How large is Celestica's (CLS) initial 2027 outlook against its 2026 guidance?

Sonal Goyal

28 October 2026 04:59 PM AEDT

How large is Celestica's (CLS) initial 2027 outlook against its 2026 guidance?

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Key Highlights

Third-quarter 2026 Revenue was US$5.83 billion, up 83%, with adjusted Earnings Per Share of US$3.30.
The initial 2027 outlook is revenue of US$40.0 billion, adjusted EPS of US$21.50 and an adjusted Operating Margin of 9.0%.
The 2026 free Cash Flow outlook was cut to US$460 million from US$600 million, reflecting working-capital investment for 2027 growth.

Results and the headline outlook

Celestica Inc. (NYSE:CLS) announced third-quarter 2026 results on 26 October 2026 after the market close, alongside news that it would hold an investor day. Revenue was US$5.83 billion, up 83% from US$3.19 billion a year earlier. Adjusted earnings per share, a non-GAAP measure, were US$3.30 against US$1.58, while GAAP earnings per share were US$3.26 against US$2.31.

The company also gave an initial 2027 outlook, which is a forecast rather than a result: revenue of US$40.0 billion, up 90%, adjusted earnings per share of US$21.50 and an adjusted operating margin of 9.0%. Capital Expenditure is expected to be between US$1.5 billion and US$2.0 billion.

Segments and margins

Connectivity and Cloud Solutions (CCS) revenue was US$4.87 billion, up 102%, with a segment margin of 8.9% against 8.3%. Advanced Technology Solutions (ATS) revenue was US$0.96 billion, up 23%, with a segment margin of 6.6% against 5.5%.

CCS therefore generated about 84% of group revenue in the quarter, so the result leans heavily on it. ATS grew more slowly, at 23%.

The adjusted operating margin rose to 8.5% from 7.6%, which chairman and chief executive Rob Mionis called another new high for the company. The GAAP operating margin moved the other way, to 7.9% from 10.2%, so the two measures diverged and readers should consult the reconciliation in the release.

Guidance and cash flow

For the fourth quarter, Celestica guided to revenue of US$6.275 billion to US$6.575 billion and adjusted earnings per share of US$3.37 to US$3.57. For 2026 it lifted its revenue outlook to US$21.0 billion from US$20.5 billion and its adjusted EPS outlook to US$11.55 from US$11.30. The adjusted operating margin outlook was unchanged at 8.4%.

The midpoint of the fourth-quarter revenue range, US$6.425 billion, is about 10% above the third-quarter figure. The 2027 outlook of US$40.0 billion compares with the 2026 outlook of US$21.0 billion, consistent with the 90% growth the company states.

Free cash flow outlook moved down. Third-quarter free cash flow was US$127.5 million, against US$88.9 million, and nine-month free cash flow was US$412.5 million. The full-year free cash flow outlook was cut to US$460 million from US$600 million, which the company said reflects working-capital investment for 2027 growth.

Capital and share count

Celestica completed a public offering of 11.1 million shares on 7 August 2026, with aggregate gross proceeds of US$3.45 billion. Shares outstanding at period end were 126.1 million, up from 115.0 million, and diluted weighted-average shares for the quarter were 121.8 million, against 115.9 million.

The company repurchased no shares for cancellation in the third quarter, and US$22.6 million in the first nine months. It intends to file for a new normal course issuer bid in the fourth quarter, after the current one expires on 2 November 2026. Subject to Toronto Stock Exchange acceptance, it would allow repurchases of up to 2.5% of the public float over twelve months.

What to watch

Items to watch include the management conference call on 27 October, delivery against the fourth-quarter guidance, the size of the capital programme, and the working-capital build that is holding back free cash flow. The 2027 figures depend on customer Demand that management described as very high.

FAQs

Q: What is Celestica's initial 2027 outlook?

A: Celestica expects 2027 revenue of US$40.0 billion, up 90%, adjusted earnings per share of US$21.50 and an adjusted operating margin of 9.0%. Capital expenditure is expected at US$1.5 billion to US$2.0 billion.

Q: How did Celestica change its 2026 guidance?

A: It raised its revenue outlook to US$21.0 billion from US$20.5 billion and adjusted EPS to US$11.55 from US$11.30. The free cash flow outlook was cut to US$460 million from US$600 million.

Q: How much did Celestica raise in its public offering?

A: Celestica completed a public offering of 11.1 million shares on 7 August 2026, with aggregate gross proceeds of US$3.45 billion.

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