Celestica (TSE:CLS)
TSX:CLS
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Celestica
(TSX:CLS)
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Rating:78Outperform
Price Target:
C$564.00
▲(3.89% 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 expansion
Celestica has materially scaled revenue while expanding profitability over multiple years, showing durable operational improvement. Higher scale and improved net/EBIT margins provide a stronger earnings base and greater capacity to absorb cyclical shocks, underpinning sustainable cash generation prospects.
Negative Factors
Working-capital intensity and cash conversion
Cash conversion is a structural weakness: operating cash flow remains a small percentage of revenue and working-capital swings can materially affect free cash flow. Elevated inventory builds to support programs increase funding needs and raise the likelihood of quarter-to-quarter FCF volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and margin expansion
Celestica has materially scaled revenue while expanding profitability over multiple years, showing durable operational improvement. Higher scale and improved net/EBIT margins provide a stronger earnings base and greater capacity to absorb cyclical shocks, underpinning sustainable cash generation prospects.
Read all positive factors
Celestica (CLS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$56.89B
Dividend YieldN/A
Average Volume (3M)444.10K
Price to Earnings (P/E)38.2
Beta (1Y)2.42
Revenue Growth35.69%
EPS Growth129.64%
CountryCA
Employees21,914
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)8.34
Shares Outstanding114,973,110
10 Day Avg. Volume486,282
30 Day Avg. Volume444,101
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$620.57Price Target Upside14.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)13.94
Revenue Forecast (FY)C$25.93B
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 makes money primarily by providing contract manufacturing and supply chain services to OEMs and other technology and industrial companies. Its revenue model is largely based on (1) manufacturing and assembly programs where Celestica buil...
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
Positive
542.89
Price Trends
405.23
Positive
416.83
Positive
372.34
Positive
Market Momentum
38.15
Negative
75.36
Negative
92.51
Negative
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 542.89 is above the 20-day moving average (MA) of 437.70, above the 50-day MA of 405.23, and above the 200-day MA of 372.34, indicating a bullish trend. The MACD of 38.15 indicates Negative momentum. The RSI at 75.36 is Negative, neither overbought nor oversold. The STOCH value of 92.51 is Negative, 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
494.83
338.06
215.64%
TSE:PNG
Kraken Robotics Systems Inc
7.28
4.83
197.14%
TSE:ZTE
ZTEST Electronics
0.31
0.07
29.17%
Celestica Corporate Events
Business Operations and StrategyExecutive/Board Changes
Celestica Reshapes Board Leadership and Adds Semiconductor Veteran to Drive Next Growth Phase
Positive
Mar 24, 2026
Celestica announced that long-time Chair Michael Wilson will retire ahead of its May 19, 2026 annual shareholder meeting, with President and CEO Rob Mionis assuming the additional role of Board Chair and veteran director Laurette Koellner becoming...
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.