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Celestica (CLS - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this electronics manufacturing services company have returned -15.8%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Electronics - Manufacturing Services industry, which Celestica falls in, has lost 9.1%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Celestica is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of +90.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $11.32 for the current fiscal year indicates a year-over-year change of +87.1%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $19.01 indicates a change of +67.9% from what Celestica is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Celestica.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Celestica, the consensus sales estimate for the current quarter of $5.4 billion indicates a year-over-year change of +69.1%. For the current and next fiscal years, $20.35 billion and $31.99 billion estimates indicate +64.3% and +57.2% changes, respectively.

Last Reported Results and Surprise HistoryCelestica reported revenues of $4.7 billion in the last reported quarter, representing a year-over-year change of +62.4%. EPS of $2.54 for the same period compares with $1.39 a year ago.

Compared to the Zacks Consensus Estimate of $4.35 billion, the reported revenues represent a surprise of +8.08%. The EPS surprise was +10.92%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Celestica is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Celestica. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Investment ThesisThis recent pullback in Celestica Inc. (NYSE:CLS) stock, caused by a massive $3B Secondary Public Offering (SPO) — which involved a significant discount on the shares offered –, gave investors an attractive entry point to buy this promising asset. Market focus on the dilution of shareholders’ equity is a short-term issue, but in the long term, it remains relevant to continue strengthening the company’s moat.

Now, looking at the rapid expansion of the CCS segment, with record revenue and an operating margin of 8.7%, it’s clear that Celestica’s leadership continues to strengthen. And that allows the company to continue its transition to becoming an AI infrastructure systems integrator. Moreover, significant PEG discount and revenue growth while maintaining the EV/Sales multiple suggest a potential 65% increase in the company’s value over the next 12–18 months.

Growth in the CCS Segment Strengthens Celestica’s MoatCelestica’s strategy is centered on transforming its previous business model, which saw the Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS) segments account for approximately 60% and 40% of revenue, respectively. Starting in 2023, with the onset of the AI supercycle, that ratio began to shift in favor of the CCS segment, which is a sign of the parabolic growth in demand for server equipment.

In Q1 2023, according to the data, revenue in the ATS segment totaled $792M, compared to $1.045B in the CCS segment. Still, over time, the electronics segment is becoming less significant relative to networking equipment, necessary for data center operators, cloud providers, and hyperscalers. According to data for Q2 2026, revenues from the ATS segment increased only to $888M, whereas the CCS segment reached a record $3.81B. Moreover, compared to the operating margin figures by segment, we should note the clear advantage of CCS over ATS (8.7% vs. 6.3%, as of Q2 2026).

I believe that the focus on the CCS segment will continue to grow, since network equipment manufacturing supports the operation of cloud applications and AI models. Within its product portfolio, Celestica is also expanding its offerings in the high-speed network switches and data storage systems subsegments. These moves help strengthen Celestica’s competitive moat, because they enable the company to offer increasingly comprehensive services to customers, which are tailored to their individual needs.

However, there is a fly in the ointment: Celestica is facing increasing competition from diversified Asian players that offer similar service portfolios. They include Foxconn, the leader in the AI server segment (working closely with Nvidia), along with the Taiwanese giant Quanta Computer, working with hyperscalers such as Microsoft, Alphabet, and Meta Platforms. Therefore, one of Celestica’s strategic moves is to seek new partners among these giants, enabling it to bring new, meaningful products to market.

The most significant example is the new partnership with AMD (announced on March 16, 2026), enabling the launch of the Helios AI platform, a computing solution that uses the entire rack as its basic unit (volume production is expected in early 2027). Further implementation of the plans listed above should help Celestica strengthen its role as a provider of full-rack solutions. Apart from AMD, the management announced during the most recent conference call a partnership with OpenAI (OPENAI), which the company plans to begin supplying with specialized racks.

The Phenomenon of Repeated Forecast Upward Revisions for 2026–2027Celestica recorded another increase in revenue in Q2 2026 (+62% YoY), achieving $4.7B. The adjusted operating margin for the year rose from 7.4% to 8.2%. In light of strengthening customer demand and the partial resolution of previous component supply issues, management increased its previous full-year revenue forecast for 2026 from $19.0B to $20.5B, along with an adjusted operating margin forecast from 8.1% to 8.4%. In addition, ongoing implementation of new projects (most notably in collaboration with AMD and OpenAI) will drive revenue growth in 2027 as well.

Consensus forecasts from analysts predict that annual revenue growth in 2027 will be 72.4% (revenue growth of 65.94% is expected in 2026), increasing the figure to $35.45B. Even though this growth will slow down starting in 2028, revenue is projected to reach $70.55B by 2030.

A Large-Scale SPO Worth $3B: Necessity or Mistake?Looking at the reasons behind CLS’s decline in value over the past quarter, one thing worth mentioning right away is the large-scale SPO announced on August 5, 2026. The quarterly report indicates that the number of shares outstanding at the end of Q2 2026 was 115.0M. Within the framework of the $3B SPO, a further 9.677M common shares were issued at a price of $310. One day before the offering, at the market close, share price stood at $362.76, then dropped to $314.53 the following day. The significant decline in market capitalization was due to a discount of more than 14% in the pricing of the recently issued shares relative to the market value at the time of the SPO.

Considering that the number of shares outstanding automatically increased from 115.0M to 124.677M, share dilution amounted to 8.41%. Moreover, in the context of this SPO, Celestica additionally granted the underwriters an option to purchase 1.451M common shares. Thus, share dilution could potentially increase to 9.68%.

Certainly, the terms of the SPO represented a steep discount to the current value of CLS shares, resulting in bearish pressure. This significant dilution of shareholders’ equity in a single transaction caused a wave of profit-taking among institutional investors, which led to a sharp price correction. But the negative impact of this news ends there, plus it’s already old news that won’t increase selling pressure, neither in the short term nor in the long term.

However, analyzing the reasons behind this transaction, its great importance for maintaining the business’ previous growth rate should be highlighted. The management of Celestica has confirmed the need to raise additional funds ($536M as of Q2 2026), the proceeds of which will be used to finance CapEx (spending is projected to rise to $1B in 2026) and replenish working capital. Given that customer demand is showing parabolic growth, the company’s operational capabilities must be scaled up through investments in fixed assets. Doing so will enable Celestica to realize its corporate goals of consolidating its leadership in the server equipment market. The reasons for raising these funds also include the realization of new projects with AMD and OpenAI.

CLS ValuationTo analyze the attractiveness of CLS stock, let’s take a look at the forward PEG, EV/Sales, and EV/EBITDA ratios relative to other competitors: Jabil Inc. (JBL), Flex Ltd. (FLEX), Sanmina Corporation (SANM), and Plexus Corp. (PLXS).

These are the average multiples: 0.78x, 1.26x, and 15.00x. As a result, CLS is trading at a 21.8% discount based on Non-GAAP PEG (FWD), whereas based on EV/Sales (FWD) and EV/EBITDA (FWD), their shares are trading at premiums of 62.7% and 47.3%, respectively.

But when lumping CLS together with its competitors listed above, we should keep in mind the fundamental difference between the companies themselves. This is because virtually all of its competitors trade at lower multiples but lack the competitive moat that CLS possesses. With regard to Celestica, the company is a market leader and is expanding its roster of strategic partners. In addition, its comprehensive suite of services for organizing AI clusters in the CCS segment is also expanding.

Based on the results for 2027, revenue is expected to grow to $35.45B, which I believe will keep the EV/Sales multiple around 2.00x as operating margins continue to rise. Thus, using this multiple on the projected revenue, the projected valuation of the business is estimated to grow from the current $43B to $71B. Based on current stock prices, that implies a 65.1% upside potential over the next 12–18 months.

According to Wall Street estimates, analyst consensus forecasts indicate an average price target of $473.91, suggesting a 27.02% increase. Out of 22 Wall Street analysts, everyone has a positive rating on the stock (17 at “Strong Buy” and 5 at “Buy”). Recently, for example, the analysts at UBS revised their neutral rating, increasing it from “Hold” to “Buy” with a target price of $430. Their main reason for the revision is an upward revision of forecasts for the CCS segment, showing that Celestica’s management strategy to increase the share of full-rack solutions is on the right track.

