Ats Corporation (TSE:ATS)
TSX:ATS
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ATS Corporation
(TSX:ATS)
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Rating:55Neutral
Price Target:
C$38.00
▼(-15.20% Downside)
Action:Reiterated
Date:06/12/26
The score is driven by decent underlying financial performance supported by a strong 2026 cash-flow rebound and improving leverage, partially offset by uneven profitability. Technicals are the biggest drag with a clear downtrend (below key moving averages and negative MACD), and valuation is also a headwind due to a high P/E. Earnings-call takeaways are modestly positive but tempered by weaker bookings and restructuring-related near-term pressure.
Positive Factors
Free cash flow recovery
A substantial free cash flow rebound improves the firm's ability to fund working capital, reduce net debt, and invest in recurring-service capabilities. Durable cash generation strengthens liquidity and lowers refinancing risk, enabling multi-quarter strategic execution and capital allocation flexibility.
Negative Factors
Profitability volatility
Volatile bottom-line performance and low net margins weaken returns on invested capital and make forecasting earnings durability difficult. This inconsistency can constrain reinvestment, raise required returns for new projects, and leave margins vulnerable to continued cost or mix pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow recovery
A substantial free cash flow rebound improves the firm's ability to fund working capital, reduce net debt, and invest in recurring-service capabilities. Durable cash generation strengthens liquidity and lowers refinancing risk, enabling multi-quarter strategic execution and capital allocation flexibility.
Read all positive factors
ATS Corporation (ATS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.88B
Dividend YieldN/A
Average Volume (3M)343.22K
Price to Earnings (P/E)54.1
Beta (1Y)1.46
Revenue Growth17.36%
EPS GrowthN/A
CountryCA
Employees7,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.74
Shares Outstanding98,106,630
10 Day Avg. Volume430,543
30 Day Avg. Volume343,216
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)2.16
Price to Sales (P/S)1.29
P/FCF Ratio10.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$49.33Price Target Upside10.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.93
Revenue Forecast (FY)C$3.05B
ATS Corporation Business Overview & Revenue Model
Company Description
ATS Corporation, operating globally through its subsidiaries, delivers comprehensive automation solutions. The company's expertise spans the entire lifecycle of automated manufacturing and assembly systems, encompassing planning, design, construct...
How the Company Makes Money
ATS primarily makes money by delivering industrial automation projects and related services to manufacturing customers. Key revenue streams typically include: (1) Project-based revenue from the design and build of custom automation systems, produc...
ATS Corporation Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call communicated tangible operational progress—double-digit full-year growth, improving margins, stronger working capital and leverage metrics, a $2 billion backlog with Life Sciences and Energy momentum, and clear strategic actions to focus the portfolio and grow recurring revenue. However, the tone was tempered by a meaningful YoY decline in Q4 bookings (-18.4%), significant restructuring and one-time charges related to repositioning transportation and embedding services, a near-term revenue step-down (~$50M) from leaving large-scale automotive work, and a modest revenue growth outlook for fiscal '27. Overall, the positives (revenue/earnings growth, backlog quality, margin expansion efforts, cash flow and leverage improvement) slightly outweigh the near-term execution and restructuring headwinds.Positive Updates
Full-Year Revenue and Adjusted Earnings Growth
Full year revenue and adjusted earnings from operations grew approximately 11% year-over-year, reflecting broad execution across the platform.
Negative Updates
Order Bookings Decline
Q4 order bookings were $704 million, down 18.4% YoY, driven in part by several large enterprise orders in the prior period; trailing 12-month book-to-bill was 0.99:1, indicating bookings roughly matched revenue conversion.
Read all updates
Q4-2026 Updates
Positive
Negative
Full-Year Revenue and Adjusted Earnings Growth
Full year revenue and adjusted earnings from operations grew approximately 11% year-over-year, reflecting broad execution across the platform.
