ATS Corporation (ATS) AI Stock Analysis

• Market Cap: C$3.85B
• Dividend Yield: N/A
• Average Volume (3M): 190.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: -5.59%
• EPS Growth: -104.09%
• Country: US
• Employees: 7,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.45
• Shares Outstanding: 98,057,625
• 10 Day Avg. Volume: 163,690
• 30 Day Avg. Volume: 190,888
• PEG Ratio: 0.54
• Price to Book (P/B): 2.66
• Price to Sales (P/S): 1.47
• P/FCF Ratio: -66.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$49.21
• Price Target Upside: 26.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: C$46.00 ▲(18.04% Upside)

ATS Corporation's overall stock score reflects strong revenue growth and cash flow generation, as highlighted in the earnings call, which are significant positives. However, profitability challenges, as indicated by the negative P/E ratio and net profit margin, weigh heavily on the score. Technical indicators suggest potential resistance, and while corporate events provide positive visibility, they are less impactful on the overall score.

Positive Factors

Free Cash Flow Strength

Sustained FCF growth near 50% materially improves financial flexibility over quarters, enabling reinvestment in R&D, targeted M&A, and capital expenditures without relying heavily on new debt. This strengthens the firm’s ability to fund efficiency initiatives and weather demand cycles.

Large Order Backlog

A $2.1B backlog provides multi-quarter revenue visibility and de-risks near-term demand volatility. Strong life sciences and energy components make future revenue more predictable, allowing better capacity planning, margin improvement initiatives, and staged investment in automation capabilities.

Diversified End-Markets & Services

Exposure across automotive, life sciences, electronics plus recurring maintenance and consulting reduces single-market cyclicality. The mix of custom systems, robotics and services increases customer stickiness and recurring revenue potential, supporting steadier long-term cashflows.

Negative Factors

Negative Net Profit Margin

Persistent negative net margin and very low EBIT imply structural profitability weakness. Even with revenue growth, low conversion to profit limits free earnings available for reinvestment or returns, forcing reliance on operational fixes or higher-margin wins to sustain long-term value creation.

Rising SG&A and Restructuring Costs

Elevated SG&A partly from acquisitions and a planned ~$15M restructuring increase fixed cost pressure and absorb cash that could otherwise fund growth. If cost savings lag, margin recovery may be delayed, reducing the durability of any earnings improvements from revenue gains.

Order Bookings Weakness

A year-over-year decline in bookings signals potential softening in new demand despite a large backlog. If bookings stay weak, backlog replenishment may falter, compressing future revenue growth and making margin and cashflow improvements harder to sustain across quarters.

ATS Corporation Business Overview & Revenue Model

Company Description

ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in the planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. It offers enterprise solutions in the areas of project management; partners/suppliers/vendors team selection and coordination; facility layouts and operational design; business case development and project justification; post project service, spare parts, and support; and system design, built, integration, commissioning, validation, training and start up. In addition, the company offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services. Further, it provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. The company serves life sciences, transportation, consumer products, food and beverage, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.

How the Company Makes Money

ATS generates revenue through multiple streams, primarily from the sale of automated manufacturing systems and equipment. The company's revenue model includes direct sales of custom automation solutions, which are tailored to meet the specific needs of various industries. Additionally, ATS earns income from ongoing maintenance and support services, which provide recurring revenue opportunities. Strategic partnerships with key technology providers and industry leaders enhance its market presence and facilitate access to new customer segments. The company also benefits from long-term contracts with clients, ensuring a stable revenue flow over time.

ATS Corporation Financial Statement Overview

Summary

ATS Corporation demonstrates growth in revenue and strong cash flow generation, which are positive indicators. However, the company faces profitability challenges with a negative net profit margin and return on equity. The balance sheet is stable with a balanced leverage position, but shareholder returns are a concern. Overall, the company shows potential for growth but needs to address profitability and efficiency issues.

Income Statement

ATS Corporation shows a modest revenue growth rate of 4.49% in the TTM, indicating a positive trend. However, the net profit margin is negative at -1.52%, reflecting profitability challenges. The gross profit margin is healthy at 25.62%, but the EBIT margin is very low at 0.21%, suggesting operational inefficiencies. Overall, the income statement reflects growth potential but also highlights profitability issues.

