Celestica Inc. (CLS) Bundle
A Brief History of Celestica Inc.
Company Overview
Celestica Inc. is a global leader in design, manufacturing, and supply chain solutions for the world's most innovative companies. Established in 1994, the company operates in various sectors, including communications, enterprise, industrial, aerospace, and defense.
Financial Performance (2024)
As of Q3 2024, Celestica reported a total revenue of $2.50 billion, representing a 22% increase compared to $2.04 billion in Q3 2023. For the year-to-date (YTD) 2024, revenue reached $7.10 billion, also up by 22% from $5.82 billion in YTD 2023.
| Period | Total Revenue (in billions) | Gross Profit (in millions) | Net Earnings (in millions) |
|---|---|---|---|
| Q3 2023 | 2.04 | 206.7 | 80.2 |
| Q3 2024 | 2.50 | 259.1 | 91.7 |
| YTD 2023 | 5.82 | 555.3 | 160.4 |
| YTD 2024 | 7.10 | 744.0 | 293.0 |
Segment Performance
Revenue by segments for Q3 2024 is as follows:
| Segment | Q3 2023 Revenue (in millions) | Q3 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) | YTD 2024 Revenue (in millions) |
|---|---|---|---|---|
| ATS | 859.4 | 814.1 | 2,516.9 | 2,349.7 |
| CCS - Communications | 735.5 | 1,067.3 | 1,958.0 | 2,766.7 |
| CCS - Enterprise | 448.4 | 618.1 | 1,345.6 | 1,983.9 |
Cost and Expenses
Operating expenses have increased, with SG&A expenses for Q3 2024 totaling $91.9 million, compared to $56.9 million in Q3 2023. The increase was attributed to higher variable compensation and foreign exchange losses.
Cash Flow and Capital Expenditures
Cash provided by operating activities for YTD 2024 was $399.0 million, an increase from $290.9 million in YTD 2023. Capital expenditures for YTD 2024 were reported at $123.3 million, compared to $92.2 million in YTD 2023.
| Period | Cash from Operating Activities (in millions) | Capital Expenditures (in millions) |
|---|---|---|
| YTD 2023 | 290.9 | 92.2 |
| YTD 2024 | 399.0 | 123.3 |
Debt and Financing
As of September 30, 2024, Celestica had borrowings under credit facilities amounting to $745.6 million, up from $608.9 million as of December 31, 2023. The company has entered into various financing arrangements, including a credit agreement with Bank of America, which includes a $750 million revolving credit facility.
Market Position and Outlook
Celestica continues to strengthen its market position through strategic acquisitions and enhanced capabilities in manufacturing. The acquisition of NCS Global Services for $39.6 million in April 2024 is a testament to its growth strategy.
Conclusion
Overall, Celestica's financial performance in 2024 reflects strong revenue growth and improved profitability, positioning the company favorably for future opportunities in the global market.
A Who Owns Celestica Inc. (CLS)
Major Shareholders
As of 2024, the ownership structure of Celestica Inc. (CLS) reflects a mix of institutional and retail investors. The largest shareholders include:
- BlackRock, Inc.: 11.2% ownership
- Vanguard Group, Inc.: 8.5% ownership
- FMR LLC (Fidelity): 7.1% ownership
- State Street Corporation: 5.9% ownership
Shareholder Composition
The table below represents the shareholder composition of Celestica Inc. as of the end of Q3 2024:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| BlackRock, Inc. | 11.2% | Institutional |
| Vanguard Group, Inc. | 8.5% | Institutional |
| FMR LLC (Fidelity) | 7.1% | Institutional |
| State Street Corporation | 5.9% | Institutional |
| Other Institutional Investors | 25.0% | Institutional |
| Retail Investors | 42.3% | Retail |
Recent Stock Performance
Celestica's stock performance in 2024 has shown an upward trend, with a closing price of $44.44 as of September 30, 2024. This reflects a significant increase from the previous year, showcasing a 38% rise year-to-date.
Market Capitalization
As of September 30, 2024, Celestica Inc. has a market capitalization of approximately $5.5 billion, up from $4.0 billion at the end of 2023.
Financial Overview
The financial performance of Celestica for the first three quarters of 2024 is summarized below:
| Metric | Q3 2023 | Q3 2024 | YTD 2023 | YTD 2024 |
|---|---|---|---|---|
| Total Revenue (in billions) | $2.04 | $2.50 | $5.82 | $7.10 |
| Net Earnings (in millions) | $80.2 | $91.7 | $160.4 | $293.0 |
| Gross Profit (in millions) | $206.7 | $259.1 | $555.3 | $744.0 |
| Gross Margin (%) | 10.1% | 10.4% | 9.5% | 10.5% |
Conclusion on Ownership Trends
Ownership trends in Celestica Inc. indicate a strong presence of institutional investors, with retail investors also holding a significant portion of shares. The financial metrics reflect robust growth in revenue and net earnings, positioning Celestica favorably in the market.
