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ATS Corporation (TSE:ATS)
TSX:ATS
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ATS Corporation
(TSX:ATS)
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Rating:66Neutral
Price Target:
C$41.00
▲(7.75% 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
Strong Revenue Growth
The significant increase in revenue indicates robust demand for ATS's automation solutions, suggesting strong market positioning and potential for sustained growth.
Record Order Backlog
A substantial order backlog ensures future revenue streams, reflecting customer confidence and supporting long-term business stability.
Energy Segment Growth
The growth in the Energy segment, driven by nuclear refurbishment projects, highlights ATS's ability to capitalize on industry trends and expand its market reach.
Negative Factors
Profitability Challenges
Negative profitability metrics suggest operational inefficiencies and cost management issues, potentially impacting long-term financial health.
Weak Cash Flow
Weak cash flow generation limits ATS's ability to invest in growth opportunities and may strain financial flexibility, affecting future operations.
Restructuring Costs
Significant restructuring expenses indicate ongoing operational challenges and may lead to short-term disruptions, impacting profitability.
ATS Corporation (ATS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.69B
Dividend YieldN/A
Average Volume (3M)190.89K
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth-5.59%
EPS Growth-104.09%
CountryCA
Employees7,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.45
Shares Outstanding97,653,244
10 Day Avg. Volume163,690
30 Day Avg. Volume190,888
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)2.66
Price to Sales (P/S)1.47
P/FCF Ratio-66.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$49.50Price Target Upside30.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ATS Corporation Business Overview & Revenue Model
Company DescriptionATS Corporation (ATS) is a leading provider of automation solutions and services, specializing in the design and manufacture of automated manufacturing systems and processes. The company operates primarily in the industrial automation sector, serving a diverse range of industries, including automotive, life sciences, and electronics. ATS offers a comprehensive portfolio of products and services, including custom automation systems, robotics, and consulting services, aimed at enhancing operational efficiency and productivity for its clients.
How the Company Makes MoneyATS 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced performance with strong revenue growth and an increase in adjusted earnings offset by a slight decline in order bookings and increased SG&A expenses. The significant growth in the Energy segment and strong backlog in Life Sciences are positive, while restructuring costs and challenges in lab research funding present concerns.Q2-2026 Updates
Positive Updates
Strong Organic Revenue Growth
Q2 revenues were $729 million, up 19% from Q2 last year, driven primarily by organic growth.
Improvement in Adjusted Earnings
Adjusted earnings from operations in Q2 were $79 million, a 40% increase from the prior year.
Record Order Backlog
Order backlog of approximately $2.1 billion, providing strong revenue visibility.
Energy Segment Growth
Order backlog in Energy was a record $277 million, up 154% over Q2 last year, driven by nuclear refurbishment projects.
Life Sciences Order Backlog
Life Sciences order backlog at quarter end remained strong at $1.1 billion.
Positive Innovation and M&A Activity
Further development of the Illuminate Manufacturing intelligence platform and active M&A funnel.
Negative Updates
Order Bookings Decline Year-Over-Year
Order bookings were $734 million, down 1.1% compared to Q2 last year.
Increased SG&A Expenses
SG&A expenses increased by $14.5 million over the prior year due to incremental SG&A from acquired companies and FX translation impact.
Restructuring Costs
Estimated restructuring costs of approximately $15 million expected in the final half of the fiscal year.
Challenges in Lab Research Funding
Government-funded customers in the lab research space are taking a more measured approach to capital investment.
