ATS

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Head of Investor Relations - David Ocampo Chief Executive Officer - Douglas Wright Interim Chief Financial Officer - Michael Anne Cybulski Operator: Welcome to the ATS Corporation First Quarter Conference Call and Webcast. This call is being recorded on August 6, 2026, at 8:30 a.m. Eastern Time. [Operator Instructions] I'd now like to turn the call over to David Ocampo, Head of Investor Relations at ATS. David Ocampo: Thank you, operator, and good morning, everyone. On the call today are Doug Wright, Chief Executive Officer; and Anne Cybulski, Interim Chief Financial Officer. Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and available at atsautomation.com. We caution that the statements made on the webcast and conference call may contain forward-looking information and our cautionary statement regarding such information, including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making the statements, are detailed in Slide 3 of the slide deck. And with that, it's my pleasure to turn the call over to Doug. Doug, over to you. Douglas Wright: Thank you, David, and good morning, everyone. Today, we reported first quarter results for fiscal 2027. Before discussing the quarter, I want to provide an update on conclusions from my portfolio review, the long-term demand profile in our chosen end markets and our path to margin expansion. Since joining ATS, I've completed a comprehensive portfolio review and site assessments across the organization. This process gave me a clearer view of both the strengths of the portfolio and the opportunities ahead and reinforced my confidence in the quality and commitment of our people, the depth of our technical expertise and the strength of our customer relationships. I was particularly impressed by the importance of our work our teams do every day. They solve complex scientific and manufacturing problems, help improve patient outcomes, support safe and high-quality food production and contribute to energy security. I am confident in the growth profile in the underlying markets in which we solve such problems and have such impact. Across all of our solutions and end markets, artificial intelligence is creating opportunities for ATS, both as a demand driver and as a capability that we are uniquely able to harness in our solutions because of our deep domain expertise. My overall optimism is reflected in positive outcomes across several areas of the business. In life sciences, the trailing 12-month book-to-bill, excluding GLP-1-related activity, was approximately 1.1x, driven by strength in radiopharmaceuticals. We also delivered 11% year-over-year growth in service-related revenues across the company. I have even more conviction today than I did in coming to ATS on the opportunities this company has in the markets in which we compete. It is this conviction that tells me that over time, we can operate above our stated operating margin target of 15% while continuing strong secular top line growth. What will turn this conviction into performance are the frameworks that we are now applying across the business. First, through the application of a disciplined cash return on investment framework, we expect to achieve approximately half of the margin improvement required to achieve our 15% target, primarily through a fixed cost transformation program. Second, through growth in higher-margin aftermarket services, stronger commercial discipline and innovation and improved application of our ABM tools, we expect to deliver the remainder of the improvement needed to achieve and exceed our 15% target. On fixed cost transformation, we've initiated an 18-month program to simplify our operations, improve efficiency and strengthen the foundation for long-term profitable growth and shareholder returns. The program will include reductions in facility overhead, indirect expenses and SG&A. The first phase focuses on Europe, where our review identified excess capacity and operating infrastructure that are not generating returns consistent with our requirements. We are consolidating certain facilities and transferring select technical capabilities to other ATS locations where existing capacity and capabilities can support customer requirements more efficiently. Given the nature of these actions, the implementation and realization of benefits are expected to occur over several quarters. We estimate the initial phase of the European fixed cost transformation program to generate annualized savings in the range of $20 million, which is approximately 30% of the savings opportunities we anticipate from the overall fixed cost transformation program. On the broader transformation program, we will provide updates on the expected cost-out opportunity as these are finalized along with the cost of the entire program. This program, together with our ABM, expansion of our aftermarket services business and our focus on regulated markets is intended to make ATS into an even more attractive company capable of driving sustained earnings power over time. Now over to Q1. On near-term performance, Anne will discuss the quarter results in more detail in her prepared remarks. But in brief, Q1 adjusted revenues were down 5% versus last year, reflecting a lower opening order backlog, the timing of project execution and the planned reduction in large-scale automotive work. Despite this, we continue to see healthy levels of customer engagement across our markets, particularly in radiopharma. Against this backdrop, profitability in the quarter also reflected the lower revenue base. On profitability, adjusted earnings from operations were $68 million, down 13% compared with Q1 last year. Turning to our end markets, we ended the first quarter with approximately $1.9 billion in order backlog. Within life sciences, our opportunity funnel is active and well diversified across radiopharma, pharmaceuticals and medical device applications. Radiopharma remains an attractive growth opportunity supported by increasing adoption of therapeutic applications, ongoing investment in isotope production and a shift toward more decentralized manufacturing to support timely patient access to treatment. As programs advance toward commercialization, we continue to observe broader market activity aimed at securing capacity, enhancing supply chain resilience and supporting reliable operations in highly regulated environments. Our work with TerraPower isotopes reflects this investment as customers expand isotope production capacity to support future therapeutic demand. Our differentiated capabilities in containment systems, automation and life cycle support position us to participate in multiple phases of this capacity build-out. Beyond radiopharma, the life sciences funnel includes opportunities in automated visual inspection, lab automation, contact lenses and wearable devices. In food & beverage, our funnel remains strong despite lower order activity in certain markets following elevated investment levels in recent years. We continue to see opportunities across core and adjacent end markets, including fresh fruit processing, secondary processing and packaging applications. Equipment replacement requirements may also support investment activity over time. In energy, our funnel remains strong, driven by industry investment in energy security, infrastructure modernization and new power generation capacity to support data center needs. Within nuclear, ATS has a strong track record supporting CANDU reactor refurbishment and life extension programs. Looking ahead, our opportunity set is broadening. In Canada and the United States, we are engaged with reactor technology companies in early engineering, systems design and prototype equipment development for small modular reactors and next-generation large reactor programs. For reference, on a single nuclear reactor build, our portion of the project may represent a low single-digit percentage of the customer's total CapEx. For us, this could represent revenue of $50 million to $150 million based on the application. Within industrial & consumer, funnel activity remains stable with opportunities across warehouse and packaging systems and specialized industrial applications. On capital allocation, leverage remains within our target range and our acquisition funnel remains active. Over the past 12 months, we have significantly strengthened our balance sheet, providing greater flexibility as we evaluate opportunities. We remain patient and disciplined, focused on opportunities that are strategically aligned and capable of creating meaningful shareholder value. We will remain selective, but when opportunities align with our strategic priorities and meet our return requirements, we have the flexibility to pursue them while remaining disciplined stewards of capital. Before I summarize the opportunity I have in front of us, I will turn the call over to Anne for her financial report. Anne, over to you. Michael Anne Cybulski: Thank you, Doug, and good morning, everyone. Before turning to our operating results, I'll provide some additional context. We are driving improvements to our costs through our previously announced restructuring plan, and those actions are underway. In addition, we plan to take structural costs out of the business as part of our transformation program. In the near term, revenue mix and volume influence our reported operating margin. However, we made some progress during the quarter. For example, in Q1, adjusted gross margin improved both sequentially and year-over-year, which we see as early evidence that some of our focused actions are working, particularly on aftermarket services. In Q1, we incurred restructuring costs of $5.7 million against the first quarter expected spend of $10 million to $15 million. We expect to complete this initial set of actions in the second and third quarters as we continue to work through workforce and regional requirements. As we drive improvements across the organization, we also completed other reorganization-related actions in the quarter. These actions resulted in $21.5 million of noncash charges in the quarter, primarily write-downs of assets that are no longer strategic going forward. We have adjusted for these items as nonrecurring. We expect further restructuring and reorganization-related charges through the balance of the year to complete our previously disclosed Q1 actions, any margin protection actions warranted by market conditions and as we start to execute the broader fixed cost transformation program that Doug described. We will size those costs as the plans are finalized. As Doug noted, about half of our path to 15% operating margins will be closed through our fixed cost transformation program and the remainder through our focus on margin-accretive aftermarket services, stronger commercial discipline, innovation and improved application of our ABM tools. The benefits are expected to build progressively as we implement the program actions over approximately 18 months, and we will report our progress. Taken together, these actions will change our cost structure, not just our cost this year. The opportunity to fundamentally shift the way we manage our cost base underpins our confidence in scalable earnings growth. With that, I'll turn to our operating results for the quarter. Order bookings were $656 million, down 5.3% from Q1 last year, reflecting large nuclear project awards in the prior year period. Timing also played a role with some anticipated Q1 orders moving into future periods. Bookings vary quarter-to-quarter. To reiterate, our view of mid- to longer-term underlying demand has not changed, and our funnel remains healthy across our chosen markets. Adjusted revenues for the first quarter were $698 million, down 5.2% compared to last year, reflecting the lower opening order backlog and the planned reduction in transportation-related activity, partially offset by revenue growth in energy and services. Moving to earnings. First quarter adjusted earnings from operations were $68.1 million, down 13.4% from Q1 last year, primarily on lower revenues with the benefit of our cost actions still ahead of us. Gross margin for Q1 was 30% of adjusted revenues, an 18 basis point increase on Q1 last year, primarily on higher-margin after-sales service revenues. On SG&A, excluding adjusting items, expenses in the first quarter totaled $136.6 million, slightly higher than last year, largely on foreign exchange translation. Excluding the mark-to-market impact related to changes in our share price, stock-based compensation expense was $4.9 million in Q1, and we continue to expect normalized stock-based comp expense of approximately $5 million per quarter. Adjusted earnings per share for the quarter was $0.35. Moving to our outlook. We closed the quarter with an order backlog of approximately $1.9 billion. On a combined basis, life sciences, food and beverage and energy represented more than 80% of our total backlog, supporting visibility across several of our more highly regulated markets. Based on the expected conversion of existing order backlog, together with revenues from orders anticipated to be booked and billed within the period, we expect second quarter revenues to be in the range of $660 million to $700 million. As a reminder, this assessment is updated every quarter. Looking across the balance of fiscal '27, we expect margins to strengthen through the second half as backlog converts and our cost actions take effect. The macroeconomic environment remains fluid, and we continue to monitor trade, tariffs and geopolitical developments. To date, these have not had a material impact on our business. Our global footprint and sourcing network give us the flexibility to manage these dynamics. Moving to the balance sheet. In Q1, cash flows used in operating activities were $10 million. This was mainly related to timing of billing and collections on larger programs, and we expect improvement going forward. Our noncash working capital as a percentage of revenues was 14.3%. This measure can fluctuate between quarters, but we do expect to remain within our long-term target of 15% of revenues or less. Working capital discipline, efficient asset utilization and cash generation remain a clear focus, supported by the internal frameworks we are deploying across the business. During the quarter, we invested $15.6 million in CapEx and intangible assets, including technology infrastructure and internal development initiatives. For fiscal '27, we continue to expect our CapEx and intangible investment to be between $70 million and $90 million. On leverage, our net debt to adjusted EBITDA ratio ended Q1 at 2.9x. We do expect to operate within our targeted range of 2 to 3x through fiscal '27. As previously noted, we may temporarily exceed this range for capital deployment opportunities that meet our disciplined return criteria and support a clear path back to our target leverage range within an acceptable time frame. In summary, we are advancing the previously disclosed restructuring actions initiated in Q1 and the broader transformation program announced today. Together, these initiatives are intended to reduce fixed costs and SG&A, consolidate our footprint, improve capacity utilization and increase capital efficiency across the organization with a clear focus on cash return on investment. As a result, we expect a structurally lower cost base and stronger cash generation over time, positioning ATS for scalable earnings growth as volumes improve. That gives us confidence in our ability to create long-term shareholder value and returns. Before we go to Q&A, I'll pass the call back to Doug to conclude. Doug? Douglas Wright: Thanks, Anne. My conviction in ATS is stronger today than when I joined the company. We participate in attractive markets with compelling long-term growth drivers. That, together with what