Celestica(US:CLS)2026-01-28 21:19Financial Performance - Q4 2025 revenue reached $3.65 billion, a 44% increase from $2.55 billion in Q4 2024[5] - Adjusted EPS (non-GAAP) for Q4 2025 was $1.89, up 70% from $1.11 in Q4 2024[5] - Full year 2025 revenue totaled $12.4 billion, representing a 28% increase compared to $9.65 billion in 2024[5] - GAAP revenue for Q4 2025 reached $3,654.9 million, a 43.7% increase from $2,545.7 million in Q4 2024[53] - Net earnings for Q4 2025 were $267.5 million, compared to $151.7 million in Q4 2024, representing a 76.3% increase[61] - Diluted EPS for the year ended December 31, 2025, was $7.16, compared to $3.61 in 2024, marking a 98.6% increase[53] - Earnings per share for the year were $7.22, compared to $3.62 in 2024, reflecting a 99.2% increase[61] - Adjusted net earnings (non-GAAP) for Q4 2025 were $218.8 million, representing 6.0% of revenue, compared to 5.1% in Q4 2024[53] Guidance and Outlook - The company raised its 2026 revenue outlook to $17.0 billion, up from a previous estimate of $16.0 billion[11] - Adjusted EPS (non-GAAP) guidance for 2026 is now $8.75, increased from $8.20[11] - The company anticipates accelerated revenue growth in 2026, with sustained growth into 2027, driven by increased demand from data center customers[30] Capital Investments and Expenditures - Capital investments for 2026 are projected to be approximately $1 billion, about 6% of the annual revenue outlook[20] - Capital investments are expected to support high levels of expenditure by leading hyperscaler, AI, and data center customers[30] Operational Metrics - Adjusted operating margin (non-GAAP) for Q4 2025 was 7.7%, exceeding the mid-point of the guidance range[9] - Adjusted operating earnings (non-GAAP) for Q4 2025 were $282.3 million, which is 7.7% of revenue, compared to 6.8% in Q4 2024[54] - Adjusted gross profit (non-GAAP) for Q4 2025 was $411.4 million, representing 11.3% of revenue, compared to 11.0% in Q4 2024[53] Assets and Liabilities - Total assets increased to $7,213.1 million as of December 31, 2025, from $5,988.2 million a year earlier, reflecting a growth of 20.5%[58] - Total current liabilities increased to $3,939.6 million as of December 31, 2025, from $3,021.4 million in 2024, a rise of 30.4%[58] - Accounts receivable increased to $2,638.1 million in Q4 2025, compared to $2,069.0 million in Q4 2024, a growth of 27.5%[58] Cash Flow and Financing - Free cash flow (non-GAAP) for the year ended December 31, 2025, was $458.3 million, compared to $305.9 million in 2024, indicating a 50.0% increase[53] - The company reported net cash provided by operating activities of $250.6 million for Q4 2025, compared to $143.4 million in Q4 2024, indicating a 74.7% increase[63] - Cash used in investing activities for the year 2025 was $203.7 million, slightly down from $212.5 million in 2024[63] - The company reported a net cash provided by financing activities of $133.8 million in Q4 2025, contrasting with a net cash used of $67.6 million in Q4 2024[63] Research and Development - Research and development expenses for the year were $118.2 million, up 51.3% from $78.0 million in 2024[61] Market and Strategic Focus - The company plans to expand manufacturing capacity in the U.S. to support AI infrastructure, with completion expected in 2027[14] - The company is focusing on new program and production ramps, including 800G and 1.6T networking, as well as AI/ML compute programs[30] - The company plans to align its capacity with business demands and is focused on scaling operations to meet anticipated customer demand[30] - The impact of anticipated market conditions and economic factors will be closely monitored to inform strategic decisions[31] Miscellaneous - Three customers represented 10% or more of total revenue in Q4 2025, accounting for 36%, 15%, and 12% respectively[12] - The company had unrealized losses on hedge derivatives amounting to $4.7 million for the year 2025, down from $13.2 million in 2024[63] - Interest paid for the year 2025 was $54.1 million, compared to $52.9 million in 2024, indicating a slight increase of 2.3%[63] - Stock-based compensation (SBC) increased to $13.0 million in Q4 2025 from $10.1 million in Q4 2024, reflecting a 28.7% rise[63]