Supply Chain Disruption RisksLike before, I think that potential supply chain disruptions remain the main risk for Celestica. Company management also mentioned this during their latest conference call. These disruptions could lead to delays in the delivery of certain components needed to build complete solutions. One negative consequence of this could be the deferral of revenue to subsequent quarters, resulting in volatility in financial metrics in future quarterly reports.

But this risk was already known based on the results of Q1 2026. The result was that revenue exceeded forecasts, but operating margins, actually, improved. The main reason for this is Celestica’s partnership model with its customers, which shifts most of the costs onto the customers themselves. These factors reduce pricing risks and help maintain the positive trend of growing operating margins. As a result, whereas last time I would have rated this risk at 6 out of 10, now I am lowering its significance to 4.

ConclusionThus, CLS’s recent correction is temporary, because the company maintains strong fundamental momentum, which allows us to reaffirm its “Buy” rating. The $3B raised will be used to scale Celestica’s operational capabilities, helping it solidify its position as a market leader. Its plans with AMD and the new partnership with OpenAI provide an opportunity to increase sales in the CCS segment, with a record operating margin of 8.7%. Based on my valuation of CLS shares, I forecast a 65% upside potential for the company’s value, in line with the high valuations from Wall Street.

Analyst’s Disclosure: I have a beneficial long position in the shares of CLS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Ferguson Wellman Capital Management Inc. bought a new stake in Celestica, Inc. (NYSE:CLS – Free Report) (TSE:CLS) during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 76,975 shares of the technology company’s stock, valued at approximately $27,821,000. Ferguson Wellman Capital Management Inc. owned about 0.07% of Celestica as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Renaissance Technologies LLC purchased a new stake in Celestica in the 1st quarter worth about $68,952,000. K.J. Harrison & Partners Inc purchased a new stake in Celestica during the second quarter valued at about $1,092,000. Quantinno Capital Management LP lifted its holdings in Celestica by 73.7% during the first quarter. Quantinno Capital Management LP now owns 23,954 shares of the technology company’s stock valued at $6,746,000 after purchasing an additional 10,164 shares during the last quarter. Ninepoint Partners LP bought a new position in Celestica during the second quarter worth about $2,880,000. Finally, The Manufacturers Life Insurance Company increased its stake in shares of Celestica by 1.9% in the first quarter. The Manufacturers Life Insurance Company now owns 959,586 shares of the technology company’s stock worth $270,416,000 after purchasing an additional 18,105 shares in the last quarter. 67.38% of the stock is owned by institutional investors.

Insider Activity at Celestica In related news, President Todd Cooper sold 20,118 shares of Celestica stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $360.00, for a total value of $7,242,480.00. Following the transaction, the president owned 73,252 shares in the company, valued at $26,370,720. This trade represents a 21.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Robert Mionis sold 98,453 shares of Celestica stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $368.99, for a total value of $36,328,172.47. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 243,067 shares of company stock valued at $89,200,967. Insiders own 1.10% of the company’s stock.

Analyst Upgrades and Downgrades CLS has been the topic of a number of recent research reports. UBS Group upgraded shares of Celestica from a “neutral” rating to a “buy” rating and upped their price target for the company from $410.00 to $430.00 in a research note on Monday, August 24th. Wolfe Research lifted their price objective on shares of Celestica from $425.00 to $475.00 and gave the company an “outperform” rating in a research note on Wednesday, July 29th. JPMorgan Chase & Co. raised their price target on Celestica from $445.00 to $485.00 and gave the stock an “overweight” rating in a report on Wednesday, July 29th. Bank of America reiterated a “buy” rating on shares of Celestica in a research note on Wednesday, July 29th. Finally, Weiss Ratings cut shares of Celestica from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, August 13th. Twenty-three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $450.50. Get Our Latest Stock Report on Celestica

Celestica Price Performance CLS traded down $2.12 during trading on Monday, reaching $385.19. The stock had a trading volume of 653,625 shares, compared to its average volume of 2,420,680. The business has a 50-day moving average of $330.45 and a 200-day moving average of $345.99. Celestica, Inc. has a one year low of $230.24 and a one year high of $474.02. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.68 and a current ratio of 1.23. The stock has a market cap of $44.29 billion, a PE ratio of 40.02 and a beta of 2.01.

Celestica (NYSE:CLS – Get Free Report) (TSE:CLS) last posted its quarterly earnings data on Monday, July 27th. The technology company reported $2.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.29 by $0.25. The firm had revenue of $4.68 billion during the quarter, compared to analysts’ expectations of $4.30 billion. Celestica had a return on equity of 39.96% and a net margin of 7.16%.The company’s revenue for the quarter was up 62.4% compared to the same quarter last year. During the same period in the prior year, the business earned $1.39 EPS. Celestica has set its FY 2026 guidance at 11.300-11.300 EPS and its Q3 2026 guidance at 2.880-3.080 EPS. As a group, equities research analysts anticipate that Celestica, Inc. will post 10.71 EPS for the current fiscal year.

About Celestica (Free Report)

Celestica Inc (NYSE: CLS) is a global provider of design, manufacturing, and supply-chain services for original equipment manufacturers and other technology companies. The company helps customers develop, produce, deploy, and support complex hardware and electronic systems, serving industries such as communications, enterprise technology, aerospace and defense, industrial technology, health care, and semiconductor equipment.

Its services include product design and engineering, printed circuit board and systems assembly, manufacturing, testing, logistics, aftermarket support, and supply-chain management.

Further Reading Five stocks we like better than Celestica A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? Want to see what other hedge funds are holding CLS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Celestica, Inc. (NYSE:CLS – Free Report) (TSE:CLS).

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Celestica (CLS - Free Report) closed at $361.84 in the latest trading session, marking a +1.61% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.13%.

The stock of electronics manufacturing services company has risen by 16.04% in the past month, leading the Computer and Technology sector's gain of 6.68% and the S&P 500's gain of 1.26%.

The upcoming earnings release of Celestica will be of great interest to investors. The company is expected to report EPS of $3.01, up 90.51% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $5.4 billion, showing a 69.1% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $11.32 per share and a revenue of $20.35 billion, demonstrating changes of +87.11% and +64.27%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Celestica. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Celestica is carrying a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Celestica is holding a Forward P/E ratio of 31.45. This represents a premium compared to its industry average Forward P/E of 24.45.

The Electronics - Manufacturing Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 7, placing it within the top 3% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Key Takeaways CLS expects AI-driven hyperscaler programs to lift enterprise revenue about 190% year over year.CLS raised its 2026 revenue forecast to $20.5 billion, up from $19 billion, or about 65% growth.AI/ML compute and networking demand is expected to continue supporting CLS's revenue growth. Celestica, Inc. (CLS - Free Report) is witnessing solid momentum in its Communications and Cloud Solutions (CCS) segment, backed by strength in AI networking and AI compute demand. Growing investments in AI infrastructure are driving expansion of Celestica's AI compute business. Management expects AI-related demand to remain a significant contributor to growth in the coming quarter. For the third quarter, the company expects enterprise revenues to increase approximately 190% year over year, driven by the increase in hyperscaler AI/ML compute programs.

AI is strengthening the 2026 and 2027 growth outlook. The company has raised its 2026 revenue forecast to $20.5 billion from $19 billion, representing approximately 65% growth. Beyond AI compute, Celestica is also expanding its role in AI infrastructure through custom rack systems. The company will manufacture advanced AI racks developed in collaboration with Broadcom to support OpenAI's custom accelerator roadmap. Initial deliveries are expected later in 2026, with mass production scheduled for 2027.

AMD is expanding its AI infrastructure portfolio with the upcoming Helios platform to strengthen its position in the hyperscale AI market. Celestica is a key manufacturing and design partner in this initiative. The OpenAI and AMD collaboration brings a multibillion-dollar opportunity for CLS in the next several years.

