Slides
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Second Quarter 2026 Financial Results July 28, 2026 1
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Cautionary Note Regarding Forward-Looking Statements 2 This presentation contains forward-looking statements, including, without limitation, those related to: strengthening demand in our businesses, demand environment and customer forecasts, our anticipated financial and/or operational results, guidance and outlook, including statements in the slides titled “Q3 2026 Guidance,” “Q3 2026 End Market Revenue Outlook”, “2026 Annual Outlook and Long-Term Demand Update,” and “Business Outlook,” and including statements with respect to timelines referenced therein, expected revenue and adjusted EPS growth in 2026 and 2027, developments related to new customer or program wins, timing of production ramps, anticipated economic conditions, industry and market trends and projections, underlying market growth rates, customer demand, prospects and opportunities, and strategic initiatives. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “continues,” “projects,” "target," "outlook," "goal," "guidance," “potential,” “possible,” “contemplate,” “seek,” or similar expressions, or may employ such future or conditional verbs as “may,” “might,” “will,” “could,” “should,” or “would,” or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the U.S.Private Securities Litigation Reform Act of 1995, where applicable, and for forward-looking information under applicable Canadian securities laws. Forward-looking statements are provided to assist readers in understanding management’s current expectations and plans relating to the future. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, including certain assumptions about: revenue and adjusted EPS growth in 2026 and 2027 (including continued strengthening of customer demand, close alignment with key customers on demand planning, sustained improvements in demand visibility, and continued strengthening of adjusted operating margins); accelerating growth from our customer base, including our CCS customer base; demand levels across our businesses, including continued growth in demand from data center customers in 2026 and 2027; programs and production ramps occurring and progressing as anticipated in line with expected timelines, specifications, qualification requirements and production schedules, customer decisions, design changes, silicon and component availability, qualification outcomes, deployment timelines and priorities, constraints affecting data center development, construction, equipping or operation, and other technical, commercial, regulatory or supply-chain factors, and our expected role in such programs, including our 800G and 1.6T networking, and AI/machine learning compute programs with data center customers; technology upgrade cycles; our ability to retain programs and customers; continuing operating leverage and improving mix; the impact of anticipated market conditions on our businesses; the reliability of third party market forecasts and customer indications of future demands and roadmaps, including with respect to data center infrastructure; continued advancement and commercialization of AI technologies and cloud computing; supporting sustained high levels of capital expenditure investments by leading hyperscaler, AI, and data center customers; our ability to develop new capabilities; scaling of our operations to meet the anticipated growth in customer demand; the successful recruitment and retention of skilled talent; capital investments proceeding as anticipated, including timely completion of construction and operationalization of assets, securing required materials, utilities, and equipment for our expansion plans; our ability to secure adequate component and material supply; alignment of our capacity with our business demands; the economy; our customers; our suppliers; tax and interest rates; no material changes to tariffs, trade restrictions, customs administration, or related refund or recovery processes, including developments relating to duties imposed under the International Emergency Economic Powers Act of 1977 and any replacement, continuing or retaliatory tariff measures, compared to what are in effect as of July27, 2026; that our customers will retain liability for and we will continue to be able to recover substantially all costs from customers relating to product/component tariffs and countermeasures; no material changes in business activities resulting from current macroeconomic trends and uncertainties, including evolving global tariffs, trade negotiations, and geopolitical conflicts; our ability to achieve our strategic goals; the availability of cash from operations to fund planned capital investments; the availability of capital resources for, and the permissibility under our credit facility of, repurchases of outstanding common shares under our current normal course issuer bid; as well as other market, financial and operational assumptions. Readers are cautioned that such information may not be appropriate for other purposes. Readers should not place undue reliance on such forward-looking information. