Core Insights - Celestica Inc. has experienced significant stock growth, rising 80% year-to-date and more than tripling in value over the past year, driven by increased demand for AI-powered networking equipment and cloud infrastructure [2][3] - The company's Connectivity & Cloud Solutions (CCS) division reported Q1 2025 revenue of $1.84 billion, a 28% increase year-over-year, highlighting the strong performance of AI-related offerings [2][3] Financial Performance - Celestica's revenues have grown at an average annual rate of 19.3% over the past three years, significantly outpacing the S&P 500's growth of 5.3% [4] - In the last year, Celestica's revenues increased by 21% to reach $10 billion, while the S&P 500 only managed a modest growth of 4.4% [4] - The company's net income margin was 4.1%, compared to 11.9% for the S&P 500, but it achieved a record adjusted operating margin of 7.1% in the latest quarter, up from 5.9% in Q1 2024 [5] Valuation Metrics - Celestica's price-to-sales (P/S) ratio is 2.0, lower than the S&P 500's 3.1, but its price-to-earnings (P/E) ratio of 47.8 is significantly higher than the benchmark's 22.8 [4] - The high valuation may restrict upside potential in the near to mid-term, as the stock appears relatively expensive at around $170 [3][7] Financial Health - The company has a low debt-to-equity ratio of 4.8%, well below the S&P 500 average of 22.6%, indicating strong financial health [6] - Celestica maintains a moderate cash reserve that constitutes 5.2% of its total assets [6] Market Sensitivity - Historically, Celestica's stock has shown sensitivity to market downturns, with a 69% drop during the Covid-19 market crash compared to a 33.9% decline in the S&P 500 [6] - In 2022, the stock fell 35.6% amid inflation-related shocks, exceeding the S&P's 25.4% decline [6] Industry Trends - Major technology firms are expected to invest heavily in AI infrastructure, with Amazon projected to spend up to $105 billion in 2025, which should bolster demand for Celestica's services [3]

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]

Financial Data and Key Metrics Changes - The company reported solid revenue of $2,040 million for Q3 FY2025, representing a 10.9% year-over-year increase [10][12] - Non-GAAP diluted earnings per share (EPS) was $1.53, a 22.8% increase compared to the same period last year [15] - Non-GAAP gross margin improved to 9.1%, reflecting a 60 basis point improvement year-over-year [13][14] - Non-GAAP operating income was $115.7 million, or 5.7% of revenue, showing a 40 basis point improvement year-over-year [14] Business Line Data and Key Metrics Changes - IMS revenue reached $1,650 million, up 11.6% year-over-year, driven by growth in communications networks and cloud infrastructure [16] - CPS revenue was $422 million, an 8.8% increase year-over-year, with non-GAAP gross margin at 14.7%, a 320 basis point improvement [17] - DPS non-GAAP gross margin was 14.7%, driven by higher revenue and operational efficiencies [17] Market Data and Key Metrics Changes - The communications networks and cloud infrastructure segments showed strong demand, with revenue of $786 million, a 19.1% increase year-over-year [32] - The industrial, energy, medical, defense, aerospace, and automotive segments generated $1,256 million, growing 6.2% year-over-year [31] - The company reported a solid demand pipeline across all end markets, indicating positive trends for FY2025 and beyond [33] Company Strategy and Development Direction - The company is focused on improving operating margins to exceed 6% in the long term [30] - A strategic acquisition of ZT Systems is expected to double net revenue within three years and enhance capabilities in data center and AI infrastructure [25][38] - The company aims to maintain a strong balance sheet while investing in growth opportunities and enhancing operational efficiencies [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid revenue and profitability growth despite uncertainties related to tariffs and geopolitical issues [24][36] - The company anticipates a growth rate of 6% to 8% for FY2025, with expectations for continued growth in FY2026 [37][64] - Management noted that customer forecasts are positive, indicating a stable business environment moving forward [62] Other Important Information - Cash and cash equivalents were reported at $798 million, with no outstanding borrowings, providing substantial liquidity of approximately $1.7 billion [19] - The company generated strong cash flow from operations of $422 million for the nine months of FY2025 [20] - Capital expenditures for the quarter were $33 million, with expectations to remain around 1.8% of revenue for the full year [21] Q&A Session Summary Question: Update on ZT Systems acquisition and revenue expectations - Management remains excited about the ZT Systems acquisition, expecting a revenue run rate of $5 billion to $6 billion, with plans to turn the business around and expand sales efforts [46][56] Question: Concerns about revenue growth in Q4 - Management acknowledged that Q4 growth may appear slower but emphasized that the business is stable and expanding, with positive customer forecasts [59][62] Question: CPS margins and future expectations - CPS margins improved due to business mix, with expectations to continue driving margin improvements above 15% [65][67] Question: Risks associated with inventory in the ZT deal - Management confirmed that they are evaluating inventory risks as part of the acquisition, ensuring it aligns with customer demand [73][75] Question: Impact of tariffs on business - Management noted that while tariffs present challenges, they are working closely with customers to navigate these issues and maintain stability in current programs [94][96]

