7/28/2026

speaker
Operator
Conference Operator

Hello, everyone. Thank you for joining us and welcome to the Celestica second quarter 2026 financial results and conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Matthew Pallotta, head of investor relations. Please go ahead.

speaker
Matthew Pallotta
Head of Investor Relations

Good morning and thank you for joining us on Celestica's Q2 2026 Financial Results Conference Call. On the call today we have Rob Mionis, Chair of the Board and Chief Executive Officer, and Mandeep Chawla, Chief Financial Officer. Please note that during the course of this call, we will make forward-looking statements, including statements relating to the future performance of Celestica, our business outlook, guidance for the third quarter of 2026, our 2026 annual outlook, and anticipated trends in our industry and their anticipated impact on our business. These are based on management's current expectations, forecasts, and assumptions as of July 27th. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and their potential impact on our results cannot be reliably predicted at this time. Thank you very much. We have included in our earnings release, found in the investor relations section of our website, a discussion of those non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Unless otherwise specified, all references to dollars on this call are to US dollars, all per share information is based on diluted shares outstanding, and all references to comparative figures are a year-over-year comparison. With that, I will now turn the call over to Rob.

speaker
Rob Mionis
Chair of the Board and Chief Executive Officer

Thank you, Matt, and good morning, everyone, and thank you for joining us on today's call. As we cross the mid-year mark, we continue to see sustained and accelerating momentum across our portfolio. In the second quarter, we delivered revenue of $4.7 billion and adjusted EPS of $2.54, both exceeding the high end of our guidance ranges. This performance was backed by an adjusted operating margin of 8.2%, a new high for the company. These results reflect strong operational execution across both segments, alongside record demand from our CCS customers. Within CCS, we continue to expand with leading hyperscale customers through close alignment on multi-year capacity roadmaps. Rapid progression and technology upgrade cycles in networking and AI compute are driving broad demand, and we are in the process of ramping a number of significant new programs expected to launch in the second half of the year and into 2027. At the same time, our ATS segment continues to see strong profitability improvements alongside solid revenue growth during the quarter. Before I provide an update on our longer-term business outlook, I would like to turn the call over to Mandeep, who will take us through our Q2 results and Q3 guidance. Mandeep, over to you.

Disclaimer

This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.

-

-

Investor presentation