Celestica, Inc.

Good morning, ladies and gentlemen, and welcome to the Celestica Q2 2024 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, July 25, 2024. I would now like to turn the conference over to Craig Oberg, Vice President of Investor Relations and Corporate Development. Please go ahead.

Good morning, and thanks for joining us on Seleska's second quarter 2024 earnings conference call. On the call today are Rob Mayonis, President and Chief Executive Officer, and Mandeep Chawla, Chief Financial Officer. Please note that during the course of this call, we will make statements related to the future performance of Sileska that contain forward-looking information. While these forward-looking statements represent our current judgment, actual results could differ materially from a conclusion, forecast, or projection in the forward-looking statements made today. Certain material factors and assumptions are applied in drawing any such statement. For identification and discussion of such factors and assumptions, please refer to our public filings available at cdarplus.ca and sec.gov. We undertake no obligation to update these forward-looking statements unless expressly required to do so by law. In addition, during this call, we will refer to various non-IFRS financial measures, including non-IFRS operating margin, adjusted gross margin, adjusted return on invested capital or adjusted ROIC, adjusted free cash flow, gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio, adjusted earnings per share or adjusted EPS, adjusted SG&A expense, adjusted effective tax rates, and non-IFRS operating earnings. Additional information about material factors that could cause actual results to differ materially from a conclusion, forecast, or projection in the forward-looking information, as well as risk factors that may project future performance results of Celestica and reconciliations of such non-IFRS financial measures to their most directly comparable IFRS measures, are contained in our public filings. Unless otherwise specified, all references to dollars on this call are to U.S. dollars, and per share information is based on diluted shares outstanding. Let me now turn the call over to Rob.

Thank you, Craig, and good morning, everyone, and thank you for joining us on the call today. In the second quarter, our strong momentum continued, achieving revenues of $2.39 billion and adjusted EPS of 91 cents. both of which exceeded the high end of our guidance ranges. A non-IFRS operating margin was 6.3 percent, which was above the midpoint of our revenue and adjusted EPS guidance ranges. We also continued to generate solid adjusted free cash flow, which came in at $63 million during the quarter, bringing our year-to-date total to $129 million. Our CCS segment saw a 51% year-to-year increase in revenues in the second quarter and achieved segment margin of 7.2%, which is 120 basis points higher compared to the prior year period. The top-line growth and margin expansion continue to be supported by large-scale investments in data center infrastructure from our hyperscale customers, including very strong demand for our HBS offerings. In our ATS segment, revenues as anticipated were lower year to year, primarily driven by continued softness in our industrial business. Despite this demand softness, we remain encouraged by the strength in other parts of our ATS portfolio. In particular, we saw solid double-digit revenue growth in both our A&D and capital equipment businesses in the second quarter. Overall, We are pleased with our solid performance in the first half of the year. Looking ahead, we feel we are very well positioned to continue to capitalize on a number of high-value opportunities across our portfolio and strengthen our leadership position in key end markets. I would now like to turn the call over to Mandeep, who will provide a detailed review on our second quarter performance and our guidance for the third quarter of 2024. Mandeep, over to you.