ATS Reports First Quarter Fiscal 2026 Results

Executive Summary

• ATS Corporation reported financial results for the first quarter of fiscal 2026 (three months ended June 29, 2025), showing a 6.1% year-over-year increase in revenues to $736.7 million, driven by acquisitions and foreign exchange translation.
• Net income decreased 31.2% to $24.3 million (25 cents per share basic) compared to $35.3 million in the prior year, primarily due to higher SG&A, stock-based compensation, and net finance costs.
• CEO Andrew Hider stepped down effective immediately, with CFO Ryan McLeod assuming the role of Interim CEO and Anne Cybulski appointed as Interim CFO.

Key Details

• Revenues: $736.7 million (up 6.1% YoY); Organic revenue decreased 1.2%, while acquired company revenues contributed $28.6 million and foreign exchange translation added $22.5 million.
• Net Income: $24.3 million (down from $35.3 million YoY); Basic EPS was $0.25 (down from $0.36).
• Adjusted Metrics: Adjusted EBITDA was $101.5 million (down from $106.0 million); Adjusted EBITDA margin was 13.8% (down from 15.3%); Adjusted basic EPS was $0.41 (down from $0.50).
• Order Bookings: $693 million (down 15.2% YoY from $817 million); Organic order bookings declined 20.7%, partially offset by acquisition contributions and FX.
• Order Backlog: $2,068 million (up 9.9% YoY from $1,882 million); Trailing twelve-month book-to-bill ratio was 1.17:1.
• Market Performance:
  • Life Sciences revenues increased 15.3% to $378.8 million.
  • Food & Beverage revenues increased 43.1% to $138.5 million.
  • Consumer Products revenues increased 41.8% to $124.5 million.
  • Transportation revenues decreased 58.8% to $59.5 million (due to lower EV program backlog).
  • Energy revenues decreased 4.1% to $35.4 million.
• Costs & Expenses: Restructuring charges were $2.5 million; Stock-based compensation (mark-to-market) was $3.6 million; Net finance costs were $25.6 million.
• Cash Flow: Free cash flow was $139.5 million (vs. negative $51.3 million in prior year); Operating cash flow was $155.8 million.
• Balance Sheet: Cash and cash equivalents were $188.6 million; Net debt was $1,330.7 million (Net Debt to Pro Forma Adjusted EBITDA ratio of 3.6x).
• Outlook: Q2 FY2026 revenue guidance is $700 million to $740 million.
• Leadership Change: Andrew Hider departed as CEO and Director; Ryan McLeod became Interim CEO; Anne Cybulski became Interim CFO.

Notable Quotes

• "Today ATS reported our first quarter results for fiscal 2026, with revenue growth, including contributions from recent acquisitions, and adjusted earnings margins in line with our expectations," said Andrew Hider, Chief Executive Officer.
• "ATS is well positioned as a leader in automation, supported by our strong presence in growing, diversified end markets, a sizeable, high-quality Order Backlog and the ATS Business Model ('ABM') firmly entrenched within the culture of our decentralized businesses," said Ryan McLeod, Interim CEO.