Celestica (TSE:CLS)
NYSE:CLS
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Celestica
(NYSE:CLS)
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Rating:78Outperform
Price Target:
C$546.00
▲(0.57% Upside)
Action:Reiterated
Date:04/30/26
The score is driven primarily by strong financial performance improvements and a very upbeat, guidance-raising earnings call, supported by positive price momentum. The main constraints are valuation (P/E ~31) and execution/cash-flow risks tied to working capital, elevated inventory, and higher capex amid supply constraints.
Positive Factors
Sustained Revenue and Margin Improvement
Celestica has materially scaled revenue over multiple years while improving profitability, indicating durable operating leverage and better program mix. Larger scale and improved margins increase resilience to cyclical demand and support reinvestment for long-term growth.
Negative Factors
Inventory and Working-Capital Intensity
Significant inventory buildup ties up cash and raises exposure to component obsolescence or program delays. Working-capital intensity has historically constrained cash conversion, making free cash flow sensitive to timing of ramps and demand persistence over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Margin Improvement
Celestica has materially scaled revenue over multiple years while improving profitability, indicating durable operating leverage and better program mix. Larger scale and improved margins increase resilience to cyclical demand and support reinvestment for long-term growth.
Read all positive factors
Celestica (CLS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$55.02B
Dividend YieldN/A
Average Volume (3M)423.31K
Price to Earnings (P/E)40.5
Beta (1Y)2.51
Revenue Growth35.69%
EPS Growth129.64%
CountryCA
Employees26,865
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)8.34
Shares Outstanding114,973,110
10 Day Avg. Volume341,294
30 Day Avg. Volume423,312
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)15.41
Price to Sales (P/S)2.70
P/FCF Ratio73.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$645.72Price Target Upside18.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)14.07
Revenue Forecast (FY)C$26.27B
Celestica Business Overview & Revenue Model
Company Description
Celestica Inc., together with its subsidiaries, provides supply chain solutions in Asia, North America, and internationally. It operates through two segments, Advanced Technology Solutions, and Connectivity and Cloud Solutions. The company offers ...
How the Company Makes Money
Celestica makes money primarily by providing manufacturing, engineering, and supply-chain services to original equipment manufacturers (OEMs) and other technology customers under commercial supply agreements. Revenue is largely generated from: (1)...
Celestica Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The call was largely positive — management reported strong Q1 results with robust revenue growth (53% YoY), margin expansion, raised full-year guidance (revenue to $19B, adjusted EPS to $10.15) and notable program wins that establish leadership in next‑generation networking and rack‑scale systems. Liquidity and balance sheet actions reinforce financial flexibility. Principal risks highlighted were supply chain constraints, elevated inventory and increased capital intensity to support rapid CCS growth; some program ramps are gated and certain mass production timelines extend into 2027. Overall, the favorable operating performance, upgraded outlook and strategic wins outweigh the supply and working capital headwinds.Positive Updates
Strong Top-Line Growth
Q1 revenue of $4.05 billion, up 53% year-over-year; CCS segment revenue of $3.24 billion (up 76%) driving 80% of company revenue; ATS revenue $806 million (flat YoY) and 20% of company revenue.
Negative Updates
Supply Chain and Component Constraints
Management noted increasing component shortages versus 90 days ago — constrained commodities include custom silicon, memory, 40+ layer PCBs, power and optical components; lead times have extended and some ramps are gated by component availability.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 revenue of $4.05 billion, up 53% year-over-year; CCS segment revenue of $3.24 billion (up 76%) driving 80% of company revenue; ATS revenue $806 million (flat YoY) and 20% of company revenue.
Read all positive updates
Company Guidance
Celestica's guidance called for Q2 2026 revenue of $4.15–$4.45 billion (midpoint +49% YoY) and adjusted EPS of $2.14–$2.34 (midpoint +61% YoY), with an expected non‑GAAP operating margin of ~8.0% (up ~60 bps) and an adjusted effective tax rate of ~21%; segment Q2 revenue was guided to mid‑single‑digit growth for ATS, ~+50% for CCS communications and ~+130% for CCS enterprise. For full‑year 2026 the company raised revenue guidance from $17B to $19B (+53% YoY), lifted adjusted EPS to $10.15 (from $8.75, +68% YoY), targets an adjusted operating margin of 8.1% (vs. prior 7.8%), reaffirmed $500M of free cash flow while planning ~ $1B of CapEx, and now expects CCS roughly +70% YoY and ATS mid‑ to high‑single‑digit growth; liquidity was strengthened by upsizing the revolver by $1B to $1.75B (> $2B available liquidity), with net debt of $341M and gross debt/TTM adjusted EBITDA of 0.6x.Celestica Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
76
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.81B | 12.61B | 9.65B | 7.96B | 7.25B | 5.63B |
| Gross Profit | 1.60B | 1.47B | 1.03B | 778.50M | 636.30M | 487.00M |
| EBITDA | 1.36B | 1.23B | 736.20M | 545.30M | 408.10M | 294.00M |
| Net Income | 959.74M | 847.07M | 428.00M | 244.60M | 145.50M | 103.90M |
Balance Sheet | ||||||
| Total Assets | 8.26B | 7.20B | 5.99B | 5.89B | 5.63B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 378.00M | 594.52M | 423.30M | 372.60M | 374.50M | 394.00M |
| Total Debt | 772.40M | 914.03M | 796.70M | 782.80M | 786.10M | 794.40M |
| Total Liabilities | 6.16B | 4.99B | 4.09B | 4.12B | 3.95B | 3.20B |
| Stockholders Equity | 2.10B | 2.21B | 1.90B | 1.77B | 1.68B | 1.46B |
Cash Flow | ||||||
| Free Cash Flow | 492.74M | 466.32M | 303.00M | 304.60M | 188.90M | 174.60M |
| Operating Cash Flow | 887.94M | 671.04M | 473.90M | 429.70M | 297.90M | 226.80M |
| Investing Cash Flow | -386.58M | -207.27M | -212.50M | -122.40M | -108.90M | -364.30M |
| Financing Cash Flow | -420.39M | -288.46M | -208.50M | -311.40M | -208.50M | 67.70M |
Celestica Technical Analysis
Negative
542.89
Price Trends
533.18
Negative
467.54
Positive
439.35
Positive
Market Momentum
-6.47
Positive
41.19
Neutral
17.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CLS, the sentiment is Negative. The current price of 542.89 is below the 20-day moving average (MA) of 543.17, above the 50-day MA of 533.18, and above the 200-day MA of 439.35, indicating a neutral trend. The MACD of -6.47 indicates Positive momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 17.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CLS.
Celestica Risk Analysis
Celestica disclosed 64 risk factors in its most recent earnings report. Celestica reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Celestica Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$55.02B | 40.47 | 47.71% | ― | 35.69% | 129.64% | |
72 Outperform | C$12.74M | 9.50 | 20.37% | ― | -1.99% | -2.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | C$2.01B | -2,725.00 | -0.33% | ― | 24.54% | -103.47% |
* Technology Sector Average
TSE:CLS
Celestica
478.58
265.82
124.94%
TSE:PNG
Kraken Robotics Systems Inc
6.54
3.47
113.03%
TSE:ZTE
ZTEST Electronics
0.35
0.07
25.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.