ATS Reports Second Quarter Fiscal 2026 Results

Executive Summary

• ATS reported Q2 FY 2026 revenue of C$728.5 M, up 18.9% YoY, and net income of C$33.6 M versus a loss a year ago.
• Adjusted EBITDA rose to C$103.7 M (14.2% margin), and adjusted basic EPS increased to $0.45 from $0.25 a year prior.
• Order backlog grew 13.5% YoY to C$2,070 M, supporting revenue guidance of $700‑$740 M for Q3 FY 2026.

Key Details

• Revenue: C$728.5 M (Q2 FY26) vs. C$612.8 M (+18.9% YoY).
• Net Income: C$33.6 M (vs. a loss of C$0.9 M YoY).
• Basic EPS: $0.34 (vs. $(0.01) YoY).
• Adjusted EBITDA: C$103.7 M, margin 14.2% (up from 12.8%).
• Adjusted Basic EPS: $0.45 (vs. $0.25 YoY).
• Order Bookings: $734 M (down 1.1% YoY); organic bookings down 6.4%, offset by acquisitions (+2.0%) and FX (+3.3%).
• Order Backlog: C$2,070 M, +13.5% YoY; life‑sciences, food & beverage, consumer products, and energy markets all showed higher backlog, transportation down.
• Segment Revenue Highlights (Q2):
• Construction contracts: $401.6 M (+24.1%).
• Services: $168.8 M (+3.9%).
• Sale of goods: $158.1 M (+19.1%).
• Geographic/Market Growth: Life sciences +6.9% YoY, food & beverage +32.9%, consumer products +81.5%; transportation down 35.3% due to loss of EV customer program.
• Operating Metrics: Depreciation & amortization $39.4 M; EBITDA $114.6 M (15.7% margin).
• Liquidity: Cash & cash equivalents C$197.3 M; net debt (C$1,338.4 M); Debt‑to‑Equity 0.97:1.
• Free Cash Flow: Q2 positive $10.2 M (vs. –$61.6 M YoY).
• Guidance: Expected Q3 FY 2026 revenue $700‑$740 M, driven by existing backlog and faster‑turn product/services revenue.
• Reorganization Activity: Planned cost‑structure improvement actions to begin Q3 FY 26; estimated restructuring expense ≈ C$15 M.
• Conference Call: Scheduled for 8:30 a.m. ET on November 5, 2025 (webcast link provided).

Notable Quotes

“Our results this quarter reflect continued progress across our value drivers… we are positioned well to advance our growth strategy and create long‑term value for all stakeholders.” – Ryan McLeod, Interim CEO.