Q4 2024 Celestica Inc Earnings Call Transcript
Key Points
- Celestica Inc (CLS) reported strong Q4 2024 performance with revenues of $5 billion, reaching the high end of their guidance range.
- The company achieved an adjusted EPS of $1.11, exceeding the high end of their guidance range.
- The CCS segment experienced robust demand, delivering 30% year-over-year growth, driven by hyperscale customer demand.
- Celestica Inc (CLS) reported a significant improvement in adjusted ROIC, reaching 29.1%, attributed to higher operating profitability and effective working capital management.
- The company announced major new wins, including a 1.6T switching program with a large hyperscale customer and a significant HPS win with a leading digital native company.
- The ATS segment revenue was approximately flat, with lower revenues in the industrial business offsetting growth in capital equipment and aerospace and defense.
- Enterprise end market revenue decreased by 10% due to a technology transition in an AI compute program with a hyperscale customer.
- The company experienced a sequential decrease in cash deposits, down $9 million, and a year-over-year decrease of $393 million.
- Celestica Inc (CLS) anticipates a mid-40% decrease in enterprise end market revenue in Q1 2025 due to a temporary decline in volumes.
- The company faces challenges in maintaining growth in the industrial business, which has been impacted by macro factors and customer inventory digestion.
Good morning, ladies and gentlemen and welcome to the Celestica fourth quarter, 2024 earnings call at this time. All lines are in a listen-only mode following the presentation, we will conduct a question and answer session.
If at any time during this call, you require immediate assistance. Please press star zero for the operator.
This call is being recorded.
I would now like to turn the conference over to Craig Oberg, Vice President of Corporate Development and Investor Relations. Please go ahead.
Good morning and thank you for joining us on Ska's Q4 2024 earnings conference call on the call. Today we have Rob Mionis, President and Chief Executive Officer and Mandy Chawla. Chief Financial Officer listeners should note that as previously communicated all of our financial results including historical comparisons will now be reported on a US GAAP basis. Having transitioned from reporting under IFRS previously.
Please note that our
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
