Celestica Inc. (NYSE:CLS) Q3 2024 Earnings Call and Virtual Investor Meeting Conference Call October 23, 2024 5:00 PM ET Company Participants Craig Oberg – Vice President of Corporate Development and Investor Relations Rob Mionis – President and Chief Executive Officer Mandeep Chawla – Chief Financial Officer Jason Phillips – President, Connectivity and Cloud Solutions Todd Cooper – President, Advanced Technology Solutions Steven Dorwart – Senior Vice President, Hyperscalers and Service Provider Conference ...

Financial Data and Key Metrics - Q3 2024 revenue was $2.5 billion, up 22% YoY, exceeding the high end of guidance [8][10] - Adjusted EPS for Q3 was $1.04, $0.39 above the high end of guidance [8][10] - Non-IFRS operating margin improved to 6.7%, up 100 basis points YoY [8][10] - Adjusted gross margin was 10.7%, up 90 basis points YoY [13] - Adjusted ROIC improved to 28.6%, up 7.1% YoY [13] - Inventory balance at the end of Q3 was $1.83 billion, down $434 million YoY [14] - Adjusted free cash flow for Q3 was $75 million, compared to $34 million in the prior year period [15] Segment Performance Connectivity and Cloud Solutions (CCS) - CCS segment revenue grew 42% YoY to $1.69 billion, driven by strong demand from hyperscaler customers [8][11] - CCS segment margin improved to 7.6%, up 140 basis points YoY [8][12] - HPS (Hardware Platform Solutions) revenue grew 54% YoY to $761 million, accounting for 30% of total company revenue [12] - Enterprise end market revenue grew 38% YoY, driven by strong demand in the storage business [12] - Communications end market revenue grew 45% YoY, driven by demand for 400G and 800G networking switches [12] Advanced Technology Solutions (ATS) - ATS segment revenue declined 5% YoY to $814 million, driven by softness in the industrial business [8][11] - ATS segment margin was 4.8%, down 10 basis points YoY [12] - Aerospace and Defense (A&D) revenue grew 15% YoY [8] - Capital Equipment revenue grew 31% YoY [8] Market Performance - Hyperscaler customers accounted for 74% of CCS portfolio revenue in 2024 [31] - The Ethernet switch market for bandwidth of 400G and higher is expected to grow at a 52% CAGR over the next three years [42] - The AI server market is expected to grow from $100 billion in 2024 to over $250 billion by 2027 [48] Strategic Direction and Industry Competition - The company is focused on building a resilient, growth-oriented, and diversified portfolio to withstand cyclical fluctuations [27] - Investments in next-generation products and ODM capabilities are key strategic priorities [28] - The company is well-positioned to capitalize on the growing demand for AI infrastructure, with a focus on hyperscalers, digital-native companies, and sovereign data center projects [34][36] - The company is investing in advanced cooling systems and thermal management solutions to support the increasing power demands of AI silicon [47] Management Commentary on Operating Environment and Future Outlook - Management expects Q4 2024 revenue to be in the range of $2.425 billion to $2.575 billion, representing 17% growth at the midpoint [18] - Full-year 2024 revenue is expected to be $9.6 billion, up 21% YoY, with adjusted EPS of $3.85, up 58% YoY [20] - For 2025, the company anticipates revenue of $10.4 billion, representing 8% growth, with adjusted EPS of $4.42, up 15% YoY [65] - The company expects CCS segment revenue to grow in the low double-digit percentage range in 2025, driven by hyperscaler programs and new AI/ML compute wins [65] Other Important Information - The company repurchased 2.2 million shares in Q3 at an average cost of $44 per share, totaling $100 million [17] - The company plans to transition from IFRS to U.S. GAAP reporting starting January 1, 2025 [22] - The company has a strong liquidity position with $399 million in cash and $750 million in borrowing capacity, providing total liquidity of $1.1 billion [16] Q&A Session Summary Question: Impact of Cisco entering the hyperscaler market - The company believes that hyperscalers still value optimized hardware and that its ODM capabilities provide a competitive advantage [73][74][75] Question: Back-end network opportunities and Ethernet switch market - The company sees strong demand for 400G and 800G Ethernet switches, with significant growth expected in the AI/ML networking infrastructure [77][78][79] Question: Growth prospects for the CCS segment in 2025 - The company expects strong double-digit growth in the communications end market, driven by 800G switches, while the enterprise end market may see a decline due to a technology transition [95][96] Question: Pricing pressure in the enterprise server business - The company differentiates itself through system-level innovation and advanced cooling solutions, which help mitigate pricing pressure [97][98][99] Question: Margin outlook for 2025 - The company expects a non-IFRS operating margin of 6.7% in 2025, with improvements in the ATS segment offsetting potential mix impacts in CCS [104][105] Question: Growth opportunities with digital-native companies - The company is engaging with digital-native companies, with opportunities to expand design involvement and leverage its ODM capabilities [121][122][123] Question: Hyperscaler CapEx and market growth - The company is monitoring hyperscaler CapEx trends, with strong growth expected in 2024 and low double-digit growth anticipated for 2025 [136][137][138]

