Celestica (CLS) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 28, 2026 astatine 11:01 AM CDT 36 min read

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Date

Tuesday, April 28, 2026 astatine 8 a.m. ET

Call participants

• President & Chief Executive Officer — Robert Mionis

• Chief Financial Officer — Mandeep Chawla

Full Conference Call Transcript

Robert Mionis: Thank you, Matthew, and bully morning, everyone, and convey you for joining america connected today's call. We kicked disconnected the twelvemonth with coagulated results successful the archetypal 4th arsenic gross surpassed $4 cardinal with adjusted operating borderline of 8%, a caller precocious for Celestica Inc. This show drove adjusted EPS of $2.16 for the quarter, which exceeded the precocious extremity of our guidance range. Our awarded backlog and the accidental pipeline with some existing and caller customers are the strongest they person ever been during my tenure arsenic CEO. We proceed to spot exceptionally beardown and accelerating request from our hyperscaler lawsuit basal complemented by a steadily strengthening outlook successful our ATS segment.

This momentum underpins our anticipation for sustained maturation successful some gross and adjusted EPS passim 2026, portion our outlook for 2027 has strengthened compared to conscionable 90 days ago. I volition sermon our latest 2026 outlook successful a moment, but first, I volition manus it implicit to Mandeep to locomotion done the Q1 details and our Q2 guidance. Mandeep, implicit to you.

Mandeep Chawla: Thank you, Rob, and bully morning, everyone. Revenue successful the archetypal 4th was $4.05 billion, up 53%, conscionable supra the midpoint of our guidance range, driven by precise beardown request successful our CCS segment. Our non-GAAP operating borderline was 8.0%, up 90 ground points, driven by coagulated borderline betterment successful some of our segments. Our adjusted net per stock was $2.16 successful the archetypal quarter, exceeding the precocious extremity of our guidance scope and an summation of $0.96 oregon 80%. Moving connected to immoderate further metrics. Adjusted gross borderline was 11.3%, up 30 ground points, driven by improved premix and beardown productivity. Our adjusted effectual taxation complaint for the 4th was 19%.

And finally, beardown profitability and disciplined moving superior absorption led to an adjusted ROIC of astir 50%, up much than 18 percent points versus the anterior year. Moving connected to our conception performance. Revenue successful our ATS conception for the 4th was $806 million, level year-over-year and higher than our guidance of a debased single-digit percent decline. The show was driven by higher gross successful HealthTech, offset by tougher comps owed to antecedently communicated portfolio reshaping successful our A&D concern and softness successful superior equipment. Our ATS conception accounted for 20% of full institution gross successful the archetypal quarter.