Celestica’s Comeback: Service Expansion and Strategic Partnerships Power Stock Rally

Celestica shares have soared nearly 80% year-to-date, driven by revenue growth above 27%, rising profit margins, and renewed investor confidence in its EMS model.

Fundamentals & Recent Developments

Celestica delivered strong Q2 results with revenue up 27.5% and non‑GAAP operating margin at 6.1%—net margin at 4.1%. Canaccord raised its price target after the strong figures. Key partnerships in sectors including telecom and aerospace helped offset customer concentration risk, though top-three clients still account for about 53% of revenue.

Macro Tailwinds & Industry Rebound

As supply chains recalibrate post-pandemic and IoT/5G infrastructure grows, electronics manufacturers like Celestica are benefiting. Outsourcing demand has surged, particularly in high-mix, low-volume production capabilities where Celestica holds domain strength.

Risks & Market Positioning

Reliance on a narrow customer base is notable. However, improving margins and expanded offerings in aftermarket services and system integration are helping diversify revenue. If execution continues, Celestica may cement its position among peers.