ATS to Participate in the Raymond James Institutional Investors Conference-# ATS to Participate in the Raymond James Institutional Investors ConferenceShare---CAMBRIDGE, Ontario--([BUSINESS WIRE])-- ATS Corporation (TSX: ATS) (NYSE: ATS) ("ATS†or the "Company†) today announced that Doug Wright, Chief Executive Officer, and Anne Cybulski, Interim Chief Financial Officer, will participate in the Raymond James Institutional Investors Conference in Orlando, FL on March 3, 2026.ATS is scheduled to host a fires ...

Financial Data and Key Metrics Changes - Order bookings for Q3 were $821 million, up almost 12% sequentially and down 7% compared to Q3 last year [10][16] - Q3 revenues reached $761 million, representing a 16.7% increase year-over-year, driven by organic growth of 12.6% and a 4.1% benefit from foreign exchange [10][17] - Adjusted earnings from operations in Q3 were $80 million, a 21.6% increase from Q3 last year [10][17] - Gross margin for Q3 was 29.6%, a decrease of 111 basis points from the previous year due to program mix [17] - The company ended the quarter with an order backlog of approximately $2.1 billion [11][18] Business Line Data and Key Metrics Changes - In life sciences, order backlog was $1.1 billion, with revenues for the quarter at $391 million, the second highest in ATS's history [11][12] - In food and beverage, Q3 order backlog was CAD 203 million, with strong funnel activity driven by brand recognition [12] - Energy sector order backlog reached a record CAD 296 million, up 87% over Q3 last year, driven by refurbishment and life extension projects for nuclear reactors [12][13] - Consumer products backlog hit a record CAD 321 million, supported by a large enterprise warehouse packaging automation program [14] Market Data and Key Metrics Changes - The company reported strong demand in life sciences, particularly in radiopharmaceuticals and GLP-1 auto-injectors [11][12] - The energy sector is experiencing growth due to refurbishment projects and new build programs, including both large-scale reactors and small modular reactors (SMRs) [12][13] - The transportation segment continues to reflect smaller-scale opportunities, with a cautious approach to pursuing larger projects [68] Company Strategy and Development Direction - The company is focused on margin expansion, capital allocation, and leveraging its strong lean operating system [5][8] - Recent leadership appointments aim to strengthen operational capabilities in key end markets [6][7] - The strategy includes embedding the growing services business within operating units to enhance accountability and customer alignment [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute and deliver long-term value, despite a dynamic macro environment [20] - The company has not been materially impacted by tariffs and continues to adapt to customer needs across different geographies [20] - Management remains optimistic about the outlook for ATS, emphasizing the potential for margin expansion and capital efficiency [29] Other Important Information - The company incurred CAD 5.5 million in restructuring costs during the quarter, with total costs expected to be approximately CAD 20 million [19] - Cash flows from operating activities were CAD 115 million, with non-cash working capital as a percentage of revenues improving to 16.4% [21] - Capital expenditures for the quarter were $16.6 million, with expectations for fiscal 2026 CapEx between $70 million and $90 million [21] Q&A Session Summary Question: Doug's priorities in the first 90 days - Doug highlighted a focus on core end markets, margin expansion potential, and disciplined capital deployment [28][29] Question: Connection between margin improvement and gross margin change - Anne explained that gross margin changes reflect program execution and backlog dynamics, with ongoing opportunities for improvement [34][35] Question: Outlook for nuclear and life sciences segments - Anne discussed strong backlog in nuclear and ongoing growth in life sciences, with new orders contributing to the positive outlook [39][40] Question: Capital allocation and working capital targets - Doug indicated that while it's premature to set new targets, the company is focused on improving working capital efficiency and considering M&A opportunities [44][46] Question: Impact of reshoring and tariffs on business - Doug noted that while reshoring discussions are prevalent, the primary driver for capacity expansion is the increased demand for therapeutics [65] Question: Transportation segment outlook - Doug mentioned a cautious approach to the transportation segment, focusing on targeted niches rather than large-scale projects [68]