I observed across the organization, reinforces my belief that we can, over time, operate above our stated operating margin target of 15%. Through a focus on cash return on investment, we have the tools to address our fixed cost structure and improve returns. Through the ATS business model, we have the tools to improve operational performance and strengthen execution across the organization. We have a clear plan, and now it's about execution, and I'm confident in our ability to translate that into improved performance and meaningful value creation. Now we will open the call to questions from our analysts. Operator, can you please provide instructions? Thank you. Operator: [Operator Instructions] Your first question comes from the line of Sabahat Khan of RBC Capital Markets. Unknown Analyst: This is Patty on the line for Saba this morning. So just maybe starting off looking at kind of your outlook for the rest of F '27, you also mentioned some kind of deal or revenue slippage kind of into future quarters and then calling out it might be dependent on a pickup in order activity through the rest of the year to kind of deliver on some -- your kind of expectations for modest growth this year. So just maybe if you could give a bit more color on that. I think bookings in F '26 were down, call it, 10%. So what would you think you would need to comp maybe through the rest of the year to deliver on that? And if you could also give some incremental color on kind of the nature of that slippage you called out as well, that would be, I think, really helpful. Douglas Wright: Okay. Well, thank you. So we believe the modest organic revenue growth remains achievable, but it will depend on the timing of larger customer awards and the pace at which those orders convert during the second half. The markets that we serve are very attractive, but they do have some level of lumpiness in them by the virtue of the fact that, in some cases, we're dealing with new science or major regulatory criteria that are driving things like nuclear and radiopharma. So they're inherently lumpy over the short cycle. But over the long term, they're very healthy. So as an example, in the most recent quarter, we were very strong in radiopharma, and we were -- we had relatively weak bookings in nuclear. But that doesn't mean that those -- both of those markets are still very attractive long-term growers. So in the back half of the year, we would expect some of our lumpy markets to do a bit better than they did in the most recent quarter. So I think it's just these long-cycle markets require us to have a bit of patience with the velocity of the actual backlog because just the nature of the markets that we're in. But clearly, because we started off the fiscal year slow, it will depend on us having strong recovery in order rates in the back half to be able to deliver on our full year guide. And as we evolve in subsequent quarters, we'll continue to update you. Unknown Analyst: All right. Great. That's helpful. And then maybe just on the fixed cost transformation program, there's still about -- you've identified the European consolidation, the footprint consolidation there, $20 million, so kind of implies a full cost savings of about $60 million to $70 million. So do you think -- have you evaluated Doug, basically the full business? Or do you see maybe there's room for more opportunity there as you kind of go through it? And yes, basic -- how would you see that evolving? And when maybe could we get more details on the next phases of the program? Douglas Wright: Sure. Well, first of all, the cost transformation program is a fully comprehensive view of our -- or will include a view of all of our manufacturing facilities where we have indirect cost in SG&A. So it's -- while we're highlighting the European item, it's -- I've been to all of our facilities in my process. So we have a comprehensive view there. This is -- these will be meaningful changes to our cost structure. And I think you've highlighted sort of what the full quantum of the opportunity is. I would say that the run rate that we establish through these programs will be highly accretive to our margin growth rate. The balancing act is that while we are being -- going to be very aggressive in driving what I would consider to be a good set of productivity actions, we are also part of some very, very fast-growing markets that require us to invest. So we certainly have a lot of -- if you just look at the math, there's certainly a lot of opportunity at a gross level, but we also have to be cognizant of how nuclear is evolving and how radiopharma is evolving, and we need to make sure that we continue to invest in those. So we have what we believe is a fairly aggressive but balanced approach to our fixed cost action, respecting the fact that we still expect ATS to be a long-term growth company with some very important growth markets. So it's a balanced approach, but it is very tactical and very detailed in terms of how we are going after underutilization and overcapacity and frankly, some SG&A that has built up that needs to be rightsized. But we also have to continue to invest in the long-term drivers of the company's future. Michael Anne Cybulski: The one thing that I would add to what Doug said is the way we've assessed the portfolio through his first 6-plus months on the job is really through a set of very pragmatic data-driven frameworks that allow us to identify where these opportunities exist. And we will continue to deploy those frameworks even as we're executing on this transformation plan. We are fully aware of where we've tracked from a fixed cost perspective relative to our top line over the last number of years. And that's something that we are paying attention to. And as Doug said, will be included in the plan as we execute on it. Operator: Your next question comes from the line of Cherilyn Radbourne with TD Cowen. Cherilyn Radbourne: Doug, I guess I'm a little surprised that you see a major cost transformation plan as necessary. And I'm curious whether cost reduction was a large part of your initial thesis when you joined ATS or something that you uncovered on further analysis once you got inside? Douglas Wright: Cherilyn, good to hear from you. So I would say that the Board -- as I joined the company, the Board was aware that we had some areas of the business that we needed to manage through some restructuring, obviously, the transportation portion that we talked about last quarter. So there was some, I would say, pretty well-known and discussed cost actions that needed to be taken. As I've gone through my site visits, I mean, I've been on site with all of our significant companies around the world, doing a full day strategy review and diagnostic. And I've applied a framework that we've developed in terms of how we look at cash return on investment, how we look at how the portfolio is performing at a macro level as well as at a sort of at a division level. And we simply have identified that there's more opportunity to be more productive. It's a fairly simple framework, but what it did do was it identified that there are portions of the business that have invested in capacity that we don't need today to support our growth profile. And so I'd say it's a little bit of both, Cherilyn. I think I knew when I coming in that there was opportunity that the Board had talked to me as I was coming on to the Board. And then as I did my diligence and visiting all the sites, I don't -- this is not a paperwork exercise. This was done walking through factories and walking through our operations with my team. And Anne and I built this framework out that allowed us to have visibility to where there was opportunity. And we see significant savings opportunities simply by, I call it, running the trains on time better. Cherilyn Radbourne: Okay. That's helpful context for sure. And then separately, acquisitions have obviously been part of the growth agenda at ATS for some time. How do you sort of protect the capacity to do them while you execute this transformation program? Douglas Wright: Well, Cherilyn, clearly, from a human capital or team standpoint, that's a very important question that I have to manage through. I would say that in the growing parts of our organization, they will remain very focused on both organic and inorganic activity. We have a pretty dynamic flywheel and process that we run. We have a dedicated committee of our Board that we're always looking at opportunities for efficient deployment of capital and M&A. Clearly, when there's a specific division that has a particular emphasis on substantial cost reduction activities, they have diminished capacity to take on more effort. So we have to be balanced in how we approach certain aspects of the portfolio. But the growing parts of the portfolio are -- there's been no change in appetite for M&A. I would say, our cash return on investment framework has established -- we use it for internal investments as well as for our M&A investments, and it does set thresholds for how we look at the return on investment, and it's a little bit more granular and detailed now than with sort of the framework that I put in place, but it hasn't changed our appetite at all. But we clearly have some areas that we have to balance the need to run the trains on time with buying new trains. Operator: [Operator Instructions] The next question comes from the line of Michael Glen with Raymond James. Michael Glen: Doug, I'm just hoping that maybe you can dig into the existing backlog and maybe give some insights into, are you happy with the margin profile of the work in the embedded backlog? Should we think about a smaller backlog on this margin-optimized company in the future? And what does the top line look like in -- when you hit that 15% operating margin? Douglas Wright: So thank you, Michael. I would say there's no correlation between our growth rate potential for the company and this higher margin profile. We -- I don't believe at all that the actions that we're taking have any effect on our ability to create demand. In fact, I think it actually will help us because it will allow us to allocate capital more fulsomely to the businesses that have substantial growth in front of them. So in terms of the margin profile and backlog, I wouldn't comment on that. But I would say it's not -- there's no material difference in what we have in our current backlog versus existing run rates. There's clearly -- this is, I think, something that I've spent a lot of time thinking through, Michael. I think the nature of ATS being exposed to really first-generation therapeutics in life sciences. And the really, really dynamic changes that are happening in energy demand around the world simply will make us a little more volatile in our program awarding for these large projects. I mean some of these radiopharma projects are $100 million projects and some of these nuclear sites are, well, we've said today between $50 million and $150 million scale. So there will be a certain amount of dynamics in our order rates, the way we report them. But I think the long-term growth potential of the business is getting stronger because we're more focused on our life sciences and energy segment. And even our food business is identifying opportunities to grow faster through virtue of more food quality and regulatory actions within food are also picking up. So I think there's still a lot -- there's no correlation between margin -- our margin potential and scale. In fact, I could probably build a pretty reasonable argument for you that by investing more heavily in these more -- nuclear is obviously an area where we have very specific differentiation. And in radiopharma as well, where we're in a situation where we have some of the best technology in the world, I think our margin profile can actually get better, and we can continue to see significant growth. Michael Anne Cybulski: Yes. And Michael, the only thing I would add to that is when we talk about the fixed cost transformation program and the scale and growth that we expect to continue to drive, as Doug described, we're really talking about creating flexibility in our cost structure in order to be able to operate efficiently within the context of those markets and the nature and dynamic of them the way that they operate. Michael Glen: Okay. And then can you give some insights into -- like the 18-month period that you're referencing, are you able to provide some insights into what should we think about margins exiting that period? Are we getting close to 15% at that point in time? Or is 15% would come another 18 months after you're done the program? Douglas Wright: I would say, Michael, it would be somewhere in between those boundaries you've defined. I mean, clearly, the cost actions and the decisions to exit facilities to rightsize the business, those will all be materially complete within this 18-month horizon. But how they actually map into a particular reporting period, will there be some variation there. But clearly, a majority of the -- well, all of the actions that we've identified in this 18-month program will be activated by that time. But then, of course, they have -- they take time to accrue in there. So it would probably be somewhere in that horizon that you identified, somewhere 18 months plus would be fully absorbed. But to be clear, there will be significant improvement in the 18-month horizon, but the full $70-plus million of savings, that clearly will be a run rate basis and then would accrue into that sort of second, third year. Michael Anne Cybulski: Yes. And just to clarify, Michael, on -- as Doug just described, we're talking about the 18-month horizon relative to this transformation program. And then we also described where we expect the remainder of the gap to our 15% target to come from. So we've tried to dimension it very clearly through the plan that we've laid out as well as some of the things that we've already been talking about, including services and the ABM. Douglas Wright: Yes. I think, Michael, the other perspective to have on this is that as an operator, I certainly have the capacity to drive more dramatic cost reduction in an 18-month horizon. Just looking at our numbers, you could see that for yourself. But we are also investing in these new markets. So there's a balancing act that we have to strike in terms of making ourselves more efficient where we need to, but also we have to protect we will protect our investment zones because we're dealing with some markets that have the potential to transform ATS, and we want to make sure that we're in a position to benefit from that growth. So we have to -- there'll be a balancing act. So could we hit the target in 18 months? Probably. But we're also investing at the same time. So that's kind of the, call it, the balancing feature of the next couple of years for us. Michael Glen: And I'll just ask one more. Are you expecting to make any dispositions or exiting any additional business lines apart from, say, transportation over the time frame? Douglas Wright: So we have nothing on the agenda for you today. What I would tell you, Michael, is that our cash return on investment framework process constantly evaluates where elements of the portfolio sit on -- if you think about the mean cash return on investment for ATS and you think about a broad portfolio of businesses, we're always looking at where those businesses sit. And in fact, we review this with our Board every quarter. I look at it every month. So we're always looking at where our businesses are performing. So in the event that we were to identify a business that we didn't think we had the appetite to invest further to drive improvement in creating that better return, then we would consider dispositioning. But nothing -- so I'd say the process is there constantly. I do it at my level. Each of our groups and our