Celestica Inc. · TSX:CLS
Celestica — Q2 2025 Earnings Presentation
24 slides from Celestica's earnings presentation, Jul 29, 2025
Slide 1: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results July 29, 2025 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, including, without limitation, those related to: strengthening demand in our CCS segment, demand environment and customer forecasts, our anticipated financial and/or operational results, guida
Slide 3: CEO Remarks
CEO Remarks 3
Slide 4: Q2 2025 Results
Q2 2025 Results1 Q2 2025 YTY2 Q2 2025 Guidance Revenue $2.893B +21% $2.575B - $2.725B GAAP Earnings from Operations as a % of Revenue 9.4% +380 bps GAAP EPS $1.82 +128% Adjusted Operating Margin (Non-GAAP)3 7.4% +110 bps 7.2% Adjusted EPS (Non-GAAP) $1.39 +54% $1.17 - $1.27 1 See “Note Regarding Non
Slide 5: Q2 2025 Highlights
Q2 2025 Highlights¹ GAAP financial measures Q2 2025 B/(W) QTQ2 B/(W) YTY2 $ Millions (Except for per share amounts and %) Revenue $2,893 $244 $501 Gross Margin 12.8% 2.5% 2.2% Earnings from Operations $272.5 $143.7 $139.6 Earnings from Operations as a % of Revenue 9.4% 4.5% 3.8% Effective Tax Rate 1
Slide 6: ATS and CCS Segment Revenue and Profitability
ATS1 and CCS2 Segment Revenue and Profitability $ Millions Q2 2025 YTY3 ATS $819 Up 7% Revenue CCS $2,074 Up 28% Q2 2025 Revenue 5 Communications $1,641 Up 75% ATS 28% Enterprise4 $433 Down 37% $ Millions Q2 2025 YTY3 Segment Income6 ATS $44 Up 24% CCS $171 Up 50% CCS 72% Q2 2025 YTY3 Segment Margin
Slide 7: Working Capital
Working Capital $ Millions Q2 2025 B/(W) QTQ4 B/(W) YTY4 Inventory Turns1 5.4x Flat 0.9x Inventory $1,918 ($130) ($74) Customer Cash Deposits for Inventory2 $397 ($75) ($179) Cash Cycle Days Q2 2025 Q1 2025 Q2 2024 Days in A/R3 70 72 71 Days in Inventory3 67 68 81 Days in A/P3 (54) (51) (59) Days in
Slide 8: Cash Flow Overview
Cash Flow Overview Cash Provided by Operations Non-GAAP Free Cash Flow 1 ($M) 152 143 123 130 118 120 108 100 96 94 86 77 63 68 66 36 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 QTQ2 YTY2 $ Millions Q2 2025 Increase/(Decrease) Increase/(Decrease) Capex $33 ($4) ($4) Capex as a % of revenue 1.1%
Slide 9: Balance Sheet
Balance Sheet Balance Sheet (as of June 30, 2025) Cash and cash equivalents $314M Revolver (excluding L/Cs) $90M Term Loans $733M Share Repurchases: Net Debt $509M $40M in Q2 2025 $115M YTD 2025 GAAP TTM Debt Leverage Ratio1 1.1x Non-GAAP Adjusted TTM Debt Leverage Ratio1 0.9x Total Liquidity2 ~$1B
Slide 10: Q3 2025 Guidance
Q3 2025 Guidance1,2,3 Revenue $2.875B - $3.125B 7.4% Adjusted Operating Margin (Non-GAAP) at the mid-point of revenue and non-GAAP adjusted EPS guidance ranges Adjusted EPS (Non-GAAP) $1.37 - $1.53 Q3 2025 Non-GAAP Tax Rate Estimate1,2 Adjusted Effective Tax Rate (Non-GAAP) of approximately 19% 1 Se
Slide 11: Q3 2025 End Market Revenue Outlook
Q3 2025 End Market Revenue Outlook1,2 Year-over-Year Revenue % Change ATS3 Decrease low single-digits Communications Increase low-sixties Enterprise4 Decrease mid-twenties 1 Outlook reflects management’s expectations as of the date provided. 2 Our Q3 2025 End Market Revenue Outlook assumes no materi
Slide 12: 2025 Annual Outlook
2025 Annual Outlook1,2 2025 Outlook Previous 2025 Outlook Revenue Outlook $11.55B $10.85B Adjusted Operating Margin (Non-GAAP) 7.4% 7.2% Adjusted EPS (Non-GAAP) $5.50 $5.00 Free Cash Flow (Non-GAAP) $400M $350M 1 See “Note Regarding Non-GAAP Financial Measures”. Outlook reflects management’s expecta
Slide 13: Business Outlook
Business Outlook1,2 Advanced Technology Solutions Connectivity & Cloud Solutions Revenues expected to be ~flat in 2025 Revenues expected to grow by ~30% in 2025 Industrial Enterprise Improving demand and multiple program ramps driving growth Strengthening demand in 2H 2025, including a next-gen AI/M
Slide 14: Concluding Remarks
Concluding Remarks ‘Celestica”
Slide 15: ~ Celestica-
~ Celestica- a ~~
Slide 16: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results July 29, 2025
Slide 17: Appendix
Appendix oy ‘Celestica®
Slide 18: Segment Income and Margin
Segment Income and Margin1 * 2 * Refers to notes to our June 30, 2025 unaudited interim condensed consolidated financial statements (Q2 2025 Interim Financial Statements) 1 Segment margin is segment income as a percentage of segment revenue. Segment income is defined as a segment’s revenue less its
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures The non-GAAP financial measures included in this presentation are: adjusted gross profit, adjusted gross margin (adjusted gross profit as a percentage of revenue), adjusted selling, general and administrative expenses (SG&A), adjusted SG&A as a percentage of revenue, adju
Slide 20: Non-GAAP Financial Measures…continued
Non-GAAP Financial Measures…continued Restructuring and Other Charges (Recoveries) consist of, when applicable: Restructuring Charges (Recoveries) (defined below); Transition Costs (Recoveries) (defined below); consulting, transaction and integration costs related to potential and completed acquisit
Slide 21: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 1H 2025 FY 2024 GAAP Revenue $ 2,043.3 $ 2,140.5 $ 2,208.9 $ 2,391.9 $ 2,499.5 $ 2,545.7 $ 2,648.6 $ 2,893.4 $ 5,542.0 $ 9,646.0 Net earnings 75.1 91.6 91.8 95.0 89.5 151.7 86.2 211.0 297.2 428.0 Earning
Slide 22: GAAP to non-GAAP Reconciliation…continued
GAAP to non-GAAP Reconciliation…continued1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 1H 2025 FY 2024 GAAP Net earnings $ 75.1 $ 91.6 $ 91.8 $ 95.0 $ 89.5 $ 151.7 $ 86.2 $ 211.0 $ 297.2 $ 428.0 As a percentage of revenue 3.7% 4.3% 4.2% 4.0% 3.6% 6.0% 3.3% 7.3% 5.4% 4.4% Employee
Slide 23: GAAP to non-GAAP Reconciliation…continued
GAAP to non-GAAP Reconciliation…continued1 The following table sets forth a reconciliation of our non-GAAP adjusted effective tax rate to our GAAP effective tax rate for the periods indicated (in millions, except percentages). Adjusted tax expense is determined by excluding the tax effects of the no
Slide 24: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results July 29, 2025