ATS (NYSE:ATS) Announces Earnings Results

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

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

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

ATS Price Performance

ATS traded up $0.64 on Friday, reaching $21.17. The stock had a trading volume of 428,320 shares, compared to its average volume of 195,396. The company has a current ratio of 1.64, a quick ratio of 1.36 and a debt-to-equity ratio of 0.78. The company has a market capitalization of $2.08 billion, a price-to-earnings ratio of 62.27 and a beta of 1.22. ATS has a fifty-two week low of $19.14 and a fifty-two week high of $35.82. The firm has a 50-day moving average of $27.35 and a 200-day moving average of $29.80.

Key ATS News

Here are the key news stories impacting ATS this week:

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

Institutional Trading of ATS

Several hedge funds and other institutional investors have recently made changes to their positions in ATS. Smartleaf Asset Management LLC acquired a new stake in ATS in the fourth quarter valued at $29,000. Quarry LP bought a new stake in shares of ATS in the 3rd quarter valued at about $32,000. Raymond James Financial Inc. bought a new stake in shares of ATS in the 2nd quarter valued at about $43,000. Barclays PLC increased its stake in shares of ATS by 16.8% in the fourth quarter. Barclays PLC now owns 5,264 shares of the company’s stock valued at $145,000 after buying an additional 756 shares during the period. Finally, SkyView Investment Advisors LLC acquired a new stake in shares of ATS in the second quarter valued at about $237,000. 75.84% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

ATS has been the topic of several analyst reports. Desjardins assumed coverage on shares of ATS in a research report on Tuesday, June 16th. They set a “buy” rating on the stock. Wall Street Zen downgraded shares of ATS from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Zacks Research cut ATS from a “hold” rating to a “strong sell” rating in a research note on Tuesday, June 9th. Scotiabank reaffirmed an “outperform” rating on shares of ATS in a report on Tuesday, April 28th. Finally, Weiss Ratings lowered ATS from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, ATS currently has an average rating of “Hold” and an average price target of $42.50.

ATS Company Profile

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

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