division leaders have their own portfolio of product lines and smaller businesses. And we're building this framework as a way to align ownership behavior with all of our portfolio investments. And therefore, if we were to identify an asset that was not performing and we didn't think it was we didn't have the ability or didn't have the appetite to improve it, then we would consider it for disposition. So I want you to be comfortable that we have a process for how we adjudicate your question, but there's nothing on the agenda at this moment that we're ready to act on. Operator: [Operator Instructions] Your next question comes from the line of Justin Keywood with Stifel. Justin Keywood: On the radiopharmaceutical strength mentioned, are we able to have some context as far as the subsegment percentage of sales, the book-to-bill and how you see that segment going forward? Douglas Wright: So I would say, first of all, it is the fastest-growing part of our life science business. The backlog is twice as material today as our GLP-1 backlog. So it is quickly becoming a material part of our life sciences business. And the science behind this is really exciting for our team. I mean we're basically part of a new generation of oncology therapies. And it's a aside from the sort of -- the human element of these exciting new therapies from a business perspective, these are very, very complex manufacturing environments with a lot of safety and you're doing with radiological materials. And these sites that our customers are building and that we're partnering with them are very substantial opportunities for ATS. We mentioned one partnership in our text today. There are several -- there's a whole ecosystem of investment going into this market that we are uniquely positioned to support. And these are material. I mean they're -- the size of these facilities would be a triple-digit opportunity addressable market for a company like ATS. Justin Keywood: So just on triple-digit addressable market, sorry, are you able to just clarify that a bit? Douglas Wright: Well, what I'm saying is these isotope facilities that you've probably read about in the news, they are fairly large sites, and they require a lot of ATS equipment -- ATS category of equipment. And for a company like ATS, the addressable market per site would be in that ZIP code. Justin Keywood: Okay. And just circling back on the operating margin target of 15%. I'm not sure if I missed this, but is it fair to assume that the base level today is 10%, suggestive of 500 bps margin expansion goal? Michael Anne Cybulski: Well, I mean, last year, we were around 10.6%. So our long-term stated margin target is -- EBIT target is 15%. And as Doug said today, we believe that as we continue to transform and grow the operations and the business participating in these high-growth markets that we have the opportunity to operate above that. But right now, we're targeting getting to that 15%. Douglas Wright: Yes. So Justin, just in terms of the cost transformation program, just to help you with your modeling, consider it to be around a 250 basis point potential over time. So 500 is a pretty good estimate, as you've already stated and confirmed. And about -- when we say half, that's kind of the way we would model it from -- the balance would be other items, including the substantial growth we're having in our services business, which is accretive, as well as other ABM-level improvements. So -- but half from fixed cost, half from other within that other would be mix toward aftermarket, which would be reasonably material as well as the other pieces. And as you -- a number of you have asked us before sort of help bridge the margin expansion deliverable. We're trying to be a little more fulsome here and giving you a little bit of the chunks of the math to help you understand the quantum that we're targeting. Operator: There are no further questions on the line. I will now turn the call back over to Doug Wright for the closing remarks. Douglas Wright: Thank you, operator, and thank you, everyone, for joining us today. We look forward to welcoming shareholders at our annual meeting later today and speaking with all of you again in our Q2 call in November. Have a good day. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in ATS Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ATS Corp. wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Interested in Entravision Communications Corporation? Here are five stocks we like better. Entravision’s second-quarter revenue surged 126% year over year to $227.9 million, while consolidated operating income improved to $30 million from a $0.8 million loss, driven primarily by its Advertising Technology & Services segment. ATS revenue jumped 230% to $182.8 million and operating profit rose 673% to $40 million, although management expects sequential revenue declines in the third quarter and more variable results as it targets larger clients. The Media segment’s revenue slipped 1% to $45.1 million and posted a $3.3 million operating loss amid continued investment, while Entravision reduced debt by $5 million and approved another $0.05-per-share quarterly dividend. Entravision Communications (NYSE:EVC) reported sharply higher second-quarter revenue and operating profit, led by growth in its Advertising Technology & Services business, while its Media segment posted a modest revenue decline and an operating loss. Consolidated revenue rose 126% year over year to $227.9 million in the second quarter of 2026. The company reported consolidated segment operating profit of $36.7 million, compared with $5.5 million in the prior-year quarter. Consolidated operating income was $30 million, compared with an operating loss of $0.8 million a year earlier, according to Chief Financial Officer and Chief Operating Officer Mark Boelke. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Revenue in Entravision's Advertising Technology & Services, or ATS, segment increased 230% from the year-earlier period to $182.8 million. Revenue was also up 18% sequentially from the first quarter of 2026, as the business recorded increases in both monthly active accounts and revenue per monthly active account. ATS operating profit reached $40 million, up 673% from the second quarter of 2025 and 17% from the prior quarter. The segment's operating expenses increased by $13.9 million, or 85%, year over year, reflecting higher revenue-related costs, cloud computing expenses, sales commissions, performance compensation, and investments in staff. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Chief Executive Officer and Chair Michael Christenson said the company's top ATS priority has been to expand artificial-intelligence capabilities in its platform. Entravision continued to invest in product, engineering, infrastructure, sales and customer-service capacity during the quarter. “We’re very focused on generating operating leverage so that infrastructure costs will grow at a lower pace than revenue,” Christenson said. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Boelke said the company does not expect to repeat the same level of ATS performance in the final two quarters of 2026 and currently expects revenue to decline sequentially from the second to third quarter. Still, the company expects third- and fourth-quarter ATS revenue to grow more than 100% from the corresponding periods a year earlier. Management said its focus on winning larger clients could create quarterly variability because spending by major customers can materially affect results. Christenson declined to discuss individual customers or customer concentration beyond required SEC disclosures, citing competitive and business reasons. Entravision's Media segment generated $45.1 million in second-quarter revenue, down 1% from a year earlier. The decline primarily reflected lower broadcast advertising revenue and spectrum usage rights revenue, partly offset by higher digital advertising and retransmission-consent revenue. The Media segment reported an operating loss of $3.3 million, compared with operating profit of $0.4 million in the second quarter of 2025. The result improved from an operating loss of $5.2 million in the first quarter of 2026. Local advertising revenue rose 1% excluding political revenue, while national advertising revenue declined 19%. Monthly active local advertisers increased 3%, although revenue per monthly active advertiser decreased 1%. Media operating expenses increased $1.6 million, or 4%, from the prior-year quarter, primarily because of higher compensation costs. Christenson said the company has sought to fund growth initiatives through reductions in other expenses, including corporate costs, while continuing to invest in sales capacity and content production. The company's Media initiatives include expanding its local sales team, training sellers to market digital offerings such as search, social, streaming video and streaming audio, adding digital product specialists, increasing local news programming, and building a direct sales capability for political advertising. Entravision also has ongoing projects involving its LATV multicast television network and a partnership with Hemisphere Media Group for its WAPA Orlando station. “We are committed to growing our media business and earning a profit,” Christenson said, while acknowledging that the company has more work to do to improve the segment's operating performance and profitability. With 85 days remaining until election day, Christenson said Entravision is pursuing political advertising campaigns by emphasizing the importance of Latino voters. He identified nine races that management views as especially significant to the company's political revenue opportunity: The Texas U.S. Senate race; Governor races in California, Nevada and Texas; U.S. House races in Texas' 15th, 23rd, 28th and 34th districts; and Florida's 9th Congressional District. Christenson said Entravision's performance versus prior election years will depend on total spending in those races and the portion allocated to Spanish-language media. On the company's TelevisaUnivision affiliation agreement, Christenson said there was no update. The agreement runs through Dec. 31, 2026, and Entravision's goal is to renew it, he said. Entravision ended the quarter with more than $83 million in cash and marketable securities. During the quarter, it made a $5 million debt payment, reducing credit-facility indebtedness to about $158 million. The company paid $4.6 million in dividends during the second quarter, or $0.05 per share. Its board also approved a third-quarter dividend of $0.05 per share, payable Sept. 30, 2026, to shareholders of record as of Sept. 16, for a total expected payment of approximately $4.6 million. Boelke said the company's cash-allocation priorities are to reduce debt and maintain low leverage, followed by returning capital to shareholders primarily through dividends. Entravision Communications Corporation (NYSE: EVC) is a diversified Spanish-language media and advertising company headquartered in Santa Monica, California. The company develops and distributes multimedia content tailored to Hispanic audiences across the United States, leveraging a combination of traditional broadcasting and digital platforms to reach consumers and marketers seeking to engage this fast-growing demographic. In its broadcasting segment, Entravision owns and operates more than 50 television stations affiliated primarily with leading Spanish-language networks, as well as over 40 radio stations in key U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Entravision Communications Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Adjusted Revenues: $698 million, down 5.2% year-over-year. Order Bookings: $656 million, down 5.3% from Q1 last year. Adjusted Earnings from Operations: $68.1 million, down 13.4% year-over-year. Adjusted Gross Margin: 30% of adjusted revenues, an 18-basis-point increase year-over-year. SG&A Expenses: $136.6 million, slightly higher than last year, largely on foreign exchange translation. Adjusted Earnings Per Share: $0.35 for the quarter. Order Backlog: Approximately $1.9 billion at quarter-end. Cash Flows Used in Operating Activities: $10 million in Q1, mainly related to timing of billing and collections. Non-Cash Working Capital: 14.3% of revenues. Capital Expenditures: $15.6 million invested in CapEx and intangible assets during the quarter. Net Debt to Adjusted EBITDA Ratio: 2.9 times at end of Q1. Restructuring Costs: $5.7 million incurred in Q1. Q2 Revenue Outlook: Expected to be in the range of $660 million to $700 million. Warning! GuruFocus has detected 4 Warning Signs with ATS. Is ATS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Life sciences trailing 12-month book-to-bill, excluding GLP-1, was approximately 1.1 times, driven by strength in radiopharmaceuticals. Service-related revenues grew 11% year-over-year, contributing to improved adjusted gross margin. Initiated an 18-month Fixed-Cost Transformation Program expected to generate annualized savings of $20 million in the initial European phase, with a total opportunity of approximately $70 million. Strong opportunity funnel in radiopharma, with the backlog now twice as material as GLP-1, and each new isotope facility representing a triple-digit million addressable market. Expanding opportunities in nuclear energy, with potential revenue of $50 million to $150 million per reactor project, and a strong track record in CANDU refurbishment. Adjusted gross margin improved both sequentially and year-over-year, indicating early success from focused actions. Leverage remains within target range at 2.9 times net debt to adjusted EBITDA, providing flexibility for strategic acquisitions. Adjusted revenues declined 5.2% year-over-year, reflecting lower opening backlog and planned reduction in transportation-related activity. Adjusted earnings from operations decreased 13.4% year-over-year, impacted by lower revenue base. Order bookings fell 5.3% year-over-year, with some anticipated Q1 orders slipping into future periods. Q1 cash flows used in operating activities were negative $10 million, due to timing of billing and collections on larger programs. Restructuring and reorganization charges totaled $27.2 million in Q1, with further charges expected through the balance of the year. The Fixed-Cost Transformation Program will take approximately 18 months to implement, with full benefits not realized until the second or third year. Revenue guidance for Q2 is $660 million to $700 million, indicating continued softness, and full-year growth depends on a strong recovery in order rates in the second half. Q: Can you provide more color on the outlook for the rest of FY 2027, particularly regarding the revenue slippage and the order activity needed to deliver on expectations for modest growth?A: Doug Wright (CEO) stated that modest organic revenue growth remains achievable but will depend on the timing of larger customer awards and the pace of order conversion in the second half. He noted that markets like nuclear and radiopharma are inherently lumpy in the short cycle but healthy long-term. He expects some of these lumpy markets to perform better in the back half of the year, but a strong recovery in order rates is needed to deliver on the full-year guide. Q: Regarding the Fixed-Cost Transformation Program, you've identified $20 million in savings from European consolidation, implying a total of $60 million to $70 million. Have you evaluated the full business, and when might we get more details on the next phases?A: Doug Wright (CEO) confirmed the program is a comprehensive review of all manufacturing facilities, indirect costs, and SG&A. He emphasized the actions will be highly accretive to margin growth but must be balanced with investments in fast-growing markets like nuclear and radiopharma. Anne Cybulski (Interim CFO) added that the assessment uses pragmatic, data-driven frameworks, and the company is fully aware of its fixed cost trajectory relative to top-line growth over recent years. Q: Were cost reductions a large part of your initial thesis when joining ATS, or was this uncovered through further analysis?A: Doug Wright (CEO) explained it was a bit of both. The board was aware of needed restructuring, particularly in transportation. However, through comprehensive site visits and a cash return on investment framework, he identified more significant opportunities for productivity improvements. He described the process as walking through factories and applying a framework that revealed portions of the business with excess capacity not needed to support the current growth profile. Q: How do you protect the capacity to do acquisitions while executing this transformation program?A: Doug Wright (CEO) stated that growing parts of the organization will remain focused on both organic and inorganic activity. While divisions undergoing substantial cost reductions may have diminished capacity, there has been no change in appetite for M&A in the growing parts of the portfolio. The cash return on investment framework is applied to both internal and M&A investments, setting thresholds for returns, but it hasn't changed the company's appetite for strategic acquisitions. Q: Are you happy with the margin profile of the embedded backlog, and should we think about a smaller backlog for this margin-optimized company? What does the top line look like when you hit the 15% operating margin?A: Doug Wright (CEO) stated there is no correlation between growth potential and the higher margin profile, and the actions taken will not affect the ability to create demand. He noted the nature of ATS's exposure to first-generation therapeutics and dynamic energy demand will cause volatility in large project awards. He believes the long-term growth potential is getting stronger due to focus on life sciences and energy, and there is no correlation between margin potential and scale. Anne Cybulski (Interim CFO) added that the program is about creating flexibility in the cost structure to operate efficiently within the context of these dynamic markets. Q: Can you provide insights into the 18-month period for the transformation program? Should we expect to be close to the 15% margin target at that point, or will it take longer?A: Doug Wright (CEO) indicated the timeline would be somewhere in between the boundaries suggested. All actions identified in the 18-month program will be activated by that time, but full absorption of the $70 million-plus in savings will occur on a run-rate basis, accruing into the second or third year. He noted the company is balancing aggressive cost reduction with investments in transformative markets, which may slow the pace of margin expansion. Q: Are you expecting to make any dispositions or exit additional business lines apart from transportation?A: Doug Wright (CEO) stated there is nothing on the agenda currently. However, the cash return on investment framework constantly evaluates portfolio performance, and the process is reviewed with the board quarterly. If a business is identified that doesn't meet return requirements and there's no appetite to improve it, disposition would be considered. He assured that a process is in place to adjudicate such decisions, but there are no immediate actions planned. Q: Can you provide context on the radiopharmaceutical strength, including its percentage of sales, book-to-bill, and how you see the segment going forward?A: Doug Wright (CEO) described radiopharma as the fastest-growing part of the life sciences business, with a backlog twice as material as the GLP-1 backlog. He highlighted the complexity of these manufacturing environments due to radiological safety, making them substantial opportunities for ATS. He noted the addressable market per isotope facility site is in the triple-digit millions, and the company is uniquely positioned to support this growing ecosystem of investment. Q: Is it fair to assume the base level today is around 10% operating margin, suggesting a 500 basis point expansion goal to reach the 15% target?A: Anne Cybulski (Interim CFO) confirmed last year's margin was around 10.6%, and the long-term stated EBIT target is 15%. Doug Wright (CEO) added that the Fixed-Cost Transformation Program is expected to contribute approximately 250 basis points of the improvement, with the remainder coming from other items such as growth in the accretive services business and ABM improvements. He provided this breakdown to help with modeling the margin expansion deliverables. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in ATS Corporation? Here are five stocks we like better. ATS reported a weaker fiscal Q1: Adjusted revenue fell 5.2% year over year to CAD 698 million, adjusted operating earnings declined 13.4% to CAD 68.1 million, and bookings dropped 5.3% to CAD 656 million. Backlog stood at approximately CAD 1.9 billion. An 18-month fixed-cost transformation program aims to generate CAD 60 million–CAD 70 million in annualized savings, including about CAD 20 million from initial European facility consolidation. Management expects the program to contribute roughly 250 basis points of margin improvement and help ATS reach or exceed its 15% operating-margin target. Radiopharmaceuticals and energy remain key growth drivers, while quarterly results face volatility from long-cycle project timing. ATS expects second-quarter revenue of CAD 660 million–CAD 700 million and anticipates stronger margins in the second half of fiscal 2027 as backlog converts and cost actions take effect. These 2 Stocks Help Put an Industrial Spin on AI ATS (NYSE:ATS) reported lower fiscal first-quarter revenue and operating earnings as it navigated a reduced opening backlog, planned declines in transportation-related work and timing shifts in large customer awards. Management said it is launching an 18-month fixed-cost transformation program intended to support its longer-term goal of reaching—and potentially exceeding—a 15% operating margin. For the first quarter of fiscal 2027, adjusted revenue declined 5.2% year over year to CAD 698 million. Adjusted earnings from operations fell 13.4% to CAD 68.1 million, while adjusted earnings per share were CAD 0.35. The company said the lower earnings primarily reflected reduced revenue, with benefits from cost actions still to come. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Order bookings totaled CAD 656 million, down 5.3% from the prior-year quarter, mainly because the comparison period included large nuclear project awards. ATS ended the quarter with approximately CAD 1.9 billion in backlog. Chief Executive Officer Doug Wright said he completed a portfolio review and site assessments across the business after joining ATS, identifying opportunities to simplify operations, improve efficiency and raise returns on invested capital. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company has initiated an 18-month Fixed-Cost Transformation Program focused on reducing facility overhead, indirect expenses and SG&A costs. The initial phase centers on Europe, where ATS identified excess capacity and operating infrastructure that it said was not generating returns consistent with its requirements. ATS plans to consolidate certain European facilities and transfer selected technical capabilities to other company locations with available capacity. Wright said the first European phase is expected to produce annualized savings of about CAD 20 million, representing roughly 30% of the savings opportunity anticipated from the overall fixed-cost program. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling During the analyst question-and-answer session, Wright indicated that the broader program implies approximately CAD 60 million to CAD 70 million of potential annualized savings. He said the initiatives would be “materially complete” within 18 months, though the full savings run rate would accrue over a longer period. Management said roughly half of the improvement needed to reach the company’s 15% operating-margin target is expected to come from the fixed-cost program. The remaining improvement is expected from higher-margin aftermarket services, commercial discipline, innovation and wider application of ATS’s business-management tools. Wright told analysts that the transformation is intended to create a more flexible cost structure without limiting investment in growth areas such as radiopharmaceuticals and nuclear energy. ATS expects the fixed-cost initiative to reduce facility overhead and indirect SG&A expenses. The company said its European consolidation is the first phase of a companywide review. Management expects restructuring and reorganization-related charges through the rest of fiscal 2027 as actions are completed and the broader program begins. Interim Chief Financial Officer Anne Cybulski said ATS incurred CAD 5.7 million of restructuring costs in the first quarter, compared with an expected CAD 10 million to CAD 15 million. The company expects to complete the initial actions during the second and third quarters as it works through workforce and regional requirements. ATS also recorded CAD 21.5 million of non-cash reorganization-related charges, primarily asset write-downs involving assets the company no longer considers strategic. The company adjusted these charges as non-recurring items. Adjusted gross margin was 30% of adjusted revenue, up 18 basis points from the prior-year quarter. Cybulski attributed the increase primarily to higher-margin after-sales service revenue. Service-related revenue grew 11% year over year across the company. Wright said ATS believes it can eventually operate above its stated 15% margin target. In response to an analyst question, he said the fixed-cost transformation program represents approximately 250 basis points of potential margin improvement over time, with the remainder of a roughly 500-basis-point path expected from services and other operating improvements. Cybulski noted ATS generated an operating margin of about 10.6% last year. Management said long-term demand remains healthy in ATS’s selected end markets despite quarterly variability in larger project awards. Life sciences, food and beverage, and energy accounted for more than 80% of the company’s backlog at quarter-end. In life sciences, ATS reported a trailing 12-month book-to-bill ratio of about 1.1 times excluding GLP-1-related activity. Wright said this was driven by strength in radiopharmaceuticals, which he described as the fastest-growing portion of the company’s life sciences business. Radiopharma backlog is now twice as large as ATS’s GLP-1 backlog, Wright said. He cited growing use of therapeutic applications, investment in isotope production and a move toward more decentralized manufacturing. ATS highlighted its work with TerraPower Isotopes and said its containment, automation and lifecycle-support capabilities position it to participate in multiple stages of production-capacity buildouts. Management also described opportunities in automated visual inspection, lab automation, contact lenses and wearable devices. In food and beverage, the company said its opportunity funnel remains strong despite lower orders in some markets following elevated investment in recent years. In energy, ATS cited energy security, infrastructure modernization and data-center-related power demand as drivers. Wright said ATS is engaged with reactor technology companies in Canada and the U.S. on early engineering, system design and prototype equipment for small modular reactors and next-generation large-reactor programs. The company said its portion of a single nuclear reactor build could generate CAD 50 million to CAD 150 million in revenue depending on the application. ATS expects second-quarter revenue of CAD 660 million to CAD 700 million, based on backlog conversion and anticipated orders that will be booked and billed during the period. The company said it expects margins to strengthen in the second half of fiscal 2027 as backlog converts and cost actions begin to take effect. Wright said modest organic revenue growth for the full year remains achievable, but will depend on the timing of larger customer awards and the pace at which orders convert in the second half. He said radiopharma bookings were strong in the first quarter while nuclear bookings were relatively weak, reflecting the uneven timing inherent in long-cycle markets. Cash used in operating activities was CAD 10 million during the quarter, which Cybulski attributed mainly to billing and collections timing on larger programs. Non-cash working capital represented 14.3% of revenue, within ATS’s long-term target of 15% or less. The company invested CAD 15.6 million in capital expenditures and intangible assets during the quarter and maintained its fiscal 2027 investment expectation of CAD 70 million to CAD 90 million. Net debt to adjusted EBITDA was 2.9 times at quarter-end, within ATS’s targeted range of two to three times. Management said its acquisition pipeline remains active and that it retains the flexibility to pursue strategically aligned opportunities while applying its return-on-investment framework. Wright said no additional business dispositions are currently planned, though the company regularly reviews portfolio performance. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ATS Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