Balance Sheet

The company's debt-to-equity ratio is 0.89, indicating a balanced approach to leveraging. However, the return on equity is negative at -2.29%, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at 37.56%, showing a stable capital structure. Overall, the balance sheet is stable but highlights concerns regarding shareholder returns.

Cash Flow

ATS Corporation's free cash flow growth rate is strong at 49.79%, indicating improved cash generation. The operating cash flow to net income ratio is 0.20, suggesting a moderate conversion of income to cash. The free cash flow to net income ratio is 0.68, reflecting a decent cash flow relative to net income. Overall, the cash flow statement shows robust cash generation, which is a positive indicator for financial health.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.69B	3.03B	2.53B	2.58B	2.18B	1.43B
Gross Profit	698.47M	855.50M	646.65M	725.81M	612.43M	384.26M
EBITDA	200.60M	458.54M	167.97M	349.94M	302.54M	192.15M
Net Income	-4.65M	193.74M	-28.05M	127.43M	122.10M	64.09M
Balance Sheet
Total Assets	4.67B	4.09B	4.62B	3.54B	3.07B	2.20B
Cash, Cash Equivalents and Short-Term Investments	263.15M	170.18M	225.95M	159.87M	135.28M	187.47M
Total Debt	1.74B	1.29B	1.70B	1.26B	1.10B	504.78M
Total Liabilities	2.91B	2.40B	2.91B	2.41B	2.08B	1.28B
Stockholders Equity	1.75B	1.68B	1.71B	1.13B	981.60M	895.26M
Cash Flow
Free Cash Flow	220.52M	-67.68M	-52.26M	47.50M	162.90M	153.59M
Operating Cash Flow	290.28M	20.78M	25.77M	127.80M	216.16M	185.16M
Investing Cash Flow	-89.41M	-341.98M	-268.44M	-109.02M	-797.47M	-88.13M
Financing Cash Flow	-255.69M	330.92M	290.28M	4.88M	531.53M	-259.12M

ATS Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 38.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATS, the sentiment is Neutral. The current price of 38.97 is below the 20-day moving average (MA) of 40.32, above the 50-day MA of 38.21, and above the 200-day MA of 38.68, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 37.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ATS.

ATS Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIS	72 Outperform	C$1.75B	28.17	10.22%	2.35%	3.93%	33.44%
ATS	66 Neutral	C$3.85B	-723.01	-0.27%	―	-5.59%	-104.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BLDP	47 Neutral	C$1.06B	-6.03	-18.07%	―	1.18%	62.71%
VLN	47 Neutral	C$306.52M	-7.26	-27.70%	3.06%	-18.71%	-845.27%
PYR	46 Neutral	C$50.61M	-4.90	―	―	-6.83%	46.97%
DYA	43 Neutral	C$48.29M	-4.13	-2067.79%	―	-48.39%	9.17%

ATS Corporation Corporate Events

ATS Sets February 4 Date for Third-Quarter Earnings Release and Investor Call

ATS Corporation will release its financial results for the third quarter ended December 28, 2025, before markets open on February 4, 2026, and will hold a conference call and webcast at 8:30 a.m. Eastern that same day for management’s remarks and a question-and-answer session with analysts. The company is providing multiple avenues for investors and stakeholders to access the live event and subsequent replay, underscoring its ongoing efforts to maintain transparency and engagement with the market ahead of a potentially significant quarterly update for the automation specialist.