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including, among others, risks related to: changing customer capacity roadmaps for 2026 and beyond; realization of the long-term demand outlook; customer and segment concentration; reduction in customer revenue; erosion in customer market competitiveness; changes in revenue mix and margins; uncertain market, industry, political and economic conditions; customer requests to transfer manufacturing of products from one facility to another; changes to policies or legislation; operational challenges (including inventory management, supply chain constraints, and materials or supply shortages); volatility in energy and commodity prices; program ramps not progressing as anticipated; the cyclical nature and/or volatility of certain of our businesses; talent management and inefficient employee utilization, including recruiting, training and retaining sufficient qualified personnel in required jurisdictions and within required timeframes; our expansion plans or consolidation of our operations; planned capital expenditures to support anticipated growth in customer demand; competition risk from evolving AI technologies, including lower-cost/open-source AI models; energy, power and water constraints in the data center ecosystem; cash flow, revenue, and operating results; tax and interest rates variability; technology and IT disruption; increasing legal, tax and regulatory complexity and uncertainty (including in relation to our or our customers' businesses); integrating and achieving the anticipated benefits from acquisitions; and the potential adverse impacts of events outside of our control. For more exhaustive information on the foregoing and other material risks, uncertainties and assumptions readers should refer to our public filings at www.sedarplus.ca and www.sec.gov, including in our most recent Management's Discussion and Analysis of Financial Condition and Results of Operations, Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed with, or furnished to, the U.S. Securities and Exchange Commission, and the Canadian Securities Administrators, as applicable. Forward-looking statements speak only as of the date on which they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements attributable to us are expressly qualified by these cautionary statements. Note Regarding Non-GAAP Financial Measures In addition to disclosing detailed operating results in accordance with Generally Accepted Accounting Principles (GAAP), this presentation refers to non-GAAP financial measures (including ratios) to consider in evaluating the Company's operating performance. Management uses adjusted net earnings and other non-GAAP financial measures to assess operating performance, financial leverage and the effective use and allocation of resources; to provide more normalized period-to-period comparisons of operating results; to enhance investors' understanding of the core operating results of Celestica's business; and to set management incentive targets. We believe investors use both GAAP and non-GAAP financial measures to assess management's decisions associated with our priorities and capital allocation, as well as to analyze how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other public companies that report under GAAP and use non-GAAP financial measures to describe similar operating metrics. Non-GAAP financial measures are not measures of performance under GAAP and should not be considered in isolation or as a substitute for any GAAP financial measure. We do not provide reconciliations for forward-looking non-GAAP financial measures, as the items that we exclude from GAAP to calculate the comparable non-GAAP measure are dependent on future events that are not able to be reliably predicted by management and are not part of our routine operating activities. We are unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty in predicting the occurrence, the financial impact and the periods in which the adjustments may be recognized. The occurrence, timing and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact our forward-looking GAAP results. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures. Comparative Metrics All references to “QTQ” in this presentation reflect changes vs. Q1 2026, all references to “YTY” in the context of Q2 2026 reflect changes vs. Q2 2025, and all references to “YTY” in the context of 2026 reflect changes vs. 2025. Currency Unless otherwise specified, all references to dollars in this presentation are to U.S. dollars.
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CEO Remarks
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4 Q2 2026 Results1 Q2 2026 YTY Q2 2026 Guidance Revenue $4.70B +62% $4.15B - $4.45B GAAP Earnings from Operations as a % of Revenue 9.8% +40 bps GAAP EPS $3.17 +74% Adjusted Operating Margin (Non-GAAP)2 8.2% +80 bps 8.0% Adjusted EPS (Non-GAAP) $2.54 +83% $2.14 - $2.34 1 See “Note Regarding Non-GAAP Financial Measures”. Also see the Appendix for, among other things, definitions and uses of non-GAAP financial measures (including ratios based on non-GAAP financial measures) set forth in the table and a reconciliation of these non-GAAP financial measures (or, in the case of ratios, the non-GAAP financial measure used in calculating such ratios) to the most directly comparable GAAP financial measures. 2 Q2 2026 guidance at the mid-point of revenue and non-GAAP adjusted EPS guidance ranges.
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5 1 See “Note Regarding Non-GAAP Financial Measures”. Also see the Appendix for, among other things, definitions and uses of non-GAAP financial measures (including ratios based on non-GAAP financial measures) set forth in the table and a reconciliation of these non-GAAP financial measures (or, in the case of ratios, the non-GAAP financial measure used in calculating such ratios) to the most directly comparable GAAP financial measures. Non-GAAP financial measures Q2 2026 B/(W) QTQ B/(W) YTY Adjusted Gross Margin (non-GAAP) 11.5% 0.2% (0.2%) Adjusted Operating Earnings (adjusted EBIAT) (non-GAAP) $386.3 $61.1 $171.6 Adjusted Operating Margin (non-GAAP) 8.2% 0.2% 0.8% Adjusted Effective Tax Rate (non-GAAP) 20% (1%) Flat Adjusted EPS (non-GAAP) $2.54 $0.38 $1.15 Adjusted ROIC % (non-GAAP) 55.5% 5.7% 20.0% GAAP financial measures $ Millions (Except for per share amounts and %) Q2 2026 B/(W) QTQ B/(W) YTY Revenue $4,699 $652 $1,805 Gross Margin 12.3% 1.5% (0.5%) Earnings from Operations $458.3 $186.2 $185.8 Earnings from Operations as a % of Revenue 9.8% 3.1% 0.4% Effective Tax Rate 16% 1% 2% EPS $3.17 $1.34 $1.35 ROIC % 65.8% 24.1% 20.8% Q2 2026 Highlights¹