Q3 Fiscal Year 2025 Financial Performance - Revenue for Q3 FY'25 reached $2.042 billion, exceeding both the outlook range of $1.925 billion - $2.025 billion and the Q3 FY'24 revenue of $1.841 billion[11, 35] - Gross margin was 9.1%, surpassing the outlook range of 8.6% - 9.0%[11] - Operating margin was 5.7%, aligning with the high end of the outlook range of 5.4% - 5.8%[11] - Diluted EPS was $1.53, exceeding the outlook range of $1.35 - $1.45[11] Balance Sheet and Cash Flow - Cash and cash equivalents totaled $798 million as of June 28, 2025[21] - The company has substantial liquidity of approximately $1.7 billion, with no borrowings under the $800 million Revolver at quarter end[24] - Cash flow from operations was $201 million, with net CapEx of $33 million, resulting in free cash flow of $168 million[25] - The company repurchased 0.2 million shares for $13 million in Q3, and 1.4 million shares for $114 million year-to-date[25] Q4 Fiscal Year 2025 Outlook - Revenue is projected to be between $2.0 billion and $2.1 billion[28] - GAAP diluted EPS is expected to be in the range of $1.21 to $1.31, while non-GAAP diluted EPS is projected to be between $1.52 and $1.62[28] ZT Systems Acquisition - The acquisition of ZT Systems is on track to close near the end of the 2025 calendar year and is expected to generate $5 - $6 billion of net revenue on a run-rate basis[31] - The acquisition is expected to double Sanmina's net revenue within the next 3 years and be accretive to non-GAAP EPS in the first year after closing[31]

(All amounts in U.S. dollars) Q2 2025 revenue and adjusted EPS* above the high end of our guidance ranges;Raising 2025 annual outlook TORONTO, July 28, 2025 (GLOBE NEWSWIRE) -- Celestica Inc.1 (TSX and 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 June 30, 2025 (Q2 2025). Q2 2025 Highlights Revenue: $2.89 billion, increased 21% compared to $2.39 billion for second ...

Core Viewpoint - Sanmina Corporation reported solid financial results for the third quarter of fiscal 2025, with revenue and earnings exceeding expectations, and expressed confidence in continued growth into the fourth quarter and fiscal year 2026 [3][4]. Financial Highlights - Revenue for the third quarter was $2.04 billion, an increase from $1.84 billion in the same quarter of the previous year [10]. - GAAP operating margin was 4.7%, while non-GAAP operating margin was 5.7% [10]. - GAAP diluted earnings per share (EPS) was $1.26, and non-GAAP diluted EPS was $1.53 [10]. - Cash flow from operations was $201 million, with free cash flow of $168 million [10][17]. Fourth Quarter Outlook - The company anticipates fourth quarter revenue between $2.0 billion and $2.1 billion [11]. - GAAP diluted EPS is expected to range from $1.21 to $1.31, while non-GAAP diluted EPS is projected to be between $1.52 and $1.62 [11][16]. Operational Efficiency - The company benefited from operational efficiencies and a favorable business mix, contributing to a healthy operating margin and robust cash generation [3]. - The customer base and pipeline of new opportunities are growing, indicating potential for continued momentum [4]. Cash Position - Ending cash and cash equivalents stood at $798 million, reflecting a strong liquidity position [10]. - The company repurchased 0.2 million shares for $13 million during the quarter [10]. Balance Sheet Strength - Total assets increased to $5.22 billion as of June 28, 2025, compared to $4.82 billion a year earlier [12]. - Stockholders' equity rose to $2.47 billion, up from $2.36 billion [12]. Conference Call Information - Sanmina will hold a conference call to discuss its financial results and outlook on July 28, 2025 [8].