Financial Data and Key Metrics Changes - Order bookings for Q3 were $821 million, up almost 12% sequentially, and revenues were $761 million, up almost 17% from Q3 last year, driven primarily by organic growth [10][11] - Adjusted earnings from operations in Q3 were $80 million, in line with expectations, with earnings per share at $0.48 on an adjusted basis [11][18] - The trailing-twelve-month book-to-bill ratio at the end of Q3 remained healthy at 1.06 to 1 [16] Business Line Data and Key Metrics Changes - In life sciences, order backlog was $1.1 billion, with revenues for the quarter at $391 million, the second highest in ATS's history [11][12] - In food and beverage, Q3 order backlog was CAD 203 million, with strong funnel activity driven by brand recognition [12] - In energy, order backlog reached a record CAD 296 million, up 87% over Q3 last year, driven by refurbishment and life extension projects for nuclear reactors [12][13] - Consumer products backlog reached a record CAD 321 million, supported by a large enterprise warehouse packaging automation program [14] Market Data and Key Metrics Changes - Demand remains constructive in end markets, with ATS's global scale supporting consistent execution in multiple regions [11] - The nuclear segment is seeing significant activity in life extension projects and new builds, with ongoing engagement in modular fabrication and fuel handling [42] - The life sciences segment is expanding with new innovations in radiopharma and medical technology applications [44] Company Strategy and Development Direction - The company is focused on margin expansion, capital allocation discipline, and leveraging its strong lean operating system to drive sustained results [4][8] - Recent leadership appointments aim to strengthen operational capabilities in key end markets, including life sciences and packaging [7] - The strategy includes embedding the growing services business within operating units to enhance accountability and customer alignment [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the depth and capability of the organization, emphasizing a commitment to operational excellence and disciplined execution [15] - The macro environment remains dynamic amid geopolitical and trade uncertainty, but the company has not been materially impacted by tariffs [20] - The outlook for Q4 revenues is expected to be in the range of $710 million to $750 million, with a healthy and diversified order funnel [18] Other Important Information - The company incurred CAD 5.5 million of restructuring costs, with total costs under the program now expected to be approximately CAD 20 million [19] - Cash flows from operating activities were CAD 115 million, with non-cash working capital as a percentage of revenues improving to 16.4% [21] Q&A Session Summary Question: Doug's 90-day and 6-month priorities - Doug highlighted the focus on core end markets, margin expansion potential, and disciplined capital deployment [28][30] Question: Correlation between margin improvement and gross margin change - Anne explained that gross margin dynamics are reflective of backlog execution and program timing, with ongoing opportunities for improvement [34][35] Question: Insights on nuclear and life sciences segments - Anne noted that the energy backlog is focused on life extension projects, while Doug emphasized the strong pipeline in life sciences with new applications [39][44] Question: Working capital targets and M&A plans - Doug mentioned that it's premature to set new financial targets but emphasized the importance of improving working capital and being thoughtful about M&A capital deployment [46][48] Question: Updates on GLP-1 and other therapies - Doug discussed the ongoing demand for GLP-1 therapies and the need to diversify the pipeline with new technologies [55] Question: Margin expansion initiatives from prior roles - Doug categorized margin improvement opportunities into three areas: ABM tool deployment, R&D focus on advanced applications, and increasing aftermarket mix [98][100]

