Celestica, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Celestica Q3 2024 Earnings Call and Virtual Investor Meeting Conference 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 Wednesday, October 23, 2024. I would now like to turn the conference over to Mr. Craig Oberg, Vice President of Corporate Development and Investor Relations. Please go ahead.

Good evening, and thank you for joining us on Celestica's third quarter 2024 earnings conference call and 2024 virtual investor meeting. On the call today are Rob Mayones, President and Chief Executive Officer, Mandeep Chawla, Chief Financial Officer, Jason Phillips, President of our Connectivity and Cloud Solutions segment, and Todd Cooper, President of our Advanced Technology Solutions segment. Joining us on the Q&A portion of our call will be Stephen Dorwart, SVP of our hyperscalers and service provider business. Today's call will begin with a review of our third quarter financial results, our guidance for fourth quarter, and our outlook for the full year, followed by our virtual investor meeting. Afterwards, we will open up the lines for the Q&A portion of our call. Please note that during the course of this conference call, we will make forward-looking statements, including statements related to anticipated trends in and their anticipated impact on our industry, our segments, and their businesses, and statements related to the future performance of Celestica and our conversion to US GAAP. 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, as well as our virtual investor meeting and earnings presentation available at celestka.com under the Investor Relations tab. We undertake no obligation to update these forward-looking statements unless expressly required to do so. 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, and adjusted effective tax rate. 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 impact future performance and results of Celestica and reconciliations of non-IFRS financial measures to their most directly comparable IFRS measures, are contained in our public filings and on our virtual investor meeting and earnings presentations, available at Celestica.com under the Investor Relations tab. 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. Unless otherwise specified, all references to comparative figures are a year-over-year comparison. Let me now turn the call over to Rob.

Thank you, Craig, and good evening, everyone, and thank you for joining us on today's call. In the third quarter, our strong momentum continued, achieving revenues of $2.5 billion and adjusted EPS of $1.04 above the high end of our guidance ranges. The outperformance was driven by continued strong demand in our CCS business, coupled with strong non-IFRS operating margin of 6.7%. Our CCS segment revenues increased 42% year-over-year, driven by continued investment from our hyperscale customers on data center infrastructure, including very strong demand for our networking switches within our HPS portfolio. The solid revenue growth and improved mix contributed to healthy margin expansion, as our CCS segment margins of 7.6% was up by 140 basis points versus last year. In our ATF segment, revenues were 5% lower year-over-year, driven by continued softness in our industrial business, where the demand environment remains dynamic across a number of our submarkets. Partly offsetting those declines was continued strength in our A&D and capital equipment businesses, which saw growth of 15% and 31%, respectively, in the third quarter. Overall, we are pleased with our very strong performance this year. Looking ahead, we feel we are well positioned to continue to capitalize on a number of high-value opportunities across our portfolio and strengthen our competitive position in key end markets. I would now like to turn the call over to Mandeep, who will provide a detailed review of our third quarter performance, our guidance for the fourth quarter of 2024, and our outlook for the full year. Mandeep, over to you.