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ATS 19% CCS 81% Q2 2026 Revenue4 6 1 Our CCS segment consists of our Communications and Enterprise end markets. 2 Our ATS segment consists of our ATS end market, and is comprised of our Aerospace & Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. 3 Our Enterprise end market consists of our Servers and Storage businesses. 4 In Q2 2026, Communications represented 56% of total revenue and Enterprise represented 25% of total revenue. 5 See footnote 1 on slide 18 for the definition of segment income and segment margin. CCS1 and ATS2 Segment Revenue and Profitability $ Millions Q2 2026 YTY CCS $3,810 Up 84% Communications $2,653 Up 62% Enterprise3 $1,157 Up 167% ATS $888 Up 8% Revenue Segment Income5 Segment Margin5 $ Millions Q2 2026 YTY CCS $330 Up 93% ATS $56 Up 30% Q2 2026 YTY CCS 8.7% Up 40 bps ATS 6.3% Up 100 bps
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1 Inventory turns are determined by dividing 365 by the number of days in inventory. Days in inventory are calculated by dividing the average inventory balance for the quarter by the average daily cost of sales. 2 Celestica receives cash deposits from certain customers to alleviate the impact of inventory purchases on our cash flows, and to reduce risks related to excess and/or obsolete inventory. 3 Days in A/R is defined as the average A/R for the quarter divided by the average daily revenue. Days in inventory, days in A/P and days in cash deposits are calculated by dividing the average balance for each item for the quarter by the average daily cost of sales. Cash cycle days is defined as the sum of days in A/R and days in inventory minus the days in A/P and days in cash deposits. Working Capital 7 Cash Cycle Days $ Millions Q2 2026 B/(W) QTQ B/(W) YTY Inventory Turns1 5.4x (0.5x) Flat Inventory $3,402 ($729) ($1,484) Customer Cash Deposits for Inventory2 $481 $93 $85 Q2 2026 Q1 2026 Q2 2025 Days in A/R3 63 65 70 Days in Inventory3 67 61 67 Days in A/P3 (73) (60) (54) Days in Cash Deposits2,3 (10) (11) (17) Cash Cycle Days3 47 55 66
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123 143 130 152 126 251 356 411 77 96 94 120 89 156 138 147 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 8 1 See “Note Regarding Non-GAAP Financial Measures”. Also see the Appendix for, among other things, the definition and use of this non-GAAP financial measure, and a reconciliation of historic non-GAAP free cash flow to GAAP cash provided by operations. Cash Flow Overview Cash Provided by Operations Non-GAAP Free Cash Flow1 ($M) $ Millions Q2 2026 QTQ Increase/(Decrease) YTY Increase/(Decrease) Capex $264 $34 $231 Capex as a % of revenue 5.6% (0.1%) 4.5%
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Balance Sheet 9 1 See “Note Regarding Non-GAAP Financial Measures”. See slide 21 for a calculation of GAAP trailing twelve month (TTM) debt leverage ratio and non-GAAP adjusted TTM debt leverage ratio. 2 Total liquidity is defined as cash and cash equivalents as of June 30, 2026, plus the total availability under Celestica’s Revolver following the amendment to our credit agreement, as previously announced on April 27, 2026. Cash and Cash Equivalents $536M Revolver (excluding L/Cs) - Term Loans $740M Net Debt $204M GAAP TTM Debt Leverage Ratio1 0.5x Non-GAAP Adjusted TTM Debt Leverage Ratio1 0.5x Total Liquidity2 ~$2.3B Balance Sheet (as of June 30, 2026)
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Revenue $5.25B - $5.55B Adjusted Operating Margin (Non-GAAP) 8.4% at the mid-point of revenue and non-GAAP adjusted EPS guidance ranges Adjusted EPS (Non-GAAP) $2.88 - $3.08 Q3 2026 Guidance1 10 Q3 2026 Non-GAAP Tax Rate Estimate Adjusted Effective Tax Rate (Non-GAAP) of approximately 20% 1 See “Cautionary Note Regarding Forward-Looking Statements” and “Note Regarding Non-GAAP Financial Measures.” Also see the Appendix for, among other things, definitions and uses of these non-GAAP financial measures (including ratios based on non-GAAP financial measures) set forth in the table. Guidance reflects management’s expectations as of the date provided and will only be updated through a public announcement. We do not provide reconciliations for our forward- looking non-GAAP financial measures, as we are unable to reasonably estimate the items that we exclude from GAAP to calculate comparable non-GAAP measures without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or financial impacts of various events that have not yet occurred, are out of our control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking GAAP financial measure. For these same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures.
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Q3 2026 End Market Revenue Outlook1 11 Year-over-Year Revenue % Change Communications Increase approximately 60% Enterprise2 Increase approximately 190% ATS3 Increase mid-teens 1 Outlook reflects management’s expectations as of the date provided. 2 Our Enterprise end market consists of our Servers and Storage businesses. 3 Our ATS segment consists of our ATS end market, and is comprised of our A&D, Industrial, HealthTech, and Capital Equipment businesses.