FISCAL THIRD QUARTER 2025 HIGHLIGHTS July 23, 2025 PLEXUS CONFIDENTIAL SAFE HARBOR AND FAIR DISCLOSURE STATEMENT Some of the statements made and information provided during our call as well as information included in the supporting materials will be forward looking statements, including, without limitation, those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense, taxes, cash cycle, capital allocation and future business outlook. Forward-looking s ...

Q1 FY26 Earnings Presentation Quarter End: June 27, 2025 Earnings Announcement: July 24, 2025 Risks and non-GAAP disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumptions inv ...

Core Insights - Celestica, Inc. (CLS) is set to report second-quarter 2025 earnings on July 28, with sales and earnings estimates at $2.67 billion and $1.24 per share respectively, showing a 0.4% increase in earnings estimates for 2025 over the past 60 days [1][4] Earnings Performance - Celestica has a strong earnings surprise history, with an average surprise of 7.43% over the last four quarters, consistently exceeding earnings expectations [2][3] Earnings Predictions - The company is predicted to likely beat earnings for the second quarter, supported by a positive Earnings ESP of +0.81% and a Zacks Rank of 2 (Buy) [4] Product Developments - The introduction of the ES1500 enterprise access switch, featuring up to 48 ports with 2.5 gigabit Ethernet speed and 90W power over Ethernet, is expected to enhance scalability and flexibility for modern IT infrastructure [5][8] - The DS4100 switch, which supports high-bandwidth demands, is also gaining traction, contributing to net sales growth in the Connectivity & Cloud Solutions segment [9] Market Performance - Over the past year, CLS stock has surged 193.8%, outperforming the industry growth of 93.8% and competitors like Sanmina Corporation (37.7%) and Jabil Inc. (98.8%) [10] Valuation Metrics - Celestica is trading at a premium valuation with a price/earnings ratio of 27.88, higher than the industry average of 21.73 and its own historical mean of 20.9 [11] Industry Positioning - As a leading electronic manufacturing service provider, Celestica serves various industries, including communication, healthcare, and aerospace, while continuously enhancing its manufacturing and supply-chain capabilities [13][15] - The growing demand for AI-based applications is driving the need for Celestica's data communications infrastructure products, with expectations for significant growth in 400G and 800G switch products [16] Competitive Landscape - While Celestica is expanding in the AI data center infrastructure, it faces competition from Jabil, which is investing $500 million to increase its manufacturing capacity, and Sanmina in the defense and AI infrastructure sectors [17] Financial Health - Celestica's diverse customer base across multiple sectors enhances business resilience, supported by strong liquidity and healthy cash flow, positioning the company for potential stock price appreciation [19]

Core Points - Sanmina Corporation will host its third quarter fiscal 2025 earnings conference call on July 28, 2025, at 5:00 PM ET [1] - The live webcast and supporting materials will be available on the Sanmina website [1] Company Overview - Sanmina Corporation is a Fortune 500 company and a leading integrated manufacturing solutions provider in the global Electronics Manufacturing Services (EMS) market [2] - The company offers end-to-end manufacturing solutions, focusing on high-quality support for Original Equipment Manufacturers (OEMs) in various sectors including industrial, medical, defense, aerospace, automotive, communications networks, and cloud infrastructure [2] - Sanmina has strategically located facilities in key regions worldwide [2]