Read all positive updates
Company Guidance
Guidance highlights: Q1 revenues are expected at $700–740M and fiscal 2027 is guided to modest revenue growth (this outlook is gross of a transportation step‑down of ~ $50M), with an expected exit‑FY27 improvement in adjusted earnings from operations margin of 50–75 basis points versus FY26 and a longer‑term margin target of 15%; company finished FY26 with ~ $2.0B backlog (Life Sciences $1.1B, 55% of backlog), Energy backlog +40% YoY, and regulated markets (Food & Beverage, Energy, Life Sciences) ~80% of backlog. Q4 metrics: adjusted revenues $744M (+3.2% YoY; organic +1.5%, FX +1.7%), order bookings $704M (−18.4% YoY), trailing 12‑month book‑to‑bill 0.99:1, adjusted earnings from operations $76.8M (+3.4% YoY), adjusted EPS $0.36, gross margin 29.4% (+36bps). Balance sheet and cash metrics: Q4 operating cash flow $149.5M, non‑cash working capital 12.1% of revenues (target ≤15%), net debt/adjusted EBITDA 2.8x (target 2–3x), CapEx and intangibles FY26 $76.7M (Q4 $25.4M) with FY27 CapEx guidance $70–90M. Reorganizations and charges: recorded Q4 costs of $28.3M (transportation), $9.8M (services integration) and $15.2M of restructuring-related costs, expect ~ $5M of restructuring charges in Q1 and an additional $5–10M elsewhere in FY27; stock‑based compensation run‑rate expected to normalize to ~ $5M/quarter.ATS Corporation Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.97B | 2.53B | 2.58B | 2.18B | 1.43B |
| Gross Profit | 850.87M | 646.65M | 725.81M | 612.43M | 384.26M |
| EBITDA | 363.61M | 167.97M | 349.94M | 302.54M | 192.15M |
| Net Income | 71.64M | -28.05M | 127.43M | 122.10M | 64.09M |
Balance Sheet | |||||
| Total Assets | 4.34B | 4.62B | 3.54B | 3.07B | 2.20B |
| Cash, Cash Equivalents and Short-Term Investments | 284.96M | 225.95M | 159.87M | 135.28M | 187.47M |
| Total Debt | 1.44B | 1.70B | 1.26B | 1.10B | 504.78M |
| Total Liabilities | 2.56B | 2.91B | 2.41B | 2.08B | 1.28B |
| Stockholders Equity | 1.78B | 1.71B | 1.13B | 981.60M | 895.26M |
Cash Flow | |||||
| Free Cash Flow | 371.61M | -52.26M | 47.50M | 162.90M | 153.59M |
| Operating Cash Flow | 448.38M | 25.77M | 127.80M | 216.16M | 185.16M |
| Investing Cash Flow | -76.04M | -268.44M | -109.02M | -797.47M | -88.13M |
| Financing Cash Flow | -313.08M | 290.28M | 4.88M | 531.53M | -259.12M |
ATS Corporation Technical Analysis
Negative
44.81
Price Trends
43.27
Negative
42.32
Negative
40.10
Negative
Market Momentum
-1.43
Negative
44.00
Neutral
69.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ATS, the sentiment is Negative. The current price of 44.81 is above the 20-day moving average (MA) of 41.12, above the 50-day MA of 43.27, and above the 200-day MA of 40.10, indicating a bearish trend. The MACD of -1.43 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | C$2.11B | 26.58 | 12.41% | 2.35% | 5.72% | 57.38% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$350.55M | 3.36 | 41.06% | 3.06% | -10.76% | 70.66% | |
59 Neutral | C$1.86B | -16.18 | -13.49% | ― | 45.35% | 73.20% | |
55 Neutral | C$3.88B | 54.12 | 4.08% | ― | 17.36% | ― | |
44 Neutral | C$63.54M | -6.51 | 6908.84% | ― | -79.89% | 25.57% | |
41 Neutral | C$52.98M | -4.13 | 117.66% | ― | -4.59% | -68.97% |
* Industrials Sector Average
TSE:ATS
ATS Corporation
39.54
-2.58
-6.13%
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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.