Celestica Inc. (CLS): A Bull Case Theory 

We came across a bullish thesis on Celestica Inc. on Asymmetric Edge’s Substack. In this article, we will summarize the bulls’ thesis on CLS. Celestica Inc.’s share was trading at $304.29 as of December 2nd. CLS’s trailing and forward P/E were 51.77 and 38.61 respectively according to Yahoo Finance.

Celestica Inc. (CLS) is a Canadian-headquartered electronics manufacturing services (EMS) leader, providing end-to-end design, manufacturing, and supply chain solutions for OEMs across aerospace and defense, healthtech, industrial, communications, and enterprise markets. The company operates through two primary segments: Advanced Technology Solutions (ATS), which serves high-reliability markets including aerospace, defense, healthtech, industrial automation, and semiconductor capital equipment, and Connectivity & Cloud Solutions (CCS), which supports high-volume, complex products for communications and enterprise clients, including servers, storage, and networking infrastructure.

Celestica’s offerings span the full product lifecycle, from initial design and prototyping to assembly, testing, supply chain management, and after-market services, positioning it as a critical partner for OEMs globally. In 2024, the company achieved $9.6 billion in revenue, with CCS driving 30% growth to $6.5 billion, while ATS contributed $3.1 billion with 5–6% growth. Margins remain steady, with a gross margin of 10.72%, operating margin of 4.8%, and net income margin of 4.44%, complemented by strong free cash flow of $303 million and efficient capital deployment reflected in a 22.5% return on equity.

Industry trends such as digital transformation, cloud computing expansion, IoT proliferation, technological advancements in AI, 5G, and robotics, as well as reshoring and supply chain resilience, play directly to Celestica’s strengths, particularly given its global footprint and diversified capabilities.

While cyclical demand, pricing pressures, and geopolitical uncertainties pose potential headwinds, Celestica’s robust fundamentals, diversified portfolio, and leadership in complex, high-growth markets create a compelling investment case. The company offers steady growth, solid cash generation, and strategic exposure to the evolving electronics landscape, making it a critical player in the EMS sector with attractive long-term upside potential.

Previously we covered a bullish thesis on Celestica Inc. (CLS) by OrangeEveryday in March 2025, which highlighted the company’s tailored electronic manufacturing solutions and strong client relationships. The company’s stock price has appreciated approximately by 239.68% since our coverage. The thesis still stands as CLS continues to benefit from structural industry trends. Asymmetric Edge shares a similar perspective but emphasizes segment-level performance and exposure to high-growth markets.

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Disclosure: None.