0001030894-25-000047
SEC filingNotes highlight $115M buyback spend, 7-1M NCIB shares remaining, $822.5M credit facility debt, and strong CCS segment margins.
As of June 30, 2025, Celestica had $313.8M in cash and cash equivalents, down from $423.3M at December 31, 2024. Total debt (credit facility borrowings plus finance lease obligations) was $875.2M, up from $796.7M. The company had $90.0M drawn on its $750.0M revolver and $732.5M in term loans (net of unamortized debt issuance costs of $5.8M). Finance lease obligations totaled $58.5M. Total shareholders' equity was $1,757.9M, down from $1,896.0M, primarily due to share repurchases.
The Notes disclose no specific purchase commitments or contractual obligations (e.g., minimum purchase agreements, supply commitments). The company's significant contractual obligations are related to its credit facility ($822.5M outstanding, with revolver maturity June 2029, Term A Loan maturity June 2029, Term B Loan maturity June 2031) and operating/finance leases (total lease obligations of $196.6M). There is a potential earn-out of up to $20M related to the NCS acquisition (fair value estimated at $6.6M). Contingencies include tax assessments in Romania and Thailand totaling approximately $19M.
In 1H 2025, Celestica repurchased 1.2 million common shares for cancellation at a cost of $115.0M (including $40.0M in Q2 2025), compared to $26.5M in 1H 2024. At June 30, 2025, approximately 7.1 million shares remained available under the 2024 NCIB. The company also paid $221.6M to repurchase shares for delivery under SBC plans and $156.0M in withholding taxes on vested SBC awards. No dividends were declared. Capital expenditures were $69.2M in 1H 2025 (1.25% of sales), down from $77.3M in 1H 2024. Net debt increased by $81.3M as the company borrowed $500.0M and repaid $418.7M on the revolver and term loans.
For Q2 2025, ATS segment revenue was $819.1M (28% of total), segment income $43.5M, and margin 5.3%. CCS segment revenue was $2,074.3M (72% of total), comprising Communications ($1,641.2M, 57%) and Enterprise ($433.1M, 15%). CCS segment income was $171.2M with an 8.3% margin. Two customers in CCS each represented 10%+ of total revenue: 31% and 13%. Segment costs totaled $2,678.7M (ATS cost of sales $726.1M, ATS other segment costs $49.5M; CCS cost of sales $1,829.6M, CCS other segment costs $73.5M).
Operating cash flow of $152.4M comfortably covered capex of $32.5M, yielding strong free cash flow coverage (though not explicitly stated). CFO exceeded net income ($211.0M) after adjusting for non-cash items like SBC and TRS fair value adjustments. The main working capital outflow came from accounts receivable (-$151.9M) and inventories (-$129.8M), partly offset by a large increase in payables (+$270.4M). This reflects seasonal or growth-related build. Investing activities were modest, with no acquisitions in the quarter. Financing cash flow was negative due to net debt repayments and share repurchases. The $40.0M share buyback was partly funded by operating cash flow. Overall, cash generation improved significantly year-over-year, with operating cash flow nearly doubling from $99.6M.