Celestica Inc. (CLS) Mission Statement
Company Overview
Celestica Inc. focuses on providing innovative supply chain solutions and offers a range of services, including design, manufacturing, and after-market services. The company aims to enhance customer success through operational excellence and technological advancements.
Mission Statement
As of 2024, Celestica's mission statement emphasizes their commitment to delivering exceptional value to customers by leveraging advanced technologies, fostering innovation, and focusing on sustainability. They aspire to be a trusted partner in their customers' growth journeys.
Financial Performance
Celestica's financial performance reflects the effectiveness of its mission in driving growth and profitability. Below is a summary of key financial metrics for Q3 2024:
| Metric | Q3 2023 | Q3 2024 | Year-to-Date 2023 | Year-to-Date 2024 |
|---|---|---|---|---|
| Total Revenue (in millions) | $2,043.3 | $2,499.5 | $5,820.5 | $7,100.3 |
| Gross Profit (in millions) | $206.7 | $259.1 | $555.3 | $744.0 |
| Net Earnings (in millions) | $80.2 | $91.7 | $160.4 | $293.0 |
| SG&A Expenses (in millions) | $56.9 | $91.9 | $203.9 | $237.2 |
| Diluted Earnings per Share | $0.67 | $0.77 | $1.33 | $2.46 |
Market Position
Celestica's market position is supported by its diverse customer base, with the top 10 customers representing 74% of total revenue in Q3 2024. Notably, two customers represented 25% and 12% of total revenue, highlighting the company's reliance on significant accounts for its financial success.
Operational Highlights
In Q3 2024, Celestica's Communications end market revenue increased by 45% compared to Q3 2023, primarily driven by demand for high-performance networking products. The company's innovative solutions have positioned it well within competitive markets.
Commitment to Sustainability
Celestica is committed to sustainability and corporate responsibility, integrating environmental considerations into its operations. This commitment is reflected in their mission to create long-term value while minimizing environmental impact.
Conclusion
Celestica's mission statement and operational strategies are aligned with its financial performance and market growth, demonstrating a clear focus on delivering value and innovation to its customers.
How Celestica Inc. (CLS) Works
Company Overview
Celestica Inc. operates primarily in two segments: Advanced Technology Solutions (ATS) and Communications and Cloud Solutions (CCS). The company provides a range of manufacturing and supply chain solutions to various industries, including communications, enterprise, and aerospace and defense.
Financial Performance
For the third quarter of 2024, Celestica reported total revenue of $2.50 billion, reflecting a 22% increase compared to the same period in 2023. Year-to-date revenue for 2024 reached $7.10 billion, also a 22% increase year-over-year.
| Segment | Q3 2023 Revenue ($ millions) | Q3 2024 Revenue ($ millions) | YTD 2023 Revenue ($ millions) | YTD 2024 Revenue ($ millions) |
|---|---|---|---|---|
| ATS | 859.4 | 814.1 | 2,516.9 | 2,349.7 |
| CCS | 1,183.9 | 1,685.4 | 3,303.6 | 4,750.6 |
| Total | 2,043.3 | 2,499.5 | 5,820.5 | 7,100.3 |
Gross Profit and Margin
The gross profit for Q3 2024 was $259.1 million, a 25% increase compared to Q3 2023. The gross margin improved to 10.4% from 10.1% in the previous year.
For the year-to-date results, gross profit was $744.0 million, with a gross margin of 10.5%, up from 9.5% in 2023.
Operating Expenses
For Q3 2024, Selling, General and Administrative (SG&A) expenses were $91.9 million, which is 3.7% of total revenue, an increase from $56.9 million or 2.8% of total revenue in Q3 2023. Year-to-date SG&A expenses reached $237.2 million or 3.3% of total revenue.
Net Earnings
Celestica's net earnings for Q3 2024 were $91.7 million, an increase from $80.2 million in Q3 2023. Year-to-date net earnings increased to $293.0 million from $160.4 million in 2023.
