Celestica (CLS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $4.70 billion, up 62% year-over-year, with adjusted EPS of $2.54, both exceeding guidance ranges.

• Adjusted operating margin hit a record 8.2%, reflecting strong execution and robust demand, especially from CCS customers.

• Both CCS (up 84%) and ATS (up 8%) segments delivered strong growth and profitability improvements, with CCS driven by hyperscaler and AI/ML compute demand, contributing 81% of total revenue.

• The 2026 annual outlook was raised: revenue now expected at $20.5 billion, adjusted EPS at $11.30, and free cash flow at $600 million, with growth anticipated to accelerate in 2027.

• 2027 revenue and adjusted EPS growth rates are expected to accelerate further, supported by multi-year capacity alignment and new program wins.

Financial highlights

• Q2 2026 GAAP EPS was $3.17, up from $1.82 in Q2 2025; adjusted EPS was $2.54, up 83% year-over-year.

• Adjusted operating margin was 8.2%; adjusted gross margin was 11.5% (Q2 2026), while GAAP gross margin was 12.3%.

• Adjusted ROIC reached 55.5%, up 20 percentage points year-over-year.

• Free cash flow for Q2 2026 was $147.1 million, with a 2026 outlook of $600 million; capital expenditures were $264 million (5.6% of revenue).

• Cash and cash equivalents at June 30, 2026 were $535.7 million, with net debt of $204 million and total liquidity of ~$2.3 billion.

Outlook and guidance

• Q3 2026 revenue guidance: $5.25–$5.55 billion; adjusted EPS guidance: $2.88–$3.08.

• 2026 revenue outlook raised to $20.5 billion (from $19.0 billion); adjusted EPS outlook raised to $11.30 (from $10.15); free cash flow outlook increased to $600 million.

• Adjusted operating margin for 2026 expected at 8.4%.

• 2027 revenue and adjusted EPS growth expected to accelerate beyond 2026 rates, with CCS 2026 revenue expected to grow ~85% and ATS segment revenue to grow ~10%.