Are you looking for a monster stock that keeps winning year after year? Celestica (TSX:CLS) is doing just that. It does not matter whether the broader market is up, down, or going sideways. This company continues to grow and deliver strong earnings.
The company’s transformation into a high-performance supplier of advanced computing systems, artificial intelligence (AI) data centre components, and aerospace platforms has accelerated its financial growth. If you held this stock over the past year, you are probably smiling. And if you did not, it might not be too late.
Let’s dive into why Celestica stock has become one of the TSX’s top performers and what could still be ahead.
Source: Taiwan Semiconductor
Celestica stock
After jumping by 129% over the last year, Celestica stock currently trades at $187.94 per share with a market cap of $21.6 billion. Interestingly, the stock has delivered a staggering 2,060% return in the last five years.
Celestica’s rise could be closely tied to the explosion in demand for AI data centres, high-performance computing systems, and hyperscaler server infrastructure. In the first quarter of 2025, the Connectivity & Cloud Solutions (CCS) segment brought in US$1.8 billion in revenue, up 28% YoY (year-over-year), while its enterprise end market under CCS segment grew with the help of its AI and machine learning ramp-ups.
Another factor making Celestica stock pop is the company’s ability to crush forecasts quarter after quarter. In the latest quarter, its total revenue came in at US$2.7 billion, beating the high end of its own guidance, and its adjusted earnings per share hit US$1.20 – up 45% YoY (year-over-year). It also delivered a record-high 7.1% adjusted operating margin last quarter, which speaks a lot about its growing scale and pricing power.
Financials show this momentum is real
Clearly, Celestica isn’t only benefiting from hype, but it’s actually delivering. Its adjusted net profit rose 37% YoY last quarter to US$140.1 million, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose 31% YoY to US$225.2 million. Similarly, its adjusted EBITDA margin improved to 8.5% from 7.8% a year ago.
The company also generated US$93.6 million in free cash flow for the quarter, despite ramping up its capital expenditure for growth. That’s a strong indicator that Celestica’s business can keep reinvesting while still strengthening its balance sheet.
Long-term growth plans make Celestica stock even more attractive
Interestingly, Celestica’s solid first-quarter results encouraged it to raise its 2025 full-year outlook. The company now expects US$10.9 billion in revenue and US$5 per share in adjusted earnings. It’s seeing stronger demand from its top hyperscaler and AI customers, including continued momentum in its 800G networking and next-gen compute platforms.
Celestica is also benefiting from long-term trends in AI, cloud infrastructure, aerospace modernization, and automation in industrial markets. And with its focused execution and deep customer ties, the company could keep riding those trends in the years ahead. Given these positive factors, Celestica stock could continue to be one of the TSX’s most exciting growth stories for years.
