Long Thesis: Celestica - A Picks and Shovels Play Across Themes

Key Points

• Celestica positioned as outsourced manufacturing partner to leading OEMs in data center infrastructure, aerospace/defense, healthcare sectors
• Directly at intersection of AI/ML Hyperscaler Capex Spending and IRA/IIJA-driven Renewable Energy Investment themes
• Aligned with secular growth trends in AI, hyperscale cloud, aerospace/defense, biomanufacturing, green energy
• Two major business segments: ATS and CCS with resilient business model; strong cash flow generation and discounted valuation
• CLS trades at attractive multiples: 10x NTM Earnings, 6.6x EV/EBITDA, 7x Price to Cash Flow vs peers; record organic growth with accretive acquisitions (PCI, Allied Panels)

Summary

Thematic long thesis on Celestica as "picks and shovels" play on AI hyperscaler capex and renewable energy investment. Positions CLS as beneficiary of infrastructure buildout cycles through ATS/CCS segments, with record gross margin trajectory and disciplined M&A strategy supporting valuation upside.

Source

• File: Long Thesis_ Celestica - by Citrini and Sophie.pdf
• Location: Dropbox/2. Semi/Networking/
• Pages: 24

Related

• _MOC-networking | CLS | AI-Infrastructure | Outsourced-Manufacturing | Capex