CELESTICA INCCLS
CELESTICA INC Segments Disclosure
SEGMENT AND GEOGRAPHIC INFORMATION:
Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenue and incur expenses; for which discrete financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker (CODM) in deciding how to allocate resources and to assess performance. No operating segments have been aggregated to determine our reportable segments.
Our CEO, as the CODM, organizes our company, manages resource allocations and measures performance among our two operating and reportable segments: CCS and ATS. Our CCS segment consists of our Communications and Enterprise (servers and storage) end markets. Our ATS segment consists of our ATS end market, and is comprised of our A&D, Industrial, HealthTech, and Capital Equipment businesses.
Factors considered in determining the two reportable segments include the nature of applicable business activities, management structure, market strategy and margin profiles. Products in our CCS segment consist predominantly of data communications and information processing infrastructure products and systems primarily used in hyperscale data centers. These products include networking switches, optical systems, data center racks, servers and storage products used primarily by cloud-based and other service providers (including artificial intelligence (AI) service providers), as well as enterprise customers, for a range of applications including AI workloads and cloud computing services. Products and services in our ATS segment are extensive, serving a broader customer base and are often more regulated than those in our CCS segment, and can include: government-certified and highly-specialized manufacturing, electronic and enclosure-related services for A&D customers; high-precision semiconductor equipment and integrated subsystems; a wide range of industrial automation, controls, test and measurement devices; engineering-focused engagements, including in the areas of telematics, human machine interface, Internet-of-Things and embedded systems; advanced solutions for surgical instruments, diagnostic imaging and patient monitoring; and efficiency products to help manage and monitor the energy and power industries. Our CCS segment businesses, compared to our ATS businesses, typically have higher margin profiles and larger program volumes, as well as more significant concentration with major customers.
Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue). Revenue is attributed to the segment in which the product is manufactured or the service is performed. Segment income is defined as a segment’s revenue less its cost of sales and its allocatable portion of SG&A expenses and R&D expenses (collectively, Segment Costs). Identifiable Segment Costs are allocated directly to the applicable segment while other Segment Costs, including indirect costs and certain corporate charges, are allocated to our segments based on an analysis of the relative usage or benefit derived by each segment from such costs. Segment income excludes finance costs; employee SBC expense; commencing in 2024, TRS FVAs (defined in note 12(b)); amortization of intangible assets (excluding computer software); restructuring and other charges, net of recoveries (the components of which are described in note 14); miscellaneous expense (income); and transitional hedge reclassifications and adjustments related to foreign currency forward contracts (FCC Transitional ADJ, defined as adjustments due to our transition from International Financial Reporting Standards to GAAP related to foreign currency forward contracts recorded in earnings from operations), as these costs, charges/recoveries and adjustments are managed and reviewed by the CODM at the company level. Our segments do not record inter-segment revenue. Although segment income and segment margin are used to evaluate the performance of our segments, we may incur operating costs in one segment that may also benefit the other segment. The operating segment performance is not evaluated based on segment asset or liability information. Our accounting policies for segment reporting are the same as those applied to the Company as a whole.
Information regarding each reportable segment for the periods indicated is set forth below:
| Revenue by segment: | Year ended December 31 | |||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| % of Total | % of Total | % of Total | ||||||||||||||||||||||||
| ATS | $ | 3,202.4 | 26% | $ | 3,155.5 | 33% | $ | 3,319.8 | 42% | |||||||||||||||||
| CCS | ||||||||||||||||||||||||||
| Communications | $ | 7,126.4 | 57% | $ | 3,946.7 | 41% | $ | 2,675.6 | 33% | |||||||||||||||||
| Enterprise | 2,062.1 | 17% | 2,543.8 | 26% | 1,965.6 | 25% | ||||||||||||||||||||
| $ | 9,188.5 | 74% | $ | 6,490.5 | 67% | $ | 4,641.2 | 58% | ||||||||||||||||||
Total revenue | $ | 12,390.9 | $ | 9,646.0 | $ | 7,961.0 | ||||||||||||||||||||
Segment Costs by segment: | Year ended December 31 | ||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
ATS cost of sales | $ | 2,876.1 | $ | 2,894.9 | $ | 3,044.3 | |||||||||||
ATS other Segment Costs | 157.2 | 116.5 | 120.5 | ||||||||||||||
CCS cost of sales | 8,099.8 | 5,732.1 | 4,136.4 | ||||||||||||||
CCS other Segment Costs | 330.8 | 279.9 | 218.2 | ||||||||||||||
Total Segment Costs | $ | 11,463.9 | $ | 9,023.4 | $ | 7,519.4 | |||||||||||
Segment income, segment margin, and reconciliation of segment income to earnings before income taxes: | Note | Year ended December 31 | |||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||
| Segment Margin | Segment Margin | Segment Margin | |||||||||||||||||||||||||||
| ATS segment income and margin | $ | 169.1 | 5.3 | % | $ | 144.1 | 4.6 | % | $ | 155.0 | 4.7 | % | |||||||||||||||||
| CCS segment income and margin | 757.9 | 8.2 | % | 478.5 | 7.4 | % | 286.6 | 6.2 | % | ||||||||||||||||||||
| Total segment income | $ | 927.0 | $ | 622.6 | $ | 441.6 | |||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||
| Finance costs | 52.6 | 52.1 | 78.9 | ||||||||||||||||||||||||||
Miscellaneous expense (income) (1) | 15 | 4.9 | 15.0 | (46.6) | |||||||||||||||||||||||||
FCC Transitional ADJ: (gains) | — | (1.3) | (1.2) | ||||||||||||||||||||||||||
Employee SBC expense | 12 | 69.8 | 57.4 | 55.6 | |||||||||||||||||||||||||
| TRS FVAs (gains) | 12 | (253.0) | (91.0) | — | |||||||||||||||||||||||||
| Amortization of intangible assets (excluding computer software) | 39.8 | 38.8 | 36.8 | ||||||||||||||||||||||||||
Restructuring and other charges, net of recoveries | 14 | 29.7 | 19.4 | 12.1 | |||||||||||||||||||||||||
| Earnings before income taxes | $ | 983.2 | $ | 532.2 | $ | 306.0 | |||||||||||||||||||||||
(1) Miscellaneous income for 2023 included a favorable TRS FVA of $45.6. Commencing in 2024, TRS FVAs are reported in cost of sales and SG&A.
The following table details our external revenue allocated by manufacturing location among countries that generated 10% or more of total revenue for the years indicated:
Year ended December 31 | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Thailand | 59 | % | 53 | % | 46 | % | |||||||||||
U.S. | 10 | % | * | * | |||||||||||||
| Malaysia | 10 | % | * | 11 | % | ||||||||||||
* Less than 10%.
The following table details our allocation of PP&E and operating leases ROU assets among countries that represented 10% or more of total PP&E and operating leases ROU assets for the years indicated:
December 31 | |||||||||||
| 2025 | 2024 | ||||||||||
| Thailand | 36 | % | 30 | % | |||||||
U.S. | 18 | % | 22 | % | |||||||
| Malaysia | 14 | % | 12 | % | |||||||
| Mexico | * | 10 | % | ||||||||
* Less than 10%.
Customers:
In 2025, three customers (all in our CCS segment) individually represented 10% or more of total revenue (32%, 14% and 12%). In 2024, two customers (both in our CCS segment) individually represented 10% or more of total revenue (28% and 11%). In 2023, one customer (in our CCS segment) individually represented 10% or more of total revenue (22%).
At December 31, 2025, we had two customers (both in our CCS segment) that individually represented 10% or more of total A/R (December 31, 2024 — one customer in our CCS segment).Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.