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3w ago

Celestica Tops Q2 Forecasts as Stock Jumps, Becomes Canada’s No. 3 Tech Company

Surging orders from hyperscale AI data center projects power revenue beats that lift Celestica’s valuation to US$32.8 billion.

Celestica, the Toronto-based global electronics manufacturer, wants to rezone its 24-hectare site at Don Mills Road and Eglinton Avenue East to house thousands of people in condo towers, and open new offices and shops. The site is photographed on Jan 9 2015. (Fred Lum/The Globe and Mail)
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Overview

  • Celestica reported Q2 revenue of US$2.89 billion, a 21% year-over-year gain, with adjusted earnings per share of US$1.39 that exceeded analyst estimates.
  • Its AI-supplying segment generated US$2.07 billion in Q2 sales, up 28% and representing 71.6% of total company revenue.
  • Shares rallied over 20% after the results, driving market capitalization past CGI to claim the spot as Canada’s third-largest tech company.
  • Management raised full-year guidance to US$11.55 billion in revenue and US$5.50 in adjusted EPS based on continued strong demand.
  • CEO Rob Mionis’s shift since 2015 toward complex, high-margin AI hardware solutions has underpinned Celestica’s sustained outperformance.