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Highlights

  • Celestica’s FY24 revenue increased by 21.2% YoY, reaching USD 9,646 million, driven by growth in CCS segment
  • Earnings before income taxes surged 73.9% YoY in FY24, reaching USD 532.2 million
  • Celestica secured a 1.6 Terabyte switching deal with a second Hyperscaler customer in January 2025
  • For FY25, Celestica projects organic revenue growth and USD 350 million in free cash flow

Celestica Inc (TSX:CLS) is a multinational electronics manufacturing services (EMS) company based in the U.S. and Canada. It specializes in design, manufacturing, hardware platforms, and supply chain solutions. The company operates across two segments: Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS).

FY24 Financial Update

In the financial year 2024 (FY24), the company reported a 21.2% YoY increase in total revenue, reaching USD 9,646 million, compared to USD 7,961 million in FY23. This growth was primarily fuelled by higher revenue from the CCS segment.

Gross profit in FY24 also saw a substantial rise of 37.1% YoY, totaling USD 1,033.7 million. It was attributed to increased revenue and a reduction in the cost of goods sold (COGS) as a percentage of revenue.

FY24 earnings before income taxes surged by 73.9% YoY, reaching USD 532.2 million, largely due to higher operational earnings and a reduction in finance costs. The company’s net income for the period rose by 75.1% YoY, totaling USD 428.0 million.

Recent Business Update

On 29 January 2025, the company notified that it has secured a 1.6 Terabyte switching deal with a second Hyperscaler customer. This new customer program, part of the HPS initiative, will support the customer in designing and producing an entirely AI-optimized networking rack. The project will incorporate advanced system-level liquid cooling technologies.

Company Outlook

Celestica’s outlook for FY25 is positive, with management anticipating organic revenue growth, projecting a revenue of around USD 10.7 billion or more, marking an increase compared to FY24. This growth is expected to be driven by better performance across its business segments, bolstered by favorable secular tailwinds and new program wins. Additionally, the company forecasts elevated free cash flow of USD 350 million or more for FY25.

Top 10 Shareholders

The top 10 shareholders of Celestica collectively hold approximately 28.22% of the company’s total shares. The largest stakes are held by Whale Rock Capital Management LLC at around 7.30%, and Fidelity Management and Research Company LLC at approximately 5.14%.

Stock Information

Over the past week, the stock has gained approximately 5.80%, and over the past month, it has risen by around 24.59%. In one year, the stock price has increased by over 258%. Additionally, it is currently trading above the average of its 52-week high of CAD 206.57 and its 52-week low of CAD 48.63. As of February 10, 2025, the stock last traded at CAD 186.33.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 10, 2025. The reference data in this report has been partly sourced from EODHD/Others.