ATS (NYSE:ATS) Posts Earnings Results, Misses Estimates By $0.06 EPS

ATS (NYSE:ATS) issued its quarterly earnings results on Thursday. The company reported $0.26 earnings per share for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.06), Zacks reports. ATS had a return on equity of 9.67% and a net margin of 0.77%.The company had revenue of $535.09 million during the quarter, compared to analysts’ expectations of $529.43 million.

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

• ATS said fiscal 2026 revenue and adjusted earnings from operations both grew about 11% for the full year, reflecting solid execution across the platform. Q4 adjusted revenue also rose 3.2% year over year despite a tougher bookings comparison.
• The company is repositioning its transportation operations, including moving away from large-scale automotive projects and consolidating divisions. Management said this will remove about CAD 50 million of dilutive revenue and should improve margin and capital efficiency over time.
• ATS ended fiscal 2026 with about CAD 2 billion in backlog, with life sciences making up 55% of the total and energy backlog up roughly 40% year over year. Management said this provides good revenue visibility heading into fiscal 2027.
• For fiscal 2027, ATS expects modest revenue growth and 50-75 basis points of margin improvement, supported by restructuring, services integration, and operating discipline. The company also noted that growth timing is being affected by normalization in some life sciences programs, especially GLP-1-related work.
• Cash generation and balance sheet metrics improved meaningfully, with operating cash flow of CAD 150 million, working capital at 12.1% of revenue, and net debt to EBITDA at 2.8x. Management said leverage and working capital are now within target ranges, giving the company more flexibility for capital deployment and M&A.

ATS Stock Down 13.6%

ATS opened at $30.49 on Friday. The company has a market cap of $2.99 billion, a P/E ratio of 203.25 and a beta of 1.26. ATS has a 12 month low of $23.84 and a 12 month high of $35.82. The company has a current ratio of 1.65, a quick ratio of 1.37 and a debt-to-equity ratio of 0.82. The business’s 50-day moving average price is $31.71 and its 200-day moving average price is $29.75.

Hedge Funds Weigh In On ATS

A number of institutional investors have recently added to or reduced their stakes in ATS. Bank of Montreal Can raised its holdings in ATS by 187.1% in the fourth quarter. Bank of Montreal Can now owns 3,022,693 shares of the company’s stock worth $83,269,000 after purchasing an additional 1,970,040 shares in the last quarter. Royal Bank of Canada boosted its position in shares of ATS by 8.9% during the fourth quarter. Royal Bank of Canada now owns 7,644,547 shares of the company’s stock valued at $210,529,000 after buying an additional 623,369 shares during the last quarter. EdgePoint Investment Group Inc. boosted its position in shares of ATS by 8.0% during the fourth quarter. EdgePoint Investment Group Inc. now owns 6,888,785 shares of the company’s stock valued at $189,771,000 after buying an additional 507,491 shares during the last quarter. Bank of America Corp DE boosted its position in shares of ATS by 45.2% during the third quarter. Bank of America Corp DE now owns 1,251,695 shares of the company’s stock valued at $32,794,000 after buying an additional 389,862 shares during the last quarter. Finally, Public Sector Pension Investment Board boosted its position in ATS by 364.9% in the fourth quarter. Public Sector Pension Investment Board now owns 287,829 shares of the company’s stock worth $7,929,000 after purchasing an additional 225,923 shares during the last quarter. Institutional investors own 75.84% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on ATS shares. Scotiabank reiterated an “outperform” rating on shares of ATS in a research report on Tuesday, April 28th. Wall Street Zen lowered ATS from a “strong-buy” rating to a “buy” rating in a research note on Sunday, February 15th. Zacks Research lowered ATS from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 10th. Finally, Weiss Ratings raised ATS from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $35.00.

ATS Company Profile

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.