Celestica Inc. Showcases Strong Financial Performance And Strategic Growth In AI And Cloud Solutions
$CLS
Celestica Inc. (NYSE:CLS), a prominent player in design, manufacturing, hardware platform and supply chain solutions, recently announced its financial results for the fourth quarter of 2024, highlighting significant growth and strategic advancements. The company reported a robust 19% increase in revenue, reaching $2.55 billion for the quarter ended December 31, 2024, compared to $2.14 billion in the same quarter of the previous year. This growth is attributed to strong demand across its segments, particularly in data center hardware and AI technologies.
The company’s earnings per share (EPS) also saw a notable rise. The GAAP EPS for Q4 2024 was $1.29, a substantial increase from $0.77 in Q4 2023. Adjusted EPS, which provides a more focused view of operational performance by excluding certain items, was reported at $1.11, matching the GAAP EPS of the previous year.
Celestica’s President and CEO, Rob Mionis, expressed satisfaction with the company’s performance, noting the record-setting adjusted EPS and the overall revenue growth of 21% for the full year 2024. Looking ahead to 2025, Celestica has raised its full-year outlook, anticipating revenues to reach $10.7 billion, up from the previously forecasted $10.4 billion.
The adjusted EPS expectation has also been increased to $4.75 from $4.42, reflecting a positive outlook on the demand environment, particularly in the Connectivity & Cloud Solutions (CCS) segment. The CCS segment itself has shown remarkable growth, with a 30% increase in revenue compared to the previous year, driven by high demand for AI/ML compute products and networking switches.
In addition to financial growth, Celestica is making significant strides in technological advancements. The company has been awarded multiple new AI program awards, including two 1.6 Terabyte switching programs with major hyperscaler customers. These programs are set to begin ramping up production in 2026 and are poised to leverage Celestica’s advanced system-level liquid cooling technology, further solidifying its position in the AI-optimized hardware market.
Celestica’s strategic focus is not just on immediate financial gains but also on long-term technological leadership. The company’s investments in R&D and its ability to secure critical new customer programs reflect a clear strategy aimed at maintaining and expanding its market leadership in the evolving tech landscape. As Celestica continues to execute its growth strategies effectively, the company remains a key player in the technology sector, particularly in areas related to AI and cloud solutions.
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