Celestica (TSE:CLS)
TSX:CLS
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Celestica
(TSX:CLS)
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Rating:72Outperform
Price Target:
C$377.00
▼(-8.10% Downside)
Action:ReiteratedDate:01/31/26
The score is driven primarily by strong fundamentals (accelerating growth, expanding margins, improving leverage) and a very bullish earnings outlook with raised 2026 guidance. Offsetting this are weaker near-term technicals (trading below key short/mid-term moving averages) and a demanding valuation (P/E ~38), plus execution/working-capital risks tied to the large 2026 capacity investment plan.
Positive Factors
Revenue acceleration
Sustained multi-year revenue acceleration reflects durable demand and stronger program scale. Higher top-line from large CCS programs improves operating leverage, supports reinvestment and reduces unit-cost sensitivity, making future margin and cash targets more attainable over multiple years.
Negative Factors
Customer concentration
Heavy revenue reliance on a few large hyperscalers concentrates commercial risk: loss, delay, or pricing pressure from one customer could sharply reduce utilization and margins. This amplifies earnings volatility and raises dependence on winning/retaining multi‑year design wins.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue acceleration
Sustained multi-year revenue acceleration reflects durable demand and stronger program scale. Higher top-line from large CCS programs improves operating leverage, supports reinvestment and reduces unit-cost sensitivity, making future margin and cash targets more attainable over multiple years.
Read all positive factors
Celestica (CLS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$47.16B
Dividend YieldN/A
Average Volume (3M)460.02K
Price to Earnings (P/E)31.3
Beta (1Y)2.43
Revenue Growth25.34%
EPS Growth109.17%
CountryCA
Employees21,914
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)2.56
Shares Outstanding114,967,860
10 Day Avg. Volume507,984
30 Day Avg. Volume460,021
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$523.93Price Target Upside27.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)12.19
Revenue Forecast (FY)C$23.71B
Celestica Business Overview & Revenue Model
Company Description
Celestica Inc. provides hardware platform and supply chain solutions in North America, Europe, and Asia. It operates through two segments, Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product man...
How the Company Makes Money
Celestica generates revenue primarily through its diversified service offerings, which include electronics manufacturing services (EMS), design and engineering solutions, and supply chain management. The company earns money by providing these serv...
Celestica Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong, accelerating revenue and earnings momentum driven by CCS (networking and AI compute) with record margins, robust free cash flow, customer design wins (including 1.6T programs) and an upgraded 2026 outlook. Management is executing an aggressive, customer‑driven capital expansion (capex rising to ~$1.0B) to support multiyear hyperscaler demand while maintaining cash generation targets. Key risks include higher inventory and working capital, increased capital intensity, customer concentration, and external supply chain or silicon pricing pressures—risks management believes are manageable but that raise execution and timing sensitivity.Positive Updates
Quarterly and Annual Revenue Outperformance
Q4 revenue of $3.65B was up 44% year‑over‑year and beat the high end of guidance; full year 2025 revenue was $12.4B, up 28% year‑over‑year.
Negative Updates
ATS Segment Softness
ATS revenue was $795M in Q4, down 1% year‑over‑year driven by lower capital equipment volumes and portfolio reshaping in A&D; ATS represented 22% of company revenue.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Annual Revenue Outperformance
Q4 revenue of $3.65B was up 44% year‑over‑year and beat the high end of guidance; full year 2025 revenue was $12.4B, up 28% year‑over‑year.
Read all positive updates
Company Guidance
Management guided Q1 FY2026 revenue of $3.85–$4.15B (midpoint +51% y/y) with adjusted EPS $1.95–$2.15 (midpoint +71% y/y), implying a non‑GAAP operating margin of ~7.8% at the midpoint and an adjusted tax rate of ~21%; for full‑year 2026 they raised targets to revenue $17.0B (+37% y/y) and adjusted EPS $8.75 (+45% y/y), while maintaining a free cash flow target of $500M and planning roughly $1.0B of CapEx (~6% of the revenue outlook) that management expects to fund from operating cash flow. Segment/Q1 color: ATS revenue down low single digits, CCS communications up in the low‑60s% and CCS enterprise up in the high‑teens% (management expects CCS to grow ~50% for the year); they also cited margin expansion (Q1 midpoint ~+70 bps) and reiterated strong balance‑sheet metrics (cash $596M, gross debt $724M, net debt $128M, ~ $1.3B available liquidity, trailing leverage ~0.7x).Celestica Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.61B | 9.65B | 7.96B | 7.25B | 5.63B |
| Gross Profit | 1.47B | 1.03B | 778.50M | 636.30M | 487.00M |
| EBITDA | 1.23B | 736.20M | 545.30M | 408.10M | 294.00M |
| Net Income | 847.07M | 428.00M | 244.60M | 145.50M | 103.90M |
Balance Sheet | |||||
| Total Assets | 7.20B | 5.99B | 5.89B | 5.63B | 4.67B |
| Cash, Cash Equivalents and Short-Term Investments | 594.52M | 423.30M | 372.60M | 374.50M | 394.00M |
| Total Debt | 914.03M | 796.70M | 782.80M | 786.10M | 794.40M |
| Total Liabilities | 4.99B | 4.09B | 4.12B | 3.95B | 3.20B |
| Stockholders Equity | 2.21B | 1.90B | 1.77B | 1.68B | 1.46B |
Cash Flow | |||||
| Free Cash Flow | 466.32M | 303.00M | 304.60M | 188.90M | 174.60M |
| Operating Cash Flow | 671.04M | 473.90M | 429.70M | 297.90M | 226.80M |
| Investing Cash Flow | -207.27M | -212.50M | -122.40M | -108.90M | -364.30M |
| Financing Cash Flow | -288.46M | -208.50M | -311.40M | -208.50M | 67.70M |
Celestica Technical Analysis
Positive
410.21
Price Trends
390.95
Positive
412.02
Negative
357.97
Positive
Market Momentum
3.02
Negative
55.67
Neutral
65.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CLS, the sentiment is Positive. The current price of 410.21 is above the 20-day moving average (MA) of 380.07, above the 50-day MA of 390.95, and above the 200-day MA of 357.97, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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)
TSE:CLS
Celestica
410.21
316.13
336.02%
TSE:PNG
Kraken Robotics Systems Inc
8.37
6.15
277.03%
TSE:ZTE
ZTEST Electronics
0.29
0.07
34.88%
Celestica Corporate Events
Shareholder Meetings
Celestica Sets Hybrid 2026 Annual Shareholders’ Meeting for May 19
Neutral
Jan 29, 2026
Celestica has scheduled its 2026 Annual Meeting of Shareholders for May 19, 2026, at 9:30 a.m. EDT, to be held in a hybrid format that will be detailed in its forthcoming definitive proxy statement. The company has set March 27, 2026 as the record...
Business Operations and StrategyShareholder Meetings
Celestica Sets Date and Format for 2026 Annual Shareholders’ Meeting
Neutral
Jan 29, 2026
Celestica Inc. has scheduled its 2026 Annual Meeting of Shareholders for May 19, 2026, at 9:30 a.m. EDT, to be conducted in a hybrid format, with detailed participation instructions to be provided in its forthcoming definitive proxy statement. The...
Business Operations and StrategyFinancial Disclosures
Celestica Lifts 2026 Outlook After Strong AI-Driven Surge in 2025 Results
Positive
Jan 29, 2026
Celestica reported a strong fourth quarter and full-year 2025, with Q4 revenue rising 44% year-on-year to $3.65 billion and adjusted operating margins and earnings per share improving significantly, driving full-year revenue up 28% to $12.39 billi...
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.