ATS (ATS) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.3 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10.71%. A quarter ago, it was expected that this automation services provider would post earnings of $0.32 per share when it actually produced earnings of $0.26, delivering a surprise of -18.75%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. ATS, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $501.13 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.66%. This compares to year-ago revenues of $532.45 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ATS shares have added about 1.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While ATS has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ATS was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $534.72 million in revenues for the coming quarter and $1.34 on $2.17 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Nordson (NDSN), is yet to report results for the quarter ended July 2026. The results are expected to be released on August 19. This maker of adhesives and industrial coatings is expected to post quarterly earnings of $3.09 per share in its upcoming report, which represents a year-over-year change of +13.2%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. Nordson's revenues are expected to be $779 million, up 5.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ATS Corporation (ATS) : Free Stock Analysis Report Nordson Corporation (NDSN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CAMBRIDGE, Ontario, August 06, 2026--(BUSINESS WIRE)--ATS Corporation (TSX and NYSE: ATS) ("ATS" or the "Company") today reported its financial results for the three months ended June 28, 2026 and announced a Fixed Cost Transformation Program. All references to "$" or "dollars" in this news release are to Canadian dollars unless otherwise indicated. Following a comprehensive portfolio review conducted after Doug Wright's appointment as Chief Executive Officer, the Company announced that it had identified a significant opportunity to improve profitability, returns and capital efficiency across the organization. As a result, ATS has initiated an approximately 18-month Fixed Cost Transformation Program that is expected to represent approximately half of the margin expansion required to achieve its current long-term adjusted earnings from operations margin1 target of 15%. The first phase will focus on Europe, where the Company is consolidating certain facilities and transferring select capabilities to other ATS locations to better align the Company's operating footprint and capacity with customer requirements. The Company will provide further updates as additional initiatives are finalized and believes these actions will strengthen margins, cash generation and shareholder returns over time. First quarter highlights: Revenues were $693.7 million (adjusted revenues2 $698.3 million) compared to $736.7 million a year ago. Net loss was $0.3 million compared to net income of $24.3 million a year ago. Basic loss per share was 0 cents, compared to earnings per share of 25 cents a year ago. Adjusted EBITDA2 was $92.9 million compared to $101.5 million a year ago. Adjusted basic earnings per share2 were 35 cents compared to 41 cents a year ago. Order Bookings3 were $656 million, compared to $693 million a year ago. Order Backlog3 was $1,889 million, compared to $2,068 million a year ago. During the first quarter, the Company made progress on several commercial and operating initiatives. Gross margin on adjusted revenues, excluding adjustment items, improved both sequentially and year-over-year. The Company continues to action its previously disclosed reorganization and restructuring activities (see "Reorganization and Transformation Activity"). Doug Wright, Chief Executive Officer noted, "In addition to releasing ATS' first-quarter results for fiscal 2027, today we also shared details on our 18-month Fixed Cost Transformation Program." Added Mr. Wright, "Despite timing variability this quarter with certain anticipated customer awards, which we anticipate will shift into future quarters, we continue to see a healthy and diversified funnel across our core end markets. Growth in energy revenues and revenues from services, together with improved gross margin on adjusted revenues, excluding adjustment items, demonstrated continued progress across several areas of the business." Fiscal 2027 Performance Expectations Management continues to have conviction in the Company's pipeline across its core end markets, which is supported by its broad base of differentiated technologies, products and engineering know-how, and strong customer relationships. Timing delays in certain previously anticipated large customer awards influence the mix and volume of organic revenue growth in fiscal 2027, temporarily reducing the Order Backlog available for near-term conversion. As a result, achieving modest organic revenue growth in fiscal 2027 will depend on stronger Order Bookings activity over the balance of the year and the pace of project execution of such Order Bookings during the fiscal year. Despite these near-term timing considerations, the Company continues to see encouraging signs across parts of the business. While overall life sciences performance is affected by lower GLP-1-related demand, Order Bookings across the remainder of the life sciences portfolio increased at a high-single-digit rate versus the prior year, and the trailing-twelve-month book-to-bill ratio excluding GLP-1-related activity remained strong at approximately 1.1:1, supporting management's confidence in the underlying market environment. ATS also continues to see increasing contributions from revenues from services and remains well positioned to participate in the long-term growth of the nuclear and radiopharmaceutical markets, although customer awards in these markets can be subject to variability in timing and magnitude. The Company remains focused on driving cash returns through disciplined investment decisions and a consistent focus on capital efficiency across the portfolio. Book-to-bill ratio is a supplementary financial measure — see "Non-IFRS and Other Financial Measures." Fixed Cost Transformation Program Following the completion of a comprehensive review of its entire portfolio against its long-term value creation criteria, management has initiated a program to transform the Company's fixed cost structure over time (the "Fixed Cost Transformation Program"). The review included consideration of operating footprint, cost structure and capital allocation priorities, resulting from management's application of a disciplined cash return on investment framework across the organization. The review reinforced management’s confidence in the Company’s core strengths and position in critical growth markets, and identified opportunities to simplify the Company's operating structure, optimize its global footprint, reduce fixed costs and improve returns on invested capital, while better aligning it with its current business profile and long-term growth objectives. Management believes these meaningful structural changes can contribute approximately half of the margin expansion required to achieve the Company's current long-term adjusted earnings from operations margin target of 15%. This multi-phase program, which is expected to be completed in approximately 18 months, is not intended to alter the Company’s strategic focus on services or the end markets it serves. Rather, the objective is to reshape the cost structure of the business so that resources can be allocated more efficiently in support of the Company’s long-term growth strategy. As the initial phase of the Fixed Cost Transformation Program, management identified excess capacity across certain European facilities based on current and expected demand for customer programs required to be executed within Europe (the "European Footprint Consolidation"). The European Footprint Consolidation will involve the transfer of select technical capabilities to other ATS facilities where existing capacity and capabilities can support customer requirements more efficiently. Where appropriate, customer programs may also be supported through ATS’ broader global footprint. Given the nature of the facility and reorganization activities involved, implementation and the realization of the related benefits are expected to build as the program actions are implemented over approximately 18 months. Related restructuring costs will be disclosed as the plans progress. The annual costs that can be reduced in connection with this initial phase are expected to be in the range of $20 million, followed by additional cost reduction opportunities on the remainder of the Fixed Cost Transformation Program, including opportunities to simplify the Company's operating footprint and reduce fixed costs in other parts of the business. Those initiatives remain under evaluation and will be communicated as plans are finalized and approved. The initial phase of cost reductions is expected to represent approximately 30% of the savings opportunity from the broader Fixed Cost Transformation Program. Management continues to believe that executing on the long-term growth opportunities across the Company’s end markets and the operational-improvement initiatives currently underway, together with portfolio optimization and cost-reduction activities, including the Fixed Cost Transformation Program, support the Company’s achievement of its long-term adjusted earnings from operations margin target of 15%. Management intends to provide updates as the initiatives progress. Financial results (In millions of dollars, except per share and margin data) First quarter summary First quarter fiscal 2027 revenues were 5.8% or $43.0 million lower than in the corresponding period a year ago, primarily reflecting a year-over-year decrease in organic revenue (excluding contributions from acquired companies and foreign exchange translation) of $47.3 million or 6.4%, partially offset by the positive impact of foreign exchange translation. On an adjusted basis, revenues were $38.4 million or 5.2% lower than the corresponding period a year ago. Revenues generated from construction contracts decreased 13.7% or $57.7 million from the prior period primarily due to lower Order Backlog entering the period and was partially offset by the positive impact of foreign exchange translation. Revenues from services increased 11.4% or $18.7 million, primarily due to organic revenue growth on higher Order Backlog entering the period and the positive impact of foreign exchange translation. Revenues from the sale of goods increased 0.4% or $0.6 million. By market, revenues generated in life sciences decreased $32.9 million or 8.7% year-over-year. This was primarily due to timing of both customer capital allocation and project execution. Revenues in industrial & consumer decreased $8.4 million or 4.6% compared to the prior year as a result of lower activity in certain legacy industrial applications, as the Company continues to reposition its capabilities towards other strategic areas. Revenues generated in food & beverage decreased $21.5 million or 15.5% from the corresponding period last year due to lower Order Backlog entering the period. Revenues in energy increased $24.4 million or 68.9% year-over-year due to revenue growth on higher Order Backlog entering the quarter, including execution of nuclear projects. Net loss for the first quarter of fiscal 2027 was $0.3 million (0 cents per share basic), compared to net income of $24.3 million (25 cent per share basic and diluted) for the first quarter of fiscal 2026. The decrease primarily reflected lower revenues. Adjusted basic earnings per share were 35 cents compared to 41 cents in the first quarter of fiscal 2026. Depreciation and amortization expense was $40.2 million in the first quarter of fiscal 2027, compared to $37.3 million a year ago. EBITDA was $64.4 million (9.2% EBITDA margin) in the first quarter of fiscal 2027 compared to $95.1 million (12.9% EBITDA margin) in the first quarter of fiscal 2026. EBITDA for the first quarter of fiscal 2027 included $5.7 million of restructuring charges, $0.1 million of incremental costs related to acquisition activity, $7.6 million related to the impact of the transportation reorganization, $4.0 million related to the impact of the services reorganization, $1.4 million related to CEO inducement costs, $7.1 million of costs related to reorganization activities in the Company's software-focused businesses, $1.5 million of other reorganization-related costs, and $1.1 million of stock-based compensation revaluation expense. EBITDA for the corresponding period in the prior year included $2.5 million of restructuring charges, $0.3 million of incremental costs related to acquisition activity, and $3.6 million of stock-based compensation revaluation expenses. Excluding these amounts, adjusted EBITDA was $92.9 million (13.3% adjusted EBITDA margin), compared to $101.5 million (13.8% adjusted EBITDA margin) for the corresponding period in the prior year. Lower adjusted EBITDA primarily reflected lower revenues. EBITDA is a non-IFRS financial measure and EBITDA margin is a non-IFRS ratio — see "Non-IFRS and Other Financial Measures." Non-cash working capital as a percentage of adjusted revenues was 14.3%, an improvement from 17.3% in the corresponding quarter last year. The Company had a net debt to pro forma adjusted EBITDA ratio at June 28, 2026 of 2.9 times, and management expects the Company to continue to operate within its targeted leverage ratio of 2.0 to 3.0 times throughout fiscal 2027. Non-cash working capital as a percentage of adjusted revenues and net debt to pro forma adjusted EBITDA are non-IFRS ratios - see "Non-IFRS and Other Financial Measures." Order Backlog Continuity (In millions of dollars) Order Bookings First quarter of fiscal 2027 Order Bookings were $656 million, a 5.3% year-over-year decrease, reflecting a 6.9% decline in organic Order Bookings, partially offset by the positive impact of 1.6% from foreign exchange translation. By market, Order Bookings in life sciences increased compared to the prior-year period, reflecting continued customer capital investment across a broad range of applications. Order Bookings within life sciences remain well diversified, including orders for radiopharmaceutical applications and for a range of pharmaceutical and medical device automation solutions. To reflect management’s decision to reposition certain transportation businesses to serve other specialized industrial applications, the Company will report "industrial & consumer" in place for the separate transportation and consumer verticals previously reported. Order Bookings decreased in industrial & consumer compared to the prior period a year ago, primarily due to the timing of customer projects and the Company's ongoing portfolio repositioning towards opportunities that support improved profitability and capital efficiency. Order Bookings in food & beverage increased compared to the prior-year period due to the timing of customer orders in addition to the positive impact of foreign exchange translation. Order Bookings in energy decreased compared to the prior-year period primarily due to the timing of customer projects, specifically for nuclear refurbishment projects, and due to strong nuclear refurbishment-related activity in the prior-year period that benefited from several large project awards. Given the nature of the nuclear market, Order Bookings can fluctuate based on the timing of customer investment decisions and project awards. Organic Order Bookings and Organic Order Bookings growth are supplementary financial measures — see "Non-IFRS and Other Financial Measures." Backlog At June 28, 2026, Order Backlog was $1,889 million, 8.7% lower than at June 29, 2025. Outlook The life sciences funnel remains healthy and diversified, with opportunities across strategic submarkets such as pharmaceuticals, radiopharmaceuticals and medical devices, partially offsetting lower levels of GLP-1-related activity. Management continues to identify opportunities with both new and existing customers across diagnostic and therapeutic radiopharmaceuticals, isotope production, wearable devices, automated pharmacy solutions, contact lenses and pre-filled syringes, as well as integrated life sciences solutions that leverage capabilities from across the Company. Management continues to see strong customer interest in specialized radiopharmaceutical production, containment and automation solutions, supported primarily by increasing adoption of therapeutic applications and ongoing investment in isotope production. As programs advance from clinical development towards commercialization, management continues to observe broader market activity aimed at securing capacity, enhancing supply-chain resilience and supporting reliable, compliant operations in highly regulated environments. ATS' differentiated capabilities in radiopharmaceutical containment systems, integrated automation and lifecycle support position the Company to participate in multiple phases of customer investment across the radiopharmaceutical value chain. Market conditions for ATS' laboratory equipment businesses remain stable overall. ATS continues to strengthen its coordinated go-to-market approach, with initiatives focused on broader market coverage, improved customer engagement and development of a pipeline of opportunities. Funnel activity in industrial & consumer is stable. While discretionary consumer spending may influence the timing of certain customer investments, the Company continues to broaden its opportunity pipeline across specialized industrial applications. These opportunities allow ATS to deploy its differentiated automation, testing and high-speed assembly capabilities into higher-value areas such as data center infrastructure, warehouse packaging automation and other mission-critical production environments. Funnel activity in food & beverage remains strong despite lower order activity in certain markets, particularly global tomato processing, following elevated investment levels in recent years. ATS continues to see opportunities across its core and adjacent