Financial Data and Key Metrics Changes - Order bookings for Q3 were $821 million, up almost 12% sequentially, and revenues were $761 million, up almost 17% from Q3 last year, driven primarily by organic growth [10][11] - Adjusted earnings from operations in Q3 were $80 million, in line with expectations, with earnings per share at $0.48 on an adjusted basis [10][16] - The gross margin for Q3 was 29.6%, a 111 basis point decrease from last year, mainly due to program mix [16] Business Line Data and Key Metrics Changes - In life sciences, order backlog was $1.1 billion, with revenues for the quarter at $391 million, the second highest in ATS's history [11][12] - The food and beverage segment had a Q3 order backlog of CAD 203 million, while the energy segment's order backlog reached a record CAD 296 million, up 87% over Q3 last year [12] - Consumer products backlog reached a record CAD 321 million, supported by a large enterprise warehouse packaging automation program [13] Market Data and Key Metrics Changes - The company reported strong demand in life sciences, particularly in radiopharma and GLP-1 auto-injectors, with ongoing customer engagement [11][12] - The energy sector is seeing significant growth due to refurbishment and life extension projects for nuclear reactors, alongside new build programs [12][13] - The transportation segment continues to reflect smaller-scale opportunities, with a cautious approach to larger projects [67] Company Strategy and Development Direction - The company is focused on margin expansion, capital allocation, and leveraging its strong lean operating system to drive sustained results [4][7] - Recent leadership changes aim to strengthen accountability and improve customer alignment, particularly in the services business [6] - The company plans to deploy capital with a high level of discipline, emphasizing margin improvement and new technologies [29][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the depth and capability of the organization, highlighting a healthy and diversified order backlog [14][21] - The macro environment remains dynamic amid geopolitical and trade uncertainty, but the company has not been materially impacted by tariffs [19] - Management remains optimistic about the outlook for ATS, with a focus on core end markets and margin expansion potential [30] Other Important Information - The company incurred CAD 5.5 million in restructuring costs during the quarter, with total costs expected to be approximately CAD 20 million [18] - Cash flows from operating activities were CAD 115 million, with non-cash working capital as a percentage of revenues improving to 16.4% [20] Q&A Session Summary Question: Doug's priorities in the first 90 days - Doug emphasized focusing on core end markets, realizing margin expansion potential, and disciplined capital deployment [28] Question: Correlation between margin improvement and gross margin change - Management indicated that gross margin changes reflect program execution and backlog dynamics, with ongoing opportunities for improvement [31][35] Question: Insights on nuclear and life sciences segments - Management noted strong backlog in nuclear life extension projects and ongoing growth in life sciences, particularly in radiopharma [39][42] Question: Working capital targets and M&A plans - Doug mentioned that while it's premature to set new working capital targets, there is a focus on disciplined capital allocation, including M&A opportunities [45][46] Question: Updates on GLP-1 and other therapies - Management confirmed ongoing strong demand for GLP-1 therapies while also diversifying the pipeline with new applications in radiopharma and oncology [54][56] Question: Transportation segment outlook - The transportation segment is viewed cautiously, with a focus on targeted niches rather than large-scale projects [66] Question: Context on bookings growth - Management expressed confidence in a healthy pipeline and robust bookings outlook despite timing impacts [88]

Q3 2026 Earnings Call February 4, 2026 8:30am ET Today's Hosts Doug Wright Chief Executive Officer Ryan McLeod Chief Financial Officer Anne Cybulski VP, Corporate Controller 2 Forward Looking Statements Note to Reader: This presentation and the oral statements made during this call contain certain statements that may constitute forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws ("forward-looking statements"). All such statem ...

