Electronics manufacturing and hardware platforms for data centers / Operating manufacturer / Industrial Technology
Celestica
TSXCLSNYSECLS
Celestica builds electronic hardware, most of it now destined for data centers, and increasingly designs it too. It was spun out of IBM's manufacturing operations on September 27, 1996, is headquartered at 5140 Yonge Street in Toronto and employed 29,591 people at December 31, 2025. About 75% of its 2025 revenue was produced in Asia [3]. The shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the same symbol, CLS, and the company reports in U.S. dollars under U.S. GAAP, filing 10-Ks and 10-Qs with the SEC like a domestic U.S. issuer [1][2].
The business has two segments. Connectivity & Cloud Solutions (CCS) covers the Communications end market, data communications and information processing products for hyperscalers, and the Enterprise end market, servers and storage; within CCS, the Hardware Platform Solutions (HPS) offering designs complete platforms (or designs them jointly with the customer) and then runs the supply chain for them, which is a different margin profile from assembling a customer's own design [3]. Advanced Technology Solutions (ATS) is the older, broader business, from aerospace and defense to capital equipment [3]. CCS was 74% of 2025 revenue [3]. In the second quarter of 2026 CCS revenue was US$3,810.0 million, up 84% from a year earlier, with Communications at US$2,653.2 million (up 62%) and Enterprise at US$1,157.1 million (up 167%); HPS revenue was about US$1,900.0 million, up 58%; ATS revenue was US$890.0 million, up 8% [1][2].
Customer concentration is the number to read before any other. Three customers, all in CCS, each took 10% or more of revenue in the second quarter of 2026, at 32%, 17% and 14%; for 2025 the three were 32%, 14% and 12%, and the top ten customers were 79% of revenue [2][3]. The 10-K is plain about how orders work: master supply agreements guarantee neither a level of business nor a price, and customers do not commit to long-term production schedules; they change forecasts and delay or cancel quantities from time to time [3]. There is no reported backlog figure; what the company offers instead is guidance, which it has raised three times in 2026: the annual revenue outlook was US$16.0 billion in October 2025, US$17.0 billion in January, US$19.0 billion in April and US$20.5 billion in July. Adjusted EPS (non-GAAP) went from US$8.20 to US$11.30 over the same four releases [4][5][1].
The second quarter of 2026 shows what that growth looks like in the accounts. Revenue was US$4,698.6 million, up 62% from US$2,893.4 million a year earlier; GAAP earnings from operations were 9.8% of revenue and the adjusted operating margin (non-GAAP) 8.2%; GAAP net earnings were US$368.8 million, or US$3.17 a share. Adjusted EPS was US$2.54 [1]. Cash from operations was US$410.9 million against capital expenditures of US$263.8 million in the quarter, and US$767.2 million against US$493.3 million in the first half; cash was US$535.7 million at June 30, 2026 and total debt US$810.4 million, of which US$250.0 million was a term A loan and US$490.0 million a term B loan with the revolver undrawn [1][2]. For 2025 the company reported revenue of US$12.39 billion, up 28% from US$9.646 billion in 2024, GAAP net earnings of US$832.5 million, adjusted EPS of US$6.05 and free cash flow (non-GAAP) of US$458.3 million [4].
The capital structure changed in August. On August 5, 2026 Celestica sold 9,677,419 common shares at US$310.00 each in a US$3.0 billion treasury offering, the underwriters took up a further 1,451,612 shares the next day, and the company estimated net proceeds of about US$3.39 billion, earmarked in the prospectus language for working capital and capital expenditures [6][7][8]. That followed a May 2026 commitment to spend at least US$876 million by the end of 2029 on more than a million square feet of manufacturing and engineering space at AllianceTexas in Fort Worth, with about 1,700 jobs, as reported by Fort Worth Inc. [10]. The chief financial officer moves to a new Group President, Global Markets role on October 1, 2026, and a successor becomes CFO [9].
