Celestica Surpasses Q3 Earnings Estimates on Higher Revenues

Core Insights - Celestica Inc. reported strong third-quarter 2025 results with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by growth in the Connectivity & Cloud Solutions segment and management's focus on innovation and AI advancements [1][8] Financial Performance - Quarterly net income reached $267.8 million or $2.31 per share, a significant increase from $89.5 million or 75 cents per share in the same quarter last year, reflecting nearly threefold growth in GAAP earnings due to top-line improvement [2] - Non-GAAP net earnings rose to $183.1 million or $1.58 per share, up from $123.8 million or $1.04 per share year-over-year, beating the Zacks Consensus Estimate by 11 cents [2] Revenue Analysis - Total revenues for the quarter were $3.19 billion, marking a 27.8% year-over-year increase, driven by strong demand in the CCS segment, surpassing management's guidance and Zacks Consensus Estimate by $170 million [3][8] - CCS segment revenues improved by 43.2% year-over-year to $2.41 billion, accounting for 76% of total revenues, primarily due to robust demand in the Communications end market [4] - Revenues from the Enterprise end market declined by 23.9% year-over-year to $470.1 million, while Communications end market revenues surged by 82% to $1.94 billion, supported by hyperscale customer demand for networking products [5] Segment Performance - Advanced Technology Solutions segment revenues were $781 million, down 4.1%, contributing 24% to total revenues, with operating income increasing by 6.7% year-over-year to $42.8 million [6] Cash Flow & Liquidity - Operating cash flow for the quarter was $126.2 million, slightly up from $122.8 million in the previous year, with free cash flow at $88.9 million compared to $76.8 million year-over-year [7] - As of September 30, 2025, the company held $305.9 million in cash and cash equivalents against long-term debt of $756.7 million [7] Future Guidance - For Q4 2025, Celestica anticipates revenues between $3.325 billion and $3.575 billion, with non-GAAP earnings per share expected in the range of $1.65 to $1.81 [9] - Full-year revenue projection has been raised to approximately $12.2 billion, up from the previous estimate of $11.55 billion, with non-GAAP adjusted earnings expected to be $5.90 per share [10]