ATS (NYSE:ATS) Releases Quarterly Earnings Results, Misses Expectations By $0.06 EPS

ATS (NYSE:ATS) posted its quarterly earnings data on Thursday. The company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.06), Zacks reports. ATS had a net margin of 2.40% and a return on equity of 9.44%. The firm had revenue of $535.09 million during the quarter, compared to analyst estimates of $529.43 million.

Here are the key takeaways from ATS’s conference call:

• ATS said fiscal 2026 revenue and adjusted earnings from operations both grew about 11% for the full year, reflecting solid execution across the platform. Q4 adjusted revenue also rose 3.2% year over year despite a tougher bookings comparison.
• The company is repositioning its transportation operations, including moving away from large-scale automotive projects and consolidating divisions. Management said this will remove about CAD 50 million of dilutive revenue and should improve margin and capital efficiency over time.
• ATS ended fiscal 2026 with about CAD 2 billion in backlog, with life sciences making up 55% of the total and energy backlog up roughly 40% year over year. Management said this provides good revenue visibility heading into fiscal 2027.
• For fiscal 2027, ATS expects modest revenue growth and 50-75 basis points of margin improvement, supported by restructuring, services integration, and operating discipline. The company also noted that growth timing is being affected by normalization in some life sciences programs, especially GLP-1-related work.
• Cash generation and balance sheet metrics improved meaningfully, with operating cash flow of CAD 150 million, working capital at 12.1% of revenue, and net debt to EBITDA at 2.8x. Management said leverage and working capital are now within target ranges, giving the company more flexibility for capital deployment and M&A.

ATS Stock Up 1.6%

ATS opened at $30.93 on Friday. The company has a quick ratio of 1.37, a current ratio of 1.65 and a debt-to-equity ratio of 0.82. The firm has a market cap of $3.03 billion, a P/E ratio of 59.48 and a beta of 1.26. ATS has a 52 week low of $23.84 and a 52 week high of $35.82. The business’s fifty day simple moving average is $31.70 and its 200 day simple moving average is $29.76.

Institutional Trading of ATS

A number of large investors have recently made changes to their positions in ATS. Stifel Financial Corp lifted its stake in shares of ATS by 3.9% in the 4th quarter. Stifel Financial Corp now owns 12,593 shares of the company’s stock valued at $347,000 after purchasing an additional 467 shares in the last quarter. Barclays PLC raised its holdings in shares of ATS by 16.8% during the 4th quarter. Barclays PLC now owns 5,264 shares of the company’s stock valued at $145,000 after buying an additional 756 shares during the period. Smartleaf Asset Management LLC purchased a new stake in shares of ATS during the 4th quarter valued at about $29,000. Quarry LP purchased a new stake in shares of ATS during the 3rd quarter valued at about $32,000. Finally, Raymond James Financial Inc. purchased a new stake in shares of ATS during the 2nd quarter valued at about $43,000. Institutional investors and hedge funds own 75.84% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Royal Bank Of Canada cut their price target on ATS from $51.00 to $50.00 and set an “outperform” rating for the company in a research note on Friday. Wall Street Zen cut ATS from a “strong-buy” rating to a “buy” rating in a research report on Sunday, February 15th. Scotiabank restated an “outperform” rating on shares of ATS in a research report on Tuesday, April 28th. Weiss Ratings upgraded ATS from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday. Finally, Zacks Research lowered ATS from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 10th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, ATS has an average rating of “Hold” and an average target price of $42.50.

ATS News Summary

Here are the key news stories impacting ATS this week:

• Positive Sentiment: TD Cowen reiterated a Buy rating on ATS Corporation and highlighted strong execution, intrinsic value growth, and an attractive long-term risk-reward setup, which can support investor confidence. Analyst Reiterates Buy on ATS Corporation, Highlighting Strong Execution, Intrinsic Value Growth and Attractive Long-Term Risk-Reward
• Positive Sentiment: Royal Bank of Canada kept an Outperform rating and raised its price target to $50 from $51, implying substantial upside from the current share price. ATS target lowered by RBC
• Positive Sentiment: ATS posted fiscal 2026 fourth-quarter revenue of $535.09 million, slightly ahead of analyst estimates, and the company reported strong growth for the quarter and full year, helped by consumer products and energy demand. ATS 4Q Loss Narrows as Consumer Products, Energy Drive Revenue Growth

About ATS

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.