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Highlights
- Celestica Inc. terminated its 2023-2024 buyback program and announced a new issuer bid starting 1 November 2024, allowing up to 8.6 million shares to be repurchased.
- The company had repurchased approximately 2.9 million shares under the previous program at an average price of $43.28 each.
- The new bid enables Celestica to repurchase around 10% of its public float, providing flexibility in shareholder returns.
Celestica Inc. (NYSE:CLS; TSX:CLS), a global leader in design and supply chain solutions, has announced the early termination of its previous normal course issuer bid (NCIB), which initially commenced in December 2023 and was scheduled to conclude in December 2024. Approved by the Toronto Stock Exchange (TSX), the company has replaced the prior program with a new buyback initiative. This strategic move, effective 1 November 2024, reflects Celestica’s commitment to returning value to its shareholders and maintaining flexibility in capital allocation.
Early Termination and New Bid Details
The original buyback program, initiated in December 2023, was halted after Celestica repurchased and canceled 2,923,323 of its common shares, priced at a weighted average of $43.28 per share. This amount, out of the 11.7 million shares authorized under the previous NCIB, represents a portion that will now count toward the new program's annual limit, as stipulated by TSX regulations.
Under the newly approved NCIB, Celestica may repurchase up to 8,609,693 common shares through the open market. This cap represents roughly 10% of the company's "public float," as per TSX rules, adjusted to exclude the shares repurchased in the previous program. The new bid extends through October 31, 2025, or until Celestica reaches its repurchase limit.
Focus on Flexibility and Enhanced Shareholder Value
The decision to terminate the existing bid early aligns with Celestica’s flexible capital return strategy, offering the company more control over its buyback schedule while supporting its goals to maximize shareholder value. The NCIB, approved by TSX, reflects Celestica’s intention to leverage favorable market conditions to potentially repurchase shares at prices it deems advantageous, bolstering earnings per share and enhancing long-term value for shareholders.
About Celestica
Celestica partners with leading companies across various sectors, including Aerospace, Defense, Communications, HealthTech, and Industrial sectors, to provide solutions tailored to their unique challenges. Known for its customer-focused approach, Celestica supports industry-leading brands through complex design, manufacturing, and supply chain solutions.
As a technology partner, Celestica’s latest NCIB initiative is part of its broader strategy to maintain financial strength and drive sustainable value, ensuring it remains a competitive leader in technology-driven solutions. The company’s renewed focus on share repurchases reaffirms its position on capital discipline while offering attractive returns to its investors over the program’s tenure.