The most recent analyst rating on (TSE:ATS) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation CFO Ryan McLeod to Step Down; Interim Successor Named

ATS Corporation announced that Chief Financial Officer Ryan McLeod will resign effective February 15, 2026, to pursue an opportunity in an unrelated industry after nearly two decades with the company, during which he was credited with strengthening its financial foundation and supporting long-term growth. Vice President and Corporate Controller Anne Cybulski, a long-serving finance executive who has previously acted as interim CFO, will again step into the role on an interim basis while the board conducts a search for a permanent successor, with leadership emphasizing continuity in the finance function and a smooth transition to sustain ATS’s growth trajectory.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS CFO Ryan McLeod to Step Down; Veteran Finance Executive Named Interim Successor

ATS Corporation announced that Chief Financial Officer Ryan McLeod will resign effective February 15, 2026, to pursue an opportunity outside the industry, ending nearly two decades with the automation company. Vice President and Corporate Controller Anne Cybulski, a long-serving finance executive who has previously acted as interim CFO, will again step into the role on an interim basis while the company searches for a permanent successor, with the board and CEO emphasizing the strength of the existing finance team and their confidence in a smooth leadership transition as ATS continues to focus on its growth strategy.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Appoints Doug Wright as New CEO

ATS Corporation has appointed Doug Wright as its new Chief Executive Officer, effective on or before January 14, 2026. Wright, who has extensive leadership experience in the industrial solutions sector, is expected to drive growth and operational excellence at ATS. His previous roles include CEO positions at Indicor and Source Photonics, as well as leadership roles at Honeywell International and United Technologies Corporation. The appointment follows a comprehensive search by ATS’ Board of Directors, and Wright’s customer-centric approach and commitment to continuous improvement align with ATS’s long-term goals. Ryan McLeod will continue as interim CEO until Wright’s arrival, after which he will resume his role as Chief Financial Officer.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation Appoints Doug Wright as New CEO

ATS Corporation has appointed Doug Wright as its new Chief Executive Officer, effective on or before January 14, 2026. Wright brings extensive global experience and a proven track record in driving growth and operational excellence, aligning with ATS’s customer-centric approach and long-term value drivers. His previous roles include CEO positions at Indicor and Source Photonics, as well as leadership roles at Honeywell International and United Technologies Corporation. This leadership change is expected to bolster ATS’s strategic focus and enhance its market positioning.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$41.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Engage with Investors at UBS Conference

ATS Corporation announced the participation of its interim CEO, Ryan McLeod, and interim CFO, Anne Cybulski, in the UBS Global Industrials and Transportation Conference on December 3, 2025, in Manalapan, FL. This engagement reflects ATS’s active involvement in industry events and provides an opportunity to strengthen relationships with institutional investors, potentially impacting its market positioning and stakeholder engagement.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$35.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Engage with Investors at Goldman Sachs Conference

ATS Corporation announced its participation in the Goldman Sachs Industrials and Materials Conference in New York on December 4, 2025. Interim CEO Ryan McLeod and Interim CFO Anne Cybulski will represent the company, engaging with institutional investors. This participation underscores ATS’s commitment to strengthening its industry presence and fostering investor relations, potentially impacting its market positioning and stakeholder engagement.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$35.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Engage with Investors at Scotiabank Conference

ATS Corporation announced that its interim CEO, Ryan McLeod, and interim CFO, Anne Cybulski, will participate in the Scotiabank Transportation & Industrials Conference in Toronto on November 18, 2025. The company will host a fireside chat and conduct institutional investor meetings, emphasizing its active engagement with the investment community. This participation underscores ATS’s commitment to maintaining strong investor relations and highlights its strategic positioning within the automation solutions industry.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Engage with Stakeholders at Scotiabank Conference

ATS Corporation announced that its interim CEO, Ryan McLeod, and interim CFO, Anne Cybulski, will participate in the Scotiabank Transportation & Industrials Conference in Toronto on November 18, 2025. The company will host a fireside chat and institutional investor meetings, highlighting its engagement with stakeholders and commitment to maintaining a strong presence in the automation solutions industry.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.

ATS Corporation to Showcase at Baird 2025 Global Industrial Conference

ATS Corporation announced its participation in the Baird 2025 Global Industrial Conference in Chicago, where interim CEO Ryan McLeod and interim CFO Anne Cybulski will represent the company. This event presents an opportunity for ATS to showcase its capabilities in automation solutions to institutional investors and industry stakeholders, potentially enhancing its market positioning and visibility in the industrial sector.

The most recent analyst rating on (TSE:ATS) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on ATS Corporation stock, see the TSE:ATS Stock Forecast page.