end markets and is expanding its opportunity set beyond tomato processing into fresh fruit processing, secondary processing and packaging applications. In addition, customers' equipment replacement requirements may support investment activity even during periods of softer underlying demand. Through its market position and capabilities, management believes it is well positioned to participate as customer investment activity improves over time. Funnel activity in energy remains strong, supported by industry investment in energy security, infrastructure modernization and new power generation capacity to support data center needs. Within nuclear, ATS has a proven track record supporting refurbishment and life-extension programs for CANDU reactors and is engaged in front-end engineering, design and prototype-equipment development for small modular reactors and conventional new builds. As customer programs advance, ATS can support automation for modular fabrication and assembly, fuel fabrication and related manufacturing processes, as well as fuel handling and other specialized testing systems designed for reliable and repeatable operation in high-risk environments. Fuel fabrication represents a complementary opportunity as customers invest in the facilities and equipment required ahead of reactor deployment. Based on management’s assessment of where ATS’ capabilities can be deployed, the Company’s addressable opportunity on a reactor program may represent a low-single-digit percentage of total customer capital expenditure, depending on the application. After-sales revenues and reoccurring revenues, which ATS defines as revenues from ancillary products and services associated with equipment sales, and revenues from customers who purchase non-customized ATS products at regular intervals, are expected to provide some balance to customers' capital expenditure cycles. Management expects reoccurring revenues to be in the range of 25%-35% on a trailing-twelve-month basis and remains focused on expanding this proportion of the business over time. Order Backlog of $1,889 million is expected to help mitigate some of the impact of quarterly variability in Order Bookings on revenues in the short term. The Company's Order Backlog includes several large enterprise programs that have longer periods of performance and therefore longer revenue recognition cycles, particularly in life sciences. In the second quarter of fiscal 2027, management expects to generate revenues in the range of $660 million to $700 million, reflecting the lower opening Order Backlog available for conversion. This revenue estimate is calculated each quarter based on management's assessment of project schedules across all customer contracts in Order Backlog, expectations for faster-turn product and services revenues, expected delivery timing of third-party equipment and operational capacity. Management’s approach to long-term value creation is centered on disciplined execution of the Company’s Growth Algorithm, which is designed to drive sustainable growth in per-share cash generation. The Growth Algorithm combines organic growth, disciplined acquisitions, margin expansion and improved working-capital efficiency, while supporting continued investment in differentiated technologies, lifecycle services and strategic acquisitions. Together, these priorities are intended to enhance the quality, resilience and growth of the Company’s earnings and cash flow profile. Management also considers return on invested capital and cash return on investment as part of its capital allocation framework. This framework is intended to balance growth, profitability and capital efficiency across organic investments, acquisitions and operational improvement initiatives, with the objective of maximizing long-term shareholder value. As management increases its focus on cash returns, improving non-cash working capital velocity and asset utilization more broadly are clear priorities within the Company’s operating models. These priorities are intended to support stronger cash generation and improved returns on invested capital. The Company's long-term goal is to maintain its investment in non-cash working capital as a percentage of annualized revenues below 15%, although fluctuations are expected on a quarter-over-quarter basis. The Company expects that continued cash flows from operations, together with cash and cash equivalents on hand and credit available under operating and long-term credit facilities will be sufficient to fund its requirements for investments in non-cash working capital and capital assets, and to fund strategic investment plans including some potential acquisitions. Acquisitions could result in additional debt or equity financing requirements for the Company. Non-cash working capital as a percentage of adjusted revenues is a non-IFRS ratio — see "Non-IFRS and Other Financial Measures." For further details on the Company's outlook, please see "Outlook" in its Management's Discussion and Analysis for the first quarter ending June 28, 2026 ("Q1 MD&A"). Reorganization and Transformation Activity The Company previously disclosed expected restructuring costs of approximately $10 million to $15 million in the first quarter of fiscal 2027, with $5 million related to transportation-related divisions, and the remainder related to other parts of the business. In the first quarter of fiscal 2027, restructuring expenses of $5.7 million were recorded in relation to these activities, with $1.6 million of this amount related to transportation. As noted above, some restructuring activities have taken longer to implement than previously anticipated and as a result, a portion of the expected costs has shifted into the second and third quarters of fiscal 2027. First quarter net loss included $9.2 million relating to revenue and cost impacts directly associated with the transportation reorganization activities noted above. These impacts consisted of aged inventory adjustments, restructuring charges, and amounts associated with completing existing legacy customer contracts. Such amounts are included as non-IFRS adjusting items – see "Reconciliation of Non-IFRS Measures to IFRS Measures." Also included in the first quarter net loss were $4.7 million of costs associated with the Company's previously announced initiative to embed its growing services business within its operating units. These amounts represent costs associated with redundant assets and are included as non-IFRS adjusting items – see "Reconciliation of Non-IFRS Measures to IFRS Measures." The strategic rationale for this change is to support greater accountability for the installed base and improve the capture of lifecycle customer opportunities. Over time, management expects this model to support a higher mix of reoccurring revenues, improved customer intimacy and more consistent capture of parts, service, upgrades and performance-improvement opportunities across the installed base. In connection with management’s ongoing portfolio optimization review, the Company reassessed certain deferred development assets within its smaller software-focused businesses, resulting in impairment costs of $7.1 million in the quarter. For further details on the Company's reorganization and restructuring activity, please see "Outlook - Reorganization and Transformation Activity" in its Q1 MD&A. Tariffs The majority of the Company's shipments from Canada into the U.S. fall within the current terms of the U.S.-Mexico-Canada trade agreement ("USMCA"). In 2026, the U.S. declined to agree to extend the USMCA in its current form, triggering annual joint reviews that will continue until the parties either agree to an extension or the agreement expires on July 1, 2036. Although the USMCA remains in full force and effect, the annual review process, and the ability of any party to withdraw from the agreement on six months' written notice, creates potential long-term uncertainty regarding North American free trade compounded by additional tariffs imposed by the U.S. on certain goods from various jurisdictions globally, including Canada and Europe; and further tariffs and trade agreements continue to be discussed. The potential impact, if any, of revised United States tariffs, including those imposed under Sections 301 and 338, is dependent on specific customer programs and the nature of the Company's work and, at this time, the Company does not expect these tariffs to have a material impact in the near term and continues to assess the potential application of these tariffs. Management continues to actively monitor the situation as it evolves and is taking steps to mitigate risks where possible. On a trailing-twelve-month basis, the Company's equipment and product adjusted revenues from its Canadian and European operations being sold into the U.S. remained consistent with the range previously disclosed of just over 20% of the Company's adjusted revenues. Adjusted revenues is a non-IFRS financial measure — see "Non-IFRS and Other Financial Measures." Quarterly Conference Call ATS will host a conference call and webcast at 8:30 a.m. eastern time on Thursday, August 6, 2026 to discuss its quarterly results. The listen-only webcast can be accessed at https://events.q4inc.com/attendee/766230709 and the conference call can be accessed by dialing (800) 715-9871 five minutes prior and quoting reference number 4581797. A replay of the conference will be available on the ATS website following the call. Alternatively, a telephone recording of the call will be available for one week (until midnight August 13, 2026) by dialing (800) 770-2030 and using the access code 4581797. About ATS ATS Corporation is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added solutions including pre-automation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, food & beverage, industrial and consumer, and energy. Founded in 1978, ATS employs over 7,000 people at more than 65 manufacturing facilities and over 85 offices in North America, Europe, Asia and Oceania. The Company's common shares are traded on the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE") under the symbol ATS. Visit the Company's website at www.atsautomation.com. SOURCE: ATS Corporation Consolidated Adjusted Revenues (In millions of dollars) Consolidated Operating Results (In millions of dollars) Order Backlog by Market (In millions of dollars) Reconciliation of Non-IFRS Measures to IFRS Measures (In millions of dollars, except per share data) The following table reconciles adjusted revenues to the most directly comparable IFRS measure (revenue): The following table reconciles adjusted EBITDA and EBITDA to the most directly comparable IFRS measure (net income (loss)): The following table reconciles adjusted earnings from operations, adjusted net income, and adjusted basic earnings per share to the most directly comparable IFRS measures (net income (loss) and basic earnings (loss) per share): The following table reconciles organic revenue to adjusted revenues, which have been reconciled to the most directly comparable IFRS measure (revenues) earlier in this press release: The following table reconciles non-cash working capital as a percentage of adjusted revenues to the most directly comparable IFRS measures: The following table reconciles net debt to the most directly comparable IFRS measures: The following table reconciles free cash flow to the most directly comparable IFRS measures: Certain non-IFRS financial measures exclude the impact on stock-based compensation expense of the revaluation of restricted share units ("RSUs") and deferred share units ("DSUs") resulting specifically from the change in market price of the Company's common shares between periods. Management believes the adjustment provides further insight into the Company's performance. The following table reconciles total stock-based compensation expense to its components: INVESTMENTS, LIQUIDITY, CASH FLOW AND FINANCIAL RESOURCES (In millions of dollars, except ratios) ATS CORPORATION Interim Condensed Consolidated Statements of Financial Position (in thousands of Canadian dollars - unaudited) Please refer to complete Interim Condensed Consolidated Financial Statements for supplemental notes which can be found on the Company's profile on SEDAR+ at www.sedarplus.ca, the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov, and on the Company's website at www.atsautomation.com. ATS CORPORATION Interim Condensed Consolidated Statements of Income (Loss) (in thousands of Canadian dollars, except per share amounts - unaudited) Please refer to complete Interim Condensed Consolidated Financial Statements for supplemental notes which can be found on the Company's profile on SEDAR+ at www.sedarplus.ca, the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov, and on the Company's website at www.atsautomation.com. ATS CORPORATION Interim Condensed Consolidated Statements of Cash Flows (in thousands of Canadian dollars - unaudited) Please refer to complete Interim Condensed Consolidated Financial Statements for supplemental notes which can be found on the Company's profile on SEDAR+ at www.sedarplus.ca, the Company's profile on the U.S. Securities and Exchange Commission's website at www.sec.gov, and on the Company's website at www.atsautomation.com. Non-IFRS and Other Financial Measures Throughout this document, management uses certain non-IFRS financial measures, non-IFRS ratios and supplementary financial measures to evaluate the performance of the Company. The terms "EBITDA", "organic revenue", "adjusted net income", "adjusted earnings from operations", "adjusted revenues", "adjusted EBITDA", "pro forma adjusted EBITDA", "adjusted basic earnings per share", and "free cash flow", are non-IFRS financial measures, "EBITDA margin", "adjusted earnings from operations margin", "adjusted EBITDA margin", "organic revenue growth", "non-cash working capital as a percentage of adjusted revenues", and "net debt to pro forma adjusted EBITDA" are non-IFRS ratios, and "operating margin", "Order Bookings", "organic Order Bookings", "organic Order Bookings growth", "Order Backlog", and "book-to-bill ratio" are supplementary financial measures, all of which do not have any standardized meaning prescribed within IFRS and therefore may not be comparable to similar measures presented by other companies. Such measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. In addition, management uses "earnings from operations", which is an additional IFRS measure, to evaluate the performance of the Company. Earnings from operations is presented on the Company's consolidated statements of income as net income excluding income tax expense and net finance costs. Operating margin is an expression of the Company's earnings from operations as a percentage of adjusted revenues. EBITDA is defined as earnings from operations excluding depreciation and amortization. EBITDA margin is an expression of the Company's EBITDA as a percentage of adjusted revenues. Organic revenue is defined as revenues in the stated period excluding adjusted revenues from acquired companies for which the acquired company was not a part of the consolidated group in the comparable period. Organic revenue growth compares the stated period organic revenue with the reported adjusted revenue of the comparable prior period. Adjusted earnings from operations is defined as earnings from operations before items excluded from management's internal analysis of operating results, such as amortization expense of acquisition-related intangible assets, acquisition-related transaction and integration costs, restructuring charges, legal settlement costs that arise outside of the ordinary course of business, the mark-to-market adjustment on stock-based compensation and certain other adjustments which would be non-recurring in nature ("adjustment items"). Adjusted earnings from operations margin is an