Primary assets & business
- CCS segment: Communications (data communications and information processing products for hyperscalers) and Enterprise (servers and storage); Q2 2026 revenue US$3,810.0M, segment margin 8.7% [3][1]
- Hardware Platform Solutions (HPS): Celestica-designed or jointly designed storage, server and networking platforms; about US$1,900.0M of revenue in Q2 2026, up 58%; 41% of 2025 revenue per the 10-K [1][3]
- ATS segment: aerospace and defense, industrial, HealthTech and capital equipment; Q2 2026 revenue US$890.0M, segment margin 6.3% [3][1]
- Manufacturing footprint: about 75% of 2025 revenue produced in Asia; 29,591 employees at December 31, 2025 [3]
- Fort Worth, Texas: AllianceTexas expansion of more than 1 million square feet, at least US$876M of capital investment by end-2029 and about 1,700 jobs, as reported May 14, 2026 [10]
- Programs named in the Q2 2026 release: 800G and 1.6T networking and AI/machine-learning compute programs with data center customers [1]
Financial position
| Revenue (latest quarter) | US$4,698.6MUp 62% from US$2,893.4M in Q2 2025. CCS US$3,810.0M (+84%); ATS US$890.0M (+8%). First half 2026: US$8,745.6M (US$5,542.0M). | Quarter ended Jun 30, 2026 [1] |
|---|---|---|
| GAAP net earnings (latest quarter) | US$368.8MUS$3.17 per diluted share (Q2 2025: US$1.82). Adjusted net earnings (non-GAAP) US$295.4M; adjusted EPS US$2.54 (US$1.39). Weighted average diluted shares 116.2M. | Quarter ended Jun 30, 2026 [1] |
| Adjusted operating margin (latest quarter) | 8.2%Non-GAAP; Q2 2025: 7.4%. GAAP earnings from operations 9.8% of revenue. Adjusted gross margin 11.5%. | Quarter ended Jun 30, 2026 [1] |
| Cash from operations (latest quarter) | US$410.9MCapital expenditures US$263.8M. First half 2026: cash from operations US$767.2M; capex US$493.3M; free cash flow (non-GAAP) US$285.0M (US$213.5M) [2]. | Quarter ended Jun 30, 2026 [1] |
| Customer concentration (latest quarter) | 32%, 17%, 14%Three customers, all in CCS, each 10% or more of revenue. First half 2026: 34%, 16%, 15%. FY2025: 32%, 14%, 12%; top ten customers 79% [3]. | Quarter ended Jun 30, 2026 [2] |
| 2026 annual outlook | US$20.5B revenue; US$11.30 adjusted EPSRaised from US$19.0B / US$10.15 in April; US$17.0B / US$8.75 in January; US$16.0B / US$8.20 in October 2025 [5][4]. Adjusted operating margin 8.4%; free cash flow US$600M; implies 65% revenue growth and 87% adjusted EPS growth. | Jul 27, 2026 [1] |
| Q3 2026 guidance | US$5,250–5,550M revenueAdjusted EPS US$2.88–3.08; adjusted operating margin 8.4% at the midpoint. | Jul 27, 2026 [1] |
| Revenue (fiscal 2025) | US$12.39BUp 28% from US$9.646B in 2024. GAAP net earnings US$832.5M; GAAP EPS US$7.16; adjusted EPS US$6.05; adjusted operating margin 7.5%; free cash flow US$458.3M. | Year ended Dec 31, 2025 [4] |
| Cash | US$535.7MBefore the August 2026 equity offering, which the company estimated would net about US$3.39B [8]. | Jun 30, 2026 [1] |
| Total debt | US$810.4MTerm A loan US$250.0M; term B loan US$490.0M; finance leases US$75.5M; revolver undrawn. Current portion US$26.4M [1]. | Jun 30, 2026 [2] |
| Market capitalization | Not yet verifiedNot verified against a dated close. |
All figures are in U.S. dollars, Celestica's reporting currency, under U.S. GAAP. Quarterly figures are for the three months ended June 30, 2026 from the July 27, 2026 news release and the Form 10-Q; annual figures are from the January 28, 2026 release and the Form 10-K for 2025. Adjusted EPS, adjusted operating margin, adjusted gross margin and free cash flow are management's non-GAAP measures as the company defines them. Blank means not yet verified, never zero.
