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Highlights
- Revenue Growth: Q4 2024 revenue surged 19% year-over-year to $2.55 billion, surpassing Q4 2023’s $2.14 billion.
- Profitability Improvement: GAAP earnings per share (EPS) rose to $1.29, up from $0.77 in Q4 2023, while adjusted EPS also increased to $1.11.
- 2025 Forecast Raised: 2025 annual revenue outlook raised to $10.7 billion, with adjusted EPS now expected to reach $4.75, up from previous forecast of $4.42.
Celestica Inc. (TSX:CLS, NYSE:CLS), a leader in design, manufacturing, hardware platforms, and supply chain solutions, has reported robust financial performance for the quarter ending December 31, 2024 (Q4 2024). The company posted a 19% increase in revenue compared to the same period last year, signaling strong momentum and operational efficiency.
Q4 2024 Performance
Celestica reported revenue of $2.55 billion for Q4 2024, marking a 19% year-over-year increase from $2.14 billion in Q4 2023. This growth highlights the company's ability to capitalize on the increasing demand for its services across various industries.
The company’s GAAP earnings from operations stood at 8.0% of revenue, up significantly from 5.1% in Q4 2023, signaling improved operational efficiency. Additionally, Celestica’s adjusted operating margin (non-GAAP) increased to 6.8%, compared to 6.0% in Q4 2023, reflecting stronger profitability.
GAAP earnings per share (EPS) were $1.29, a notable increase from $0.77 in Q4 2023, while adjusted EPS (non-GAAP) also rose to $1.11, up from $0.77 last year. This growth in EPS underscores Celestica’s ability to enhance shareholder value.
Furthermore, Celestica returned value to its shareholders by repurchasing 0.3 million common shares for $25.5 million during the quarter.
2025 Annual Outlook Raised
Looking ahead, Celestica has revised its 2025 annual forecast, increasing its revenue outlook to $10.7 billion, up from the previous $10.4 billion estimate. This revision reflects the company’s strong performance trajectory and its confidence in sustaining growth.
The company also raised its adjusted operating margin (non-GAAP) forecast to 6.9%, from the prior estimate of 6.7%, indicating a more optimistic view on operational efficiency.
Additionally, adjusted EPS (non-GAAP) is now expected to be $4.75, up from $4.42 in previous guidance, signaling Celestica's commitment to delivering strong earnings. The company also projects free cash flow (non-GAAP) to be $350 million, exceeding the previous forecast of $325 million.
Celestica’s 2025 outlook assumes an adjusted effective tax rate of approximately 19%, which should help sustain its profitability.