Celestica continues to see strong demand for 800G Ethernet switches across hyperscaler customers. Management expects 800G shipments to keep growing in 2027 alongside the acceleration of 1.6T deployments. AI/ML compute and networking business will likely continue to propel revenues in upcoming quarters.

How Are Competitors Faring?Celestica faces competition from Jabil, Inc. (JBL - Free Report) and Flex LTD. (FLEX - Free Report) in the AI infrastructure space. Jabil boasts a comprehensive portfolio spanning computing, storage, networking, optics, power and cooling. Such an end-to-end product offering allows it to compete across several layers of the AI infrastructure buildout. Such broad exposure is translating into significant revenue growth. Jabil is expecting AI-related revenues of approximately $13.6 billion in fiscal 2026, up from $9 billion a year earlier.

Flex continues to deepen its exposure to AI infrastructure by combining compute integration, cooling and power capabilities. In first-quarter fiscal 2027, CPI (Cloud and Power Infrastructure) segment revenues rose 35% to $2.2 billion, backed by growing AI-related demand. Flex is developing high-density power solutions and cooling technologies for next-generation AI systems.

Celestica's Price Performance, Valuation & EstimatesCelestica shares have soared 84.3% over the past year compared with the industry’s growth of 85.4%.
 

Image Source: Zacks Investment Research

From a valuation standpoint, Celestica trades at a forward price-to-earnings ratio of 22.81, higher than the industry average of 22.33.
 

Image Source: Zacks Investment Research

Earnings estimates for both 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

Celestica currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

(All amounts in U.S. dollars)

TORONTO--(BUSINESS WIRE)--Celestica Inc. (NYSE: CLS) (TSX: CLS) (“Celestica” or the “Company”), a global leader in data center infrastructure and advanced technology solutions, today announced an equity offering totaling $3 billion, in order to fund investments in its business to support unprecedented multi-year demand from its customer base.

Proposed Offering

Celestica today announced a $3 billion treasury offering of common shares. The Company intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the common shares offered.

BofA Securities and Citigroup are acting as joint lead bookrunners (in alphabetical order) and TD Securities is acting as bookrunner for the offering.

Capitalizing on Multi-Year AI Infrastructure Expansion

Driven by robust demand and expanding visibility across the global AI infrastructure buildout, Celestica is announcing a $3 billion equity offering to accelerate its long-term growth strategy. As a critical engineering and manufacturing partner to the world’s leading technology companies, Celestica is investing to capture multi-year growth opportunities across its key markets of high-performance AI compute and data center Ethernet networking.

“We are experiencing accelerating momentum across our business, giving us strong conviction to continue investing behind our capabilities,” said Mandeep Chawla, Chief Financial Officer. “Maintaining a robust capital structure with enhanced balance sheet flexibility is central to executing our long-term strategy, ensuring we can seamlessly scale alongside our customers’ evolving multi-year capital deployment plans.”

“Strong operational execution across both segments, combined with unprecedented demand from our Connectivity & Cloud Solutions (CCS) customers, underscores the significant scale of the AI infrastructure buildout,” said Rob Mionis, Chief Executive Officer. “Our demand outlook is the strongest in the Company’s history, and our multi-year visibility continues to strengthen. Celestica’s market leadership and disciplined execution, fully supported by this transaction, position us to capitalize on this secular growth and deliver long-term shareholder value.”

Use of Proceeds

Net proceeds from the offering are expected to be used for working capital and to support investments in capital expenditures, in addition to other general corporate purposes.

Closing

The closing of the offering is subject to customary closing conditions, including the entering into of an underwriting agreement and the listing of the additional common shares on the New York Stock Exchange and the Toronto Stock Exchange.

About Celestica

Celestica is a technology leader dedicated to driving customer success and market advancements. With deep expertise in design, engineering, manufacturing, supply chain, and platform solutions, Celestica enables critical data center infrastructure for AI, cloud and hybrid cloud, and advances technologies in high-growth markets. With a talented team and a strategic global network, Celestica helps its customers achieve competitive advantages. For more information on Celestica, visit www.celestica.com. Our securities filings can be accessed at www.sedarplus.ca and www.sec.gov.

The information contained on or accessible through www.celestica.com is not incorporated by reference into, and does not form part of, this release.

Registration Statement and Prospectus

Celestica has filed a final base shelf prospectus containing important information relating to the securities described in this press release with the securities regulatory authorities in each of the provinces and territories of Canada. The final base shelf prospectus, any applicable shelf prospectus supplement and any amendment to the documents are accessible through SEDAR+. An automatic shelf registration statement (including a base shelf prospectus) on Form S-3 (File No. 333-285515) has been filed with the U.S. Securities and Exchange Commission (the “SEC”) for the offering to which this press release relates. Before you invest, you should read the prospectus in that registration statement and other documents Celestica has filed with the SEC for more complete information about Celestica. Any offering of these securities will be made only by means of a prospectus and any applicable prospectus supplement. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of any of the documents may be obtained, without charge, if you request them in Canada from Merrill Lynch Canada Inc., 181 Bay Street-Suite 400, Toronto, Ontario M5J 2V8; Citigroup Global Markets Canada Inc., c/o: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (+1-800-831-9146); or TD Securities Inc., Attention: Symcor, NPM, at 1625 Tech Avenue, Mississauga, ON L4W 5P5, by telephone at (289) 360-2009, or by email at [email protected], or in the United States by contacting BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001 (Attention: Prospectus Department); Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (+1-800-831-9146); or TD Securities (USA) LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at [email protected].

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration and qualification under the securities laws of such state or jurisdiction.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements, including, without limitation, those related to: unprecedented multi-year and strengthening demand in our businesses, demand environment, outlook and customer forecasts, multi-year growth opportunities, our anticipated financial and/or operational results, guidance and outlook, including statements with respect to expected revenue growth in 2026 and 2027, developments related to new customer or program wins, anticipated economic conditions, industry and market trends and projections underlying market growth rates, customer demand, prospects and opportunities, and strategic initiatives, maintaining a robust capital structure and enhanced balance sheet flexibility, and the timing of, closing conditions (including listing of the common shares on the NYSE and TSX) to and use of net proceeds of the offering. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “continues,” “projects,” "target," "outlook," "goal," "guidance," “potential,” “possible,” “contemplate,” “seek,” or similar expressions, or may employ such future or conditional verbs as “may,” “might,” “will,” “could,” “should,” or “would,” or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, where applicable, and for forward-looking information under applicable Canadian securities laws.

Forward-looking statements are provided to assist readers in understanding management’s current expectations and plans relating to the future. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, including certain assumptions about: revenue growth in 2026 and 2027 (including continued strengthening of customer demand, close alignment with key customers on demand planning, sustained improvements in demand visibility, and continued strengthening of adjusted operating margins); accelerating growth from our customer base, including our CCS customer base; demand levels across our businesses, including continued growth in demand from data center customers in 2026 and 2027; programs and production ramps occurring and progressing as anticipated in line with expected timelines, specifications, qualification requirements and production schedules, customer decisions, design changes, silicon and component availability, qualification outcomes, deployment timelines and priorities, constraints affecting data center development, construction, equipping or operation, and other technical, commercial, regulatory or supply-chain factors, and our expected role in such programs, including our 800G and 1.6T networking, and AI/machine learning compute programs with data center customers; technology upgrade cycles; our ability to retain programs and customers; continuing operating leverage and improving mix; the impact of anticipated market conditions on our businesses; the reliability of third party market forecasts and customer indications of future demands and roadmaps, including with respect to data center infrastructure; continued advancement and commercialization of AI technologies and cloud computing; supporting sustained high levels of capital expenditure investments by leading hyperscaler, AI, and data center customers; our ability to develop new capabilities; scaling of our operations to meet the anticipated growth in customer demand; the successful recruitment and retention of skilled talent; capital investments proceeding as anticipated, including timely completion of construction and operationalization of assets, securing required materials, utilities, and equipment for our expansion plans; our ability to secure adequate component and materials supply; alignment of our capacity with our business demands; the economy; our customers; our suppliers; tax and interest rates; no material changes to tariffs, trade restrictions, customs administration, or related refund or recovery processes, including developments relating to duties imposed under the International Emergency Economic Powers Act of 1977 and any replacement, continuing or retaliatory tariff measures, compared to what are in effect as of August 5, 2026; that our customers will retain liability for and we will continue to be able to recover substantially all costs from customers relating to product/component tariffs and countermeasures; no material changes in business activities resulting from current macroeconomic trends and uncertainties, including evolving global tariffs, trade negotiations, and geopolitical conflicts; our ability to achieve our strategic goals; the availability of cash from operations to fund planned capital investments; the availability of capital resources for, and the permissibility under our credit facility of, repurchases of outstanding common shares under our current normal course issuer bid; as well as other market, financial and operational assumptions. Readers are cautioned that such information may not be appropriate for other purposes. Readers should not place undue reliance on such forward-looking information.

Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including, among others, risks related to: changing customer capacity roadmaps for 2026 and beyond; realization of the long-term demand outlook; customer and segment concentration; reduction in customer revenue; erosion in customer market competitiveness; changes in revenue mix and margins; uncertain market, industry, political and economic conditions; customer requests to transfer manufacturing of products from one facility to another; changes to policies or legislation; operational challenges (including inventory management, supply chain constraints, and components, materials or supply shortages); volatility in energy and commodity prices; program ramps not progressing as anticipated; the cyclical nature and/or volatility of certain of our businesses; talent management and inefficient employee utilization, including recruiting, training and retaining sufficient qualified personnel in required jurisdictions and within required timeframes; our expansion plans or consolidation of our operations; planned capital expenditures to support anticipated growth in customer demand; competition risk from evolving AI technologies, including lower-cost/open-source AI models; energy, power and water constraints in the data center ecosystem; cash flow, revenue, and operating results; tax and interest rates variability; technology and IT disruption; increasing legal, tax and regulatory complexity and uncertainty (including in relation to our or our customers' businesses); integrating and achieving the anticipated benefits from acquisitions; and the potential adverse impacts of events outside of our control.

For more exhaustive information on the foregoing and other material risks, uncertainties and assumptions, readers should refer to our public filings at www.sedarplus.ca and www.sec.gov, including in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed with, or furnished to, the U.S. Securities and Exchange Commission, and the Canadian Securities Administrators, as applicable.

Forward-looking statements speak only as of the date on which they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

Key Takeaways CLS is benefiting from rising AI networking, cloud infrastructure and high-performance compute demand.Celestica is expanding engineering, manufacturing and integrated technology solutions for AI platforms.CLS expects Connectivity & Cloud Solutions growth as AI deployments and networking upgrades scale. AI infrastructure spending is reshaping the electronics manufacturing landscape as cloud providers and enterprises expand data center capacity. Demand for advanced networking, storage and compute platforms is creating new opportunities for manufacturers with deep engineering and production capabilities.

Celestica Inc. (CLS - Free Report) illustrates this shift through its growing exposure to cloud infrastructure and high-performance networking. As customers accelerate AI deployments, the company continues to broaden its portfolio while scaling production for next-generation platforms.

Celestica Benefits From AI Infrastructure SpendingEnterprise networking, cloud infrastructure, high-bandwidth switching, storage systems and data center products have become increasingly important growth drivers for Celestica. Management said demand across AI networking and compute platforms remains strong, supported by multiyear customer capacity planning and expanding program ramps.

Recent quarterly result highlighted continued momentum in 800G networking, the launch of 1.6-terabit programs and expanding artificial intelligence compute deployments. These trends reinforce the industry's broader investment cycle as hyperscale customers continue building AI infrastructure.

CLS Expands High-Value Technology SolutionsCelestica continues investing in engineering expertise, advanced manufacturing capabilities and product innovation to strengthen its position in higher-value markets. Long-standing customer relationships also support participation in complex infrastructure programs that require scale and operational execution.

The company's strategy increasingly centers on integrated technology solutions rather than traditional manufacturing alone. That approach positions Celestica to pursue emerging opportunities across networking, storage and custom AI platforms while expanding margins over time.

Celestica Cloud Business Gains ScaleConnectivity & Cloud Solutions has become Celestica's primary growth engine as customer demand accelerates across communications and enterprise markets. Higher production volumes have also improved operating leverage, allowing the segment to contribute a growing share of company revenue.

Management expects continued expansion as networking upgrades, AI compute deployments and new customer programs move into production. Companies such as Flex Ltd. (FLEX - Free Report) and Jabil Inc. (JBL - Free Report) are also pursuing opportunities tied to AI infrastructure, underscoring the industry's broad-based investment cycle.

CLS Industry Trends Still Carry RisksDespite favorable demand trends, risks remain. Customer concentration, competitive pricing, geopolitical uncertainty and the cyclical nature of semiconductor spending could affect future results. Supply-chain constraints also require careful execution as production volumes increase.

Advanced Technology Solutions continues to improve, but performance across portions of that business remains tied to end-market conditions and customer spending patterns. Those factors could create periodic volatility even as AI-related demand stays healthy.

Why CLS' Rating Signals Reflect Industry MomentumThe broader industry backdrop remains constructive, and Celestica appears well positioned to benefit if AI infrastructure investment continues expanding. Even so, investors should continue monitoring execution, competitive dynamics and customer demand.

Celestica currently carries a Zacks Rank #1 (Strong Buy), along with a Growth Score of A and a VGM Score of A. Those measures suggest favorable earnings estimate revisions and strong growth characteristics. More modest Value and Momentum Scores indicate that while valuation and price trends may be less compelling than growth, the stock continues to align with the positive industry backdrop rather than serving as a guarantee of future performance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Q2 2026 revenue and adjusted EPS* above the high end of our guidance ranges;
Raising 2026 annual outlook and expecting growth to accelerate in 2027

(All amounts in U.S. dollars)

TORONTO, July 27, 2026 (GLOBE NEWSWIRE) -- Celestica Inc.1 (NYSE: CLS) (TSX: CLS), a global leader in data center infrastructure and advanced technology solutions, today announced its financial results for the second quarter ended June 30, 2026 (Q2 2026).

Q2 2026 Highlights

Revenue: $4.70 billion, increased 62% compared to $2.89 billion for the second quarter of 2025 (Q2 2025).GAAP earnings from operations as a % of revenue: 9.8%, compared to 9.4% for Q2 2025.Adjusted operating margin (non-GAAP)*: 8.2%, compared to 7.4% for Q2 2025.GAAP earnings per share2 (EPS): $3.17, compared to $1.82 for Q2 2025.Adjusted EPS2 (non-GAAP)*: $2.54, compared to $1.39 for Q2 2025.
“Celestica delivered very strong performance in the second quarter, achieving revenue of $4.70 billion and adjusted EPS (non-GAAP)* of $2.54, each exceeding the high end of our guidance ranges. Our adjusted operating margin (non-GAAP)* of 8.2% represents another new high for the company, demonstrating the strength of our execution,” said Rob Mionis, CEO.

“Driven by our strong first-half performance, strengthening second half customer forecasts, and improved component supply, we are pleased to once again raise our 2026 annual outlook. Our 2026 revenue outlook is now $20.5 billion, and our adjusted EPS (non-GAAP)* outlook is now $11.30, reflecting year-over-year growth of 65% and 87%, respectively.”

“Looking beyond 2026, our visibility continues to increase. Driven by very strong customer demand, and supported by new program wins, we expect revenue growth in 2027 to accelerate beyond the 65% growth rate we are anticipating in 2026. We also anticipate adjusted EPS (non-GAAP)* to grow at a faster rate than our revenue in 2027, driven by higher expected adjusted operating margin (non-GAAP)*.”

1 Celestica has two operating and reportable segments: Connectivity & Cloud Solutions (CCS) (consists of our Communications and Enterprise (servers and storage) end markets) and Advanced Technology Solutions (ATS) (comprised of our Aerospace and Defense, Industrial, HealthTech, and Capital Equipment businesses). Segment performance is evaluated based on segment revenue, segment income, and segment margin (segment income as a percentage of segment revenue). See note 3 to our June 30, 2026 unaudited interim condensed consolidated financial statements (Q2 2026 Interim Financial Statements) for further detail.
2 Per share information included in this press release is based on diluted shares outstanding unless otherwise noted.
* See Use of Non-GAAP Measures and Schedule 1 for, among other items, non-GAAP financial measures (and ratios) included in this press release, their definitions, uses, and a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. Non-GAAP measures in this press release are denoted with an asterisk (*).

