Strong Q2 Performance: Celestica reported Q2 2025 revenues of $2.89 billion, a 21% increase year-over-year, and adjusted EPS of $1.39, exceeding guidance. Adjusted operating margin reached a historical high of 7.4%, up 110 basis points from the previous year, signaling strong operational efficiency and demand primarily driven by the communications segment.

Segment Growth and Expectations: The Communications and Cloud Services (CCS) segment saw revenues of $2.07 billion, up 28%, with a substantial 75% growth in the communications end market, largely fueled by networking products for hyperscalers. The forecast for CCS is raised to nearly 30% growth for the full year, reaffirming strong performance amid increased demand.

Guidance Increase for 2025: Celestica revised its 2025 annual revenue outlook from $10.85 billion to $11.55 billion (20% growth) and adjusted EPS from $5 to $5.50 (42% growth). This optimistic outlook reflects solid demand forecasts, particularly for networking products, and efficient operational improvements.