expression of the Company's adjusted earnings from operations as a percentage of adjusted revenues. Adjusted revenues are defined as revenues before any adjustment items. Adjusted EBITDA is defined as adjusted earnings from operations excluding depreciation and amortization. Pro forma adjusted EBITDA is adjusted EBITDA on a pro forma basis to reflect full contribution from recent acquisitions. Adjusted EBITDA margin is an expression of the entity's adjusted EBITDA as a percentage of revenues. Adjusted basic earnings per share is defined as adjusted net income on a basic per share basis, where adjusted net income is defined as adjusted earnings from operations less net finance costs and income tax expense, plus tax effects of adjustment items and adjusted for other significant items of a non-recurring nature. Non-cash working capital as a percentage of adjusted revenues is defined as the sum of accounts receivable, contract assets, inventories, deposits, prepaids and other assets, less accounts payable, accrued liabilities, provisions and contract liabilities divided by the trailing two fiscal quarter adjusted revenues annualized. Free cash flow is defined as cash provided by operating activities less property, plant and equipment and intangible asset expenditures. Net debt to pro forma adjusted EBITDA is the ratio of the net debt of the Company (cash and cash equivalents less bank indebtedness, long-term debt, and lease liabilities) to the trailing twelve month pro forma adjusted EBITDA. Order Bookings represent new orders for the supply of automation systems, services and products that management believes are firm. Organic Order Bookings are defined as Order Bookings in the stated period excluding Order Bookings from acquired companies for which the acquired company was not a part of the consolidated group in the comparable period. Organic Order Bookings growth compares the stated period organic Order Bookings with the reported Order Bookings of the comparable prior period. Order Backlog is the estimated unearned portion of revenues on customer contracts that are in process and have not been completed at the specified date. Book to bill ratio is a measure of Order Bookings compared to adjusted revenue. Following amendments to ATS' RSU Plan in 2022 to provide the Company with the option for settlement in shares purchased in the open market and the creation of the employee benefit trust to facilitate such settlement, ATS began to account for equity-settled RSUs using the equity method of accounting. However, prior RSU grants which will be cash-settled and DSU grants which will be cash-settled are accounted for as described in the Company's annual consolidated financial statements and have volatility period over period based on the fluctuating price of ATS' common shares. Certain non-IFRS financial measures (adjusted EBITDA, net debt to pro forma adjusted EBITDA, adjusted earnings from operations and adjusted basic earnings per share) exclude the impact on stock-based compensation expense of the revaluation of DSUs and RSUs resulting specifically from the change in market price of the Company's common shares between periods. Management believes that this adjustment provides insight into the Company's performance, as share price volatility drives variability in the Company's stock-based compensation expense. Operating margin, adjusted earnings from operations, adjusted revenues, EBITDA, EBITDA margin, adjusted EBITDA, pro forma adjusted EBITDA and adjusted EBITDA margin are used by the Company to evaluate the performance of its operations. Management believes that earnings from operations is an important indicator in measuring the performance of the Company's operations on a pre-tax basis and without consideration as to how the Company finances its operations. Management believes that adjusted revenues, organic revenue and organic revenue growth, when considered with IFRS measures, allow the Company to better measure the Company's performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company's performance with prior and future periods and relative comparisons to its peers. Management believes that EBITDA and adjusted EBITDA are important indicators of the Company's ability to generate operating cash flows to fund continued investment in its operations. Management believes that adjusted earnings from operations, adjusted earnings from operations margin, adjusted EBITDA, adjusted net income and adjusted basic earnings per share are important measures to increase comparability of performance between periods. The adjustment items used by management to arrive at these metrics are not considered to be indicative of the business' ongoing operating performance. Management uses the measure "non-cash working capital as a percentage of adjusted revenues" to assess overall liquidity. Free cash flow is used by the Company to measure cash flow from operations after investment in property, plant and equipment and intangible assets. Management uses net debt to pro forma adjusted EBITDA as a measurement of leverage of the Company. Order Bookings provide an indication of the Company's ability to secure new orders for work during a specified period, while Order Backlog provides a measure of the value of Order Bookings that have not been completed at a specified point in time. Both Order Bookings and Order Backlog are indicators of future revenues that the Company expects to generate based on contracts that management believes to be firm. Organic Order Bookings and organic Order Bookings growth allow the Company to better measure the Company's performance and evaluate long-term performance trends. Organic Order Bookings growth also facilitates easier comparisons of the Company's performance with prior and future periods and relative comparisons to its peers. Book to bill ratio is used to measure the Company's ability and timeliness to convert Order Bookings into revenues. Management believes that ATS shareholders and potential investors in ATS use these additional IFRS measures and non-IFRS financial measures in making investment decisions and measuring operational results. A reconciliation of (i) adjusted EBITDA and EBITDA to net income, (ii) adjusted earnings from operations to net income, (iii) adjusted net income to net income, (iv) adjusted basic earnings per share to basic earnings per share (v) free cash flow to its IFRS measure components and (vi) adjusted revenues to revenue and (vii) organic revenue to revenue, in each case for the three months ended June 28, 2026 and June 29, 2025 is contained in this document (see "Reconciliation of Non-IFRS Measures to IFRS Measures"). This document also contains a reconciliation of (i) non-cash working capital as a percentage of adjusted revenues and (ii) net debt to their IFRS measure components, in each case at both June 28, 2026 and March 31, 2026 (see "Reconciliation of Non-IFRS Measures to IFRS Measures"). A reconciliation of Order Bookings and Order Backlog to total Company revenues for the three months ended June 28, 2026 and June 29, 2025 is also contained in this news release (see "Order Backlog Continuity"). Forward-Looking Statements This news release contains certain statements that may constitute forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws ("forward-looking statements"). All such statements are made pursuant to the "safe harbour" provisions of Canadian provincial and territorial securities laws and the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts regarding possible events, conditions or results of operations that ATS believes, expects or anticipates will or may occur in the future, including, but not limited to: the value creation strategy; the Company's strategy to expand through development of new markets and business platforms, expanding service offerings, investment in innovation and product development, and strategic and disciplined acquisitions; and the expected benefits to be derived therefrom; the ABM and possible margin improvements as a result from the execution of the ABM, including the timelines to achieve such improvements; the development of the Company’s data-enabled automation capabilities; various core and end market opportunities for ATS; conversion of opportunities into Order Bookings; the announcement of new Order Bookings and the anticipated timeline for delivery; potential impacts on the time to convert opportunities into Order Bookings; expected Order Bookings activity over the balance of fiscal 2027; the expectation that the Company's Order Backlog will help mitigate some of the impact of variable Order Bookings on revenue in the short term; the conversion of Order Backlog into revenue, including the timing and pace of project execution; the expected benefits where the Company engages with customers on enterprise-type solutions; the Company's plan to focus on increasing after-market sales and service revenue, including the benefits related thereto; the potential impact of the Company's approach to market and timing of customer decisions on Order Bookings, performance period, and timing of revenue recognition; expected benefits with respect to the Company's efforts to grow its product portfolio and after-sale service revenues; the ability of after-sales revenues and reoccurring revenues to provide some balance to customers' capital expenditure cycles; the range of the expected reoccurring revenues on a trailing twelve-month basis; initiatives in furtherance of revenue growth and improvement of profitability; the expected improvement of the Company's adjusted earnings from operations margin in fiscal 2027 through operational initiatives and portfolio development, and a combination of lower costs achieved from existing and planned restructuring and reorganization activities, disciplined execution of the ABM across the portfolio, targeted commercial practices, and an improved after-market mix supported by the integration of services directly into the Company's operating units; the expected cost reductions as a result of the reorganization activities; the expected long-term adjusted earnings from operations margin target; the anticipated range of revenues for the following quarter; the expected revenue growth for fiscal 2027, and the Company’s long term goal to grow revenues greater than market growth rates in its chosen markets; the expectation that the ongoing reorganization of the Company’s transportation-related operations will remove dilutive revenues; the expectation to continue to operate within the targeted leverage ratio for fiscal 2027; the Company's expected improvements in free cash flow and the multi-year free cash flow target; expectation of realization of cost and revenue synergies consistent with announced integration plans; the Company’s long-term goal of non-cash working capital as a percentage of annualized revenues; the expectation to continue investing in non-cash working capital to support growth; planned reorganization activities in future quarters, including the Fixed Cost Transformation Program, the European Footprint Consolidation and any go-to-market reorganization across its lab equipment businesses, with early pipeline activity building, the expected restructuring costs in future quarters, the expectation that the restructuring and other related costs to be funded by proceeds of the sale of buildings in the U.S. and in Germany in fiscal 2027, the reinvestment of a portion of savings from the reorganization activities in higher-growth areas, the expectation of restructuring and reorganization activity to support the Company’s margin expansion initiative throughout fiscal 2027 including the expected timing, scope and anticipated benefits of these initiatives to simplify the Company's operating structure; the expected stock-based compensation expense per quarter in fiscal 2027; expectations in relation to meeting liquidity and funding requirements for investments; potential to use debt or equity financing to support strategic opportunities and growth strategy; underlying trends driving customer demand; potential impacts of variability in bookings caused by the timing and geographies of customer capital expenditure decisions on larger opportunities; the ability to achieve revenue growth organically and by identifying strategic acquisition opportunities; expected capital expenditures for fiscal 2027; the remediation plan for the material weakness in the Company's internal control over financial reporting, and the effectiveness of the upgraded ERP system; the uncertainty and potential impact on the Company's business and operations due to the current macroeconomic environment including the impacts of inflation, uncertainty caused by the supply chain dynamics, interest rate changes, tariffs imposed by the U.S. and the shifting trade dynamics, geo-political issues, and regional or global conflicts; steps taken by the Company to mitigate risks as a result of the tariffs imposed by the U.S., and the Company’s expectation that such tariffs do not have a material impact on the Company; and the Company's belief with respect to the outcome or impact of any lawsuits, claims, counterclaims and contingencies. Forward-looking statements are inherently subject to significant known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of ATS, or developments in ATS' business or in its industry, to differ materially from the anticipated results, performance, achievements, or developments expressed or implied by such forward-looking statements. Important risks, uncertainties, and factors that could cause actual results to differ materially from expectations expressed in the forward-looking statements include, but are not limited to: the impact of regional or global conflicts; general market performance including capital market conditions and availability and cost of credit; risks related to the shifting trade dynamics including tariffs and trade restrictions; risks related to a recession, slowdown, and/or sustained downturn in the economy; performance of the markets that ATS serves; industry challenges in securing the supply of labour, materials, and, in certain jurisdictions, energy sources such as natural gas; impact of inflation; interest rate changes; foreign currency and exchange risk; the relative weakness of the Canadian dollar; risks related to customer concentration; risks related to any customer disagreements; impact of factors such as increased pricing pressure, decreases in availability and a corresponding increase in cost of energy and supplies, and delays in relation thereto, further delays or revisions of customer awards, lower-than-expected Order Bookings, failure of expected Order Bookings to materialize over the balance of fiscal 2027, delays in converting Order Bookings or Order Backlog into revenue, and possible margin compression related thereto; the regulatory and tax environment; the emergence of new infectious diseases or any epidemic or pandemic outbreak or resurgence, and collateral consequences thereof, including the disruption of economic activity, volatility in capital and credit markets, and legislative and regulatory responses; the impacts of inflation, uncertainty caused by the supply chain dynamics, interest rate changes, shifting trade dynamics and tariffs, and regional or global conflicts that have in the past and may in the future lead to significant price and trading fluctuations in the market price for securities in the stock markets, including the TSX and the NYSE; energy shortages and global price increases; inability to successfully expand through development of new markets and business platforms, expanding service offerings, investment in innovation and product development, and strategic and disciplined acquisition, due to an inability to grow expertise, personnel, and/or facilities at required rates or to identify, negotiate and conclude one or more acquisitions; or