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2026 Annual Outlook and Long-Term Demand Update1 12 1 See “Cautionary Note Regarding Forward-Looking Statements” and “Note Regarding Non-GAAP Financial Measures”. Outlook reflects management’s expectations as of the date provided and will only be updated through a public announcement. We do not provide reconciliations for our forward-looking non-GAAP financial measures, as we are unable to reasonably estimate the items that we exclude from GAAP to calculate comparable non-GAAP measures without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or financial impacts of various events that have not yet occurred, are out of our control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking GAAP financial measure. For these same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures. 2026 Outlook Previous 2026 Outlook Revenue Outlook $20.5B $19.0B Adjusted Operating Margin (Non-GAAP) 8.4% 8.1% Adjusted EPS (Non-GAAP) $11.30 $10.15 Capex ~$1B ~$1B Free Cash Flow (Non-GAAP) $600M $500M 2027 revenue growth rate expected to accelerate compared to 65% growth expected in 2026 Annual Outlook Adjusted EPS (Non-GAAP) expected to grow at a faster rate than revenue in 2027 Long-Term Demand Update 2026 Non-GAAP Tax Rate Estimate Adjusted Effective Tax Rate (Non-GAAP) of approximately 20%
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Communications Revenue growth through 2026 driven by robust 800G switch demand, and 1.6T switch program ramps set to launch in 2H 2026. Trends expected to drive very strong growth through 2027. Enterprise AI Compute seeing strengthening demand in 2026. Strong growth expected to continue in 2027, with multiple AI Compute program ramps. Hyperscaler Portfolio Strong demand driven by the accelerating capital investments of our key customers. Improving visibility supported by alignment on multi-year capacity roadmaps and next-generation program awards. Business Outlook1 1 See “Cautionary Note Regarding Forward-Looking Statements”. The information on this slide reflects management’s expectations as of the date provided. Advanced Technology Solutions 2026 revenues expected to grow by ~10% Connectivity & Cloud Solutions 2026 revenues expected to grow by ~85% Capital Equipment Revenue growth driven by strengthening end customer demand in the wafer fab equipment market. Industrial & HealthTech Growth supported by solid base demand, paired with new program ramps in Smart Energy. Aerospace & Defense Robust base demand and new program ramps offsetting headwind from strategic portfolio optimization. 13
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Concluding Remarks
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Q&A
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Second Quarter 2026 Financial Results July 28, 2026
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Appendix
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Segment Income and Margin1 18 1 Segment margin is segment income as a percentage of segment revenue. Segment income is defined as a segment’s revenue less its cost of sales and its allocatable portion of SG&A expenses and research and development expenses. Segment income excludes Miscellaneous Expense (Income), employee SBC expense, TRS FVAs, amortization of intangible assets (excluding computer software), restructuring and other charges (recoveries) (each defined in slides 19 and 20) and finance costs, net of interest income. 2 See slides 19 and 20 for, among other things, the definitions and uses of certain non-GAAP financial measures and adjustments. * * Refers to notes to our June 30, 2026 unaudited interim condensed consolidated financial statements (Q2 2026 Interim Financial Statements) 2
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Non-GAAP Financial Measures 19 The non-GAAP financial measures included in this presentation are: adjusted gross profit, adjusted gross margin (adjusted gross profit as a percentage of revenue), adjusted selling, general and administrative expenses (SG&A), adjusted SG&A as a percentage of revenue, adjusted operating earnings (or adjusted EBIAT), adjusted operating margin (adjusted operating earnings or adjusted EBIAT as a percentage of revenue), adjusted EBITDA, adjusted EBITDA as a percentage of revenue, adjusted TTM EBITDA, adjusted net earnings, adjusted earnings per share (EPS), adjusted return on invested capital (adjusted ROIC), free cash flow, adjusted tax expense, adjusted effective tax rate and adjusted TTM debt leverage ratio, which are further described in the tables in the following slides. As used herein, "Q1," "Q2," "Q3," and "Q4" followed by a year refers to the first quarter, second quarter, third quarter and fourth quarter of such year, respectively. The twelve month period ended December 31, 2025 is referred to here as “FY 2025”. We believe the non-GAAP financial measures herein enable investors to evaluate and compare our results from operations by excluding specific items that we do not consider to be reflective of our core operations, to evaluate cash resources that we generate from our business each period, to analyze operating results using the same measures our chief operating decision maker uses to measure performance, and to help compare our results with those of our competitors. In addition, management believes that the use of adjusted tax expense and adjusted effective tax rate provides additional transparency into the tax e ffects of our core operations, and are useful to management and investors for historical comparisons and forecasting. These non-GAAP financial measures reflect management’s belief that the excluded items are not indicative of our core operations. Non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and therefore may not be directly comparable to similar measures presented by other companies. Non-GAAP financial measures are not measures of performance under GAAP and should not be considered in isolation or as a substitute for any GAAP financial measure. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the following slides. We do not provide reconciliations for our forward-looking non-GAAP financial measures, as we are unable to reasonably estimate the items that we exclude from GAAP to calculate comparable non-GAAP measures without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or financial impacts of various events that have not yet occurred, are out of our control and/or cannot be reasonably predicted, and that would impact the most directly comparable forward-looking GAAP financial measure. For these same reasons, we are unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures may vary materially from the corresponding GAAP financial measures. Our non-GAAP financial measures are calculated by making the following adjustments (as applicable) to our GAAP financial measures: Employee SBC expense, which represents the estimated fair value of stock options, restricted share units and performance share units granted to employees, is excluded because grant activities vary significantly from quarter-to-quarter in both quantity and fair value. We believe excluding this expense allows us to compare core operating results with those of our competitors, who also generally exclude employee SBC expense in assessing operating performance, and may have different granting patterns, equity awards and valuation assumptions. Total return swap fair value adjustments (TRS FVAs) represent mark-to-market adjustments to our TRS Agreement, as the TRS Agreement is re-measured at fair value at each quarter end. We exclude the impact of these non-cash fair value adjustments (which reflect fluctuations in the market price of our common shares recorded in cost of sales and SG&A) from period to period as such fluctuations do not represent our ongoing operating performance. In addition, we believe that excluding these non-cash adjustments permits a helpful comparison of our core operating results to our competitors. Transitional hedge reclassifications and adjustments related to foreign currency forward exchange contracts (FCC Transitional ADJ) were specifically driven by our transition from IFRS to GAAP. For the purpose of determining our non-GAAP measures, FCC Transitional ADJ were made to cost of sales and SG&A. Our foreign currency forward exchange contracts that we entered prior to 2024 were accounted for as either cash flow hedges (qualified for hedge accounting) or economic hedges under IFRS. However, those contracts were not accounted for as such under GAAP until January 1, 2024, resulting in FCC Transitional ADJ. Had we been able to designate those foreign currency forward exchange contracts under GAAP from their inception, they would have qualified as cash flow or economic hedges under GAAP, and no FCC Transitional ADJ would have been required under GAAP. FCC Transitional ADJ do not reflect the on-going operational impacts of our hedging activities and are excluded in assessing operating performance. Amortization of intangible assets (excluding computer software) consist of non-cash charges for intangible assets that are impacted by the timing and magnitude of acquired businesses. Amortiz ation of intangible assets varies among our competitors, and we believe that excluding these charges permits a helpful comparison of core operating results to our competitors who also generally exclude amortization charges in assessing operating performance.
