Celestica Reports 21% Revenue Growth to $2.89 Billion in Q2 2025

Celestica Inc. reported significant financial growth in its second quarter of 2025, with revenue reaching $2.89 billion, a 21% increase from $2.39 billion in the same period last year. For the first half of 2025, total revenue was $5.54 billion, up 20% from $4.60 billion in the first half of 2024. The company's net earnings for Q2 2025 were $211 million, a substantial increase of 122% compared to $95 million in Q2 2024. This growth was attributed to a 46% rise in gross profit, which reached $371 million, driven by strong demand in the Connectivity & Cloud Solutions (CCS) segment, particularly in the Hardware Platform Solutions (HPS) business.

The financial performance reflects a notable shift in operational efficiency, with selling, general, and administrative expenses (SG&A) decreasing by 51% to $38.9 million in Q2 2025, compared to $79.3 million in Q2 2024. This reduction was primarily due to favorable changes in total return swap fair value adjustments. The company's gross margin also improved, rising to 12.8% from 10.6% year-over-year, indicating better profitability across its operations.

Strategically, Celestica completed the acquisition of NCS Global Services LLC in April 2024 for $39.6 million, which is expected to enhance its capabilities in IT infrastructure and asset management. The company has also focused on expanding its manufacturing capabilities, particularly in Thailand and Malaysia, to support growth in AI and machine learning programs. As of June 30, 2025, Celestica had approximately 7.1 million common shares available for repurchase under its current normal course issuer bid (NCIB), reflecting its commitment to returning value to shareholders.

Operationally, the company reported a strong performance in its CCS segment, with revenue increasing by 28% year-over-year, driven by a 75% surge in the Communications end market. However, the Enterprise end market saw a decline of 37% due to anticipated technology transitions with hyperscaler customers. The total number of customers contributing to significant revenue remained concentrated, with two customers in the CCS segment representing over 10% of total revenue in Q2 2025.

Looking ahead, Celestica anticipates continued growth driven by strong demand in its key segments, particularly in the CCS area. The company is focused on managing its operational costs and enhancing its product offerings to adapt to changing market conditions. Despite potential challenges from global economic uncertainties and geopolitical tensions, Celestica remains optimistic about its financial outlook and operational strategies for the remainder of 2025.