Third Quarter of 2026 (Q3 2026) Guidance

 Q3 2026 GuidanceRevenue (in billions)$5.25 to $5.55Adjusted operating margin (non-GAAP)*8.4% at the mid-point of our
revenue and adjusted
EPS (non-GAAP) guidance rangesAdjusted EPS (non-GAAP)*(1)$2.88 to $3.08   (1) Q3 2026 guidance excludes a negative $0.27 to $0.33 per share (pre-tax) aggregate impact on net earnings on a GAAP basis for employee stock-based compensation (SBC) expense, amortization of intangible assets (excluding computer software), and restructuring charges. Q3 2026 guidance assumes an adjusted effective tax rate (non-GAAP)* of approximately 20% and no share repurchases or issuances in Q3 2026.

2026 Annual Outlook and Long-Term Demand Update

Revenue of $20.5 billion (previous outlook $19.0 billion) (1)Adjusted EPS (non-GAAP)* of $11.30 (previous outlook $10.15) (1)(2)Adjusted operating margin (non-GAAP)* of 8.4% (previous outlook 8.1%) (1) Free cash flow (non-GAAP)* of $600 million (previous outlook $500 million) (1) We now expect our revenue growth rate in 2027 to accelerate, relative to the 65% revenue growth rate anticipated in our latest 2026 Annual Outlook. We also anticipate adjusted EPS (non-GAAP)* to grow at a faster rate than our revenue in 2027.

(1) The increase of our 2026 annual outlook is driven by expected stronger customer demand for Q3 2026 and improvements in our demand visibility for the remainder of 2026.
(2) 2026 guidance assumes an adjusted effective tax rate (non-GAAP)* of approximately 20% and no share repurchases or issuances in the remainder of 2026.

* See Use of Non-GAAP Measures and Schedule 1. For our Q3 2026 Guidance and 2026 Annual Outlook and Long-Term Demand Update, we present certain forward-looking non-GAAP metrics. A reconciliation of such forward-looking non-GAAP measures to the most directly comparable GAAP measures on a forward-looking basis has not been provided because the items that we exclude from GAAP to calculate the comparable non-GAAP measure are dependent on future events that management is not able to reliably predict and are not part of our routine operating activities. We are unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty in predicting the occurrence, the financial impact and the periods in which the adjustments may be recognized. The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact our GAAP results.

Summary of Selected Q2 2026 Results

 Q2 2026 Actual Q2 2026 Guidance(2)Revenue (in billions)$4.70 $4.15 to $4.45GAAP earnings from operations as a % of revenue9.8% N/AGAAP EPS(1)$3.17 N/AAdjusted operating margin (non-GAAP)*8.2% 8.0% at the mid-point of our
revenue and adjusted
EPS (non-GAAP) guidance rangesAdjusted EPS (non-GAAP)*$2.54 $2.14 to $2.34     CCS segment revenue: $3.81 billion, increased 84% compared to Q2 2025; CCS segment margin: 8.7% compared to 8.3% for Q2 2025. Hardware Platform Solutions revenue of approximately $1.9 billion increased 58% compared to Q2 2025.

ATS segment revenue: $0.89 billion, increased 8% compared to Q2 2025; ATS segment margin: 6.3% compared to 5.3% for Q2 2025.

(1) GAAP EPS of $3.17 for Q2 2026 included an aggregate charge of $0.28 per share (pre-tax) for employee SBC expense, amortization of intangible assets (excluding computer software), and restructuring charges (Q2 2025 — $0.33 per share (pre-tax)). See the tables in Schedule 1 and note 10 to the Q2 2026 Interim Financial Statements for per-item charges. This aggregate charge was within our previously communicated Q2 2026 anticipated range of between $0.24 to $0.30 per share (pre-tax) for these items.

GAAP EPS for Q2 2026 and the first half of 2026 also included a $0.90 and $0.75, respectively, per share (pre-tax) positive impact attributable to our total return swap agreement (Q2 2025 and the first half of 2025 — $0.84 and $0.67, respectively, per share (pre-tax) positive impact). See note 8 to our Q2 2026 Interim Financial Statements.

(2) For Q2 2026, our revenue exceeded the high end of our guidance range due to higher than anticipated customer demand and strong operational execution. Our adjusted operating margin (non-GAAP) for Q2 2026 exceeded the mid-point of our revenue and adjusted EPS (non-GAAP) guidance ranges and our Q2 2026 adjusted EPS (non-GAAP) exceeded the high end of our guidance range, primarily driven by stronger than anticipated operating leverage. Our GAAP effective tax rate for Q2 2026 was 16%. Our adjusted effective tax rate (non-GAAP) for Q2 2026 was 20%, lower than our anticipated estimate of approximately 21%, primarily due to favorable profit mix.

Q2 2026 Financial Results

Management will host its Q2 2026 financial results conference call on July 28, 2026 at 8:00 a.m. Eastern Time (ET). The webcast can be accessed at www.celestica.com.

Use of Non-GAAP Measures

In addition to disclosing detailed operating results in accordance with GAAP, Celestica provides supplementary non-GAAP financial measures to consider in evaluating our operating performance. Management uses adjusted net earnings and other non-GAAP financial measures to assess operating performance, financial leverage and the effective use and allocation of resources; to provide more normalized period-to-period comparisons of operating results; to enhance investors’ understanding of the core operating results of Celestica’s business; and to set management incentive targets. We believe investors use both GAAP and non-GAAP financial measures to assess management's decisions associated with our priorities and capital allocation, as well as to analyze how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. See Schedule 1 below.

About Celestica

Celestica is a technology leader dedicated to driving customer success and market advancements. With deep expertise in design, engineering, manufacturing, supply chain, and platform solutions, Celestica enables critical data center infrastructure for AI, cloud and hybrid cloud, and advances technologies in high-growth markets. With a talented team and a strategic global network, Celestica helps its customers achieve competitive advantages. For more information on Celestica, visit www.celestica.com. Our securities filings can be accessed at www.sedarplus.ca and www.sec.gov.

The information contained on or accessible through www.celestica.com is not incorporated by reference into, and does not form part of, this release.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements, including, without limitation, those related to: strengthening demand in our businesses, demand environment and customer forecasts, our anticipated financial and/or operational results, guidance and outlook, including statements under the headings "Third Quarter of 2026 (Q3 2026) Guidance”, and “2026 Annual Outlook and Long-Term Demand Update”, and including statements with respect to timelines referenced therein, expected revenue growth in 2026 and 2027, developments related to new customer or program wins, timing of production ramps, anticipated economic conditions, industry and market trends and projections, underlying market growth rates, customer demand, prospects and opportunities, and strategic initiatives. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “continues,” “projects,” "target," "outlook," "goal," "guidance," “potential,” “possible,” “contemplate,” “seek,” or similar expressions, or may employ such future or conditional verbs as “may,” “might,” “will,” “could,” “should,” or “would,” or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S. Private Securities Litigation Reform Act of 1995, where applicable, and for forward-looking information under applicable Canadian securities laws.