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Non-GAAP Financial Measures…continued 20 Restructuring and Other Charges (Recoveries) consist of, when applicable: Restructuring Charges (Recoveries) (defined below); Transition Costs (Recoveries) (defined below); consulting, transaction and integration costs related to potential and completed acquisitions; where applicable, certain fair value adjustments of contingent consideration in connection with acquisitions; where applicable, legal settlements (recoveries); and where applicable, related costs pertaining to our transition to a U.S. domestic filer. We exclude these charges and recoveries because we believe that they are not directly related to ongoing operating results and do not reflect our expected future operating expenses after completion of the relevant actions. Our competitors may record similar items at different times, and we believe these exclusions permit a helpful comparison of our core operating results with those of our competitors who also generally exclude these items in assessing operating performance. Restructuring Charges (Recoveries), consist of costs or recoveries relating to: employee severance, site closings and consolidations, accelerated depreciation of owned and leased property and equipment which are no longer used and are held for sale, and reductions in infrastructure. Transition Costs (Recoveries) consist of costs and recoveries in connection with: (i) the transfer of manufacturing lines from closed sites to other sites within our global network; (ii) the sale of real properties unrelated to restructuring actions; and (iii) where applicable, specified charges or recoveries related to the sublet of a 10-year building lease in Toronto that we previously anticipated to be our corporate headquarters. Transition Costs consist of direct relocation and duplicate costs (such as rent expense, utility costs, depreciation charges, and personnel costs) incurred during the transition periods, as well as cease-use and other costs incurred in connection with idle or vacated portions of the relevant premises that we would not have incurred but for these relocations, transfers and dispositions. We believe that excluding Transition Costs and Recoveries permits a helpful comparison of our core operating results from period-to-period, as they do not reflect our ongoing operations once these specified events are complete. Miscellaneous Expense (Income) consists primarily of: (i) certain net periodic benefit costs (gains) related to our pension and post-employment benefit plans consisting of interest costs, expected returns on plan balances, and amortization of actuarial gains or losses; (ii) where applicable, gains on insurance claims settlement; and (iii) where applicable, gains or losses related to foreign currency forward exchange contracts and interest rate swaps that we entered into prior to 2024. Those derivative instruments were accounted for as either cash flow hedges (qualifying for hedge accounting) or economic hedges under International Financial Reporting Standards. However, those contracts were not accounted for as such under GAAP until January 1, 2024. Certain gains and losses related to those contracts were recorded in Miscellaneous Expense (Income). See FCC Transitional ADJ above. We exclude such items because we believe they are not directly related to our ongoing operating results. Tax effects of the non-core items, which include our non-GAAP adjustments above, are excluded from GAAP tax expense to calculate adjusted tax expense (non-GAAP), as we do not believe these costs or recoveries reflect our core operating performance and vary significantly among our competitors who also generally exclude such items in assessing operating performance. Our non-GAAP financial measures include the following: Adjusted operating earnings (Adjusted EBIAT) is defined as GAAP earnings from operations excluding the impact of Employee SBC expense, TRS FVAs, FCC Transitional ADJ, Amortization of intangible assets (excluding computer software), and Restructuring and Other Charges (Recoveries). Adjusted operating margin is adjusted operating earnings as a percentage of GAAP revenue. Management uses adjusted operating earnings (adjusted EBIAT) as a measure to assess performance related to our core operations. Adjusted net earnings is defined as GAAP net earnings excluding the impact of Employee SBC expense, TRS FVAs, FCC Transitional ADJ, Amortization of intangible assets (excluding computer software), Restructuring and Other Charges (Recoveries), Miscellaneous Expense (Income) and adjustment for taxes. Adjusted EPS is calculated by dividing adjusted net earnings by the number of diluted weighted average shares outstanding. Management uses adjusted net earnings as a measure to assess performance related to our core operations. Free cash flow is defined as cash provided by (used in) operations less the purchase of property, plant and equipment (net of proceeds from the sale of certain surplus assets, when applicable). Free cash flow does not represent residual cash flow available to Celestica for discretionary expenditures. Management uses free cash flow as a measure, in addition to GAAP cash provided by (used in) operations, to assess our operational cash flow performance. We believe free cash flow provides another level of transparency to our ability to generate cash from normal business operations. Adjusted ROIC is calculated by dividing annualized adjusted EBIAT by average net invested capital for the period. Net invested capital (calculated in the tables in the following slides) is derived from GAAP financial measures, and is defined as total assets less: cash, right-of-use (ROU) assets (operating and finance leases), accounts payable, accrued and other current liabilities and provisions (excluding finance and operating lease liabilities) and income taxes payable. Management uses adjusted ROIC as a measure to assess the effectiveness of the invested capital we employ to build products or provide services to our customers, by quantifying how well we generate earnings relative to the capital we have invested in our business.
