ATS Reports Third Quarter Fiscal 2026 Results

Executive Summary

• ATS reported Q3 FY2026 revenue of C$760.7 M, a 16.7% YoY increase, and net income of C$30.0 M (C$0.31 EPS), up from C$6.5 M (C$0.07 EPS) a year earlier.
• Adjusted EBITDA rose to C$105.2 M (+20.2% YoY) with an adjusted margin of 13.8%, reflecting strong organic growth across all markets except transportation.
• Order Bookings fell 7.0% YoY to C$821 M, but the order backlog remained stable at C$2.053 B, supporting revenue visibility into FY2026 Q4.

Key Details

• Revenue Highlights
• Q3 FY2026: C$760.7 M (+16.7% YoY).
• YTD FY2026: C$2,225.8 M (+13.6% YoY).

• Organic revenue growth: 12.6% YoY (C$733.7 M vs. C$600.2 M prior year).

• Profitability

• Net income Q3 FY2026: C$30.0 M vs. C$6.5 M a year ago (+361.5%).
• Adjusted basic EPS Q3 FY2026: $0.48 vs. $0.32 prior year (+50.0%).

• Adjusted EBITDA margin Q3 FY2026: 13.8% (up 41 bps YoY).

• Order Bookings & Backlog

• Q3 Order Bookings: C$821 M, down 7.0% YoY (organic decline of 10.4%).
• YTD Order Bookings: C$2,248 M, down 7.9% YoY.
• Order Backlog as of Dec 28 2025: C$2,053 M (‑0.3% YoY).

• Book‑to‑bill ratio (12‑month) at Dec 28 2025: 1.06:1.

• Segment Performance

• Life Sciences revenue +3.9% YoY (+C$14.7 M).
• Consumer Products revenue +57.4% YoY (+C$48.9 M).
• Food & Beverage revenue +10.2% YoY (+C$11.5 M).
• Energy revenue +161.6% YoY (+C$44.6 M).

• Transportation revenue –22.1% YoY (‑C$11.0 M).

• Cost & Margin Drivers

• Depreciation & amortization: C$40.3 M (up from C$37.9 M).
• Restructuring charges Q3 FY2026: C$5.5 M; total expected FY2026 restructuring expense ≈ C$20 M.

• Stock‑based compensation expense (mark‑to‑market) Q3 FY2026: C$1.4 M.

• Liquidity & Capital Structure

• Cash & cash equivalents end of quarter: C$263.1 M.
• Net debt: –C$1,235 M (cash surplus).
• Debt‑to‑equity ratio: 0.92:1 (down from 1.10:1).

• Free cash flow Q3 FY2026: C$98.0 M; YTD free cash flow: C$247.6 M.

• Outlook

• FY2026 Q4 revenue guidance: C$710 M–C$750 M.
• Management expects backlog to mitigate short‑term booking volatility and continues to target margin expansion through cost discipline and strategic acquisitions.

Notable Quotes

“Results reflected solid organic revenue growth across our diversified portfolio… Discipline embedded in the ATS Business Model positions us well to navigate the current environment and build long‑term value for customers and shareholders.” – Doug Wright, CEO