Forward-looking statements are provided to assist readers in understanding management’s current expectations and plans relating to the future. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, including certain assumptions about: revenue growth in 2026 and 2027 (including continued strengthening of customer demand, close alignment with key customers on demand planning, sustained improvements in demand visibility, and continued strengthening of adjusted operating margins); accelerating growth from our customer base, including our CCS customer base; demand levels across our businesses, including continued growth in demand from data center customers in 2026 and 2027; programs and production ramps occurring and progressing as anticipated in line with expected timelines, specifications, qualification requirements and production schedules, customer decisions, design changes, silicon and component availability, qualification outcomes, deployment timelines and priorities, constraints affecting data center development, construction, equipping or operation, and other technical, commercial, regulatory or supply-chain factors, and our expected role in such programs, including our 800G and 1.6T networking, and AI/machine learning compute programs with data center customers; technology upgrade cycles; our ability to retain programs and customers; continuing operating leverage and improving mix; the impact of anticipated market conditions on our businesses; the reliability of third party market forecasts and customer indications of future demands and roadmaps, including with respect to data center infrastructure; continued advancement and commercialization of AI technologies and cloud computing; supporting sustained high levels of capital expenditure investments by leading hyperscaler, AI, and data center customers; our ability to develop new capabilities; scaling of our operations to meet the anticipated growth in customer demand; the successful recruitment and retention of skilled talent; capital investments proceeding as anticipated, including timely completion of construction and operationalization of assets, securing required materials, utilities, and equipment for our expansion plans; our ability to secure adequate component and materials supply; alignment of our capacity with our business demands; the economy; our customers; our suppliers; tax and interest rates; no material changes to tariffs, trade restrictions, customs administration, or related refund or recovery processes, including developments relating to duties imposed under the International Emergency Economic Powers Act of 1977 and any replacement, continuing or retaliatory tariff measures, compared to what are in effect as of July 27, 2026; that our customers will retain liability for and we will continue to be able to recover substantially all costs from customers relating to product/component tariffs and countermeasures; no material changes in business activities resulting from current macroeconomic trends and uncertainties, including evolving global tariffs, trade negotiations, and geopolitical conflicts; our ability to achieve our strategic goals; the availability of cash from operations to fund planned capital investments; the availability of capital resources for, and the permissibility under our credit facility of, repurchases of outstanding common shares under our current normal course issuer bid; as well as other market, financial and operational assumptions. Readers are cautioned that such information may not be appropriate for other purposes. Readers should not place undue reliance on such forward-looking information.

Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including, among others, risks related to: changing customer capacity roadmaps for 2026 and beyond; realization of the long-term demand outlook; customer and segment concentration; reduction in customer revenue; erosion in customer market competitiveness; changes in revenue mix and margins; uncertain market, industry, political and economic conditions; customer requests to transfer manufacturing of products from one facility to another; changes to policies or legislation; operational challenges (including inventory management, supply chain constraints, and components, materials or supply shortages); volatility in energy and commodity prices; program ramps not progressing as anticipated; the cyclical nature and/or volatility of certain of our businesses; talent management and inefficient employee utilization, including recruiting, training and retaining sufficient qualified personnel in required jurisdictions and within required timeframes; our expansion plans or consolidation of our operations; planned capital expenditures to support anticipated growth in customer demand; competition risk from evolving AI technologies, including lower-cost/open-source AI models; energy, power and water constraints in the data center ecosystem; cash flow, revenue, and operating results; tax and interest rates variability; technology and IT disruption; increasing legal, tax and regulatory complexity and uncertainty (including in relation to our or our customers' businesses); integrating and achieving the anticipated benefits from acquisitions; and the potential adverse impacts of events outside of our control.

For more exhaustive information on the foregoing and other material risks, uncertainties and assumptions, readers should refer to our public filings at www.sedarplus.ca and www.sec.gov, including in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed with, or furnished to, the U.S. Securities and Exchange Commission, and the Canadian Securities Administrators, as applicable.

Forward-looking statements speak only as of the date on which they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

All forward-looking statements attributable to us are expressly qualified by these cautionary statements.

Contacts:

Celestica Global CommunicationsCelestica Investor Relations(416) 448-2200(416) [email protected]@celestica.com   Schedule 1

Supplementary Non-GAAP Financial Measures

The non-GAAP financial measures included in this press release are: adjusted gross profit, adjusted SG&A, adjusted operating earnings (or adjusted EBIAT), adjusted net earnings, and each of the foregoing measures as a percentage of revenue, adjusted EPS, adjusted return on invested capital (ROIC), free cash flow, adjusted tax expense and adjusted effective tax rate.

We believe the non-GAAP financial measures herein enable investors to evaluate and compare our results from operations by excluding specific items that we do not consider to be reflective of our core operations, to evaluate cash resources that we generate from our business each period, to analyze operating results using the same measures our chief operating decision maker uses to measure performance, and to help compare our results with those of our competitors. In addition, management believes that the use of adjusted tax expense and adjusted effective tax rate provides additional transparency into the tax effects of our core operations, and are useful to management and investors for historical comparisons and forecasting. These non-GAAP financial measures reflect management’s belief that the excluded items are not indicative of our core operations.

Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and therefore may not be directly comparable to similar measures presented by other companies. Non-GAAP financial measures are not measures of performance under GAAP and should not be considered in isolation or as a substitute for any GAAP financial measure. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are below.

We do not provide reconciliations for our forward-looking non-GAAP financial measures, as we are unable to reasonably estimate the items that we exclude from GAAP to calculate comparable non-GAAP measures without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or financial impacts of various events that have not yet occurred, are out of our control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking GAAP financial measure. For these same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Our non-GAAP financial measures are calculated by making the following adjustments (as applicable) to our GAAP financial measures:

Employee SBC expense, which represents the estimated fair value of stock options, restricted share units and performance share units granted to employees, is excluded because grant activities vary significantly from quarter-to-quarter in both quantity and fair value. We believe excluding this expense allows us to compare core operating results with those of our competitors, who also generally exclude employee SBC expense in assessing operating performance, and may have different granting patterns, equity awards and valuation assumptions.

Total return swap fair value adjustments (TRS FVAs) represent mark-to-market adjustments to our TRS Agreement, as the TRS Agreement is re-measured at fair value at each quarter end. We exclude the impact of these non-cash fair value adjustments (which reflect fluctuations in the market price of our common shares recorded in cost of sales and SG&A) from period to period as such fluctuations do not represent our ongoing operating performance. In addition, we believe that excluding these non-cash adjustments permits a helpful comparison of our core operating results to our competitors.

Amortization of intangible assets (excluding computer software) consist of non-cash charges for intangible assets that are impacted by the timing and magnitude of acquired businesses. Amortization of intangible assets varies among our competitors, and we believe that excluding these charges permits a helpful comparison of core operating results to our competitors who also generally exclude amortization charges in assessing operating performance.

Restructuring and Other Charges (Recoveries) consist of, when applicable: Restructuring Charges (Recoveries) (defined below); Transition Costs (Recoveries) (defined below); consulting, transaction and integration costs related to potential and completed acquisitions; where applicable, certain fair value adjustments of contingent consideration in connection with acquisitions; where applicable, legal settlements (recoveries); and where applicable, related costs pertaining to our transition to a U.S. domestic filer. We exclude these charges and recoveries because we believe that they are not directly related to ongoing operating results and do not reflect our expected future operating expenses after completion of the relevant actions. Our competitors may record similar items at different times, and we believe these exclusions permit a helpful comparison of our core operating results with those of our competitors who also generally exclude these items in assessing operating performance.

Restructuring Charges (Recoveries), consist of costs or recoveries relating to: employee severance, site closings and consolidations, accelerated depreciation of owned and leased property and equipment which are no longer used and are held for sale, and reductions in infrastructure.

Transition Costs (Recoveries) consist of costs and recoveries in connection with: (i) the transfer of manufacturing lines from closed sites to other sites within our global network; (ii) the sale of real properties unrelated to restructuring actions; and (iii) where applicable, specified charges or recoveries related to the sublet of a 10-year building lease in Toronto that we previously anticipated to be our corporate headquarters. Transition Costs consist of direct relocation and duplicate costs (such as rent expense, utility costs, depreciation charges, and personnel costs) incurred during the transition periods, as well as cease-use and other costs incurred in connection with idle or vacated portions of the relevant premises that we would not have incurred but for these relocations, transfers and dispositions. We believe that excluding Transition Costs and Recoveries permits a helpful comparison of our core operating results from period-to-period, as they do not reflect our ongoing operations once these specified events are complete.

