Celestica Inc. · TSX:CLS
Celestica — Q4 2024 Earnings Presentation
24 slides from Celestica's earnings presentation, Jan 30, 2025
Slide 1: Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 Financial Results January 30, 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: 2024 Annual Results
2024 Annual Results Revenue ($B) GAAP Earnings from Operations GAAP EPS ($) as a Percentage of Revenue Adjusted EPS (Non-GAAP)1 ($) Adjusted Operating Margin (Non-GAAP)1 9.6 6.5% 3.88 8.0 5.5% 7.3 4.9% 6.2% 3.61 2.46 4.2% 1.94 4.0% 2.03 1.46 2022 2023 2024 2022 2023 2024 2022 2023 2024 EMS HPS GAAP
Slide 5: Q4 2024 Highlights
Q4 2024 Highlights¹ GAAP financial measures Q4 2024 B/(W) QTQ2 B/(W) YTY2 $US Millions (Except for per share amounts and %) Revenue $2,546 $46 $405 Gross Margin 11.7% 1.3% 1.3% Earnings from Operations $202.6 $64.6 $93.4 Earnings from Operations as a % of Revenue 8.0% 2.5% 2.9% Effective Tax Rate 20
Slide 6: ATS and CCS Segment Revenue and Profitability
ATS1 and CCS2 Segment Revenue and Profitability Q4 2024 Revenue 4 Q4 2023 Revenue 5 Q4 2024 Year over Sequential Revenue Year ATS ATS ATS Down 1% Flat 32% 38% CCS Up 3% Up 30% Communications Up 11% Up 64% CCS CCS 68% 62% Enterprise3 Down 9% Down 10% Q4 2024 % of Total Segment Income Q4 2023 % of Tot
Slide 7: Working Capital
Working Capital $US Millions Q4 2024 B/(W) QTQ4 B/(W) YTY4 Inventory Turns1 5.0x 0.1x 1.5x Inventory $1,761 $60 $344 Customer Cash Deposits for Inventory2 $512 ($9) ($393) Cash Cycle Days Q4 2024 Q3 2024 Q4 2023 Days in A/R3 73 71 72 Days in Inventory3 73 75 104 Days in A/P3 (55) (56) (62) Days in C
Slide 8: Free Cash Flow (Non-GAAP)
Free Cash Flow (Non-GAAP)1 Generated Free Cash Flow (Non-GAAP)1 of $306M in 2024 (+50% YTY2) Free Cash Flow (Non-GAAP)1 Cash Provided by Operations ($M) 143 118 123 108 100 100 96 86 77 69 63 68 66 45 36 12 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 QTQ2 YTY2 $US Q4 2024 Increase/(Decrease) Inc
Slide 9: Balance Sheet
Balance Sheet Balance Sheet (as of December 31, 2024) Cash and cash equivalents $423M Revolver (excluding L/Cs) - Reduced share count Term Loans $741M by 2.4% in 2024 Repurchased 0.3M shares for Net Debt $318M $25.5M in Q4 2024 GAAP TTM Debt Leverage Ratio1 1.2x Repurchased 3.2M shares for $152.0M i
Slide 10: Q1 2025 Guidance
Q1 2025 Guidance1 $US Revenue $2.475B - $2.625B 6.8% Adjusted Operating Margin (Non-GAAP) at the mid-point of revenue and non-GAAP adjusted EPS guidance ranges Adjusted EPS (Non-GAAP) $1.06 - $1.16 Q1 2025 Non-GAAP Tax Rate Estimate1 Adjusted Effective Tax Rate (Non-GAAP) of approximately 20% 1 See
Slide 11: Q1 2025 End Market Revenue Outlook
Q1 2025 End Market Revenue Outlook1 Year-over-Year Revenue % Change ATS2 Flat Communications Increase low-eighties Enterprise3 Decrease mid-forties 1 Outlook reflects management’s expectations as of the date provided. 2 ATS consists of A&D, Industrial, HealthTech, and Capital Equipment. 3 Enterprise
Slide 12: 2025 Annual Outlook
2025 Annual Outlook1 $US 2025 Outlook Previous 2025 Outlook Revenue Outlook $10.7B $10.4B Adjusted Operating Margin (Non-GAAP) 6.9% 6.7% Adjusted EPS (Non-GAAP) $4.75 $4.42 Free Cash Flow (Non-GAAP) $350M $325M 2025 Non-GAAP Tax Rate Estimate1 Adjusted Effective Tax Rate (Non-GAAP) of approximately
Slide 13: Business Outlook
Business Outlook1 Advanced Technology Solutions Connectivity & Cloud Solutions Revenues expected to be ~flat in 2025 Mid-double digit percentage revenue growth expected in 2025 Industrial Enterprise Stabilizing demand with recovery expected in 2H 2025 Reacceleration in 2H 2025, supported by ramp of
Slide 14: Concluding Remarks
Concluding Remarks ‘Celestica”
Slide 15: Celestica
~ Celestica- a ~~
Slide 16: Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 Financial Results January 30, 2025
Slide 17: Appendix
Appendix oy ‘Celestica®
Slide 18: Segment Income and Margin
Segment Income and Margin1 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 FY 2023 FY 2022 Revenue by segment: ATS segment revenue $ 792.2 $ 865.3 $ 859.4 $ 802.9 $ 767.9 $ 767.7 $ 814.1 $ 805.8 $ 3,155.5 $ 3,319.8 $ 2,979.0 ATS segment revenue as a % of total revenue 43% 45%
Slide 19: Non-GAAP Supplementary Information
Non-GAAP Supplementary Information 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 revenu
Slide 20: Non-GAAP Supplementary Information…continued
Non-GAAP Supplementary Information…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 a
Slide 21: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation1 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 FY 2023 FY 2022 GAAP Revenue $ 1,837.8 $ 1,939.4 $ 2,043.3 $ 2,140.5 $ 2,208.9 $ 2,391.9 $ 2,499.5 $ 2,545.7 $ 9,646.0 $ 7,961.0 $ 7,250.0 Net earnings 20.6 57.1 75.1 91.6 91.8 95.0 89.5 151.7 42
Slide 22: GAAP to non-GAAP Reconciliation…continued
GAAP to non-GAAP Reconciliation…continued1 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 FY 2023 FY 2022 GAAP Net earnings $ 20.6 $ 57.1 $ 75.1 $ 91.6 $ 91.8 $ 95.0 $ 89.5 $ 151.7 $ 428.0 $ 244.4 $ 180.1 As a percentage of revenue 1.1% 2.9% 3.7% 4.3% 4.2% 4.0% 3.6% 6.0% 4.4
Slide 23: Non-GAAP Supplementary Information…continued
Non-GAAP Supplementary Information…continued1 The following table sets forth a reconciliation of our non-GAAP adjusted tax expense and our non-GAAP adjusted effective tax rate to our GAAP tax expense and GAAP effective tax rate for the periods indicated, in each case determined by excluding the tax
Slide 24: Fourth Quarter 2024 Financial Results
Fourth Quarter 2024 Financial Results January 30, 2025