Q1 2026 ATS Corp Earnings Call Transcript
Key Points
- ATS Corp (ATS) reported a 6% increase in Q1 revenues, reaching $737 million, driven by recent acquisitions and foreign exchange benefits.
- The company's order backlog stands at approximately $2.1 billion, providing solid revenue visibility and a strong foundation for future growth.
- ATS Corp (ATS) continues to advance its strategy to grow repeatable revenue through services, consumables, and digital offerings, particularly in Life Sciences.
- The company has been recognized in Time Magazine's inaugural list of Canada's best companies 2025, ranking number one in the engineering, manufacturing, and medical technology category.
- ATS Corp (ATS) is actively engaged in strategic M&A opportunities and is focused on realizing synergies from recent acquisitions, contributing to long-term growth ambitions.
- Order bookings in Q1 were down 15% compared to the previous year, primarily due to lower transportation order bookings.
- Organic revenue growth was negative 1.2%, with lower transportation revenues only partially offset by growth in other sectors.
- The company incurred an additional $2.5 million in restructuring costs as part of a continuation of a previously announced program.
- Some customers in the lab research space are taking a more measured approach to capital spending due to changes in US government funding.
- ATS Corp (ATS) is currently focused on deleveraging, with a net debt to adjusted EBITDA ratio of 3.6 times, aiming to bring it down to the target range of 2 to 3 times.
Welcome to the ATS Corporation first quarter conference call and webcast. This call is being recorded on August 7, 2025, at 8:30 AM Eastern Time. Following the presentation, we will conduct a question-and-answer session.
I will now turn the call over to Arjun Kapur, Investor Relations Associate at ATS.
Thank you, operator, and good morning, everyone. On the call today are Andrew Hider, Chief Executive Officer of ATS; and Ryan McLeod, Chief Financial Officer.
Please note that our remarks today are accompanied by a slide deck, which can be viewed via our webcast and available at atsautomation.com. We caution that the statements made on the webcast and conference call may contain forward-looking information and our cautionary statement regarding such information including the material factors that could cause actual results to differ materially from the statements and the material factors or assumptions applied in making the statements are detailed in slide 3 of the slide deck.
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