Financial Performance - Revenues for the three months ended December 28, 2025, increased to CAD 760,653 thousand, up 16.7% from CAD 651,993 thousand in the same period last year[3] - Net income for the three months ended December 28, 2025, was CAD 30,033 thousand, compared to CAD 6,505 thousand for the same period in 2024, representing a significant increase of 361.5%[3] - Earnings per share attributable to shareholders for the three months ended December 28, 2025, were CAD 0.31, compared to CAD 0.07 in the prior year, reflecting a growth of 342.9%[3] - For the nine months ended December 28, 2025, the net income was CAD 87,937,000, compared to CAD 40,913,000 for the same period in 2024, representing a 114% increase[8] - Income before income taxes for the three months ended December 28, 2025, was $33,643 thousand, compared to $10,642 thousand for the same period in 2024, representing a 216% increase[61] Assets and Liabilities - Total assets decreased to CAD 4,482,793 thousand as of December 28, 2025, down from CAD 4,621,872 thousand as of March 31, 2025[2] - Total liabilities decreased to CAD 2,701,257 thousand as of December 28, 2025, compared to CAD 2,912,515 thousand as of March 31, 2025, indicating a reduction of 7.2%[2] - The company reported a total equity of CAD 1,781,536,000 as of December 28, 2025, up from CAD 1,756,040,000 as of December 29, 2024, reflecting an increase of 1.5%[6] - The total long-term debt as of December 28, 2025, was $1,365,711, a decrease from $1,543,678 on March 31, 2025[57] - The balance of warranty provisions at December 28, 2025, was $10,651, an increase from $10,362 at March 31, 2025[45] Cash Flow and Operating Costs - Cash and cash equivalents increased to CAD 263,088 thousand as of December 28, 2025, up from CAD 225,947 thousand as of March 31, 2025, showing a growth of 16.5%[2] - Operating costs for the three months ended December 28, 2025, were CAD 535,780 thousand, an increase from CAD 454,061 thousand in the same period last year, representing an increase of 17.9%[3] - Cash flows provided by operating activities for the nine months ended December 28, 2025, were CAD 298,881,000, a significant recovery from a cash outflow of CAD 13,555,000 in the same period of 2024[8] Comprehensive Income - Comprehensive income for the three months ended December 28, 2025, was CAD 7,820 thousand, down from CAD 65,008 thousand in the prior year, reflecting a decrease of 88.0%[4] - Total comprehensive income for the nine months ended December 28, 2025, was CAD 82,027,000, compared to CAD 122,620,000 for the same period in 2024, indicating a decrease of 33%[8] Acquisitions and Investments - The company engaged in business acquisitions, net of cash acquired, amounting to CAD 2,280,000 during the three months ended December 28, 2025[8] - The Company acquired 100% of Paxiom Group for a total purchase price of $146,438, with cash consideration of $136,515 after accounting for cash acquired[20][21]. - The Company also acquired Heidolph Instruments for $45,064, with cash consideration of $42,874 after accounting for cash acquired[25][27]. Inventory and Write-downs - As of December 28, 2025, inventories totaled $308,136, a decrease from $320,172 as of March 31, 2025[30]. - The amount charged to net income for inventory write-downs was $5,908 for the nine months ended December 28, 2025, compared to $3,073 for the same period in 2024[31]. Shareholder Information - The Company announced a normal course issuer bid allowing the repurchase of up to 8,225,621 common shares by December 21, 2026[58] - The Company’s common shares outstanding increased to 96,948,447 as of December 28, 2025, from 96,885,705 at March 31, 2025[60] Taxation - The effective income tax rate for the nine months ended December 28, 2025, was 25%, down from 29% in the same period in 2024, resulting in an income tax expense of $28,678 thousand compared to $16,438 thousand[61] - The company recognized income tax expense related to the Global Minimum Tax Act of $605 thousand and $1,777 thousand for the three and nine months ended December 28, 2025, respectively[63] Risk Management - For the three and nine months ended December 28, 2025, the Company recorded risk management losses of $2,586 and $1,108, respectively, compared to losses of $13,310 and $17,501 for the same periods in 2024[44] - The Company is monitoring the global tariff environment but has not seen a material impact on its financial position or operations[19]. IFRS Standards - The Company expects the adoption of new IFRS standards, including IFRS 18, to improve financial statement transparency starting January 1, 2027[13].