Ownership & capital structure
| Common shares outstanding | 114,982,086Before the August 2026 offering of 9,677,419 shares plus 1,451,612 over-allotment shares [8]. 114,967,854 at February 19, 2026 [3]. | Jul 22, 2026 [2] |
|---|---|---|
| August 2026 equity offering | 9,677,419 + 1,451,612 shares at US$310.009,677,419 base shares (US$3.0B gross) plus 1,451,612 over-allotment shares exercised August 6, 2026; estimated net proceeds about US$3.39B; closed on or about August 7, 2026 [7]. Underwriters Citigroup, BofA Securities and TD Securities. | Aug 5–7, 2026 [8] |
| Share repurchases | US$22.6M in first half 2026None in Q2 2026 [1]. 2025: 1.5 million shares for US$153.4M [4]. | Jun 30, 2026 [2] |
| Dividend | NoneNo dividend is declared in the releases reviewed. | Sep 30, 2026 [1] |
| Significant shareholders | Not yet verifiedNot verified; see the proxy circular on EDGAR. |
What has to happen next
- Third-quarter 2026 results, due in late October, against guidance of US$5,250–5,550 million of revenue and US$2.88–3.08 of adjusted EPS [1].
- The 2027 outlook, which management says will show revenue growth accelerating beyond the 65% expected for 2026 and adjusted EPS growing faster than revenue; the 2026 outlook was first issued with the third-quarter 2025 results on October 27, 2025 [1][4].
- CFO transition on October 1, 2026: incumbent to Group President, Global Markets; successor to CFO [9].
- Deployment of the roughly US$3.39 billion of August 2026 offering proceeds into working capital and capital expenditures, and whether the capex line in the third-quarter cash flow statement steps up [8].
- Progress on the AllianceTexas build in Fort Worth, which is to be complete by the end of 2029 [10].
- Any change in the share of revenue from the three largest customers, which was 32%, 17% and 14% in the second quarter [2].
Research checkpoints, not a dated event calendar or a promise of outcomes.
Valuation context
No valuation conclusion is published here. Celestica reports in U.S. dollars, files with the SEC as a domestic issuer and trades on the NYSE, so the Canadian-discount question barely applies; the comparison is with U.S.-listed electronics manufacturing services companies and the server and networking original design manufacturers, on the same date and the same adjusted-EPS definition. The share count moved in August: 114,982,086 shares at July 22, 2026 plus 9,677,419 and a further 1,451,612 issued at US$310.00, with net proceeds of about US$3.39 billion added to a balance sheet that held US$535.7 million of cash and US$810.4 million of debt at June 30 [2][8][1]. Any multiple on the US$11.30 adjusted-EPS outlook is a multiple on management's forecast of three customers' spending, not on a contracted revenue stream, and the 10-K says so in its own words [1][3].
Mandatory reading
Key risks
- Three customers took 32%, 17% and 14% of second-quarter 2026 revenue, and the 10-K says master supply agreements guarantee neither volume nor price; a deferral by one hyperscaler would show up in a single quarter [2][3].
- The company reports no backlog, so the US$20.5 billion outlook is a forecast of customer forecasts; it has been raised three times in nine months and can be cut on the same cadence [1][4][5].
- HPS products are Celestica designs sold to hyperscalers that also design their own hardware; a customer moving a platform in-house or to a rival takes the higher-margin revenue first [3].
- About 75% of 2025 revenue was produced in Asia; tariffs or export controls on servers, switches or their components change the economics of the footprint, which is why the company is building in Texas [3][10].
- The August 2026 offering added 9,677,419 shares plus 1,451,612 over-allotment shares at US$310.00; if the capital expenditure it funds arrives ahead of the revenue, free cash flow per share falls before it rises [8].
- Adjusted EPS is management's measure; in the second quarter GAAP EPS of US$3.17 sat above adjusted EPS of US$2.54, the opposite of the usual direction, and the reconciling items should be read line by line before either figure is used [1].
