ATS (NYSE:ATS) Announces Quarterly Earnings Results

ATS (NYSE:ATS) announced its quarterly earnings results on Thursday. The company reported $0.25 earnings per share for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.03), Zacks reports. The firm had revenue of $488.38 million for the quarter, compared to the consensus estimate of $509.71 million. ATS had a return on equity of 9.00% and a net margin of 1.60%.The company’s revenue for the quarter was down 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.41 earnings per share.

Here are the key takeaways from ATS’s conference call:

• Q1 performance declined: Adjusted revenue fell 5.2% year over year to CAD 698 million, while adjusted earnings from operations declined 13.4% to CAD 68.1 million, reflecting a lower opening backlog, project timing, and reduced transportation activity.
• Near-term execution remains dependent on a second-half recovery. ATS expects Q2 revenue of CAD 660 million–CAD 700 million and said achieving modest fiscal 2027 organic growth will require stronger order rates and the conversion of larger awards in the back half of the year.
• Cost transformation targets significant margin expansion. The 18-month program is expected to generate approximately CAD 20 million in annualized savings from its initial European phase, representing about 30% of the anticipated overall opportunity; management estimates the program could contribute roughly 250 basis points of margin improvement over time.
• Radiopharmaceuticals, energy, and services remain key growth drivers. Life sciences book-to-bill excluding GLP-1 activity was approximately 1.1 times, radiopharma backlog has become highly material, energy demand is supported by nuclear and data-center power investment, and service revenue grew 11% year over year.
• Management maintained financial flexibility while pursuing its strategy. Backlog was approximately CAD 1.9 billion, leverage ended the quarter at 2.9 times net debt to adjusted EBITDA within the targeted range, and the acquisition pipeline remains active, although operating cash flow was negative CAD 10 million due to billing and collection timing.

ATS Stock Up 3.1%

NYSE ATS traded up $0.64 on Friday, reaching $21.17. The company had a trading volume of 428,320 shares, compared to its average volume of 195,396. The company’s fifty day moving average is $27.35 and its 200-day moving average is $29.80. The firm has a market capitalization of $2.08 billion, a price-to-earnings ratio of 62.27 and a beta of 1.22. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.36 and a current ratio of 1.64. ATS has a 1-year low of $19.14 and a 1-year high of $35.82.

More ATS News

Here are the key news stories impacting ATS this week:

• Positive Sentiment: ATS announced a Fixed Cost Transformation Program following a portfolio review. The initiative is intended to improve the company’s cost structure and could support margins and cash flow over time, although implementation costs may arise first. ATS Reports First Quarter Fiscal 2027 Results and Announces a Fixed Cost Transformation Program
• Neutral Sentiment: Shareholders approved the board, auditor and executive compensation policy at ATS’s August 6 annual meeting. The results provide governance continuity but do not materially change the company’s operating outlook. ATS Corporation Shareholders Back Board, Auditor and Pay Policy at 2026 AGM
• Negative Sentiment: Fiscal 2027 first-quarter adjusted earnings were $0.25 per share, below the $0.28 consensus estimate and down from $0.41 a year earlier. Revenue fell 5.8% year over year to $488.4 million, missing analysts’ approximately $509.7 million forecast, while margins and profitability also declined. ATS Q1 Earnings and Revenues Lag Estimates
• Negative Sentiment: ATS’s second-quarter fiscal 2027 revenue guidance of $476.8 million to $505.7 million was below the roughly $509.8 million analyst consensus. The outlook reinforces concerns about near-term demand and makes the planned cost reductions more important to the investment case. ATS Corporation 2027 Q1 Results Presentation

Wall Street Analyst Weigh In

ATS has been the topic of several research analyst reports. Wall Street Zen downgraded ATS from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Scotiabank reissued an “outperform” rating on shares of ATS in a research note on Tuesday, April 28th. Royal Bank Of Canada lowered their price target on ATS from $51.00 to $50.00 and set an “outperform” rating for the company in a report on Friday, May 29th. Desjardins started coverage on ATS in a research report on Tuesday, June 16th. They set a “buy” rating on the stock. Finally, Zacks Research cut ATS from a “hold” rating to a “strong sell” rating in a report on Tuesday, June 9th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $42.50.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Smartleaf Asset Management LLC bought a new stake in ATS in the 4th quarter valued at approximately $29,000. Quarry LP acquired a new position in ATS during the 3rd quarter worth approximately $32,000. Raymond James Financial Inc. bought a new position in shares of ATS during the 2nd quarter worth approximately $43,000. Barclays PLC grew its stake in shares of ATS by 16.8% during the 4th quarter. Barclays PLC now owns 5,264 shares of the company’s stock worth $145,000 after acquiring an additional 756 shares in the last quarter. Finally, SkyView Investment Advisors LLC acquired a new stake in ATS in the 2nd quarter valued at $237,000. 75.84% of the stock is owned by institutional investors and hedge funds.

About ATS

ATS Corporation (NYSE: ATS) is a Canada-based global provider of automation and energy solutions. Headquartered in Cambridge, Ontario, the company specializes in the design, engineering and manufacturing of custom automation and test systems, as well as fluid handling and control products. Since its founding in 1978, ATS has focused on delivering integrated hardware and software solutions that help original equipment manufacturers (OEMs) improve efficiency, quality and throughput across a range of industries.

Through its Automation segment, ATS develops bespoke assembly and testing platforms for sectors such as life sciences, consumer electronics, automotive and industrial equipment.