Miscellaneous Expense (Income) consists primarily of: (i) certain net periodic benefit costs (gains) related to our pension and post-employment benefit plans consisting of interest costs, expected returns on plan balances, and amortization of actuarial gains or losses; (ii) where applicable, gains on insurance claims settlement; and (iii) where applicable, gains or losses related to interest rate swaps that we entered into prior to 2024. Those interest rate swap contracts were accounted for as cash flow hedges (qualifying for hedge accounting) under International Financial Reporting Standards. However, those contracts were not accounted for as such under GAAP until January 1, 2024. Certain gains and losses related to those contracts were recorded in Miscellaneous Expense (Income). We exclude such items because we believe they are not directly related to our ongoing operating results.

Tax effects of the non-core items, which include our non-GAAP adjustments above, are excluded from GAAP tax expense to calculate adjusted tax expense (non-GAAP), as we do not believe these costs or recoveries reflect our core operating performance and vary significantly among our competitors who also generally exclude such items in assessing operating performance.

Our non-GAAP financial measures include the following:

Adjusted operating earnings (Adjusted EBIAT) is defined as GAAP earnings from operations excluding the impact of Employee SBC expense, TRS FVAs, Amortization of intangible assets (excluding computer software), and Restructuring and Other Charges (Recoveries). Adjusted operating margin is adjusted operating earnings as a percentage of GAAP revenue. Management uses adjusted operating earnings (adjusted EBIAT) as a measure to assess performance related to our core operations.

Adjusted net earnings is defined as GAAP net earnings excluding the impact of Employee SBC expense, TRS FVAs, Amortization of intangible assets (excluding computer software), Restructuring and Other Charges (Recoveries), Miscellaneous Expense (Income) and adjustment for taxes. Adjusted EPS is calculated by dividing adjusted net earnings by the number of diluted weighted average shares outstanding. Management uses adjusted net earnings as a measure to assess performance related to our core operations.

Free cash flow is defined as cash provided by (used in) operations less the purchase of property, plant and equipment (net of proceeds from the sale of certain surplus assets, when applicable). Free cash flow does not represent residual cash flow available to Celestica for discretionary expenditures. Management uses free cash flow as a measure, in addition to GAAP cash provided by (used in) operations, to assess our operational cash flow performance. We believe free cash flow provides another level of transparency to our ability to generate cash from normal business operations.

Adjusted ROIC is calculated by dividing annualized adjusted EBIAT by average net invested capital for the period. Net invested capital (calculated in the tables below) is derived from GAAP financial measures, and is defined as total assets less: cash, right-of-use (ROU) assets (operating and finance leases), accounts payable, accrued and other current liabilities and provisions (excluding finance and operating lease liabilities) and income taxes payable. Management uses adjusted ROIC as a measure to assess the effectiveness of the invested capital we employ to build products or provide services to our customers, by quantifying how well we generate earnings relative to the capital we have invested in our business.

The determination of the GAAP effective tax rate and adjusted effective tax rate (non-GAAP) is described in footnote 1 to the table below.

The following table (which is unaudited) sets forth, for the periods indicated, the various non-GAAP financial measures discussed above, and a reconciliation of such non-GAAP financial measures to the most directly comparable financial measures determined under GAAP (in millions, except percentages and per share amounts):

 Three months ended June 30 Six months ended June 30  2026   2025   2026   2025   % of revenue  % of revenue  % of revenue  % of revenueGAAP revenue$4,698.6   $2,893.4   $8,745.6   $5,542.0              GAAP gross profit$577.5 12.3% $371.0 12.8% $1,014.7 11.6% $644.9 11.6%Employee SBC expense 9.6    7.3    23.2    17.4  TRS FVAs: gains (48.4)   (40.6)   (40.9)   (33.1) Adjusted gross profit (non-GAAP)$538.7 11.5% $337.7 11.7% $997.0 11.4% $629.2 11.4%            GAAP SG&A$58.1 1.2% $38.9 1.3% $175.5 2.0% $151.4 2.7%Employee SBC expense (9.7)   (7.9)   (26.6)   (23.8) TRS FVAs: gains 55.7    56.8    46.2    45.2  Adjusted SG&A (non-GAAP)$104.1 2.2% $87.8 3.0% $195.1 2.2% $172.8 3.1%            GAAP earnings from operations$458.3 9.8% $272.5 9.4% $730.4 8.4% $401.3 7.2%Employee SBC expense 19.3    15.2    49.8    41.2  TRS FVAs: gains (104.1)   (97.4)   (87.1)   (78.3) Amortization of intangible assets (excluding computer software) 9.9    9.9    19.9    19.9  Restructuring and other charges (recoveries) 2.9    14.5    (1.5)   18.4  Adjusted operating earnings (adjusted EBIAT) (non-GAAP)$386.3 8.2% $214.7 7.4% $711.5 8.1% $402.5 7.3%            GAAP net earnings$368.8 7.8% $211.0 7.3% $581.1 6.6% $297.2 5.4%Employee SBC expense 19.3    15.2    49.8    41.2  TRS FVAs: gains (104.1)   (97.4)   (87.1)   (78.3) Amortization of intangible assets (excluding computer software) 9.9    9.9    19.9    19.9  Restructuring and other charges (recoveries) 2.9    14.5    (1.5)   18.4  Miscellaneous Expense (Income) (0.7)   1.7    (0.9)   3.1  Adjustments for taxes(1) (0.7)   6.3    (16.4)   (0.2) Adjusted net earnings (non-GAAP)$295.4 6.3% $161.2 5.6% $544.9 6.2% $301.3 5.4%            Diluted EPS           Weighted average # of shares (in millions) 116.2    115.9    116.0    116.4  GAAP EPS$3.17   $1.82   $5.01   $2.55  Adjusted EPS (non-GAAP)$2.54   $1.39   $4.70   $2.59  # of shares outstanding at period end (in millions) 115.0    115.0    115.0    115.0              GAAP cash provided by operations$410.9   $152.4   $767.2   $282.7  Purchase of property, plant and equipment, net of sales proceeds (263.8)   (32.5)   (482.2)   (69.2) Free cash flow (non-GAAP)$147.1   $119.9   $285.0   $213.5              GAAP ROIC % 65.8%   45.0%   53.9%   33.2% Adjusted ROIC % (non-GAAP) 55.5%   35.5%   52.5%   33.3%                      (1) The adjustments for taxes represent the tax effects (reflecting applicable effective tax rates) of the non-core items, which include our non-GAAP adjustments above.

Our GAAP effective tax rate is calculated as (i) GAAP tax expense divided by (ii) earnings from operations minus finance costs, net of interest income, and Miscellaneous Expense (Income) recorded on our statements of operations. Our adjusted effective tax rate (non-GAAP) is calculated as (i) adjusted tax expense (non-GAAP) divided by (ii) adjusted operating earnings (non-GAAP) minus finance costs, net of interest income. The following table sets forth, for the periods indicated, our calculation of GAAP effective tax rate and adjusted effective tax rate (non-GAAP):

 Three months ended Six months ended June 30 June 30  2026   2025   2026   2025 GAAP tax expense$72.8  $46.3  $116.8  $73.8         Earnings from operations$458.3  $272.5  $730.4  $401.3 Finance costs (21.2)  (14.4)  (39.2)  (29.4)Interest income 3.8   0.9   5.8   2.2 Miscellaneous Income (Expense) 0.7   (1.7)  0.9   (3.1) $441.6  $257.3  $697.9  $371.0         GAAP effective tax rate 16%  18%  17%  20%        Adjusted tax expense (non-GAAP)$73.5  $40.0  $133.2  $74.0         Adjusted operating earnings (non-GAAP)$386.3  $214.7  $711.5  $402.5 Finance costs (21.2)  (14.4)  (39.2)  (29.4)Interest income 3.8   0.9   5.8   2.2  $368.9  $201.2  $678.1  $375.3         Adjusted effective tax rate (non-GAAP) 20%  20%  20%  20%                 The following table sets forth, for the periods indicated, our calculation of GAAP ROIC % and adjusted ROIC % (non-GAAP) (in millions, except GAAP ROIC % and adjusted ROIC % (non-GAAP)):

