion and adjusted EPS to $8.75, reflecting a 37% and 45% growth year-over-year, respectively [25] - The company is focused on securing supply and managing macro uncertainties while anticipating strong demand from hyperscalers and digital native customers [37][41] - Management highlighted the unprecedented level of demand and the strategic importance of investments in new capacity to support future growth [30][31] Other Important Information - The company generated $156 million in free cash flow in Q4, with total annual adjusted free cash flow of $458 million for 2025 [15] - The company has a healthy cash balance of $596 million and a net debt position of $128 million, indicating strong liquidity [20] Q&A Session Summary Question: Concerns about potential slowdown in fiscal second half - Management reassured that customer forecasts for 2026 are higher than the guidance, indicating a pragmatic approach to outlook [36][37] Question: Risk management regarding funding for AI-related projects - Management stated that the build-out is based on booked business with minimal risk of programs not materializing, emphasizing strong demand [40][41] Question: CapEx investment and its impact on revenue - Management clarified that current CapEx investments are tied to booked business and will support revenue growth in 2027 and beyond [49] Question: Updates on digital native customer relationship - Management confirmed a solid relationship with the digital native customer, with preparations for ramping production in early 2027 [88] Question: Expected returns on new programs compared to existing ones - Management indicated that new programs are becoming more complex, with a focus on strong profitability and disciplined investment [95][96]

Celestica (NYSE:CLS) Q4 2025 Earnings call January 29, 2026 08:00 AM ET Company ParticipantsMandeep Chawla - CFOMatthew Pallotta - Head of Investor RelationsMichael Ng - Managing Director of Global Investment ResearchRob Mionis - President and CEORuben Roy - Managing DirectorSteven Fox - Founder and CEOThanos Moschopoulos - Managing Director of Equity Research TechnologyTim Long - Managing DirectorConference Call ParticipantsAtif Malik - AnalystDavid Vogt - Managing Director and Senior Equity AnalystJohn Sh ...

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $3.65 billion, a 44% increase year-over-year, exceeding guidance [8][9] - Adjusted EPS for the quarter was $1.89, up 70% from the previous year [9] - Full-year revenue for 2025 was $12.4 billion, representing a 28% growth, while adjusted EPS was $6.05, a 56% increase [5][6] - Adjusted operating margin for Q4 was 7.7%, marking the strongest performance in company history [5][9] - Adjusted ROIC was 43%, up 14 percentage points compared to the prior year [10] Business Segment Data and Key Metrics Changes - ATS segment revenue was $795 million, a 1% decline, while CCS segment revenue was $2.86 billion, up 64% [10] - Communications end market revenue increased by 79%, driven by demand for 800G networking switches [11] - Enterprise end market revenue grew by 33%, supported by AI/ML compute programs [11] - ATS segment margin improved to 5.3%, while CCS segment margin was 8.4% [12] Market Data and Key Metrics Changes - The CCS segment accounted for 78% of total company revenue in Q4 [10] - Three customers accounted for 36%, 15%, and 12% of total revenue in Q4 [12] - Inventory balance at the end of Q4 was $2.19 billion, a sequential increase of $141 million [13] Company Strategy and Development Direction - The company plans to increase capital expenditures to approximately $1 billion in 2026 to support growth [14][15] - Investments will focus on expanding capacity in the U.S. and Thailand to meet customer demand [16][17] - The company aims to align its global footprint with customer capacity roadmaps, particularly in data center infrastructure and AI capabilities [15][18] - The outlook for 2026 revenue is raised to $17 billion, with adjusted EPS expected to be $8.75, reflecting strong demand [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2026 outlook, citing strong customer demand and a robust pipeline of growth opportunities [23][25] - The company anticipates continued growth in the CCS segment, driven by hyperscaler demand for networking technologies [26][27] - Management acknowledged macro uncertainties but emphasized a strong demand outlook [35][39] Other Important Information - The company generated $156 million in free cash flow in Q4, totaling $458 million for the year [13] - The gross debt to non-GAAP trailing twelve-month Adjusted EBITDA leverage ratio improved to 0.7 turns [19] - The company repurchased approximately 132,000 shares for $36 million during the quarter [20] Q&A Session Summary Question: Clarification on revenue and EPS guidance for fiscal 2026 - Management confirmed confidence in the 2026 outlook, noting customer forecasts exceed guidance [34] Question: Concerns about funding for future AI-related projects - Management stated that the build-out is based on booked business, with minimal risk of programs not materializing [37] Question: CapEx investment and its impact on revenue growth - Management indicated that current investments are based on booked business and will support growth into 2027 [47] Question: Margin trajectory with enterprise growth - Management expects strong operating leverage and does not foresee significant margin compression despite enterprise growth [55] Question: Supply chain and inflation impact on margins - Management is comfortable with the supply chain and does not anticipate significant margin compression from inflation [104]

Fourth Quarter 2025 Financial Results January 29, 2026 1 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to: strengthening demand in our businesses, demand environment and customer forecasts, our anticipated financial and/or operational results, guidance and outlook, including statements under the headings "Capital Investments," "Q1 2026 Guidance," "Q1 2026 Non-GAAP Tax Rate Estimate," "Q1 2026 End Marke ...

Core Viewpoint - Celestica Inc. has announced its Annual Meeting of Shareholders will take place on May 19, 2026, in a hybrid format, with further details to be provided in the definitive proxy statement [1] Group 1: Meeting Details - The Annual Meeting of Shareholders is scheduled for May 19, 2026, at 9:30 a.m. EDT [1] - The record date for determining eligible shareholders is set for March 27, 2026 [2] - Celestica will utilize the notice-and-access method for delivering proxy materials to shareholders, which will be available on its website and other platforms [3] Group 2: Company Overview - Celestica is a technology leader focused on customer success and market advancements, specializing in data center infrastructure for AI, cloud, and hybrid cloud solutions [4] - The company leverages its expertise in design, engineering, manufacturing, and supply chain to provide competitive advantages to its customers [4]

Celestica Inc. (NYSE:CLS) shares are trending on Thursday.Shares of the Toronto-based data center infrastructure provider fell 5.28% in after-hours trading on Wednesday, to $327.01, following the company's fourth-quarter earnings report and 2026 guidance update.Record Q4 Performance Beats GuidanceCelestica reported fourth-quarter 2025 revenue climbed 44% to $3.65 billion from $2.55 billion a year earlier, topping the high end of its guidance range of $3.325 billion to $3.575 billion. Adjusted earnings per s ...