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Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 1H 2026 FY 2025 GAAP Revenue 2,499.5$ 2,545.7$ 2,648.6$ 2,893.4$ 3,194.0$ 3,654.9$ 4,047.0$ 4,698.6$ 8,745.6$ 12,390.9$ Net earnings 89.5 151.7 86.2 211.0 267.8 267.5 212.3 368.8 581.1 832.5 Earnings per share - diluted 0.75$ 1.29$ 0.74$ 1.82$ 2.31$ 2.31$ 1.83$ 3.17$ 5.01$ 7.16$ W.A. # of shares (in millions), on a basic basis 118.2 116.3 115.9 115.1 115.0 115.0 114.9 115.0 115.0 115.3 W.A. # of shares (in millions), on a diluted basis 118.9 117.3 116.9 115.9 115.9 115.9 115.7 116.2 116.0 116.2 Actual # of shares o/s (in millions) as of period end 116.4 116.1 115.6 115.0 115.0 114.9 115.0 115.0 115.0 114.9 GAAP gross profit 260.6$ 297.2$ 273.9$ 371.0$ 416.1$ 433.1$ 437.2$ 577.5$ 1,014.7$ 1,494.1$ As a percentage of revenue 10.4% 11.7% 10.3% 12.8% 13.0% 11.8% 10.8% 12.3% 11.6% 12.1% Employee SBC expense 5.6 4.6 10.1 7.3 6.8 6.0 13.6 9.6 23.2 30.2 TRS FVAs 2.7 (22.4) 7.5 (40.6) (48.5) (27.7) 7.5 (48.4) (40.9) (109.3) FCC Transitional ADJ (0.3) 0.4 - - - - - - - - Non-GAAP adjusted gross profit 268.6$ 279.8$ 291.5$ 337.7$ 374.4$ 411.4$ 458.3$ 538.7$ 997.0$ 1,415.0$ As a percentage of revenue 10.7% 11.0% 11.0% 11.7% 11.7% 11.3% 11.3% 11.5% 11.4% 11.4% GAAP SG&A 91.8$ 57.6$ 112.5$ 38.9$ 38.4$ 70.1$ 117.4$ 58.1$ 175.5$ 259.9$ As a percentage of revenue 3.7% 2.3% 4.2% 1.3% 1.2% 1.9% 2.9% 1.2% 2.0% 2.1% Employee SBC expense (7.1) (5.5) (15.9) (7.9) (8.8) (7.0) (16.9) (9.7) (26.6) (39.6) TRS FVAs (5.0) 29.1 (11.6) 56.8 64.8 33.7 (9.5) 55.7 46.2 143.7 FCC Transitional ADJ 0.2 - - - - - - - - - Non-GAAP SG&A 79.9$ 81.2$ 85.0$ 87.8$ 94.4$ 96.8$ 91.0$ 104.1$ 195.1$ 364.0$ As a percentage of revenue 3.2% 3.2% 3.2% 3.0% 3.0% 2.6% 2.2% 2.2% 2.2% 2.9% GAAP Earnings from operations 138.0$ 202.6$ 128.8$ 272.5$ 325.0$ 314.4$ 272.1$ 458.3$ 730.4$ 1,040.7$ As a percentage of revenue 5.5% 8.0% 4.9% 9.4% 10.2% 8.6% 6.7% 9.8% 8.4% 8.4% Restructuring and other charges (recoveries) 1.0 2.1 3.9 14.5 4.9 6.4 (4.4) 2.9 (1.5) 29.7 Employee SBC expense 12.7 10.1 26.0 15.2 15.6 13.0 30.5 19.3 49.8 69.8 TRS FVAs 7.7 (51.5) 19.1 (97.4) (113.3) (61.4) 17.0 (104.1) (87.1) (253.0) FCC Transitional ADJ (0.5) 0.4 - - - - - - - - Amortization of intangible assets (excluding computer software) 9.9 9.9 10.0 9.9 10.0 9.9 10.0 9.9 19.9 39.8 Non-GAAP adjusted EBIAT 168.8$ 173.6$ 187.8$ 214.7$ 242.2$ 282.3$ 325.2$ 386.3$ 711.5$ 927.0$ Non-GAAP adjusted operating margin 6.8% 6.8% 7.1% 7.4% 7.6% 7.7% 8.0% 8.2% 8.1% 7.5% Non-GAAP adjusted EBIAT 168.8 173.6 187.8 214.7 242.2 282.3 325.2 386.3 711.5 927.0 Depreciation expense - finance leases 1.9 2.0 2.1 2.0 2.1 2.1 2.1 2.7 4.8 8.3 Depreciation expense - property, plant and equipment, software 27.5 28.1 25.3 33.4 28.2 40.7 27.5 31.4 58.9 127.6 Non-GAAP adjusted EBITDA 198.2$ 203.7$ 215.2$ 250.1$ 272.5$ 325.1$ 354.8$ 420.4$ 775.2$ 1,062.9$ As a percentage of revenue 7.9% 8.0% 8.1% 8.6% 8.5% 8.9% 8.8% 8.9% 8.9% 8.6% Borrowings under the Revolver 90.0$ -$ -$ -$ -$ Borrowings under the Term Loans 732.5 728.1 723.7 719.3 740.0 Gross Debt 822.5$ 728.1$ 723.7$ 719.3$ 740.0$ TTM earnings from operations 741.9$ 928.9$ 1,040.7$ 1,184.0$ 