ATS (NYSE:ATS) Announces Quarterly Earnings Results, Misses Estimates By $0.03 EPS

ATS (NYSE:ATS) released its quarterly 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. ATS had a return on equity of 9.00% and a net margin of 1.60%.The company had revenue of $488.38 million for the quarter, compared to analyst estimates of $509.71 million. During the same period last year, the firm posted $0.41 earnings per share. The business’s revenue was down 5.8% on a year-over-year basis.

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 Stock Up 3.1%

NYSE ATS traded up $0.64 on Friday, hitting $21.17. 428,320 shares of the stock traded hands, 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 stock has a 50-day moving average of $27.35 and a 200 day moving average of $29.80. ATS has a twelve month low of $19.14 and a twelve month high of $35.82. The company has a market capitalization of $2.08 billion, a P/E ratio of 17.40 and a beta of 1.22.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on ATS shares. Royal Bank Of Canada lowered their target price on ATS from $51.00 to $50.00 and set an “outperform” rating for the company in a research note on Friday, May 29th. Scotiabank restated an “outperform” rating on shares of ATS in a research note on Tuesday, April 28th. Zacks Research downgraded ATS from a “hold” rating to a “strong sell” rating in a report on Tuesday, June 9th. Desjardins began coverage on ATS in a research report on Tuesday, June 16th. They issued a “buy” rating on the stock. Finally, Weiss Ratings cut ATS from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, ATS currently has a consensus rating of “Hold” and a consensus target price of $42.50.

Trending Headlines about ATS

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 Investors Weigh In On ATS

A number of institutional investors have recently made changes to their positions in ATS. Royal Bank of Canada lifted its stake in ATS by 8.9% during the fourth quarter. Royal Bank of Canada now owns 7,644,547 shares of the company’s stock worth $210,529,000 after purchasing an additional 623,369 shares during the last quarter. EdgePoint Investment Group Inc. increased its stake in ATS by 8.0% during the fourth quarter. EdgePoint Investment Group Inc. now owns 6,888,785 shares of the company’s stock valued at $189,771,000 after purchasing an additional 507,491 shares during the last quarter. Bank of Montreal Can increased its stake in ATS by 187.1% during the fourth quarter. Bank of Montreal Can now owns 3,022,693 shares of the company’s stock valued at $83,269,000 after purchasing an additional 1,970,040 shares during the last quarter. Invesco Ltd. raised its holdings in shares of ATS by 6.3% during the fourth quarter. Invesco Ltd. now owns 1,272,222 shares of the company’s stock worth $35,037,000 after purchasing an additional 75,490 shares during the period. Finally, Bank of America Corp DE raised its holdings in shares of ATS by 45.2% during the third quarter. Bank of America Corp DE now owns 1,251,695 shares of the company’s stock worth $32,794,000 after purchasing an additional 389,862 shares during the period. 75.84% of the stock is currently owned by institutional investors.

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.