Celestica Revenue Jumps 21 Percent in Q2

Core Insights - Celestica reported Q2 2025 earnings with GAAP revenue of $2.89 billion, surpassing analyst expectations of $2.68 billion, and adjusted EPS (non-GAAP) of $1.39, exceeding the $1.24 estimate, reflecting year-over-year growth of 21% in revenue and 54% in adjusted EPS [1][5][2] Financial Performance - Revenue for Q2 2025 was $2.89 billion, a 21% increase from $2.39 billion in Q2 2024 [2] - Adjusted EPS (non-GAAP) reached $1.39, up from $0.90 in the same quarter last year, marking a 54% increase [2] - Operating margin (GAAP) improved to 9.4%, up from 5.6% year-over-year, while adjusted operating margin (non-GAAP) was 7.4%, compared to 6.3% in Q2 2024 [2] - Free cash flow (non-GAAP) was $119.9 million, an 82.8% increase from $65.6 million in Q2 2024 [2][8] Segment Performance - The Connectivity & Cloud Solutions (CCS) segment generated $2.07 billion in revenue, a 28% increase, with Hardware Platform Solutions (HPS) revenue reaching approximately $1.2 billion, up 82% year-over-year [6] - Advanced Technology Solutions (ATS) reported revenue of $820 million, a 7% increase, with segment margin improving to 5.3% from 4.6% in Q2 2024 [7] Strategic Focus - Celestica is focusing on high-value programs, including data center hardware and next-generation networking equipment, emphasizing technological innovation and strong supply chain management [4][3] - The company is diversifying its customer base to mitigate risks associated with customer concentration, where the top ten customers accounted for 73% of revenue in 2024 [11] Future Outlook - Full-year 2025 guidance was raised to revenue of $11.55 billion and adjusted EPS (non-GAAP) of $5.50, with an expected adjusted operating margin of 7.4% [13] - For Q3 2025, projected revenue ranges from $2.875 to $3.125 billion, with adjusted EPS (non-GAAP) between $1.37 and $1.53 [13]