1,369.8$ Gross debt to TTM earnings from operations (GAAP TTM debt leverage ratio) 1.1x 0.8x 0.7x 0.6x 0.5x Non-GAAP adjusted TTM EBITDA 867.2$ 941.5$ 1,062.9$ 1,202.5$ 1,372.8$ Gross debt to non-GAAP adjusted TTM EBITDA (non-GAAP adjusted TTM debt leverage ratio) 0.9x 0.8x 0.7x 0.6x 0.5x Non-GAAP gross profit Non-GAAP SG&A Non-GAAP operating earnings (adjusted EBIAT) and non-GAAP adjusted EBITDA Non-GAAP Adjusted Trailing Twelve Month (TTM) Debt Leverage Ratio Reconciliation 21 GAAP to non-GAAP Reconciliation1 1 See “Note Regarding Non-GAAP Financial Measures”. Also see slides 19 and 20 for, among other things, the definitions and uses of certain non-GAAP financial measures. 2 Excluding ordinary course letters of credit. 2
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22 GAAP to non-GAAP Reconciliation…continued1 1 See “Note Regarding Non-GAAP Financial Measures”. Also see slides 19 and 20 for, among other things, the definitions and uses of certain non-GAAP financial measures. Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 1H 2026 FY 2025 GAAP Net earnings 89.5$ 151.7$ 86.2$ 211.0$ 267.8$ 267.5$ 212.3$ 368.8$ 581.1$ 832.5$ As a percentage of revenue 3.6% 6.0% 3.3% 7.3% 8.4% 7.3% 5.2% 7.8% 6.6% 6.7% Employee SBC expense 12.7 10.1 26.0 15.2 15.6 13.0 30.5 19.3 49.8 69.8 Amortization of intangible assets (excluding computer software) 9.9 9.9 10.0 9.9 10.0 9.9 10.0 9.9 19.9 39.8 Restructuring and other charges (recoveries) 1.0 2.1 3.9 14.5 4.9 6.4 (4.4) 2.9 (1.5) 29.7 Miscellaneous expense (income) 2.8 1.2 1.4 1.7 1.3 0.5 (0.2) (0.7) (0.9) 4.9 TRS FVAs 7.7 (51.5) 19.1 (97.4) (113.3) (61.4) 17.0 (104.1) (87.1) (253.0) FCC Transitional ADJ (0.5) 0.4 - - - - - - - - Adjustments for taxes 0.7 6.3 (6.5) 6.3 (3.2) (17.1) (15.7) (0.7) (16.4) (20.5) Non-GAAP adjusted net earnings 123.8$ 130.2$ 140.1$ 161.2$ 183.1$ 218.8$ 249.5$ 295.4$ 544.9$ 703.2$ As a percentage of revenue 5.0% 5.1% 5.3% 5.6% 5.7% 6.0% 6.2% 6.3% 6.2% 5.7% Non-GAAP adjusted earnings per share - diluted 1.04$ 1.11$ 1.20$ 1.39$ 1.58$ 1.89$ 2.16$ 2.54$ 4.70$ 6.05$ GAAP Earnings from operations 138.0$ 202.6$ 128.8$ 272.5$ 325.0$ 314.4$ 272.1$ 458.3$ 730.4$ 1,040.7$ Multiplier to annualize earnings 4 4 4 4 4 4 4 4 2 1 Annualized GAAP earnings from operations 552.0$ 810.4$ 515.2$ 1,090.0$ 1,300.0$ 1,257.6$ 1,088.4$ 1,833.2$ 1,460.8$ 1,040.7$ Average Net Invested Capital for the period 2,325.5$ 2,386.7$ 2,384.0$ 2,419.9$ 2,581.6$ 2,619.5$ 2,611.4$ 2,786.6$ 2,711.8$ 2,498.7$ GAAP ROIC % 23.7% 34.0% 21.6% 45.0% 50.4% 48.0% 41.7% 65.8% 53.9% 41.6% Non-GAAP adjusted EBIAT 168.8$ 173.6$ 187.8$ 214.7$ 242.2$ 282.3$ 325.2$ 386.3$ 711.5$ 927.0$ Non-GAAP adjusted ROIC Multiplier to annualize earnings 4 4 4 4 4 4 4 4 2 1 Annualized non-GAAP adjusted EBIAT 675.2$ 694.4$ 751.2$ 858.8$ 968.8$ 1,129.2$ 1,300.8$ 1,545.2$ 1,423.0$ 927.0$ Average Net Invested Capital for the period 2,325.5$ 2,386.7$ 2,384.0$ 2,419.9$ 2,581.6$ 2,619.5$ 2,611.4$ 2,786.6$ 2,711.8$ 2,498.7$ Non-GAAP adjusted ROIC % 29.0% 29.1% 31.5% 35.5% 37.5% 43.1% 49.8% 55.5% 52.5% 37.1% Net invested capital consists of: Total assets 5,924.8$ 5,988.2$ 5,834.9$ 6,241.1$ 6,606.7$ 7,213.1$ 8,260.0$ 9,787.6$ 9,787.6$ 7,213.1$ Less: cash (398.5) (423.3) (303.0) (313.8) (305.9) (595.6) (378.0) (535.7) (535.7) (595.6) Less: ROU assets (operating and finance leases) (186.3) (180.8) (178.6) (174.9) (178.9) (173.1) (199.9) (218.5) (218.5) (173.1) (2,981.6) (2,969.2) (3,000.3) (3,265.7) (3,445.4) (3,882.0) (5,021.7) (6,120.7) (6,120.7) (3,882.0) Net invested capital at period end 2,358.4$ 2,414.9$ 2,353.0$ 2,486.7$ 2,676.5$ 2,562.4$ 2,660.4$ 2,912.7$ 2,912.7$ 2,562.4$ GAAP cash provided by operations 122.8$ 143.4$ 130.3$ 152.4$ 126.2$ 250.6$ 356.3$ 410.9$ 767.2$ 659.5$ Non-GAAP free cash flow Purchase of property, plant, and equipment, net of sales proceeds (46.0) (47.6) (36.7) (32.5) (37.3) (94.7) (218.4) (263.8) (482.2) (201.2) Non-GAAP free cash flow 76.8$ 95.8$ 93.6$ 119.9$ 88.9$ 155.9$ 137.9$ 147.1$ 285.0$ 458.3$ Less: accounts payable, accrued and other liabilities and provisions (excluding finance and operating lease liabilities) and income taxes payable Non-GAAP adjusted net earnings and non-GAAP adjusted EPS
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GAAP to non-GAAP Reconciliation…continued1 23 The following table sets forth a reconciliation of our non-GAAP adjusted effective tax rate to our GAAP effective tax rate for the periods indicated (in millions, except percentages). Adjusted tax expense is determined by excluding the tax effects of the non-core items, including our non-GAAP adjustments above, from our GAAP tax expense. 1 See “Note Regarding Non-GAAP Financial Measures”. Also see slides 19 and 20 for, among other things, the definitions and uses of certain non-GAAP financial measures. 2 Our GAAP effective tax rate is calculated as (i) GAAP tax expense divided by (ii) earnings from operations minus finance costs, net of interest income, and Miscellaneous Expense (Income) 3 Our adjusted effective tax rate (non-GAAP) is calculated as (i) adjusted tax expense (non-GAAP) divided by (ii) adjusted operating earnings (non-GAAP) minus finance costs, net of interest income. $US millions Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 1H 2026 FY 2025 GAAP tax expense 34.5$ 37.8$ 27.5$ 46.3$ 43.1$ 33.8$ 44.0$ 72.8$ 116.8$ 150.7$ Earnings from operations 138.0 202.6 128.8 272.5 325.0 314.4 272.1 458.3 730.4 1,040.7 Finance Costs (13.1) (13.8) (15.0) (14.4) (13.8) (13.6) (18.0) (21.2) (39.2) (56.8) Interest income 1.9 1.9 1.3 0.9 1.0 1.0 2.0 3.8 5.8 4.2 Miscellaneous Income (Expense) (2.8) (1.2) (1.4) (1.7) (1.3) (0.5) 0.2 0.7 0.9 (4.9) 124.0$ 189.5$ 113.7$ 257.3$ 310.9$ 301.3$ 256.3$ 441.6$ 697.9$ 983.2$ GAAP effective tax rate 28% 20% 24% 18% 14% 11% 17% 16% 17% 15% Adjusted tax expense (non-GAAP) 33.8$ 31.5$ 34.0$ 40.0$ 46.3$ 50.9$ 59.7$ 73.5$ 133.2$ 171.2$ Adjusted operating earnings (non-GAAP) 168.8 173.6 187.8 214.7 242.2 282.3 325.2 386.3 711.5 927.0 Finance Costs (13.1) (13.8) (15.0) (14.4) (13.8) (13.6) (18.0) (21.2) (39.2) (56.8) Interest income 1.9 1.9 1.3 0.9 1.0 1.0 2.0 3.8 5.8 4.2 157.6$ 161.7$ 174.1$ 201.2$ 229.4$ 269.7$ 309.2$ 368.9$ 678.1$ 874.4$ Adjusted effective tax rate (non-GAAP) 21% 19% 20% 20% 20% 19% 19% 20% 20% 20% 2 3
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Second Quarter 2026 Financial Results July 28, 2026