Source documents
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1
Celestica Announces Second Quarter 2026 Financial Results
Q2 2026: revenue US$4,698.6M (+62% from US$2,893.4M); GAAP earnings from operations 9.8%; adjusted operating margin 8.2% (7.4%); GAAP EPS US$3.17 (US$1.82); adjusted EPS US$2.54 (US$1.39); GAAP net earnings US$368.8M; adjusted net earnings US$295.4M; adjusted gross margin 11.5%; diluted shares 116.2M; CCS US$3,810.0M (+84%), margin 8.7%; HPS ~US$1,900.0M (+58%); ATS US$890.0M (+8%), margin 6.3%; Q3 guidance revenue US$5,250–5,550M, adjusted EPS US$2.88–3.08, margin 8.4%; 2026 outlook revenue US$20.5B (from US$19.0B), adjusted EPS US$11.30 (from US$10.15), margin 8.4%, FCF US$600M (from US$500M); 65% revenue and 87% adjusted EPS growth; 2027 commentary; cash US$535.7M; total debt US$810.4M; CFO US$410.9M; capex US$263.8M; H1 revenue US$8,745.6M, adjusted EPS US$4.70, FCF US$285.0M; no buybacks in Q2; 800G/1.6T and AI/ML compute programs; NYSE and TSX: CLS; Toronto.
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2
Form 10-Q for the quarter ended June 30, 2026
Three customers (all CCS) at 32%, 17% and 14% of Q2 revenue; 34%, 16% and 15% for H1; Communications US$2,653.2M (US$1,641.2M); Enterprise US$1,157.1M (US$433.1M); 114,982,086 shares at July 22, 2026; H1 repurchases US$22.6M; H1 cash from operations US$767.2M; H1 capex US$493.3M; total debt US$810.4M (term A US$250.0M, term B US$490.0M, finance leases US$75.5M, revolver undrawn); no backlog figure.
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3
Form 10-K for the fiscal year ended December 31, 2025
Business description; CCS (Communications for hyperscalers; Enterprise servers and storage); HPS designs or jointly designs storage, server and networking platforms; ATS businesses; CCS 74% of 2025 revenue; HPS 41% of 2025 revenue; three customers at 32%, 14%, 12%; top ten 79%; master supply agreements and order dynamics; about 75% of 2025 revenue produced in Asia; 29,591 employees; 5140 Yonge Street, Toronto; founded September 27, 1996 from IBM; 114,967,854 shares at February 19, 2026.
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4
Celestica Announces Fourth Quarter and FY 2025 Financial Results
FY2025 revenue US$12.39B (+28% from US$9.646B); GAAP EPS US$7.16; adjusted EPS US$6.05; adjusted operating margin 7.5%; FCF US$458.3M; GAAP net earnings US$832.5M; Q4 revenue US$3.655B, adjusted EPS US$1.89; 2026 outlook raised to US$17.0B / US$8.75 from US$16.0B / US$8.20 issued October 27, 2025; margin 7.8%; FCF US$500M; Q1 2026 guidance; 2025 buybacks 1.5M shares for US$153.4M.
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5
Celestica Announces First Quarter 2026 Financial Results
Q1 2026 revenue US$4.047B; adjusted EPS US$2.16; GAAP EPS US$1.83; adjusted operating margin 8.0%; CCS US$3.24B (+76%); HPS ~US$1.7B (+63%); 2026 outlook raised to US$19.0B / US$10.15 from US$17.0B / US$8.75; margin 8.1%; FCF US$500M; Q2 guidance US$4.15–4.45B, US$2.14–2.34.
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6
Celestica Announces $3 Billion Equity Offering to Accelerate Growth Across Global AI Infrastructure
US$3B treasury offering with a 15% over-allotment option; use of proceeds working capital, capital expenditures and general corporate purposes; BofA Securities and Citigroup joint lead bookrunners, TD Securities bookrunner; quotes from company executives.
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7
Celestica Announces Pricing of Equity Offering
9,677,419 shares at US$310.00; gross proceeds US$3,000,000,000; option for up to 1,451,612 additional shares; closing on or about August 7, 2026.
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8
Form 8-K (underwriting agreement)
Underwriting agreement with Citigroup, BofA Securities and TD Securities; 9,677,419 shares at US$310.00; option for 1,451,612 shares exercised in full August 6, 2026; estimated net proceeds about US$3.39B; Form S-3 No. 333-285515.
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9
Form 8-K (executive changes)
Effective October 1, 2026 the CFO becomes Group President, Global Markets and a successor becomes Chief Financial Officer.
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10
Celestica Confirms Plans for AllianceTexas Expansion Bringing 1,700 Jobs to Fort Worth
More than 1 million square feet at AllianceTexas; minimum capital investment US$876M by end-2029; about 1,700 jobs; Fort Worth City Council tax abatement; quote from the chief operating officer. Used for the event only.