Cash Flow and Liquidity
Cash provided by operating activities for Q3 2024 was $144.8 million, compared to $88.4 million in Q3 2023. Year-to-date cash provided by operating activities was $399.0 million, up from $290.9 million in the prior year.
| Cash Flow Metrics | Q3 2023 ($ millions) | Q3 2024 ($ millions) | YTD 2023 ($ millions) | YTD 2024 ($ millions) |
|---|---|---|---|---|
| Cash from Operating Activities | 88.4 | 144.8 | 290.9 | 399.0 |
| Cash Used in Investing Activities | (26.2) | (51.0) | (90.5) | (161.5) |
| Cash Used in Financing Activities | (69.8) | (129.3) | (221.8) | (209.4) |
Capital Expenditures
Capital expenditures for Q3 2024 were $46.0 million, compared to $27.0 million in Q3 2023. Year-to-date capital expenditures reached $123.3 million, up from $92.2 million in 2023.
Debt and Financing
As of September 30, 2024, Celestica had borrowings under its credit facility amounting to $745.6 million, an increase from $608.9 million at the end of 2023. The company’s cash and cash equivalents stood at $398.5 million as of the same date.
Segment Performance
The CCS segment showed significant growth, with revenue increasing by 42% in Q3 2024 compared to Q3 2023. In particular, the HPS revenue for Q3 2024 was $761 million, accounting for 30% of total revenue, up from 24% in Q3 2023.
| CCS Segment Revenue Breakdown | Q3 2023 ($ millions) | Q3 2024 ($ millions) |
|---|---|---|
| Communications | 735.5 | 1,067.3 |
| Enterprise | 448.4 | 618.1 |
Customer Concentration
Celestica’s top 10 customers represented 74% of total revenue for Q3 2024, compared to 66% in Q3 2023. Notably, two customers accounted for 25% and 12% of revenue, respectively.
How Celestica Inc. (CLS) Makes Money
Revenue Segmentation
Celestica Inc. generates revenue primarily through two segments: Advanced Technology Solutions (ATS) and Communications and Cloud Solutions (CCS). The revenue distribution for Q3 2024 is as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| ATS | $814.1 | 33% |
| CCS | $1,685.4 | 67% |
For the year-to-date (YTD) 2024, the total revenue reached $7.10 billion, marking a 22% increase compared to YTD 2023, with the CCS segment showing particularly strong growth.
Revenue Breakdown by End Market
The CCS segment further breaks down into Communications and Enterprise markets. In Q3 2024, the revenue from these end markets was:
| End Market | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Percentage Growth |
|---|---|---|---|
| Communications | $1,067.3 | $735.5 | 45% |
| Enterprise | $618.1 | $448.4 | 38% |
Gross Profit and Margin
In Q3 2024, Celestica reported a gross profit of $259.1 million, reflecting a gross margin of 10.4%, up from 10.1% in Q3 2023. The gross profit for YTD 2024 was $744.0 million, with a margin of 10.5%.
| Period | Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|
| Q3 2023 | $206.7 | 10.1% |
| Q3 2024 | $259.1 | 10.4% |
| YTD 2023 | $555.3 | 9.5% |
| YTD 2024 | $744.0 | 10.5% |
Operating Expenses
Celestica's Selling, General, and Administrative (SG&A) expenses for Q3 2024 were $91.9 million, representing 3.7% of total revenue, up from $56.9 million in Q3 2023. The increase was primarily due to variable compensation and foreign exchange losses.
Net Earnings
Net earnings for Q3 2024 were $91.7 million, compared to $80.2 million in Q3 2023, driven by higher gross profits and lower finance costs.
| Period | Net Earnings (in millions) | % Change |
|---|---|---|
| Q3 2023 | $80.2 | - |
| Q3 2024 | $91.7 | 14% |
| YTD 2023 | $160.4 | - |
| YTD 2024 | $293.0 | 83% |
Cash Flow and Liquidity
Cash provided by operating activities for YTD 2024 was $399.0 million, compared to $290.9 million in YTD 2023, reflecting improved profitability and cash management.
| Cash Flow Category | YTD 2023 (in millions) | YTD 2024 (in millions) |
|---|---|---|
| Cash from Operating Activities | $290.9 | $399.0 |
| Cash Used in Investing Activities | ($90.5) | ($161.5) |
| Cash Used in Financing Activities | ($221.8) | ($209.4) |
Customer Concentration
Celestica relies on a small number of customers for a significant portion of its revenue, with the top ten customers accounting for 74% of total revenue in Q3 2024.
Conclusion on Financial Health
As of September 30, 2024, Celestica had cash and cash equivalents of $398.5 million and total assets of $5.93 billion, indicating a solid liquidity position.
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Article updated on 8 Nov 2024
Resources:
- Celestica Inc. (CLS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Celestica Inc. (CLS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Celestica Inc. (CLS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.