Celestica (CLS) came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.64%. A quarter ago, it was expected that this electronics manufacturing services company would post earnings of $0.82 per share when it actually produced earnings of $0.91, delivering a surprise of 10.98%.Over the last ...

| --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | Third Quarter 2024 Financial Results October 23, 2024 | | | | | | | | | | | | | | | Cautionary Note Regarding Forward- Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to our future growth; trends in the electronics manufacturing services (EMS) industry and ...

Exhibit 99.1 FOR IMMEDIATE RELEASE October 23, 2024 (All amounts in U.S. dollars. Per share information based on diluted shares outstanding unless otherwise noted.) CELESTICA ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS AND WILL HOST VIRTUAL INVESTOR MEETING Q3 2024 revenue and non-IFRS adjusted EPS* exceed the high end of guidance ranges; 2024 full-year outlook raised and 2025 outlook provided TORONTO, Canada - Celestica Inc. (TSX: CLS) (NYSE: CLS), a leader in design, manufacturing, hardware platform an ...

(All amounts in U.S. dollars. Per share information based on diluted shares outstanding unless otherwise noted.) TORONTO, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Celestica Inc. (TSX: CLS) (NYSE: CLS), a leader in design, manufacturing, hardware platform and supply chain solutions for the world's most innovative companies, today announced financial results for the quarter ended September 30, 2024 (Q3 2024)†. “We are pleased to have delivered very strong financial performance in Q3 2024, with revenue up 22% year-to ...

Celestica, Inc. (CLS) is scheduled to report third-quarter 2024 earnings on Oct. 23. For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $2.41 billion, which implies growth of 18.01% from the year-ago quarter’s reported number. The Zacks Consensus Estimate for third-quarter earnings is pegged at 92 cents per share, suggesting a rise of 41.54% year over year. Earnings estimates for CLS have remained unchanged at $3.65 per share for 2024 and $3.99 per share for 2025 over the past 60 ...

I am pleased to report that Celestica's (NYSE: CLS ) (TSX: CLS:CA ) share price grew by 40% since I covered it in April for the first time . I hope this was beneficial for readers who decided to opt Coming from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my investm ...

Celestica Inc. (CLS) recently launched DS4100 – a 1U 800G per port top-of-rack, leaf/spine switch – to cater to the high-bandwidth demands of data center networking across the enterprise, service provider and cloud provider domains. The latest addition to the Hardware Platform Solutions portfolio will help Celestica offer a comprehensive 800G data center switch lineup for demanding applications like artificial intelligence/machine learning (AI/ML) with the redundancy and flexibility required of modern data ...

. CLS Holdings USA, Inc. Partners with AE Global to Tackle the Plastic Crisis Innovative certified plastic-negative packaging partnership with AE Global's Talk Trash is projected to remove 27,000 lbs of ocean-bound plastic from the environment in 2025. October 15, 2024 8:00 AM EDT | Source: CLS Holdings USA, Inc. Las Vegas, Nevada--(Newsfile Corp. - October 15, 2024) - CLS Holdings USA, Inc. (OTCQB: CLSH) (CSE: CLSH), (the ''Company'' or ''CLS''), a diversified cannabis company operating as Cannabis Life Sc ...