Celestica Announces Fourth Quarter 2022 Financial Results

TORONTO — Celestica Inc., a leader in design, manufacturing, hardware platform and supply chain solutions for the world’s most innovative companies, announced financial results for the quarter ended December 31, 2022 (Q4 2022)^†.

“Celestica finished with a strong fourth quarter and had an outstanding 2022, resulting in 46% year-over-year non-IFRS adjusted EPS* growth. Our ability to successfully execute on our long-term strategy has allowed us to win in markets where we see opportunity for long-term, profitable growth,” said Rob Mionis, President and CEO, Celestica. “For the full year, we achieved $7.25 billion in revenue, a 29% increase over 2021 and our highest annual non-IFRS operating margin* and non-IFRS adjusted EPS* in our company’s history.”

“We are very pleased with the strength and consistency of our financial results. This performance is made possible by the exceptional efforts of the global Celestica team, in the context of a challenging environment. As we look ahead to 2023, we expect to build on the successes of this past year, and continue to advance our long-term goals of generating revenue growth and improving our profitability.”

Q4 2022 Highlights

• Key measures:
  • Revenue: $2.04 billion, increased 35% compared to $1.51 billion for the fourth quarter of 2021 (Q4 2021).
  • Non-IFRS operating margin*: 5.3%, compared to 4.9% for Q4 2021.
  • ATS segment revenue: increased 30% compared to Q4 2021; ATS segment margin was 4.4%, compared to 5.6% for Q4 2021.
  • CCS segment revenue: increased 39% compared to Q4 2021; CCS segment margin was 5.9%, compared to 4.4% for Q4 2021.
  • Adjusted earnings per share (EPS) (non-IFRS)*: $0.56, compared to $0.44 for Q4 2021.
  • Adjusted return on invested capital (ROIC) (non-IFRS)*: 20.7%, compared to 16.6% for Q4 2021.
  • Adjusted free cash flow (non-IFRS)*: $42.6 million, compared to $35.6 million for Q4 2021.
• IFRS financial measures (directly comparable to non-IFRS measures above):
  • Earnings from operations as a percentage of revenue: 4.0%, compared to 3.3% for Q4 2021.
  • EPS: $0.35, compared to $0.26 for Q4 2021.
  • Return on invested capital (IFRS ROIC): 15.7%, compared to 11.1% for Q4 2021.
  • Cash provided by operations: $101.3 million, compared to $65.8 million for Q4 2021.
• Repurchased 1.2 million subordinate voting shares (SVS) for cancellation for $12.0 million.

† Celestica has two operating and reportable segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Our ATS segment consists of our ATS end market and is comprised of our Aerospace and Defense (A&D), Industrial, HealthTech and Capital Equipment businesses. Our CCS segment consists of our Communications and Enterprise (servers and storage) end markets. Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue). See note 25 to our 2021 audited consolidated financial statements, included in our Annual Report on Form 20-F for the year ended December 31, 2021 (2021 20-F), available at www.sec.gov and www.sedar.com, for further detail.
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