Q1 2026 Celestica Inc Earnings Call Transcript
Key Points
- Celestica Inc (CLS) reported a strong Q1 2026 with revenue surpassing $4 billion and an adjusted operating margin of 8%, marking a new high for the company.
- The company achieved an adjusted EPS of $2.16, exceeding the high end of their guidance range.
- Celestica Inc (CLS) has a robust awarded backlog and opportunity pipeline, indicating strong demand from both existing and new customers.
- The company raised its full-year 2026 revenue outlook from $17 billion to $19 billion, reflecting a 53% growth, and increased its adjusted EPS outlook from $8.75 to $10.15.
- Celestica Inc (CLS) is experiencing strong growth in its CCS segment, with a 70% revenue growth anticipated for 2026, driven by demand in the data center ecosystem and hyperscaler customer base.
- The company is facing component shortages, particularly in custom silicon and memory, which could impact its ability to meet demand.
- Despite strong revenue growth, Celestica Inc (CLS) did not raise its free cash flow guidance for 2026, maintaining it at $500 million.
- The supply chain constraints have led to extended lead times, which could affect the timing of program ramps and revenue recognition.
- There are input cost pressures, such as rising prices for memory and silicon, which could impact gross margins.
- The company is experiencing a dynamic supply environment, which requires careful management to align capacity with demand and could pose risks to execution.
Hello, everyone. Thank you for joining us. And welcome to the Celestica Q1 2026 financial results and conference call. (Operator Instructions)
I will now hand the conference over to Matthew Pallotta, Head of Investor Relations. Matthew. Please go ahead,
Good morning, and thank you for joining us on Celestica's Q1 2026 financial results conference call. On the call today, we have Rob Mionis, President and Chief Executive Officer, and Mandeep Chawla, Chief Financial Officer. Please note that during the course of this call, we will make forward-looking statements, including statements relating to the future performance of Celestica, our business outlook, guidance for the second-quarter of 2026.
Our 2026 annual outlook, and anticipated trends in our industry and their anticipated impact on our business. These are based on management's current expectations, forecasts, and assumptions as of April 27th. These forward-looking statements are subject to risks
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