to raise, through debt or equity, or otherwise have available, required capital; that the ABM is not effective in accomplishing its goals; that ATS is unable to expand in emerging markets, or is delayed in relation thereto, due to any number of reasons, including inability to effectively execute organic or inorganic expansion plans, focus on other business priorities, or local government regulations or delays; that the timing of completion of new Order Bookings is other than as expected due to various reasons, including schedule changes or the customer exercising any right to withdraw the Order Booking or to terminate the program in whole or in part prior to its completion, thereby preventing ATS from realizing on the full benefit of the program; that some or all of the sales funnel is not converted to Order Bookings due to competitive factors or failure to meet customer needs; that the market opportunities ATS anticipates do not materialize, develop slower than expected or that ATS is unable to exploit such opportunities; failure to convert Order Backlog to revenue and/or variations in the amount of Order Backlog completed in any given quarter; timing of customer decisions related to large enterprise programs and potential for negative impact associated with any cancellations or non-performance in relation thereto; that the Company is not successful in growing its product portfolio and/or service offering or that expected benefits are not realized; that efforts to improve adjusted earnings from operations margin in fiscal 2027 and over long-term are unsuccessful, due to any number of reasons, including less than anticipated increase in after-sales service revenues or reduced margins attached to those revenues, inability to achieve lower costs through supply chain management, price and lead-time volatility, failure to develop, adopt internally, or have customers adopt, standardized platforms and technologies, inability to maintain current cost structure if revenues were to grow, and failure of ABM to impact margins; that after-sales or reoccurring revenues do not provide the expected balance to customers' expenditure cycles; that revenues are not in the expected range; that acquisitions made are not integrated as quickly or effectively as planned or expected and, as a result, anticipated benefits and synergies are not realized; non-cash working capital as a percentage of revenues operating at a level other than as expected due to reasons, including, the timing and nature of Order Bookings, the timing of payment milestones and payment terms in customer contracts, and delays in customer programs; that planned reorganization activities are not completed at the cost or within the timelines expected, or at all; underlying trends driving customer demand will not materialize or have the impact expected; that capital expenditure targets are increased in the future or the Company experiences cost increases in relation thereto; the remediation plan for the material weakness in the Company's internal control over financial reporting and the upgraded ERP system are not effective; risk that the ultimate outcome of lawsuits, claims, and contingencies give rise to material liabilities for which no provisions have been recorded; the consequence of activist initiatives on the business performance, results, or share price of the Company; the impact of analyst reports on price and trading volume of ATS' shares; impact of the leadership transition; and other risks and uncertainties detailed from time to time in ATS' filings with securities regulators, including, without limitation, the risk factors described in ATS' Annual Information Form, which are available on the System for Electronic Data Analysis and Retrieval+ (SEDAR+) at www.sedarplus.ca and on the U.S. Securities Exchange Commission's Electronic Data Gathering, Analysis and Retrieval System (EDGAR) at www.sec.gov. ATS has attempted to identify important factors that could cause actual results to materially differ from current expectations, however, there may be other factors that cause actual results to differ materially from such expectations. Forward-looking statements are necessarily based on a number of estimates, factors, and assumptions regarding, among others, management's current plans, estimates, projections, beliefs and opinions, the future performance and results of the Company's business and operations; the ability of ATS to execute on its business objectives; the effectiveness of ABM in accomplishing its goals; the ability to successfully implement margin expansion initiatives; management's assessment as to the project schedules across all customer contracts in Order Backlog, the strengthening of Order Bookings over the balance of fiscal 2027 and the conversion of those Order Bookings and Order Backlog into revenue within expected timelines, faster-turn product and services revenues, expected delivery timing of third-party equipment and operational capacity; the volume of outstanding projects the Company is contracted to perform, the size and duration of those projects, and the timing of project activities including design, assembly, testing, and installation will support revenue growth; initiatives in furtherance of the Company's goal of improving its adjusted earnings from operations margin in fiscal 2027 and over the long term will result in improvements to adjusted earnings from operations margin; the anticipated growth or capabilities in the life sciences, radiopharmaceuticals, food & beverage, consumer products, energy, and nuclear markets; the ability to seek out, enter into and successfully integrate acquisitions; the Company's expectations of industry consolidation over the next two years; ongoing cost inflationary pressures and the Company's ability to respond to such inflationary pressures; the effects of foreign currency exchange rate fluctuations on its operations; the Company's competitive position in the industry, including global presence, size and critical mass, technical skills, capabilities and experience, product and technology portfolio, recognized brands, trusted customer relationships, and total-solutions capabilities; the underlying trends driving customer demand for ATS solutions remain favourable; the Company's ability to adapt and develop solutions that keep pace with continuing changes in technology and customer needs; the ability to maintain mutually beneficial relationships with the Company's customers; planned restructuring and reorganization activities will be implemented as expected and within anticipated cost ranges; and general economic and political conditions, and global events, including any regional and global conflicts, epidemic or pandemic outbreak or resurgence, and the international trade dynamics. Forward-looking statements included in this news release are only provided to understand management's current expectations relating to future periods and, as such, are not appropriate for any other purpose. Although ATS believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and ATS cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. ATS does not undertake any obligation to update forward-looking statements contained herein other than as required by law. Certain forward-looking information included in this news release may also constitute a "financial outlook" within the meaning of applicable securities laws. Such financial outlook may include, without limitation, statements regarding expected revenues, expected adjusted earnings from operations margin, adjusted earnings from operations margin targets, expected restructuring costs, expected capital expenditures and free cash flow targets. Financial outlook involves statements about ATS' prospective financial performance, financial position or cash flows that is based on and subject to the assumptions about future economic conditions and courses of action described above as well as management's assessment of project schedules across all customer contracts in Order Backlog, expectations for faster-turn product and services revenues, expected delivery timing of third-party equipment and operational capacity, and lower costs achieved from the transportation reorganization. Such assumptions are based on management's assessment of the relevant information currently available and any financial outlook included herein is provided for the purpose of helping readers understand management's current expectations and plans for the future as of the date hereof. The actual results of ATS' operations may vary from the amounts set forth in any financial outlook and such variances may be material. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above and other factors may cause actual results to differ materially from any financial outlook. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806593186/en/ Contacts For more information, contact: David OcampoHead of Investor RelationsATS Corporation730 Fountain Street NorthCambridge, ON, N3H 4R7(519) [email protected] For general media inquiries, contact: Matthew RobinsonDirector, Corporate Affairs & CommunicationsATS Corporation730 Fountain Street NorthCambridge, ON, N3H 4R7(519) [email protected]

ATS (ATS) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This automation services provider is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -6.7%. Revenues are expected to be $520.14 million, down 2.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.08% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For ATS, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that ATS will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that ATS would post earnings of $0.32 per share when it actually produced earnings of $0.26, delivering a surprise of -18.75%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. ATS doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Manufacturing - General Industrial industry, Trimble Navigation (TRMB), is soon expected to post earnings of $0.8 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +12.7%. This quarter's revenue is expected to be $950.94 million, up 8.6% from the year-ago quarter. The consensus EPS estimate for Trimble has been revised 0.8% higher over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Trimble will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ATS Corporation (ATS) : Free Stock Analysis Report Trimble Inc. (TRMB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CAMBRIDGE, Ontario, July 23, 2026--(BUSINESS WIRE)--ATS Corporation (TSX: ATS) (NYSE: ATS) ("ATS" or the "Company") will report its financial results for the first quarter ended June 28, 2026, before markets open on Thursday August 06, 2026. At 8:30 a.m. Eastern on August 06, 2026, the Company will host a conference call and webcast of management's quarterly remarks and follow up question and answer period with analysts. The listen-only webcast can be accessed at https://events.q4inc.com/attendee/766230709 and the conference call can be accessed by dialing (800) 715-9871 five minutes prior and quoting reference number 4581797. A replay of the conference will be available on the ATS website following the call. Alternatively, a telephone recording of the call will be available for one week (until midnight August 13, 2026) by dialing (800) 770-2030 and entering passcode 4581797. Annual Meeting of ShareholdersATS will host its Annual Meeting of Shareholders on Thursday August 6, 2026, at 10:30 a.m. eastern. The virtual-only meeting can be accessed at meetings.lumiconnect.com/400-620-211-650. The Company's Management Information Circular, which includes details of the business to be conducted at the meeting and instructions on how to use the platform, together with other meeting related materials, can be found on the Company's website at www.atsautomation.com, at www.sedarplus.com, and on the U.S. Securities and Exchange Commission's EDGAR website at www.sec.gov. About ATS CorporationATS Corporation is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added solutions including preautomation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, transportation, food & beverage, consumer products, and energy. Founded in 1978, ATS employs over 7,000 people at more than 65 manufacturing facilities and over 85 offices in North America, Europe, Asia and Oceania. The Company's common shares are traded on the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE") under the symbol ATS. Visit the Company's website at www.atsautomation.com. SOURCE: ATS Corporation View source version on businesswire.com: https://www.businesswire.com/news/home/20260723340408/en/ Contacts For more information, contact: David OcampoHead of Investor RelationsATS Corporation730 Fountain Street NorthCambridge, ON, N3H 4R7(519) [email protected] For general media inquiries, contact: Matthew RobinsonDirector, Corporate Communications & AffairsATS Corporation730 Fountain Street NorthCambridge, ON, N3H 4R7(519) [email protected]

ATS Corporation (TSE:ATS) shareholders are probably feeling a little disappointed, since its shares fell 9.9% to CA$42.63 in the week after its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of CA$3.0b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 33% to hit CA$0.73 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ATS after the latest results. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, the consensus forecast from ATS' six analysts is for revenues of CA$3.04b in 2027. This reflects an okay 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 88% to CA$1.38. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$3.10b and earnings per share (EPS) of CA$1.62 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts. View our latest analysis for ATS It might be a surprise to learn that the consensus price target was broadly unchanged at CA$49.54, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ATS, with the most bullish analyst valuing it at CA$57.00 and the most bearish at CA$41.76 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ATS shareholders. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that ATS' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that ATS is also expected to grow slower than other industry participants. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ATS' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ATS analysts - going out to 2028, and you can see them free on our platform here. It is also worth noting that we have found 1 warning sign for ATS that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

ATS (ATS) came out with quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -17.46%. A quarter ago, it was expected that this automation services provider would post earnings of $0.3 per share when it actually produced earnings of $0.34, delivering a surprise of +13.33%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. ATS, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $544.64 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $399.96 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ATS shares have added about 28.1% since the beginning of the year versus the S&P 500's gain of 9.9%. While ATS has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ATS was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $543.01 million in revenues for the coming quarter and $1.51 on $2.27 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Graham (GHM), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on June 8. This maker of vacuum and heat-transfer equipment is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -30.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Graham's revenues are expected to be $60.12 million, up 1.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ATS Corporation (ATS) : Free Stock Analysis Report Graham Corporation (GHM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research