Core Insights - ATS Corporation reported strong financial results for the third quarter of fiscal 2026, with revenues increasing by 16.7% year-over-year to $760.7 million, driven by organic revenue growth across various markets [1][2][3] - The company experienced a net income of $30.0 million, significantly up from $6.5 million in the same quarter last year, reflecting improved operational performance [2][5] - Adjusted basic earnings per share rose to 48 cents from 32 cents a year ago, indicating enhanced profitability [1][2] Financial Performance - Revenues for the third quarter were $760.7 million, a 16.7% increase from $652.0 million in the previous year [1][4] - Year-to-date revenues reached $2,225.8 million, up 13.6% from $1,959.0 million [1][4] - Net income for the third quarter was $30.0 million, compared to $6.5 million in the prior year, marking a 361.5% increase [2][5] - Adjusted EBITDA for the third quarter was $105.2 million, a 20.2% increase from $87.5 million a year ago [1][4] Order Bookings and Backlog - Order Backlog as of December 28, 2025, was $2,053 million, slightly down from $2,060 million a year ago [1][2] - Order Bookings for the third quarter were $821 million, a decrease of 7.0% year-over-year, primarily due to a decline in organic Order Bookings [2][3] - Year-to-date Order Bookings totaled $2,248 million, down from $2,442 million in the previous year [1][2] Market Performance - Revenue growth was observed across various sectors, with life sciences increasing by 3.9%, consumer products by 57.4%, and energy by 161.6% year-over-year [2][4] - The transportation sector saw a decline in revenues by 22.1% due to lower Order Backlog [2][3] - The company noted strong demand in the food & beverage sector, particularly in automated solutions [3][4] Management and Strategic Outlook - Doug Wright was appointed as CEO, with a focus on enhancing execution discipline and capital allocation [1][2] - The company is optimistic about its diversified portfolio and leadership team, aiming to navigate current market conditions effectively [1][3] - Management anticipates revenues in the fourth quarter of fiscal 2026 to be between $710 million and $750 million [3][4]

Industry Overview - The U.S. manufacturing sector is showing signs of recovery after over three years of struggle, with the ISM Manufacturing PMI rising to 52.6 in January from 47.9 in December, marking the highest reading since 2022 and the first expansion in 12 months [1][3][9] - The New Orders Index increased by 9.7% to 57.1%, the highest level since February 2022, while the Production Index rose to 55.9%, a 5.2% increase from December [4][9] Economic Context - Inflation has eased over the past two quarters, and the Federal Reserve cut interest rates by 75 basis points last year, which has reduced borrowing costs and price pressures, thereby driving demand [5] - The Federal Reserve maintained interest rates in the range of 3.5% to 3.75% at the January meeting, indicating openness to further rate cuts depending on inflation trends [6] Investment Opportunities - Four stocks from the manufacturing sector are highlighted for investment: ATS Corporation, Nordson Corporation, Donaldson Company, Inc., and RBC Bearings Incorporated, all carrying a Zacks Rank 2 (Buy) [2] - ATS Corporation is expected to have an earnings growth of 18.9% for the current year, with a 0.8% improvement in the Zacks Consensus Estimate over the past 60 days [7] - Nordson Corporation anticipates a 9.3% earnings growth for the current year, with a 2.3% increase in the Zacks Consensus Estimate [10][11] - Donaldson Company, Inc. expects a 10.1% earnings growth for the current year, with a 0.7% improvement in the Zacks Consensus Estimate [12] - RBC Bearings Incorporated projects an earnings growth of 18.6% for the current year, with a 0.3% increase in the Zacks Consensus Estimate [13]

Core Viewpoint - ATS Corporation will report its financial results for the third quarter ended December 28, 2025, before markets open on February 04, 2026 [1] Financial Reporting - The financial results will be announced before the market opens on February 04, 2026 [1] - A conference call and webcast will be hosted at 8:30 a.m. Eastern on the same day for management's quarterly remarks and a follow-up Q&A session with analysts [1] - The listen-only webcast can be accessed through a provided link [1]

Company Leadership Changes - Ryan McLeod has resigned from his role as Chief Financial Officer (CFO) effective February 15, 2026, to pursue an opportunity in an unrelated industry [1] - Anne Cybulski, VP and Corporate Controller, will take on the role of interim CFO while a search for a permanent replacement is conducted [2] - Michael Martino, Chairman of the ATS Board of Directors, expressed gratitude for McLeod's nearly 20 years of leadership and contributions to strengthening the company's financial foundation [3] Company Background - ATS Corporation is a leading automation solutions provider serving various industries, including life sciences, transportation, food & beverage, consumer products, and energy [4] - The company was founded in 1978 and employs approximately 7,500 people across more than 65 manufacturing facilities and over 85 offices globally [4] - ATS's common shares are traded on the Toronto Stock Exchange and the NYSE under the symbol ATS [4]