Summary
Celestica Inc (CLS, Financial), a leader in design, manufacturing, hardware platform, and supply chain solutions, announced its financial results for the first quarter of 2025, ending March 31. The company reported a revenue of $2.65 billion, marking a 20% increase from the previous year, and an adjusted EPS of $1.20, both exceeding the high end of their guidance ranges. In light of these results, Celestica has raised its full-year 2025 outlook, now expecting revenue to reach $10.85 billion and adjusted EPS to be $5.00. The press release was issued on April 24, 2025.
Positive Highlights
- Revenue increased by 20% to $2.65 billion compared to Q1 2024.
- Adjusted EPS rose to $1.20 from $0.83 in Q1 2024.
- Adjusted operating margin improved to 7.1% from 5.9% in the previous year.
- CCS segment revenue grew by 28%, with a segment margin increase to 8.0%.
- Annual revenue outlook for 2025 increased to $10.85 billion, with adjusted EPS expected to be $5.00.
Negative Highlights
- GAAP earnings from operations as a percentage of revenue decreased to 4.9% from 5.7% in Q1 2024.
- GAAP EPS slightly declined to $0.74 from $0.77 in the previous year.
- Net cash used in financing activities increased to $213.9 million.
Financial Analyst Perspective
From a financial analyst's viewpoint, Celestica's Q1 2025 results demonstrate strong operational performance, particularly in the CCS segment, which saw significant revenue and margin growth. The company's ability to exceed its guidance ranges and raise its annual outlook indicates robust demand and effective cost management. However, the decline in GAAP earnings as a percentage of revenue and the slight drop in GAAP EPS suggest areas for potential improvement in operational efficiency and cost control.
Market Research Analyst Perspective
As a market research analyst, the results highlight Celestica's strong market position and its ability to capitalize on growing demand in the technology and supply chain sectors. The significant growth in the CCS segment suggests a successful strategy in addressing the needs of communications and enterprise markets. The raised annual outlook reflects confidence in continued demand and market expansion, positioning Celestica well for future growth.
FAQ
Q: What was Celestica's revenue for Q1 2025?
A: Celestica reported a revenue of $2.65 billion for Q1 2025.
Q: How did Celestica's adjusted EPS for Q1 2025 compare to the previous year?
A: The adjusted EPS for Q1 2025 was $1.20, up from $0.83 in Q1 2024.
Q: What is Celestica's updated revenue outlook for 2025?
A: Celestica has raised its 2025 revenue outlook to $10.85 billion.
Q: How did the CCS segment perform in Q1 2025?
A: The CCS segment revenue increased by 28% with a segment margin of 8.0%.
Q: What are the key areas of concern from the Q1 2025 results?
A: The decrease in GAAP earnings as a percentage of revenue and the slight decline in GAAP EPS are areas of concern.
Read the original press release here.
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