ATS Corp
TSX:ATS

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ATS Corp
TSX:ATS
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Price: 38.3 CAD 3.79% Market Closed
Market Cap: 3.8B CAD

ATS Corp
Investor Relations

ATS Corp. stands as a beacon of precision engineering and innovative solutions within the automation industry. Born out of a commitment to revolutionize manufacturing processes, the company has grown from humble beginnings into a global powerhouse. ATS provides custom automation, assembly, and test solutions to an extensive range of industries, from automotive to life sciences. The company’s core strength lies in its ability to integrate sophisticated technology with an acute understanding of customer-specific needs. By meticulously crafting systems that enhance efficiency and productivity, ATS aids companies in optimizing their manufacturing operations, which in turn fuels its revenue streams. This keen focus on tailored solutions not only sets ATS apart from its competitors but also ensures a steady pipeline of projects that require their expertise.

At the heart of ATS Corp.'s financial model is its adeptness at delivering comprehensive services that range from design and engineering to production and post-production support. These services are supported by an impressive array of proprietary technologies and a robust supply chain that underscores its capability in large-scale project execution. ATS Corp. profits by making transformational changes in its clients' manufacturing processes, allowing them to achieve greater precision and reduce overhead costs. Furthermore, the company has strategically expanded its product offerings over the years through acquisitions and innovation, capitalizing on emerging markets and burgeoning industries. This approach not only broadens their market reach but also diversifies their revenue base, making ATS Corp. less susceptible to industry fluctuations. Through a combination of strategic foresight and operational excellence, ATS Corp. profits from turning technological challenges into opportunities, securing its stance as a leader in the automation solutions landscape.

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ATS
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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Nov 5, 2025
AI Summary
Q2 2026

Revenue Growth: ATS reported Q2 revenue of $729 million, up 18.9% year-over-year, driven mainly by organic growth and strong performance in services.

Margin Expansion: Adjusted earnings from operations grew 40% to $79 million, with gross margin improving by 36 basis points to 29.9%. Management reaffirmed expectations for full-year margin expansion.

Backlog Strength: Order backlog reached approximately $2.1 billion, providing good visibility and reflecting 14% growth year-over-year.

Bookings Variability: Q2 order bookings were $734 million, down 1.1% from last year due to tough comps but up 6% sequentially; management said the pipeline remains healthy across markets.

Guidance Unchanged: Revenue guidance for high single-digit growth in fiscal '26 was reiterated, with Q3 revenue expected between $700 million and $740 million.

Restructuring Initiatives: ATS announced $15 million in restructuring costs for the second half of the fiscal year, aiming for payback in less than one year and further margin improvement.

Leverage Target: Net debt to adjusted EBITDA was 3.4x, with a goal to return to the 2-3x range by year-end.

End Market Highlights: Life Sciences, nuclear energy, and food & beverage remain strong growth drivers, with nuclear backlog up 154% and growing opportunities in GLP-1 drug delivery and radiopharma.

Key Financials
Order Bookings
$734 million
Revenue
$729 million
Organic Revenue Growth
12.6%
Adjusted Earnings from Operations
$79.1 million
Gross Margin
29.9%
Order Backlog
$2.1 billion
Adjusted EPS
$0.45
SG&A (excluding acquisition-related items)
$134.5 million
Stock-based Compensation Expense
$4.3 million
Cash Flow from Operating Activities
$28 million
Noncash Working Capital as % of Revenue
18.3%
CapEx and Intangible Investments
$18.3 million (Q2)
Net Debt to Adjusted EBITDA
3.4x
Trailing 12-month Book-to-Bill Ratio
1.12:1
Life Sciences Backlog
$1.1 billion
Food and Beverage Backlog
$218 million
Energy Backlog
$277 million
Restructuring Costs
$15 million (expected in H2 fiscal year)
Earnings Call Recording
Other Earnings Calls

Management

Mr. Andrew P. Hider
CEO & Director
No Bio Available
Mr. Ryan McLeod
Chief Financial Officer
No Bio Available
Mr. Jeremy Patten
President of Packaging & Food Technology
No Bio Available
Mr. Prakash Mahesh
Group Executive of Life Sciences
No Bio Available
Mr. Jeffrey M. Adamson
Chief Information Officer
No Bio Available
Mr. David Galison M.B.A.
Head of Investor Relations
No Bio Available
Mr. Gordon G. Raman
Chief Legal Officer
No Bio Available
Ms. Angella V. Alexander
Chief Human Resources Officer
No Bio Available
Mr. Simon Roberts
Senior Vice President of Global After Sales Service
No Bio Available
Mr. Chris Hart
President of Life Sciences
No Bio Available

Contacts

Address
ONTARIO
Cambridge
250 Royal Oak Rd
Contacts