 Three months ended Six months ended June 30 June 30  2026   2025   2026   2025 GAAP earnings from operations$458.3  $272.5  $730.4  $401.3 Multiplier to annualize earnings 4   4   2   2 Annualized GAAP earnings from operations$1,833.2  $1,090.0  $1,460.8  $802.6         Average net invested capital for the period*$2,786.6  $2,419.9  $2,711.8  $2,418.2         GAAP ROIC % 65.8%  45.0%  53.9%  33.2%         Three months ended Six months ended June 30 June 30  2026   2025   2026   2025 Adjusted operating earnings (adjusted EBIAT) (non-GAAP)$386.3  $214.7  $711.5  $402.5 Multiplier to annualize earnings 4   4   2   2 Annualized adjusted EBIAT (non-GAAP)$1,545.2  $858.8  $1,423.0  $805.0         Average net invested capital for the period*$2,786.6  $2,419.9  $2,711.8  $2,418.2         Adjusted ROIC % (non-GAAP) 55.5%  35.5%  52.5%  33.3%  June 30
2026 March 31
2026 December 31
2025Net invested capital consists of:     Total assets$9,787.6 $8,260.0 $7,213.1Less: cash 535.7  378.0  595.6Less: ROU assets (operating and finance leases) 218.5  199.9  173.1Less: accounts payable, accrued and other current liabilities and provisions (excluding finance and operating lease liabilities) and income taxes payable 6,120.7  5,021.7  3,882.0Net invested capital at period end*$2,912.7 $2,660.4 $2,562.4       June 30
2025 March 31
2025 December 31
2024Net invested capital consists of:     Total assets$6,241.1 $5,834.9 $5,988.2Less: cash 313.8  303.0  423.3Less: ROU assets (operating and finance leases) 174.9  178.6  180.8Less: accounts payable, accrued and other current liabilities and provisions (excluding finance and operating lease liabilities) and income taxes payable 3,265.7  3,000.3  2,969.2Net invested capital at period end*$2,486.7 $2,353.0 $2,414.9 * We use a two-point average to calculate average net invested capital for the quarter and a three-point average to calculate average net invested capital for the six-month period. Average net invested capital for Q2 2026 is the average of net invested capital at June 30, 2026 and March 31, 2026 and average net invested capital for the first half of 2026 is the average of net invested capital at June 30, 2026, March 31, 2026 and December 31, 2025.

CELESTICA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions of U.S. dollars)
(unaudited)
     June 30
2026 December 31
2025Assets   Current assets:   Cash and cash equivalents$535.7 $595.6Accounts receivable, net 3,338.2  2,638.1Inventories 3,401.7  2,188.0Other current assets 298.7  251.5Total current assets 7,574.3  5,673.2Property, plant and equipment, net 1,026.3  586.0Operating lease right-of-use assets 152.7  124.1Goodwill 332.9  333.1Intangible assets, net 244.9  266.2Deferred income taxes 206.2  156.4Other non-current assets 250.3  74.1Total assets$9,787.6 $7,213.1    Liabilities and Equity   Current liabilities:   Current portion of borrowings under credit facility and finance lease obligations$26.4 $26.0Accounts payable 3,819.7  1,866.1Accrued and other current liabilities and provisions 2,131.5  1,896.8Income taxes payable 202.0  150.7Total current liabilities 6,179.6  3,939.6Long-term portion of borrowings under credit facility and finance lease obligations 784.0  750.5Pension and non-pension post-employment benefit obligations 90.2  89.5Other non-current liabilities and provisions 213.7  176.0Deferred income taxes 40.5  41.2Total liabilities 7,308.0  4,996.8Equity:   Total equity 2,479.6  2,216.3Total liabilities and equity$9,787.6 $7,213.1 CELESTICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions of U.S. dollars, except per share amounts)
(unaudited)     Three months ended Six months ended June 30 June 30  2026   2025   2026   2025         Revenue$4,698.6  $2,893.4  $8,745.6  $5,542.0 Cost of sales 4,121.1   2,522.4   7,730.9   4,897.1 Gross profit 577.5   371.0   1,014.7   644.9 Selling, general and administrative expenses 58.1   38.9   175.5   151.4 Research and development 46.3   34.0   87.5   51.6 Amortization of intangible assets 11.9   11.1   22.8   22.2 Restructuring and other charges (recoveries) 2.9   14.5   (1.5)  18.4 Earnings from operations 458.3   272.5   730.4   401.3 Finance costs 21.2   14.4   39.2   29.4 Interest income (3.8)  (0.9)  (5.8)  (2.2)Miscellaneous expense (income) (0.7)  1.7   (0.9)  3.1 Earnings before income taxes 441.6   257.3   697.9   371.0 Income tax expense (recovery)       Current 94.8   61.2   165.4   88.8 Deferred (22.0)  (14.9)  (48.6)  (15.0)  72.8   46.3   116.8   73.8 Net earnings$368.8  $211.0  $581.1  $297.2         Earnings per share:       Basic$3.21  $1.83  $5.05  $2.57 Diluted$3.17  $1.82  $5.01  $2.55         Weighted-average shares used in computing per share amounts (in millions):       Basic 115.0   115.1   115.0   115.5 Diluted 116.2   115.9   116.0   116.4  CELESTICA INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)
(unaudited)     Three months ended Six months ended June 30 June 30Cash provided by (used in): 2026   2025   2026   2025 Operating activities:       Net earnings$368.8  $211.0  $581.1  $297.2 Adjustments to reconcile net earnings to net cash flows provided by operating activities:      Depreciation and amortization 44.0   45.3   83.6   82.7 Stock-based compensation (SBC) 19.3   15.2   49.8   41.2 Total return swap (TRS) fair value adjustments (104.1)  (97.4)  (87.1)  (78.3)Restructuring and other charges (recoveries) —   0.4   (10.0)  0.4 Unrealized losses on hedge derivatives —   1.3   —   2.6 Deferred income taxes (22.0)  (14.9)  (48.6)  (15.0)Other (3.7)  12.2   2.8   18.4 Changes in non-cash working capital items:       Accounts receivable (170.8)  (151.9)  (700.1)  (218.8)Inventories (728.8)  (129.8)  (1,213.7)  (157.5)Other current assets (17.1)  (9.4)  12.7   (6.4)Accounts payable, accrued and other current liabilities, provisions and income taxes payable 1,025.3   270.4   2,096.7   316.2 Net cash provided by operating activities 410.9   152.4   767.2   282.7         Investing activities:       Purchase of property, plant and equipment (263.8)  (32.5)  (493.3)  (69.2)Proceeds from sale of assets —   —   11.1   — Other (2.5)  (2.5)  (2.5)  (2.5)Net cash used in investing activities (266.3)  (35.0)  (484.7)  (71.7)        Financing activities:       Borrowings under revolving loans 430.0   190.0   600.0   500.0 Repayments under revolving loans (430.0)  (250.0)  (600.0)  (410.0)Borrowings under term loans 250.0   —   250.0   — Repayments under term loans (229.3)  (4.3)  (233.7)  (8.7)Principal payments of finance leases (2.0)  (2.6)  (5.0)  (5.2)Proceeds from issuance of capital stock —   0.3   —   0.3 Repurchase of capital stock for cancellation —   (40.0)  (22.6)  (117.7)Purchase of treasury stock for SBC plans —   —   —   (221.6)Proceeds from TRS settlement —   —   —   98.6 SBC cash settlement (0.8)  —   (326.3)  (156.0)Debt issuance costs paid (4.8)  —   (4.8)  (0.2)Net cash provided by (used in) financing activities 13.1   (106.6)  (342.4)  (320.5)        Net increase (decrease) in cash and cash equivalents 157.7   10.8   (59.9)  (109.5)Cash and cash equivalents, beginning of period 378.0   303.0   595.6   423.3 Cash and cash equivalents, end of period$535.7  $313.8  $535.7  $313.8         Supplemental disclosure information:       Interest paid$20.8  $12.5  $39.3  $27.3 Net income taxes paid$74.7  $50.6  $145.5  $56.2 Non-cash investing activity:       Unpaid purchases of property, plant and equipment at end of period$180.0  $31.4  $180.0  $31.4