What Celestica Tells Us About Canada’s Industrial Upside

Celestica’s 317% rally spotlights Canada’s shift to high-tech manufacturing tied to AI and semiconductors, but is the stock still worth it?

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 9, 2025 4:30 pm EDT

| More on: CLS

It’s no secret that Celestica (TSX:CLS) has been on a tear. Shares of the electronics manufacturing systems (EMS) company have risen a whopping 317% in the last year alone. Yet the stock price has reached levels that may not offer compelling value anymore.

Or does it?

Today, we’re going to look at what Celestica stock can tell us about Canada’s industrial sector and how much more of an upside there might be. So let’s get into it.

semiconductor manufacturing — Source: Getty Images

An industrial renaissance

Celestica stock is arguably the poster child for Canada’s industrial and technology renaissance. Thought the company is basically telling us that an upside is no longer about smokestacks and raw materials, but advanced manufacturing, automation, and the global artificial intelligence (AI) and semiconductor supply chain.

Despite starting decades ago, the EMS provider is an essential player in the highly complex and high margin production area. Whether it’s AI servers or data centre hardware, aerospace or defence systems, the company is producing stellar results.

Into earnings

This performance has been evident through its recent earnings. The second quarterly results brought in record results, with revenue up 12% year over year hitting US$2.3 billion. Furthermore, adjusted earnings per share hit US$0.86 per share, up 43% year over year.

Then there’s the segments themselves, with the advanced technology systems (ATS) segment growing 21%, led by the demand for AI and cloud infrastructure equipment. All together, Canadian manufacturing demand isn’t fading, it’s climbing the tech ladder. And there could be more growth on the way.

What to watch

Celestica stock has a few more moves left to play. For instance, the largest growth driver right now is the hardware platform solutions unit. This supplies server, storage, and networking gear for hyperscale cloud and AI clients. Management noted record demand from North American and Asian AI data centre builders as well, showing how the company is tied directly to the global demand for AI infrastructure spending.

In fact, there’s also a booming sector here at home. Celestica has become a North American hub for “friend shoring.” This is where companies moving their supply chains closer to home are looking for options after years of over reliance on Asia. The firm has since expanded in Ontario, Arizona, and Mexico to support this growing need. This therefore will create long-term opportunities as well.

For investors, this industrial upside is linked to the digital transformation, not just the energy and resources behind them. So now, with the stock booming, it seems that there could still be more growth on the way for investors. For now, simply keep an eye on any tariff or trade issues, or supply chain disruptions. Or perhaps a dip in share price to get a better deal.

Bottom line

When it comes to the AI industrial boom, Celestica stock continues to rise and doesn’t seem as though it’s about to slow down. The upside will depend on precision technology, clean energy integration, and AI-driven manufacturing. But it seems that Celestica stock is up for the challenge.