Is CLS inventory to purchase? We got here throughout a bullish thesis on Celestica Inc. on Beating The Tide’s Substack by George Atuan, CFA. In this text, we’ll summarize the bulls’ thesis on CLS. Celestica Inc.’s share was buying and selling at $401.12 as of April twentieth. CLS’s trailing and ahead P/E had been 56.02 and 44.64 respectively in response to Yahoo Finance.
Celestica Inc., along with its subsidiaries, supplies provide chain options in Asia, North America, and internationally. CLS delivered a standout This autumn 2025, reporting income of $3.6 billion (+44% y/y), EPS of $1.89 (+70%), and file profitability with 7.7% working margins and 43.1% ROIC, but the inventory fell ~15%, creating what seems to be a mispricing alternative.
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Growth continues to be pushed by its Connectivity & Cloud Solutions (CCS) phase, which now accounts for 78% of income and grew 64%, fueled by hyperscaler demand for AI infrastructure, together with 800G networking and next-generation compute applications. The firm additionally confirmed its strategic partnership with Google stays intact, positioning Celestica as a key manufacturing companion for TPU methods, whereas current considerations about order shifts had been clarified as capacity-driven slightly than demand weak point.
A main focus is the corporate’s aggressive $1 billion capex plan for 2026, a fivefold enhance geared toward increasing world manufacturing capability to satisfy robust, seen demand. While this raised investor considerations, administration emphasised that the funding is backed by dedicated buyer demand and will likely be funded via working money circulate, supported by robust free money technology and excessive returns on capital. Additionally, Celestica raised its 2026 outlook to $17 billion in income, implying continued robust progress, notably in AI-driven segments, regardless of conservative steerage assumptions round potential provide constraints.
Fears round slowing progress, AI capex fatigue, and buyer focus seem overstated, as hyperscaler demand stays strong and long-term AI infrastructure funding continues to speed up. With constant execution, increasing margins, and robust buyer alignment, Celestica stays well-positioned to learn from a multi-year AI supercycle, making the current inventory decline seem disconnected from underlying fundamentals.
Previously, we lined a bullish thesis on Celestica Inc. (CLS) by OrangeEveryday in March 2025, which highlighted the corporate’s position in digital manufacturing, constant demand for technological upgrades, and dangers round buyer focus and macro pressures. CLS’s inventory value has appreciated by roughly 347.77% since our protection. George Atuan, CFA shares an analogous view however emphasizes on AI-driven progress, hyperscaler demand, and capability growth.