Company Guidance
During the ATS Corporation's second-quarter conference call for fiscal 2026, the company highlighted significant metrics indicating strong performance and strategic progress. Order bookings for the quarter were $734 million, reflecting a 6% sequential increase. Revenues reached $729 million, marking a 19% rise from the previous year, driven by organic growth and solid service performance. Adjusted earnings from operations totaled $79 million, a 40% increase year-over-year, with a gross margin of 29.9%. The order backlog stood at approximately $2.1 billion, providing strong revenue visibility. Specific sector backlogs included $1.1 billion in Life Sciences, $218 million in Food and Beverage, and a record $277 million in Energy, indicating robust demand across diversified markets. The company maintained a healthy book-to-bill ratio of 1.12:1, and adjusted earnings per share were reported at $0.45. Despite macroeconomic challenges, ATS reaffirmed its guidance for high single-digit revenue growth for the fiscal year and continued adjusted operating margin improvement, supported by strategic initiatives, including a $15 million restructuring plan aimed at enhancing operational efficiency.ATS Corporation Financial Statement Overview
Summary
ATS Corporation faces a challenging financial environment with profitability and cash flow issues. Despite modest revenue growth, profitability metrics are under pressure, and cash flow is weak. The balance sheet remains stable with controlled leverage, but negative returns on equity highlight underlying challenges.Income Statement
ATS Corporation's income statement shows a challenging period with declining profitability. The TTM data indicates a negative net profit margin of -1.11%, reflecting losses. Revenue growth is modest at 1.68% TTM, but gross profit margin has decreased compared to previous years. The EBIT margin is slightly positive at 0.60%, but the EBITDA margin is healthier at 6.63%. Overall, the company faces profitability challenges despite some revenue growth.65
Positive
Balance Sheet
The balance sheet reveals a stable equity position with a debt-to-equity ratio of 0.997, indicating balanced leverage. However, the return on equity is negative at -2.29% TTM, highlighting profitability issues. The equity ratio is not explicitly calculated, but the company's total assets and equity suggest a moderate equity base. While leverage is controlled, the negative ROE is a concern.70
Positive
Cash Flow
Cash flow analysis shows significant challenges, with a negative free cash flow growth rate of -438.11% TTM. The operating cash flow to net income ratio is low at 0.02, indicating weak cash generation relative to earnings. The free cash flow to net income ratio is negative, reflecting cash flow difficulties. Overall, the cash flow situation is concerning, with negative trends in key metrics.75
Positive
| 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
Positive
38.05
Price Trends
36.97
Positive
38.04
Positive
38.41
Negative
Market Momentum
0.11
Negative
59.61
Neutral
85.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATS, the sentiment is Positive. The current price of 38.05 is above the 20-day moving average (MA) of 35.92, above the 50-day MA of 36.97, and below the 200-day MA of 38.41, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 85.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ATS.
ATS Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$1.55B | 27.89 | 10.22% | 2.52% | 3.93% | 33.44% | |
66 Neutral | C$3.69B | -92.61 | -0.27% | ― | -5.59% | -104.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | C$359.40M | -2.71 | -27.70% | 3.09% | -18.71% | -845.27% | |
47 Neutral | C$1.17B | ― | -18.07% | ― | 1.18% | 62.71% | |
43 Neutral | C$41.35M | -3.77 | ― | ― | -6.83% | 46.97% | |
40 Underperform | C$63.54M | -4.86 | -2067.79% | ― | -48.39% | 9.17% |
* Industrials Sector Average
TSE:ATS
ATS Corporation
38.22
-5.83
-13.23%
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ATS Corporation Corporate Events
Business Operations and Strategy
ATS Corporation to Engage with Investors at UBS Conference
Neutral
Nov 24, 2025
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.
Business Operations and Strategy
ATS Corporation to Engage with Investors at Goldman Sachs Conference
Neutral
Nov 24, 2025
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.
Business Operations and Strategy
ATS Corporation to Engage with Investors at Scotiabank Conference
Neutral
Nov 6, 2025
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.
Business Operations and Strategy
ATS Corporation to Engage with Stakeholders at Scotiabank Conference
Neutral
Nov 6, 2025
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.
Business Operations and Strategy
ATS Corporation to Showcase at Baird 2025 Global Industrial Conference
Positive
Oct 30, 2025
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.
Financial Disclosures
ATS Corporation to Announce Q2 2025 Financial Results
Neutral
Oct 27, 2025
ATS Corporation has announced it will release its second quarter financial results for the period ending September 28, 2025, on November 5, 2025, before the market opens. The company will host a conference call and webcast for analysts to discuss the results and provide insights into its operations. This announcement is significant as it provides stakeholders with an opportunity to gauge the company’s financial health and strategic direction in the automation industry.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.